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POSITIONING & DIFFERENTIATING THE MARKET OFFERING THROUGH THE PRODUCT LIFE CYCLE Lecture 9 LEARNING OBJECTIVES How can a firm choose and communicate an effective positioning in the market? What are the major differentiating attributes available to the firms? What marketing strategies are appropriate at each stage of the Product Life Cycle? What marketing strategies are appropriate at each stage of the market’s evolution? POINT? NO company can win if its products and offerings resemble every other product and offering! Today, most company's are guilty of strategy convergence – namely, undifferentiated strategies! Companies must pursue meaningful and relevant positioning & differentiation DEVELOPING & COMMUNICATING A POSITIONING STRATEGY Marketing strategies are built on: Segmentation Targeting Positioning A company identifies the different needs and groups in a market place, targets those needs and groups that it can satisfy in a superior way, and then positions its offerings so that the target market recognizes the company’s distinctive offering and image POSITIONING It is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market Value proposition is the end result of positioning; a reason as to why the target market should buy the product Company & Product Target Customers Benefits Price Value Proposition Nandos – Chicken Quality conscious consumers of chicken Healthy 15% premium Healthy, tender chicken at a moderate premium price Domino’s Pizza Convenience minded pizza lovers Delivery speed and good quality 12% premium Hot, tasty pizza delivered to your door at a moderate price POSITIONING – HOW MANY IDEAS TO PROMOTE How many ideas (benefits / features) to convey in its positioning to its target customers. Most marketers advocate promoting only one. USP Better communication, organizational aligning becomes easier POSITIONING – HOW MANY IDEAS TO PROMOTE Not everyone agrees that single benefit positioning is always the best. Multiple benefit positioning may become more attractive The challenge is to convince the customer that all the benefits are being delivered! POSITIONING ERRORS Under positioning Over positioning Confused positioning Doubtful positioning TYPES OF POSITIONING Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning HOW TO CHOOSE WHICH POSITIONING TO PROMOTE? Customer Competition COMMUNICATING THE POSITIONING STRATEGY To communicate a company or brand positioning, a marketing plan should include a positioning statement This statement should be as follows: To (target group and need) our (brand) is (concept) that (point of difference) E.g. ‘To busy professionals who need to stay organized, Palm Pilot is an electronic organizer that allows you to back up files on your PC more easily and reliably than competitors products’ COMMUNICATING THE POSITIONING STRATEGY Next, the company should communicate that positioning effectively through all the elements of the marketing mix FURTHER DIFFERENTIATION Differentiation is the process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitor’s offering E.g. IKEA DIFFERENTIATION VARIABLES Product Services Personnel Channel Image Form Ordering Ease Competence Coverage Symbols Features Delivery Courtesy Expertise Media Performance Installation Credibility Performance Atmosphere Conformance Customer Training Reliability Durability Customer Consulting Responsiveness Reliability Maintenance Communication & Repair Repairability Style Design Events PRODUCT LIFECYCLE MARKETING STRATEGIES PRODUCT LIFECYCLE MARKETING STRATEGIES PRODUCT LIFECYCLE MARKETING STRATEGIES