Marketing and Product Essay
“Your boss just returned coming from a Senior Executive Workshop for Marketing Directors. This individual explains to you personally that the concentrate of the the workshop was around the importance of the positioning assertion to successful strategy expansion. Full of new-found enthusiasm, he asks one to prepare a brief paper about positioning for board conference.
He desires you to show the importance of positioning technique to business success. Write that paper” Intro STP (Segmentation, Targeting and Positioning) promoting is also named strategic advertising, involves getting correct portion in which to promote your merchandise, identify the correct target market and positioning the product to create maximum profits. The most crucial of STP marketing is definitely determining exactly what benefits the product gives and who will benefit most from using this. STP is important for marketer to create a competitive advantage and marketing program designed especially for the customers who will be probably to buy the item.
The STP process enables marketer to distinguish the correct section to market the product and utilize the marketing mix to maximize revenue. Marketing Strategy: Segmentation, Targeting and Positioning Segmentation, targeting and positioning are essential parts inside the marketing strategy which will help company to advertise their merchandise better making use of the appropriate promoting mix. The subsequent diagram demonstrates the steps and connection between these 3 important strategy that utilized by marketers to market their item efficiently. [pic] Diagram one particular: The main stages in market segmentation, targeting and positioning Supply: Doyle and Stern (2006) Segmentation Market consists of buyers and consumers vary from one another.
The deviation are depends on factors such as resources, would like, buying attitude, locations and buying practice. Segmentation means dividing a market by simply certain criteria such as physical, demographic, psychographic and behavioral. By separating the market, a marketer can certainly identify what kind of segment fits the selected product and large market could be divided into smaller segments which may be managed more proficiently and properly. These requirements or parameters that be taken for segmentation are the following: (1) Geographic Segmentation That refers to location including regions, continent, nation, area size, village, town and the weather.
A company should put interest on variability of geographic needs and wants. (2) Demographic Segmentation It refers to measureable statistics such as income, age, male or female, education, profession, religion, nationality, race, dialect and friends and family size. It’s crucial to consider the demographic factors while defining market strategy. (3) Psychographic Segmentation It refers to a segment of life-style, personality, behaviour and ideals. A section having demographically grouped buyers may will vary psychographic features. (4) Behavioral Segmentation Other than the above, another basis to get segmentation is usually behavioral segmentation.
This is the best segmentation as it uses the variables that basically close to the merchandise itself. Ordering status, obtaining role and user type are the common behavioral segmentation. Some customers are brand loyal; they tend to stay with their preferred brand. Effective segmentation can be achieved once customers posting the related patterns of demand will be grouped with each other, where each group different in the pattern of require from other segments in the market.
Fundamentally, all the following have to be deemed before segmentation: (1) Measureable: Able to evaluate in terms of potential customers in every single segment which means it should be able to tell how many potential clients as well as how many competitors in the same segment. (2) Accessible: In a position to reach picked market focuses on with its specific marketing initiatives which means section should be attainable through any kind of types of communication approach and syndication such as vehicles, distributors and internet. (3) Meaningful: Able to differentiate tastes or demands and show clear variations in market behavior and respond to each designed marketing mixture. (4) Substantive: Able to lead to segments which in turn sufficiently large to be economically and almost served since market objectives with selected marketing mixture. Targeting Following segmentation, the next phase is targeting.
Focusing on is the means of selecting a portion to goal. According to Kotler and Armstrong (2004), the following 3 main strategies that can be used to enter and exploit the sections. (1) Undifferentiated strategies (mass marketing) Generally, targeting can be depending on a lot of factors while the followings: • The existing level of competition and the capability to meet client needs. Placement After segmenting a market and after that targeting a customer, the next procedure is to location a product on the market.
Positioning is all about ‘perception’ and creating the image of the product in customer’s brain. In other words, positioning is about providing the unique selling advantage of the merchandise. Positioning pays to in order to understand what we can offer that the other products are unable to offer. Additionally, the customer’s needs and wants may be satisfied.. A product or service has to have a clear and special image in the mind from the customer.
This is just what positioning makes. Basically, the positioning technique is mainly focusing on the following points: • Offer value to customer with all the competitive benefits, strengths and distinctive competencies. • Market segmentation forms the basis pertaining to focused approaches. • Choosing the unique offering proposition by simply distinguishes your brand from its competitors. • Conduct analysis to examine on inner, market & competitor. Setting is the means of creating, the the product holds in the head of customers about the product. For instance , Gardenia and Federal Bakery the two are in the food handling business industry. Although Federal Bakery may try to compete they are going to still be seen as down market from Gardenia.
Positioning will help customers understand what is unique about the products when compared with the opponents. Gardenia have been positioned based on the process of placement by direct comparison with other competitors just like Italian Baker (Massimo) and Silverbird (Hi-5), and have situated their products to benefit their particular target market. Many people create an image of a item by contrasting it to a new similar product and the image of that has been positioned by the customers about Gardenia is particularly on the variety that they can offers and its healthy materials.
The company can use Point of various (POD) and Point of Parity (PAP) in the work to make a better positioning approach. By using POD and PAP, the company would be able to see the big difference and commonalities between their products and competitor’s brand. It’s important to build the POD but it’s also important to diminish the competition by simply matching it on the TAKE. Using Point of Different (POD) and Level of Parity (PAP) to get Gardenia and it’s rivals in the bakery industry, the result are while shown under: The Importance of Positioning It is necessary for a powerful business to sell itself correct. Through placing, a lot of advertising funds can be saved.
Positioning is about communication in the overall worth proposition that has been created and maintains that to the consumers. In order to be successful, the basic value proposition by the company should be something highly relevant to the target industry and it ought to be differentiated from your competitors. It should also environmentally friendly and disseminated clearly to that particular market. Consequently , differentiation in product, brand or business level is now been recognized as one of the main factor of establishing a stable market positioning.
The distinguishing can be based upon the features or perhaps attributes of the item (actual) or perhaps based on the image of the product (perceived). Differentiation can be done based on a element of the marketing combine. It may require the features of attributes that provides customers even more benefits than the competitor or from the brand unique photo itself. A fantastic and top quality product is not only a guarantee being success in the market.
The most important may be the product has to have a clear and distinctive image in the brain of the customers. This is the reason why positioning needs to be developed. Positioning needs to be managed at every aspect exactly where customers have contact with the corporation mainly in communication and telephonic connection.
This is among the effective ways to prevent any confusion about the product in the mind of the consumers. Positioning assists company to offer a direction to their promoting plan. Just before that, what’s important is a company must develop this core competencies before announce to others what it can offer. [pic] Diagram several: Implementing Picked Image and Appeal to Chosen Part Positioning is very important when the organization wish how it’s goods to be looked at by customers.
From here, the business can decide where this wants to remain competitive and it might be able to remain competitive. The belief from consumers is what consider about certain product. The product competitive edge not only associated with the features and attributes of the merchandise alone, although also associated with it’s identified image. For example , Research In Motion (RIM), the company that produces Blackberry phone features chosen to placement itself because the machine of Qwerty-Key’s smartphone which in turn enable to compose and read the email better.
Consequently, RIM has been doing a lot through it’s advertising to promote the characteristics. The perceived image of the merchandise is very important in case the company wants to compete in the minds of target clients. What consumer believes or perhaps perceives are in reality influence the purchase decision.
A strong manufacturer positioning direct marketing strategy by simply explaining the rand name details, the uniqueness of the trademark and it’s similarity with competitor’s brand in the market. Setting is the standard strategy for growing and improving the knowledge and perception from the customers. For example , Maybelline makeup products represent children and excitement to their goal customers; young girls who trying to find affordable and quality cosmetic makeup products. A systematic placement can make the brand personality and a proper brand photo. The company can increase the business and company profits if the right placement used in all their marketing strategy.
Additionally, it can avoid the company making a wrong setting. There are various setting mistakes just like: (1) Under Positioning Below this scenario, consumers are unable to find the clear concept of the brand. It occurs when the company failed to present a strong central benefits and reason to buy the product. For example , MonaVie Incorporation is the firm that marketplaces a supplement in liquid form called “MonaVie” but many customers do not know what kinds of product that they will be actually providing.
Some clients think that they are selling regular juices. (2) Over Positioning Under this scenario, customers possess a limited knowing of the brand. It happens when the company makes the merchandise too particular for certain band of customers and also other customers may possibly believes that the product is not for them could be because of the higher price or other reasons. For example , ‘Uluwatu”, a clothing brand via Indonesia provides position itself as a premium Indonesian shop although they are usually selling method priced outfits. (3) Confused Positioning Under this scenario, buyers have a confused judgment of the brand.
For the reason that the company believed two or more benefits that contradict each other. For instance , Tutti Frutti claims the company can be serving a wholesome and low-fat frozen yogurt but there are specific topping which can be from a preserved canned fruits that are not really good for health. Which can be more important, the healthy feature or flavor? (4) Skeptical Positioning Beneath this scenario, buyers do not agree to the says of a manufacturer. Customers can doubt for the benefits the brand can in fact deliver. For example , Garnier has market a facial rinse that promises to be effective for making a skin area fairer yet no effective testimonial has been shown so far.
The Approaches in Positing Approach Positioning technique can be produced in thing attributes, app, target consumers and the qualities of the item itself. These factors stand for a different way in producing positioning technique. Once a organization decides what approach to end up being chosen in positioning, it must start to talk the concept to the customer each and every contact level. The following are the approaches to position strategy: (1) Using Item Characteristics or perhaps Customer Benefits The feature of the item or client benefits are the main concentrate in this technique. For example , automobiles are usually highlighted on product characteristic including fuel economy, electric power and other features.
Certain goods are positioned along with more than individual item characteristics at the same time. (2) Employing Pricing Sometimes, customers often relate the price tag on the products and the quality (price-quality). This is the perception that most in the customers understand that high-priced product is as often as you can have a better quality when compared to a cheap one particular. This so-called quality way is important in case the marketer really wants to set a premium image inside their product. (3) Based on Employ or Application In this sort of strategy, the second or third position is usually using to grow the brand’s market.
By simply introducing the modern uses from the product, instantly it will increase the brand market. For example , Milo for many years located itself since an energy beverage other than typical chocolate beverage. (4) Depending on Product Procedure Under this strategy, the product is definitely associated with nearly all people or a category of users. For example , Longines, a watch manufacturer has designated Aishwarya Rai as the product ambassador to formulate a fashion and luxury picture in their brand. In this case, the expectation may be the model or celebrity will certainly influence the product’s picture by reflecting their image which disseminated as a product user. (5) Depending on Product Class Some products require important positioning.
For example , coffee powdered needed to position itself with creamer or condensed dairy. For example , Nescafe has placed itself with the instant other additives. (6) Depending on Logo as well as Symbol Mark or emblem is being used to differentiate their very own brands from all other competitors. Applying and applying trademarks generally follow this kind of positioning. For example , Malaysian Airline’s logo which can be “traditional kites-wau” logo may be recognized by a large number of peoples. (7) Based on competition In this technique, one or more opponents are using as a reference. Quite simply, the identical positioning technique used by the competitors or use a new strategy if you take the competitor’s strategy while the basis.
For example , Celcom offers published a great advertisement that compares their services to competitors just like Maxis and Digi making use of the competitor’s business colors. Manufacturer Positioning: Princess Shoes Probably the most important things in managing a manufacturer positioning can be positively review it with competitor’s brand in the brain of customers in target market. It’s essential for the rand name to talk the key values of the companies the business. “Princess” is the Malaysian company which produces women shoes intended for the medium price marketplace segment. Previously known only as a brand that just sells shoes and boots for low income customers, but today it’s already broadened to channel price industry segment.
Little princess has developed factors such as take great pride in and trend with their item and within just its unique providing proposition. They may be successfully building their own unique company image and reaching their target consumers. Their promoting objective is to reposition it’s brand (from normal sneakers to substantial fashion shoes) and taking new markets. The online strategy aimed to the follows: Examining the promoting mix (the 4Ps) that they are implementing, essentially it’s such as the follows: Goal: Low and medium income women. Bottom line Positioning can be how the marketplace defines the manufacturer in relation while using competitors.
It’s what we called the brand identity. A brand can be described as relationship between company and customers. When we form a relationship, we must show who have we are to our customers. Through positioning, the business should be able to contact the customers properly and proficiently. The constant change in segmentation at times can happen.
Consider broadcasting sector as an example, 15 years ago we have not more than 4 stations, now we have different channels below Astro. Therefore , in certain circumstance, some broadcasting companies need to review and revise their positioning in order to keep on being competitive inside the growing market segments. Even when a marketer entail in the process of choosing a brand brand, create design, develop promotion strategy and define the pricing technique, they have to keep in mind the most crucial above all this are a good positioning. When ever defining a positioning approach, the online marketer should consider how a positioning makes the brand unique and more notably, all the characteristics can be perceived as value added by the target buyers.
For example , if perhaps one sneakers brand is usually hand made by rare household leather, how various customers inside the target market truly would find this as strength (in point of different). In the event they genuinely see this kind of as a exceptional point, it can be used while positioning. In any other case, being distinct cannot deliver any exceptional attraction no value added or benefit to the brand or customers.
Indeed, the effort to branding a product or service is frustrating and placing is just a first step to build a relationship with all the customers. Before start with the brand name positioning, the marketer have to see who also are the competitors that previously in the market ahead of the unique placing can be planned. By calculating the competition, the marketer knows whether the buyers in the target market already satisfied with competitor’s brand or there is certainly any chance for another brand may take advantage of. For instance , if a new brand will likely be marketed although there are your five brands currently in the market, it’s really important for a marketer to think how to be competitive.
Without a strong positioning, the product will be seen as imitator or perhaps copycat rather than a fresh new manufacturer. The competitions allow the buyers to know what they can expect via certain brand. The marketing expert should believe how to remain competitive by displaying the different for the customers in comparison to other related brands in the market. The key is to indicate what the company can offer as “value added” if the competition have related product offerings and know how to overcome all of them if the competition is too substantial.
The purpose of market study is to help the internet marketer to realize what market and potential customers that they will targeted before making an investment. There are varieties of technique that the marketer can use the moment determining setting. The great thing about this is how the comparable product or concept already in the market, the marketer can use a specific positioning strategy and identify the point of different.
For instance , 100 As well as is positioned because an isotonic drink brand focusing on active lifestyle even though the competitor, Surpass (another isotonic drink’s brand) is now placed as “cola flavoured isotonic drink”. They are basically the same products, the base is same which is isotonic drinks, nevertheless each of them are focusing on different positioning that giving them a competitive benefits and one of a kind identity. Having a good product does not guarantee success. Some terrific products failed in the market mainly because they cannot placement themselves effectively. A internet marketer should think about positioning before anything else like style and presentation.
As a bottom line, the placing strategy is essential if a item needs to remain competitive in the market. The that makes in the mind of client will decide whether the item can be sold because that may be one of the reasons ahead of customer make a purchase. By having the comprehensive positioning technique, the company would survive and even more importantly to increase the market discuss and increase the profits.
Bibliography http://en.wikipedia.org http://www.ehow.com/info_8693419_stp-marketing.html Kotler, P., and Armstrong, G. (2004) “Principles of marketing”, 10th edition, And. J., Pearson Education. http://www.managementstudyguide.com/brand-positioning.htm Callin Gilliam(2010) Marketing Segmentation, Targeting and Posistioning, p339 http://www.ivoryresearch.com/nicole-johnson.php