Marketing Presentation

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Marketing @ IIM Lucknow

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Marketing Presentation

  1. 1. What is meant by Product Differentiation? PRODUCT DIFFERENTIATION & POSITIONING
  2. 2. The act of designing Meaningful Differences to distinguish the company’s product /service The Potential maneuverability to differentiate is influenced by the marketing mix elements: Product, Price, Place, Promotion
  3. 3. TVC storyboards > Sunsilk Natural Nourishment Shampoo The shot of a dried up coconut. MVO: " Aksar baalon ko dhone par tel ke saath uske gun bhi mit jaate hain ... ...Naya Sunsilk Natural nourishment shampoo. Yeh aapke Tel ke gunon KO lock kare aur khubsurat baal ...
  4. 4. TVC storyboards > Sunsilk Natural Nourishment Shampoo ... unlock kare ." The hair expert appears and adds, " Isliye jab bhi hair oil lagaayein, sirf ... ...Sunsilk Natural Nourishment ho jaaye ." FVO: "Sunsilk Natural Nourishment Shampoo."
  5. 5. SUNSILK NATURAL SHAMPOO Product Feature: `Tel ke Gun’ Consumer Benefit: Beautiful Hair
  6. 6. <ul><li>Differentiation varies by Type of industry </li></ul><ul><li>Low Product Differentiation: Steel, Cement, bricks </li></ul><ul><li>High Product Differentiation: Furniture, Restaurants </li></ul>High Low Product Differentiation Product Differentiation
  7. 7. Product Differentiation How can a company differentiate a Physical product?
  8. 8. Product Differentiation can be done on the basis of: Form/ Size Fea- tures Perfor- mance Quality Conform- ance Quality Dura- bility Relia- bility Repair- ability Style Design 1 2 3 5 6 7 8 9 10 4 Low, Medium High
  9. 9. PRODUCT FORM : Size, Shape, Physical Structure. EXAMPLES Aspirin: Size of table, capsule or tablet form, coating, color, dosage amount. Nescafe: Granules, Powder, Flakes Mosquito Repellents: Liquid, Solid, Vaporizers
  10. 10. PRODUCT FEATURES Characteristics that supplement the product’s basic function to improve customer satisfaction. They add to incremental customer satisfaction. Ex. Auto on/off devices Ex. Automatic transmission in cars. Feature bundles can be viewed as packages (Optional Add-ons)
  11. 11. Example Samsung Laser King Ad: Differentiation by Product Features
  12. 12. An ad opens with the shot of an empty hall with numerous doors and only a sleek looking device occupying it. A door opens and an Indian pointing out the device to his foreign friends, says &quot;And here we are, no cheaping jets, our laser printer.&quot; Walking out, the four once again return through another door and this time the host explains, &quot;And here we have our fax machine.&quot; Making an exit they enter the same room through a third door and the guide informs, &quot;And in this room we have our colour scanner.&quot; Oblivious of the missing sheep our friend re-enters saying, &quot;And this is our copier&quot; only to stop short on seeing the intruder and look all sheepish. MVO: &quot;Samsung Laser King. Does a lot but won't cost you.&quot; Super: 'Get smart. Get a Samsung Laser’ Samsung Laser Printer
  13. 13. <ul><li>EXAMPLE </li></ul><ul><li>PRODUCT QUALITY DIFFERENTIATION </li></ul><ul><li>Premium Quality Petrol Rs 36/- Premium Price-Premium Quality Brand </li></ul><ul><li>Normal Standard Quality Petrol Rs 34/- Normal Price-Normal Quality Brands </li></ul><ul><li>Premium Quality Petrol Differentiates itself from a cluttered market of Normal Quality-Normal Price Brands </li></ul>
  14. 14. PERFORMANCE QUALITY Level at which the product performs: Premium quality allows a company to charge premium price Ex. Indian oil ad: extra mileage with extra premium oil Performance levels should be designed based on target market appropriateness. CONFORMANCE QUALITY The degree to which the product meets up to required specifications. (ISI Standard, FPO Standard etc.) LOW, MEDIUM, HIGH, SUPERIOR
  15. 15. DURABILITY How long will the product last? Measure of the operating life of the product. RELIABILITY : How many times will the product break down during its operating life? (Malfunctioning) REPAIRABILITY : Ease of repair with standard parts , easily replaced.
  16. 16. STYLING : Aesthetic attractiveness of the product. Ex. Hero Honda Passion (Motor Cycle) Ex. Home appliances DESIGN: What is a well-designed product?
  17. 17. A well designed product is one that is pleasant to look at, easy to operate, use, install, repair. What feature goes where? DESIGN : Refers to the totality of form, features, styling. Ex. Apple’s PC: Does not clutter up the table Packaging as a styling weapon: Ex. Cosmetics, toiletries.
  18. 18. Differentiation through Advertising & Promotion
  19. 19. ADVERTISING Symbols Ex. Company Logos Ads <ul><li>STORE </li></ul><ul><li>ATMOSPHERE </li></ul><ul><li>Company </li></ul><ul><li>Interiors </li></ul><ul><li>Store </li></ul><ul><li>Location </li></ul>Chosen MEDIA PROMOTION Sponsoring Select Events Companies strive hard to develop Distinctive Images by: 1 2 3 4 Example: Pillsbury Atta
  20. 20. VO: &quot; Naya Pillsbury Chakki Fresh Atta. 100% whole wheat. Heart care foundation ka kehena hai ki yeh apke dil ke liye achcha hai .&quot; Product Feature `Chakki Fresh’ Atta Consumer Benefit `Dil ke liye achcha hai’ Product Differentiation through Ad Imagery/Symbols
  21. 21. <ul><li>VO: &quot;Pillsbury. Dil se khao .&quot; Super: &quot; Dil se khao .' </li></ul>
  22. 22. <ul><li>A Company can </li></ul><ul><li>Differentiate </li></ul><ul><li>through: </li></ul><ul><li>Corporate Image </li></ul><ul><li>Brand Image </li></ul>A Distinctive Brand Image has a life of its own
  23. 23. DIFFERENTIATION THROUGH DISTRIBUTION NETWORK <ul><li>COVERAGE INTENSITY: Intensive, Selective or Exclusive Distribution) </li></ul><ul><li>CHANNEL MEMBERS EXPERTISE/ PERFORMANCE </li></ul><ul><li>Training channel members to perform more reliably (Exclusive Distribution) </li></ul><ul><li>Ex. Caterpillar’s superior channel development </li></ul>
  24. 24. Differentiation Through Service Component ? For Standardized Products, Differentiation can be done by the associated services <ul><li>Example </li></ul><ul><li>Consumer Durables </li></ul><ul><li>Machinery/Equipment </li></ul>
  25. 25. Services Differentiation can be done by: Delivery Speed Ordering Ease Customer Consulting Customer Training Industrial Goods ( Ex. Customer Employees) Installation Self Help Instructions Maintenance & Repair Services Long Term Maintenance Contract Longer Warranty Period 1 3 5 2 4 6 For Consumer Durables, Industrial Goods & Equipment, Machinery: Miscellaneous Services
  26. 26. Service Differentiation can be done by: <ul><li>Training Company Personnel </li></ul><ul><li>Ex. Airlines, Banks, Hotels </li></ul>DIFFERENTIATION IN SERVICE STRATEGY Apply the 7 Ps for Service Strategy.
  27. 27. POSITIONING A Product-Brand must be Positioned so that the Differentiation is meaningful in the eyes of the Consumer
  28. 28. What is meant by Positioning? Positioning : … designing the company’s market offering and image to occupy a distinctive place in the the target market’s mind. P 298
  29. 29. <ul><li>It is done on the basis of: </li></ul><ul><li>Positioning on the basis of Product Attributes ( against Competitors) </li></ul><ul><li>Product Attributes/Features that make the brand different from competing brands. </li></ul><ul><li>Positioning on the basis of BRAND IMAGE … the image created in the consumer’s mind . </li></ul><ul><li>You position your product in the consumer’s mind. </li></ul>Ex. Pillsbury `Chakki Fresh Atta” Ex. Captain Cook `Sone Jaisa Gehun’
  30. 30. <ul><li>BASES FOR POSITIONING : Positioning can be done on the basis of: </li></ul><ul><li>Product Attributes (Quality, Price, …) </li></ul><ul><li>Usage Occasions (Summertime drink, Anytime Drink..) </li></ul><ul><li>Market Segment (Children vs Youth Segment) </li></ul>
  31. 31. PRODUCT ATTRIBUTE SPACE MAP Premium Quality Low Quality Office Wear Home Wear Example: Ready to Wear Shirts ?
  32. 32. POSITIONING AND DIFFERENTIATION
  33. 33. The Characteristics of Meaningful Differentiation? Positioning must provide Meaningful Differentiation
  34. 34. Meaningful Differentiation Should be Affordable to Consumer Profitable to Company Superior to Existing Brands Preemptive (Not Easy To Copy) Distinctive Different Benefit Important to Consumer
  35. 35. <ul><li>To be meaningful a differentiation must: </li></ul><ul><li> </li></ul><ul><li>Offer a Distinct Benefit (Different from other Brands) </li></ul><ul><li>The Benefit must be Important to the consumer </li></ul><ul><li>Be Superior to existing brands </li></ul><ul><li>Not be copied easily be competitors </li></ul><ul><li>Be reinforced by a Distinct Brand Image </li></ul>POSITIONING REFERS TO : Making a Market Offering Distinctive in terms of its position versus other market offerings (Other Brands in the market)
  36. 36. EXAMPLES OF POSITIONING THROUGH AD IMAGE `The 45% less fat chocolate’ `The fast moving bank’ `Anti cavity protection’ `Three in one toothpaste’ `Great engineering’ DISTINCTIVE IMAGE DISTINCTIVE BENEFIT Using this Positioning for the Marketing Mix
  37. 37. Positioning as an input To the marketing mix
  38. 38. In what way is Positioning related to the Marketing Mix ? There must be Synergy among the 4Ps: Product Features, Pricing, Ad Image, and Distribution Channels/Retail Outlets selected. Positioning related to the Marketing Strategy The marketing Strategy must be formulated with regard to: Marketing Budget allocations for the Marketing Mix Elements: Distribution, Advertising, Pricing, Product Quality/features. … .Apply the Concept of Synergy….
  39. 39. <ul><li>How many differences (Features/Benefits) should you position on? </li></ul><ul><li>One Benefit </li></ul><ul><li>Two Benefits </li></ul><ul><li>Multiple Benefits ? </li></ul>
  40. 40. <ul><li>IDEALLY </li></ul><ul><li>THE USP: Rosser Reeves Concept : Unique Selling Proposition </li></ul><ul><li>Develop one consistent positioning message </li></ul><ul><li>EXAMPLE </li></ul><ul><li>Best quality… </li></ul><ul><li>Best Service… </li></ul><ul><li>Lowest Price… </li></ul>A Company should select one central Attribute/benefit and stick to it.
  41. 41. <ul><li>DOUBLE BENEFIT POSITIONING : </li></ul><ul><li>May be necessary if two or more firms claim to be best on the same attribute. </li></ul><ul><li>Example Volvo </li></ul><ul><li>Safest car, also the Most durable car </li></ul>
  42. 42. TRIPLE BENEFIT POSITIONING Offering three benefits This requires convincing the consumer that the brand delivers all three benefits EXAMPLE Aquafresh: `Triple benefit toothpaste’
  43. 43. A Brand may some times be: CONFUSED POSITIONING OF A BRAND Too many Benefits or Claims, or When the brand attempts to position in too many segments Example: `Next’ Computer: Was Positioned in both, the Executive segment, Student Segment. UNDER POSITIONING A BRAND : No Clear Benefit Identifiable or When the Benefit is not considered important by the consumer Ex. Allwyn Refrigerators: `Aawaaz Hi nahin karta’ Ex `Crystal Color’ in Pepsi Cola
  44. 44. OVER POSITIONING OF A BRAND : When the Market is too narrowly defined, it can be unprofitable. OVER POSITIONED: (Very small segment, unprofitable)
  45. 45. --- Solving the positioning problem provides a lead into the Marketing Mix.
  46. 46. When do Companies Reposition Their Brands ?
  47. 47. <ul><li>REPOSITIONING </li></ul><ul><li>Becomes necessary due to: </li></ul><ul><li>Declining Profits/Market Share </li></ul><ul><li>Lack of Consistency with consumer’s image and image on product benefits/attributes. </li></ul>
  48. 48. BRAND NAMES <ul><li>Individual Brand Names: Camay </li></ul><ul><li>Umbrella Brand Names: Ponds, Nivea </li></ul><ul><li>Corporate Brand Names: Crompton Greaves </li></ul><ul><li>Dual Brand Names: Usha + Brand Name </li></ul>
  49. 49. <ul><li>BRAND NAMES </li></ul><ul><li>May Be: </li></ul><ul><li>INDIVIDUAL BRAND NAMES </li></ul><ul><li>UMBRELLA /BLANKET FAMILY BRAND NAMES </li></ul><ul><li>When there is: </li></ul><ul><li>Example </li></ul><ul><li>Honda Umbrella Brand for: Cars/Motor Bikes/Lawn Mowers </li></ul><ul><li>Maggi Umbrella brand: Soups Line/ Maggi Noodles Line </li></ul><ul><li>Nivea Umbrella Brand: Cream/Cosmetics </li></ul><ul><li>CORPORATE BRAND NAMES Ex. Kellogg Cereals </li></ul><ul><li>CO-BRANDING Ex. Intel Inside </li></ul>PRODUCT LINE EXTENSION: Different Sizes / Flavors Ex. Heinz Ketchup Line BRAND EXTENSION to Different Product Classes (Product Sub-Categories)
  50. 50. REASON FOR USING AN UMBRELLA BRAND NAME IN A LINE EXTENSION Higher chances of survival than a completely new brand on the market
  51. 51. DUAL BRANDING REASON FOR DUAL BRANDING Capitalizes on the reputation of a Corporate name and Individual Brand Name.
  52. 52. WHAT ARE THE CHARACTERISTICS OF A GOOD BRAND NAME ?
  53. 53. <ul><li>Characteristics of A Good Brand Name It must be : </li></ul><ul><li>Easy to Pronounce/ Remember </li></ul><ul><li> Example: Kodak, Xerox </li></ul><ul><li>Suggestive of Product Attributes/ Benefits. </li></ul><ul><li>Example: Dazzle, Kleenex, Frigidaire, Moov, All-Out… </li></ul><ul><li>(This may degenerate into a Generic Name through common usage) </li></ul><ul><li>Distinctive/Unique Example: Mustang </li></ul>
  54. 54. A Good Brand Name will eventually get associated with the Product Category. Example: Aspirin, Xerox. As a Result, A company may eventually lose exclusive rights to the Brand Name
  55. 55. <ul><li>METHODS OF ACHIEVING BRAND RECOGNITION </li></ul><ul><li>Creative Copy </li></ul><ul><li>Sponsorship of Events: Ex. `Fair & Lovely’ Fourth Umpire </li></ul><ul><li>Own Retail Outlets: Ex. Sony </li></ul><ul><li>Celebrity Spokespersons: Ex. Polio Eradication </li></ul><ul><li>Support Social Causes </li></ul>END

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