Week 4 - Differentiation & Positioning Instructor Kevin W. Brooks Marketing 421 - University of Phoenix

1. MKT 421: Marketing
Workshop 4

2. Famous Last WordsFamous Last Words
“Heavier than air flying machines are impossible.”
– Lord Kelvin, President Royal Society, 1885
“Everything that can be invented has been invented.”
– Charles H. Duell, Director US Patent Office, 1899
“Who the hell wants to hear actors talk?”
– Harry M Warner, Warner Brothers, 1927
“But what is it good for?”
– IBM Engineer, commenting on the microchip in 1968
“The wireless music box has no imaginable commercial value. Who would pay
for a message sent to nobody in particular?”
– Response to David Sarnoff’s funding request for development of the radio

3. Differentiation/PositioningDifferentiation/Positioning

4. What is the #1 Reason Marketers Fail?
Poor Positioning
PositioningPositioning

5. DifferentiationDifferentiation
Question: How do organizations build a competitive advantage?
Answer: By differentiating the marketing mix to meet customers’
needs, it creates the perception that the organization’s position in
the market is uniquely suited to their preferences and needs.

6. No CavitiesNo Cavities
BigBig
BenefitBenefit
WhitenessWhiteness
Family SinglesFamily Singles
Target AudienceTarget Audience
Crest
Colgate
Close-Up
Plotting Your PositionPlotting Your Position

7. SupermarketsSupermarkets
Where It’sWhere It’s
SoldSold
Health FoodHealth Food
StoresStores
Saccharin All NaturalSaccharin All Natural
IngredientsIngredients
Crest
Tom’s of
Maine
Colgate
Close-Up
Plotting Your PositionPlotting Your Position (cont.)(cont.)

8. How can an organization decideHow can an organization decide
which strategy is best?which strategy is best?
Differentiation & Positioning StrategiesDifferentiation & Positioning Strategies

9. 1.) Product
2.) Price
3.) Place
4.) Promotion
How would you Position…?How would you Position…?

10. 4 Levels of Brand Awareness
• Attributes
Quality is job one - FORD
• Benefits
Volvo = Safety
• Values
Refers to lifestyle values
• Personality
Harley Davidson motorcycles
A BRAND is a name, symbol, sign, or design identifyingA BRAND is a name, symbol, sign, or design identifying
the product/service of an individual producer.the product/service of an individual producer.
Characteristics of a BrandCharacteristics of a Brand

11. Most Influential Taglines Since 1948Most Influential Taglines Since 1948
Got Milk? 1993
Don’t Leave Home Without it. 1975
Just do it. 1988
Where’s the beef? 1984
You’re in good hands with Allstate. 1956
Think different.1998
We try harder. 1962
Tastes great, less filling. 1974
Melts in your mouth, not in your hands. 1954

12. Most Influential Taglines Since 1948Most Influential Taglines Since 1948
Takes a licking and keeps on ticking. 1956
When it absolutely, positively must be there
overnight. 1982
Reach out and touch someone. 1979
A diamond is forever. 1948
Finger-lickin’ good. 1952
Let your fingers do the walking. 1964
Please don’t squeeze the Charmin. 1964
Have it your way. 1973
I can’t believe I ate the whole thing. 1966

13. Influences that ShapeInfluences that Shape
Domestic vs. GlobalDomestic vs. Global
Marketing StrategiesMarketing Strategies

14. Environmental Analysis
1. Internal Environment
– Staff, office technology, wages and
finance, etc.
2. Micro-enviroment
– External customers, agents and
distributors, suppliers, and competition,
etc.
3. Macro-environment
– Political forces, economic forces, Socio-
cultural forces and Technological forces
Influences That Shape Global StrategiesInfluences That Shape Global Strategies

15. Political Factors
Have a huge influence on the regulation of businesses, and the
spending power of consumers and other businesses.
Economical Factors
Marketers need to consider the state of a trading economy in
the short and long-terms. Especially true with planning for
international marketing.
Socio-Cultural Factors
Social and cultural influences on a business vary from country
to country.
Technological Factors
Technology is vital for competitive advantage, and is a major
driver of globalization.
Environmental FactorsEnvironmental Factors

16. Political Factors
– How Stable is the political environment?
– Will government policy influence laws that regulate or
tax your business?
– What is the governments position on the economy?
– Does the government have a view on culture and
religion?
– Is the government involved in trading agreements suck
as EU, NAFTA, or others?
Influences That Shape Global StrategiesInfluences That Shape Global Strategies

17. Economic Factors
– Interest rates?
– The level of inflation, employment?
– Long-term prospects for the economy Gross Domestic
Product (GDP)?
Influences That Shape Global StrategiesInfluences That Shape Global Strategies

18. Socio-Cultural Factors
– What is the dominant religion?
– What are the attitudes to foreign products on markets?
– How much time do consumers have for leisure?
– What are the roles of men and women within the
society?
– What is the lifespan of consumers?
– What is the standard of living over previous
generations?
– Does the population have a strong/weak opinion on
green issues?
Influences That Shape Global StrategiesInfluences That Shape Global Strategies

19. Technological Factors
– Does technology allow for products and services to be
made more cheaply and to a better standard of quality?
– Do the technologies offer consumers and businesses
more innovative products and services such as Internet
banking, new generation mobile phones, etc?
– How is the distribution changed by new technologies?
Ie. Books via the Internet, airline tickets, auctions, etc?
Influences That Shape Global StrategiesInfluences That Shape Global Strategies

20. –For Profit
–Not-for-Profit
–Government
Organizational StructuresOrganizational Structures

21. Buyer TypesBuyer Types
–Organizational Buyers
–Consumers

22. – Business to business (B2B)
– Business to consumer (B2C)
– Consumer to consumer (C2C)
– Not-for Profit (N4P)
Business ModelsBusiness Models