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NANDA KISHORE SETHURAMAN ITM NOVEMBER 2011 Introduction to Marketing Strategy
 
PRODUCT LIFE CYCLE
Product Life Cycle
Product Life Cycle
REV Summary of
Objectives for the day <ul><li>Today, we may examine the following questions: </li></ul><ul><ul><li>How is strategic plann...
MARKET-ORIENTED PERSPECTIVES UNDERLIE SUCCESSFUL CORPORATE, BUSINESS, AND MARKETING STRATEGIES
 
<ul><ul><li>Companies often talk about their strategies.  What does  strategy  mean? </li></ul></ul><ul><ul><li>A fundamen...
<ul><li>Scope </li></ul><ul><li>Goals and objectives </li></ul><ul><li>Resource deployments </li></ul><ul><li>Identificati...
Strategic Planning with a Marketing Focus <ul><li>Strategic marketing plan </li></ul><ul><li>Tactical marketing plan </li>...
<ul><li>What do marketers mean when they say their firms are market oriented?  </li></ul>Discussion Questions 1-
<ul><li>Does having a market orientation make sense?  What are the advantages and drawbacks?   </li></ul>Discussion Questi...
Corporate and Division Strategic Planning <ul><li>All corporate headquarters undertake four planning activities </li></ul>...
Defining the Corporate Mission <ul><li>Mission statements define which competitive scopes the company will operate in </li...
Establishing Strategic Business Units (SBUs) <ul><li>Three characteristics of SBUs </li></ul><ul><ul><li>Single business o...
Resource Planning for SBUs <ul><li>SBU Plan </li></ul><ul><ul><li>Integrative Growth </li></ul></ul><ul><ul><li>Diversific...
Strategic Planning for Business Units <ul><li>Marketing Opportunity Analysis (MOA) </li></ul><ul><ul><li>Can the benefits ...
<ul><li>What must marketing managers understand to engage in effective marketing practice? </li></ul>Discussion Questions 1-
<ul><li>Which should come first – the customer need or the product idea?   </li></ul>Discussion Questions 1-
<ul><li>Why do some firms lack orientation towards the market?   </li></ul>Discussion Questions 1-
<ul><li>What sort of decisions must marketing managers make to effectively serve customer needs?  </li></ul>Discussion Que...
 
 
<ul><li>So, if one were to plan the various things to be done to market a new product, what are the basic elements that su...
<ul><li>Are planned results always delivered in most organizations? What else might you want to include?  </li></ul>Discus...
The Marketing Process <ul><li>Steps in the Planning Process </li></ul><ul><ul><li>The marketing process </li></ul></ul><ul...
The Marketing Process <ul><li>Classic Model. </li></ul><ul><li>Is it valid anymore? </li></ul><ul><ul><li>Changing times <...
Factors Influencing Company Marketing Strategy
Contents of a Marketing Plan <ul><li>Executive summary </li></ul><ul><li>Current situation and trends </li></ul><ul><li>Pe...
CORPORATE STRATEGY DECISIONS  AND THEIR MARKETING IMPLICATIONS
<ul><li>1. In defining their strategies, should companies pursue broadly or narrowly defined missions?  </li></ul><ul><li>...
Characteristics of Effective Corporate Mission Statements <ul><ul><li>Source:  Reprinted with permission from p. 43 of  St...
Ansoff Matrix <ul><li>Igor Ansoff says there are four strategies for growing a business.  </li></ul><ul><li>Let’s consider...
Alternative Corporate Growth Strategies 2- <ul><li>Market penetration strategies </li></ul><ul><li>Increase market share <...
The BCG Growth Share Matrix 2- High Low Stars Dogs Question marks 10 0.1 Relative market share Market growth rate (in cons...
Cash Flows Across Businesses in the  BCG Portfolio Model 2- Growth rate (cash use) High Low Stars Cash cows Dogs Question ...
The GE Nine-Cell Matrix 2- 1 Invest/grow 2 Selective investment/ maintain position 3 Harvest/divest Business’s  competitiv...
Factors Affecting the Creation of  Shareholder Value 2- Creating shareholder value <ul><li>Shareholder return </li></ul><u...
Marketing Strategy <ul><li>Should cover the following points. </li></ul><ul><ul><li>Positioning </li></ul></ul><ul><ul><li...
Segmentation, Targeting & Positioning
 
Segmentation , Targeting, Positioning
Learning Goals <ul><li>Learn the three steps of target marketing, market segmentation, target marketing, and market positi...
<ul><li>Sells multiple brands within the same product category for a variety of products </li></ul><ul><li>Brands feature ...
<ul><li>Market Segmentation </li></ul><ul><ul><li>Identify bases for segmenting the market </li></ul></ul><ul><ul><li>Deve...
Segmentation
In other words… <ul><li>A  market segment  is a subgroup of people or organizations sharing one or more characteristics th...
 
<ul><li>Increase marketing efficiency by focusing marketing efforts to a particular group </li></ul><ul><li>Maximize scarc...
Linking Market Need to a Marketing Program
Segmentation Bases
Geographic Segmentation
Blank
Demographic Segmentation
Demographics - Marketing across Generations 1945 1965 1976 1994 Baby Boomers Generation X Generation Y Mature Market
 
Mature Market
Generation X
Generation Y
Behavioral Segmentation
Psychographic Segmentation
Segmenting International Markets
Dell, across the globe
Requirements for Effective Segmentation <ul><li>Size, purchasing power, profiles  </li></ul><ul><li>of segments can be mea...
Market Segmentation Process <ul><li>Determine the characteristics of segments in the target market & separate these segmen...
Segmentation,  Targeting,  Positioning
Target Market
Evaluating Segment Attractiveness
Let’s sell to segments with big eyes and lips
Factors driving a Target Marketing Strategy
Selling Ice Cream to Eskimos
 
Target Marketing Strategies Broad
Target Marketing <ul><li>Socially Responsible Targeting  </li></ul><ul><ul><li>Some segments, especially children, are at ...
Segmentation, Targeting,  Positioning
Positioning <ul><li>Positioning: </li></ul><ul><ul><li>The place the product occupies in consumers’ minds relative to comp...
 
<ul><li>Identifying possible competitive advantages </li></ul><ul><li>Choosing the right competitive advantage </li></ul><...
<ul><li>How many differences to promote? </li></ul><ul><ul><li>Unique selling proposition </li></ul></ul><ul><ul><li>Sever...
<ul><li>Value propositions represent the full positioning of the brand </li></ul><ul><li>Possible value propositions: </li...
<ul><li>Positioning statements summarize the company or brand positioning </li></ul><ul><ul><li>EXAMPLE: To (target segmen...
<ul><li>Companies must be certain to DELIVER their value propositions. </li></ul><ul><li>Positions must be monitored and a...
Market Segmentation Process 1.  Identify Bases for Segmenting the Market 2.  Develop Profiles of Resulting Segments 3.  De...
END OF DAY  1
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Marketing Strategy - Introduction

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Guiding presentation used for the first two sessions of the Marketing Strategy course for Executive MBA in ITM.

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Marketing Strategy - Introduction

  1. 1. NANDA KISHORE SETHURAMAN ITM NOVEMBER 2011 Introduction to Marketing Strategy
  2. 3. PRODUCT LIFE CYCLE
  3. 4. Product Life Cycle
  4. 5. Product Life Cycle
  5. 6. REV Summary of
  6. 7. Objectives for the day <ul><li>Today, we may examine the following questions: </li></ul><ul><ul><li>How is strategic planning carried out at the corporate and division levels? </li></ul></ul><ul><ul><li>How is planning carried out at the business unit level? </li></ul></ul><ul><ul><li>What are the major steps in the marketing process? </li></ul></ul><ul><ul><li>How is planning carried out at the product level? </li></ul></ul><ul><ul><li>What does a marketing plan include? </li></ul></ul><ul><ul><li>Segmenting / Targeting / Positioning </li></ul></ul>
  7. 8. MARKET-ORIENTED PERSPECTIVES UNDERLIE SUCCESSFUL CORPORATE, BUSINESS, AND MARKETING STRATEGIES
  8. 10. <ul><ul><li>Companies often talk about their strategies. What does strategy mean? </li></ul></ul><ul><ul><li>A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors. </li></ul></ul>Discussion Question 1-
  9. 11. <ul><li>Scope </li></ul><ul><li>Goals and objectives </li></ul><ul><li>Resource deployments </li></ul><ul><li>Identification of sustainable competitive advantage </li></ul><ul><li>Synergy </li></ul>Components of Strategy 1-
  10. 12. Strategic Planning with a Marketing Focus <ul><li>Strategic marketing plan </li></ul><ul><li>Tactical marketing plan </li></ul><ul><li>Marketing plan </li></ul>
  11. 13. <ul><li>What do marketers mean when they say their firms are market oriented? </li></ul>Discussion Questions 1-
  12. 14. <ul><li>Does having a market orientation make sense? What are the advantages and drawbacks? </li></ul>Discussion Questions 1-
  13. 15. Corporate and Division Strategic Planning <ul><li>All corporate headquarters undertake four planning activities </li></ul><ul><ul><li>Defining the Corporate Mission </li></ul></ul><ul><ul><li>Establishing Strategic Business Units (SBUs) </li></ul></ul><ul><ul><li>Assigning resources to each SBU </li></ul></ul><ul><ul><li>Planning new businesses, downsizing, or terminating older businesses </li></ul></ul>
  14. 16. Defining the Corporate Mission <ul><li>Mission statements define which competitive scopes the company will operate in </li></ul><ul><ul><li>Industry scope </li></ul></ul><ul><ul><li>Products and applications scope </li></ul></ul><ul><ul><li>Competence scope </li></ul></ul><ul><ul><li>Market-segment scope </li></ul></ul><ul><ul><li>Vertical scope </li></ul></ul><ul><ul><li>Geographical scope </li></ul></ul>
  15. 17. Establishing Strategic Business Units (SBUs) <ul><li>Three characteristics of SBUs </li></ul><ul><ul><li>Single business or collection of related businesses that can be planned for separately </li></ul></ul><ul><ul><li>Has its own set of competitors </li></ul></ul><ul><ul><li>Has a manager who is responsible for strategic planning and profit </li></ul></ul><ul><li>The Growth-Share Matrix </li></ul><ul><ul><li>Relative market share </li></ul></ul><ul><ul><ul><li>Four Cells </li></ul></ul></ul><ul><ul><ul><ul><li>Question Marks </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stars </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cash Cows </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dogs </li></ul></ul></ul></ul><ul><ul><ul><li>SBU Strategies </li></ul></ul></ul><ul><ul><ul><li>SBU Lifecycle </li></ul></ul></ul>
  16. 18. Resource Planning for SBUs <ul><li>SBU Plan </li></ul><ul><ul><li>Integrative Growth </li></ul></ul><ul><ul><li>Diversification Growth </li></ul></ul><ul><ul><li>Downsizing Older Businesses </li></ul></ul><ul><li>Business Mission </li></ul><ul><ul><li>SWOT Analysis </li></ul></ul><ul><ul><ul><li>External Environment Analysis (Opportunity and Threat Analysis) </li></ul></ul></ul><ul><ul><ul><ul><li>Marketing Opportunity </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Buying opportunity more convenient or efficient </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Meet the need for more information and advice </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Customize an offering that was previously only available in standard form </li></ul></ul></ul></ul></ul>
  17. 19. Strategic Planning for Business Units <ul><li>Marketing Opportunity Analysis (MOA) </li></ul><ul><ul><li>Can the benefits be articulated to a target market? </li></ul></ul><ul><ul><li>Can the target market be reached with cost effective media and trade channels? </li></ul></ul><ul><ul><li>Does the company have the critical capabilities to deliver the customer benefits? </li></ul></ul><ul><ul><li>Can the company deliver these benefits better than any actual or potential competitors? </li></ul></ul><ul><ul><li>Will the rate of return meet the required threshold of investment? </li></ul></ul>
  18. 20. <ul><li>What must marketing managers understand to engage in effective marketing practice? </li></ul>Discussion Questions 1-
  19. 21. <ul><li>Which should come first – the customer need or the product idea? </li></ul>Discussion Questions 1-
  20. 22. <ul><li>Why do some firms lack orientation towards the market? </li></ul>Discussion Questions 1-
  21. 23. <ul><li>What sort of decisions must marketing managers make to effectively serve customer needs? </li></ul>Discussion Questions 1-
  22. 26. <ul><li>So, if one were to plan the various things to be done to market a new product, what are the basic elements that such a plan would consist of? </li></ul>Discussion Questions 1-
  23. 27. <ul><li>Are planned results always delivered in most organizations? What else might you want to include? </li></ul>Discussion Questions 1-
  24. 28. The Marketing Process <ul><li>Steps in the Planning Process </li></ul><ul><ul><li>The marketing process </li></ul></ul><ul><ul><ul><li>Analyzing Market Opportunities </li></ul></ul></ul><ul><ul><ul><li>Developing Marketing Strategies </li></ul></ul></ul><ul><ul><ul><li>Planning Marketing Programs </li></ul></ul></ul><ul><ul><ul><li>Managing the Marketing Effort </li></ul></ul></ul><ul><ul><ul><ul><li>Annual-plan control </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Profitability control </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Strategic control </li></ul></ul></ul></ul>
  25. 29. The Marketing Process <ul><li>Classic Model. </li></ul><ul><li>Is it valid anymore? </li></ul><ul><ul><li>Changing times </li></ul></ul><ul><ul><li>Proliferation of new models of distribution </li></ul></ul><ul><ul><li>World is flat </li></ul></ul>
  26. 30. Factors Influencing Company Marketing Strategy
  27. 31. Contents of a Marketing Plan <ul><li>Executive summary </li></ul><ul><li>Current situation and trends </li></ul><ul><li>Performance review (for an existing good or service only) </li></ul><ul><li>Key issues </li></ul><ul><li>Objectives </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Action plans </li></ul><ul><li>Projected profit-and-loss statement </li></ul><ul><li>Controls </li></ul><ul><li>Contingency plans </li></ul>1-
  28. 32. CORPORATE STRATEGY DECISIONS AND THEIR MARKETING IMPLICATIONS
  29. 33. <ul><li>1. In defining their strategies, should companies pursue broadly or narrowly defined missions? </li></ul><ul><li>2. What are the advantages of each approach? </li></ul>Discussion Questions 2-
  30. 34. Characteristics of Effective Corporate Mission Statements <ul><ul><li>Source: Reprinted with permission from p. 43 of Strategy Formulation: Analytical Concepts, by C. W. Hofer and D. Schendel. Copyright © by West Publishing Company. All rights reserved . </li></ul></ul>Broad Specific Functional Based on customer needs Transportation business Long-distance transportation for large-volume producers of low-value, low-density products Physical Based on existing products or technology Railroad business Long-haul, coal carrying railroad
  31. 35. Ansoff Matrix <ul><li>Igor Ansoff says there are four strategies for growing a business. </li></ul><ul><li>Let’s consider their merits and drawbacks. </li></ul>2-
  32. 36. Alternative Corporate Growth Strategies 2- <ul><li>Market penetration strategies </li></ul><ul><li>Increase market share </li></ul><ul><li>Increase product usage </li></ul><ul><li>Increase frequency of use </li></ul><ul><li>Increase quantity used </li></ul><ul><li>New applications </li></ul><ul><li>Product development strategies </li></ul><ul><li>Product improvements </li></ul><ul><li>Product-line extensions </li></ul><ul><li>New products for same </li></ul><ul><li>market </li></ul><ul><li>Market development strategies </li></ul><ul><li>Expand markets for existing products </li></ul><ul><li>Geographic expansion </li></ul><ul><li>Target new segments </li></ul><ul><li>Diversification strategies </li></ul><ul><li>Vertical integration </li></ul><ul><li>Forward/backward integration </li></ul><ul><li>Diversification into related bus (concentric diversification) </li></ul><ul><li>Diversification into unrelated businesses (conglomerate diversification) </li></ul>Current products New products Current markets New markets
  33. 37. The BCG Growth Share Matrix 2- High Low Stars Dogs Question marks 10 0.1 Relative market share Market growth rate (in constant dollars) 10% 1 Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977). 5 6 9 8 7 Cash cows 4 10 13 1 2 3 11 12
  34. 38. Cash Flows Across Businesses in the BCG Portfolio Model 2- Growth rate (cash use) High Low Stars Cash cows Dogs Question marks High Low Relative market share Desired direction of business development Cash Flows
  35. 39. The GE Nine-Cell Matrix 2- 1 Invest/grow 2 Selective investment/ maintain position 3 Harvest/divest Business’s competitive position High Low Medium Industry attractiveness High Medium Low 1 1 2 1 2 3 2 3 3
  36. 40. Factors Affecting the Creation of Shareholder Value 2- Creating shareholder value <ul><li>Shareholder return </li></ul><ul><li>Dividends </li></ul><ul><li>Capital gains </li></ul>Corporate objective <ul><li>Sales growth </li></ul><ul><li>Operating profit margin </li></ul><ul><li>Income tax rate </li></ul>Discount rate Debt Operating Cash flow from operations Investment Financing <ul><li>Working capital investment </li></ul><ul><li>Fixed capital investment </li></ul><ul><li>Cost of capital </li></ul><ul><li>Value growth duration </li></ul>Valuation components Value drivers Management decisions <ul><ul><li>Source: Reprinted with permission of The Free Press, A Division of Macmillan, Inc., from Crating Shareholder Value by Alfred Rappaport. Copyright © 1986 by Alfred Rappaport. </li></ul></ul>2-11
  37. 41. Marketing Strategy <ul><li>Should cover the following points. </li></ul><ul><ul><li>Positioning </li></ul></ul><ul><ul><li>Product Management </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Marketing Communications </li></ul></ul><ul><ul><li>Marketing Research </li></ul></ul>
  38. 42. Segmentation, Targeting & Positioning
  39. 44. Segmentation , Targeting, Positioning
  40. 45. Learning Goals <ul><li>Learn the three steps of target marketing, market segmentation, target marketing, and market positioning </li></ul><ul><li>Understand the major bases for segmenting consumer and business marketing strategy </li></ul><ul><li>Know how companies identify attractive market segments and choose target marketing strategy </li></ul><ul><li>Realize how companies position their products for maximum competitive advantage in the marketplace </li></ul>7 -
  41. 46. <ul><li>Sells multiple brands within the same product category for a variety of products </li></ul><ul><li>Brands feature a different mix of benefits and appeal to different segments </li></ul><ul><li>Has also identified different niches within certain segments </li></ul><ul><li>Product modifications are useful: Tide offers seven different product formulations to serve different niches’ needs </li></ul>Case Study - Procter & Gamble 7 -
  42. 47. <ul><li>Market Segmentation </li></ul><ul><ul><li>Identify bases for segmenting the market </li></ul></ul><ul><ul><li>Develop segment profiles </li></ul></ul><ul><li>Target Marketing </li></ul><ul><ul><li>Develop measure of segment attractiveness </li></ul></ul><ul><ul><li>Select target segments </li></ul></ul><ul><li>Market Positioning </li></ul><ul><ul><li>Develop positioning for target segments </li></ul></ul><ul><ul><li>Develop a marketing mix for each segment </li></ul></ul>Steps in market segmentation, targeting and positioning 7 -
  43. 48. Segmentation
  44. 49. In other words… <ul><li>A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. </li></ul><ul><ul><li>it is distinct from other segments (heterogeneity across segments) </li></ul></ul><ul><ul><li>it is homogeneous within the segment (exhibits common attributes) </li></ul></ul><ul><ul><li>it responds similarly to a market stimuli </li></ul></ul><ul><ul><li>it can be reached by a market intervention </li></ul></ul>
  45. 51. <ul><li>Increase marketing efficiency by focusing marketing efforts to a particular group </li></ul><ul><li>Maximize scarce marketing resources </li></ul><ul><li>Find a market with limited competition </li></ul><ul><li>Select the most profitable segment </li></ul>Purpose
  46. 52.
  47. 53. Linking Market Need to a Marketing Program
  48. 54. Segmentation Bases
  49. 55. Geographic Segmentation
  50. 56. Blank
  51. 57. Demographic Segmentation
  52. 58. Demographics - Marketing across Generations 1945 1965 1976 1994 Baby Boomers Generation X Generation Y Mature Market
  53. 60. Mature Market
  54. 61. Generation X
  55. 62. Generation Y
  56. 63. Behavioral Segmentation
  57. 64. Psychographic Segmentation
  58. 65.
  59. 66. Segmenting International Markets
  60. 67. Dell, across the globe
  61. 68. Requirements for Effective Segmentation <ul><li>Size, purchasing power, profiles </li></ul><ul><li>of segments can be measured. </li></ul><ul><li>Segments must be effectively </li></ul><ul><li>reached and served. </li></ul><ul><li>Segments must be large or profitable enough to serve. </li></ul>Measurable Accessible Substantial Differential Actionable <ul><li>Segments must respond differently to different marketing mix elements & actions. </li></ul><ul><li>Must be able to attract and serve the segments. </li></ul>
  62. 69. Market Segmentation Process <ul><li>Determine the characteristics of segments in the target market & separate these segments in the market based on these characteristics. </li></ul><ul><li>Verify the market segments size if adequate enough to support the organization's product. </li></ul><ul><li>Develop a marketing strategy to target this market. </li></ul>
  63. 70. Segmentation, Targeting, Positioning
  64. 71. Target Market
  65. 72.
  66. 73. Evaluating Segment Attractiveness
  67. 74. Let’s sell to segments with big eyes and lips
  68. 75. Factors driving a Target Marketing Strategy
  69. 76. Selling Ice Cream to Eskimos
  70. 78. Target Marketing Strategies Broad
  71. 79. Target Marketing <ul><li>Socially Responsible Targeting </li></ul><ul><ul><li>Some segments, especially children, are at special risk </li></ul></ul><ul><ul><li>Many potential abuses on the Internet, including fraud Internet shoppers </li></ul></ul><ul><ul><li>Controversy occurs when the methods used are questionable </li></ul></ul>7 -
  72. 80. Segmentation, Targeting, Positioning
  73. 81. Positioning <ul><li>Positioning: </li></ul><ul><ul><li>The place the product occupies in consumers’ minds relative to competing products. </li></ul></ul><ul><ul><li>Typically defined by consumers on the basis of important attributes. </li></ul></ul><ul><ul><li>Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. </li></ul></ul><ul><ul><li>Positioning maps that plot perceptions of brands are commonly used. </li></ul></ul>7 -
  74. 83. <ul><li>Identifying possible competitive advantages </li></ul><ul><li>Choosing the right competitive advantage </li></ul><ul><li>Choosing a positioning strategy </li></ul><ul><li>Differentiation can be based on </li></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><li>Channels </li></ul></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Image </li></ul></ul>Choosing a Positioning Strategy 7 - Topics
  75. 84. <ul><li>How many differences to promote? </li></ul><ul><ul><li>Unique selling proposition </li></ul></ul><ul><ul><li>Several benefits </li></ul></ul><ul><li>Which differences to promote? Criteria include: </li></ul><ul><ul><li>Important </li></ul></ul><ul><ul><li>Distinctive </li></ul></ul><ul><ul><li>Superior </li></ul></ul><ul><ul><li>Communicable </li></ul></ul><ul><ul><li>Preemptive </li></ul></ul><ul><ul><li>Affordable </li></ul></ul><ul><ul><li>Profitable </li></ul></ul><ul><li>Identifying possible competitive advantages </li></ul><ul><li>Choosing the right competitive advantage </li></ul><ul><li>Choosing a positioning strategy </li></ul>Choosing a Positioning Strategy 7 - Topics
  76. 85. <ul><li>Value propositions represent the full positioning of the brand </li></ul><ul><li>Possible value propositions: </li></ul><ul><ul><li>More for More </li></ul></ul><ul><ul><li>More for the Same </li></ul></ul><ul><ul><li>More for Less </li></ul></ul><ul><ul><li>The Same for Less </li></ul></ul><ul><ul><li>Less for Much Less </li></ul></ul><ul><li>Identifying possible competitive advantages </li></ul><ul><li>Choosing the right competitive advantage </li></ul><ul><li>Choosing a positioning strategy </li></ul>Choosing a Positioning Strategy 7 - Topics
  77. 86. <ul><li>Positioning statements summarize the company or brand positioning </li></ul><ul><ul><li>EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference) </li></ul></ul>Developing a Positioning Statement 7 -
  78. 87. <ul><li>Companies must be certain to DELIVER their value propositions. </li></ul><ul><li>Positions must be monitored and adapted over time. </li></ul>Communicating the Positioning 7 -
  79. 88. Market Segmentation Process 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Measures of Segment Attractiveness 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation
  80. 89. END OF DAY 1

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