MARKETING STRATEGY

Developing a vision about the market(s) of interest to

the organization, selecting market target strategies,
setting objectives, developing, implementing, and
managing the marketing program positioning
strategies designed to meet the value requirements of
the customers in each market target .

The issues discussed in the area of

differentiating and Positioning the
market offering are:

•Tools for Competitive Differentiation

•Developing a Positioning Strategy
•Communicating the Company’s Positioning
Tools for Competitive Differentiation
Differentiation - Definition: is the act of designing a
set of meaningful differences to distinguish the
company's offering from competitor's offerings.
 
- It helps the firm fight on non price plank.
- It can be achieved through difference in
product, distribution methods ,promotion steps,
plant location or after sales service.
-Example –Eureka Forbes used personal selling ;
the sole way to reach its customer and built up
distinction through it .Where as COKE & PEPSI
differentiated through brand power ,Apple ,Microsoft
are some more examples .
According to
KOTLER’S view
companies differ in
five categories i.e.

•Target market
•Product
•Place (channels)
•Promotion
•Price.
Five Dimensions of
Differentiation
 
Regarding the tools of differentiation,
five dimensions can be utilized to
provide differentiation.
 
• Product

• Services that accompLISH

any marketing, sales and
after sales services.

• Personnel that interact with

The customer

• Channel

• Image
Differentiating a Product
 
Features
 
Quality:  performance and
conformance
Performance - the performance of the
prototype or the exhibited sample,
Conformance - The performance of
every item made by the company
under the same specification.
 
Durability/Reliability
Product quality/service/technology
Packaging
Style
Design
Services differentiation
 

•Ordering ease
•Delivery
•Installation
•Customer training
•Customer consulting
•Miscellaneous services
Personnel
Differentiation 
•Competence
•Courtesy
•Credibility
•Reliability
•Responsiveness
•Communication
Channel
differentiation 
• Coverage

•Expertise of the
channel managers

•Performance of
the channel in ease
of ordering, service
and personnel
Image differentiation 
First distinction between Identity and Image - Identity is designed by the
company and through its various actions company tries to make it known to
the market.
 
Image is the understanding and view of the market about the company.
 
An effective image does three things for a product or company.
 
1. It establishes the product's planned character and value proposition.
2. It distinguishes the product from competing products.
3. It delivers emotional power and stirs the hearts as well as the minds
of buyers.
 
The identity of the company or product is communicated to the market by
• Symbols
• Written and audiovisual media
• Atmosphere of the physical place with which customer comes
into contact
• Events organized or sponsored by the company.
 Developing a Positioning Strategy
Positioning  is the result of differentiation decisions. It is the act of
designing the company's offering and identity (that will create a
planned image) so that they occupy a meaningful and distinct
competitive position in the target customer's minds.
While positioning a Brand ,the firm has to reckon competitors –
Especially the leader’s –positioning .Example –

XEROX with photocopying ,COLGATE with toothpaste ,CADBURY

with chocolates ..these have created a dominant position in market
and any new competitor has to relate themselves in some way with
the market leader .

While a company can create many differences, each difference created has a cost
as well as consumer benefit. A difference is worth establishing when the benefit
exceeds the cost. More generally, a difference is worth establishing to the extent
that it satisfies the following criteria.
Important: The difference delivers a highly valued
benefit to a sufficient number of buyers.
 
 Distinctive: The difference either isn't offered by others or is offered
in a more distinctive way by the company.

 Superior: The difference is superior to the ways of obtaining the

same benefit.

 Communicable: The difference is communicable and visible to

the buyers.

 Preemptive: The difference cannot be easily copied by competitors.

 Affordable: The buyer can afford to pay the higher price

 Profitable: The Company will make profit by introducing the difference

How many differences to promote? 
Many marketers advocate promoting only one benefit in the market
(Your market offering may have many differentiators, actually should
have many differentiators in product, service, personnel, channel, and
image).
 
Kotler mentions that double benefit promotion may be necessary, if
some more firms claim to be best on the same attribute. Kotler gives the
example of Volvo, which says and "safest" and "durable".
 
.Four major positioning errors

1. Under positioning : Market only has a vague idea of the product. FLYING CARS
2. Over positioning : Only a narrow group of customers identify with
the product. APPLE’S I-PAD
3. Confused positioning : Buyers have a confused image of the product as it claims too
many benefits or it changes the claim too often.
CHINESE PRODUCTS
4. Doubtful positioning : Buyers find it difficult to believe the brand’s claims in view of
the product’s features, price, or manufacturer.
KARBONN MOBILES OR LAVA.
Different positioning strategies
or themes 
1. Attribute positioning: The message highlights
one or two of the attributes of the product.
2. Benefit positioning:  The message highlights
one or two of the benefits to the customer.
3. Use/application positioning: Claim the product
as best for some application.
4. User positioning: Claim the product as best for
a group of users. - Children, women, working
women etc.
5. Competitor positioning: Claim that the product
is better than a competitor.
6. Product category positioning: Claim as the best
in a product category Ex: Mutual fund ranks –
Lipper.
7. Quality/Price positioning: Claim best value for
price
 Communicating the Company’s Positioning
• In consumer markets positioning strategy is mainly communicated
through “ADVERTISING”.

• In industrial markets the communication of positioning strategy can be done

through personal selling ,sales promotion and advertising .

• The implementation of the total quality management is important for a company so

that all the activities like submission of quotations, sales presentations, negotiations,
packing, dispatch, installations and after sales service display a superior quality in
comparison to that of the competitor’s.

• The industrial marketer should find out customer’s perceptions through an

independent marketing research agency before deciding on the positioning strategy
 QUERIES

PRAGATI BINDAL - 1690

SAMARTH SHARMA - 1712
SUNNY SHARMA - 1718
MRIDUL AGARWAL - 1741