Download - 2a Pillars of Marketing STPD
Prof. Vikram Parekh on Marketing Strategy
STPD Strategies
Pillars of marketing
Prof. Vikram Parekh on Marketing Strategy
Identifying MarketSegments and
Targets
Prof. Vikram Parekh on Marketing Strategy
Segment Marketing
Targeting a group of customers
who share a similar set of
needs and wants.
Prof. Vikram Parekh on Marketing Strategy
Customerization
Combines operationally driven
mass customization with customized
marketing in a way that empowers
consumers to design the
product and service offering
of their choice.
Prof. Vikram Parekh on Marketing Strategy
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
Prof. Vikram Parekh on Marketing Strategy
Bases of segmentation
1. Geographic region, city, density, climate
2. Demographic age, sex, marital status, family size, income
3. Psychological need-motivation, personality, perception, attitude
4. Psychographic lifestyle
5. Socio-cultural culture, religion, language, family life-cycle
6. Use-related usage rate, awareness status, brand loyalty
7. Use-situation time, objective, location, person
8. Benefit
9. Hybrid mix of other bases of segmentation
Prof. Vikram Parekh on Marketing Strategy
Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
Prof. Vikram Parekh on Marketing Strategy
Behavioral Segmentation
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude
Prof. Vikram Parekh on Marketing Strategy
Behavioral Segmentation Breakdown
Prof. Vikram Parekh on Marketing Strategy
Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
Prof. Vikram Parekh on Marketing Strategy
Patterns of Target Market Selection
Prof. Vikram Parekh on Marketing Strategy
Figure 8.6 Patterns of Target Market Selection
Prof. Vikram Parekh on Marketing Strategy
Figure 8.6 Patterns of Target Market Selection
Prof. Vikram Parekh on Marketing Strategy
Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
Prof. Vikram Parekh on Marketing Strategy
Introduction
In 2004, HLL (Now HUL) was the largest FMCG company in India. It was present in many segments. HUL is a highly consumer-focused company with different brands catering to different consumer segments with different needs and purchasing power
Surf high-end consumers
Rin mid-market segment
Wheel lower end market
Axe men
Ponds & Rexona women
Elle 18 (Laxme) early teens & young adults
Sunsilk (shampoo) hair expert
Clinic plus healthy hair (anti-dandruff)
Prof. Vikram Parekh on Marketing Strategy
Defining market segmentation
• The process of dividing the market on various criteria like age, sex, region, culture, etc.
• Segmentation can take place at various levels –
– Segment marketing: dividing the market into large homogeneous segments on the basis of variables like common needs, purchasing power, region, or age. Lakmecosmetics, for e.g., caters to the basic need of women to look good
– Niche marketing: is a specialized market segment, niches are quite small and have much less competition. E.g., magazines targeted at specific sports like golf (Golf Digest)
– Local marketing: involves customizing the global products to suit local tastes. E.g., McDonald’s McAloo Tikki and McVeggie
– Individual marketing: is the highest level of customization, where each product or service is tailor-made for an individual consumer. E.g., designer cars by Dilip Chabria (DC)
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Market segmentation strategies• Concentration strategy: marketer chooses to target
a single segment. This strategy has high risk but it can bring benefits due to economies of scale from using only one marketing mix. E.g., volkswagen, which concentrates only on the small car segment
• Selective segmentation: pursuing unrelated but commercially promising segments which diversify the firm’s risk. A separate marekting mix is formulated for each segment. E.g., Living Media India Ltd. Which is an magazine business (India Today and Business Today), news channel (Aaj Tak), music (Music Today), art (Art Today), bookds (Book Club), etc
• Product specialization: to specialize in one product only and sell it to various segments. E.g., Nokia, which is a mobile-phone marketer, and caters to a large variety of segments
• Market specialization: focuses on one consumer segment and serves all its needs. Although the products are different, only a single segment is being catered. E.g., Johnson & Johnson – for babies
Prof. Vikram Parekh on Marketing Strategy
Market segmentation strategies• Full market coverage: big marketers have the
resources to cater to the full market. The two strategies which can be adopted for this purpose are –
– Differentiated marketing strategy for each segment (separate marketing mix for each segment) e.g., Coca-Cola’s full range of products: Kinley (bottled mineral water); Georgia (hot & cold coffee and flavored tea); Sprite (colorless carbonated cold drink); Thumps up, Vanilla Coke and Coke (Carbonated black cold drink); Mazaa (Mango drink) and Kinley club soda
– Undifferentiated marketing strategy (targeting multiple segments with one marketing mix). This method is profitable if resources are used more efficiently. It is a mass marketing approach where the whole market is treated as a sing market. For most basic necessitates, an undifferentiated marketing strategy is adopted
Prof. Vikram Parekh on Marketing Strategy
Market segmentation strategies
• Counter-segmentation: club all the segments together and formulate a common marketing mix. The need for such a strategy might also arise in case the marketers initially had divided the potential consumers in too many micro segments which led to a diffused focus and drain on resources with lower returns. E.g., marketers of personal care products, find that people are not buying shampoos on the basis of hair types and its products in many segment like shiny, curly, silky etc. are not selling well. as most people buying shampoos on the basis of just cleanliness and bounce, the marketer might consider a counter segmentation strategy can come out of unnecessary niches
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Marketing Debate
Is mass marketing dead?
Take a position:
1. Mass marketing is dead.
2. Mass marketing is still a viable way
to build a profitable brand.
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Positioning
S T P D
Prof. Vikram Parekh on Marketing Strategy
Positioning
The Idea that each Brand
if at all noticed
occupies a particular point of space
in the individual customer’s mind
A point which is determined by the consumers
perception of the brand in question
and in relation to other brands
Prof. Vikram Parekh on Marketing Strategy
Positioning
It is this concept of Perceptual space
that forms the theoretical basis for
Brand Positioning
The Concept of Perceptual Mapping
and Perceptual Space
Prof. Vikram Parekh on Marketing Strategy
Perceptual Mapping
Techniques that use consumer perceptions to identify similarities and differences between
brands.
Produces a visual representation of how the target market views competing alternatives.
Prof. Vikram Parekh on Marketing Strategy
Positioning
Is the essence of the Brand in terms of its functional and non functional attributes
as Judged by the customers
In a Product Class
In relation to its competitors products
Benefits offered
Prof. Vikram Parekh on Marketing Strategy
In order to Position a BrandYou must decide
– Who the Target Consumer is
– Who your main competitors are
– How the Brand is similar to your competitors
(POP)
– How the Brand is different from you competitors (POD)
Prof. Vikram Parekh on Marketing Strategy
POP and POD
Category attributes:that are required to include your product as a
member of that categoryPOP
Competitive: PODs that negate your competitors PODs
POPs can be “good enough”, but PODs should be “superior
Prof. Vikram Parekh on Marketing Strategy
A well crafted brand position has three
primary components:
Prof. Vikram Parekh on Marketing Strategy
Positioning
Positioning is what you do to the mind of the consumer
Prof. Vikram Parekh on Marketing Strategy
Positioning
The Position of a Brand is its Perception among target
consumers
This perception is based on the Functional attributes of the
Brand Tasty, Aromatic, Sporty
Also it is dependent on the Non Functional Emotional
association Modern, Contemporary, Traditional
It is Relative to the perception held by that consumer, of the
competing brands, all of which can be represented as points
or positions in his perceptual space and together, make up
the product class
Prof. Vikram Parekh on Marketing Strategy
Positioning Building Blocks
COMPETITORS
BENEFIT
Prof. Vikram Parekh on Marketing Strategy
Brand Position
How a brand is perceived by a target audience so that it is distinguished
from competition as being the best at satisfying a particular need
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
7 UP
7 UP USED AS A MIXER WITH HARD DRINKS.
HAD STEADY SALES BUT NOTHING AS COMPARED TO A SOFT DRINK.
HENCE, WANTED TO POSITION ITSELF AS A SOFT DRINK LIKE COKE AND PEPSI.
Prof. Vikram Parekh on Marketing Strategy
SO HERE COMES
‘UN’ COLA
Prof. Vikram Parekh on Marketing Strategy
THE UN COLA
DRINK
Prof. Vikram Parekh on Marketing Strategy
Prof. Vikram Parekh on Marketing Strategy
Asian Paints and Hutch
Prof. Vikram Parekh on Marketing Strategy
Positioning Bases
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Emotion
Prof. Vikram Parekh on Marketing Strategy
Developing and Communicating a Positioning Strategy
• Attribute positioning
• Benefit positioning
• Use or application positioning
• User positioning
• Competitor positioning
• Product category positioning
• Quality or price positioning
Which Positioning to Promote?
Prof. Vikram Parekh on Marketing Strategy
Some Positioning Strategies
Raymonds complete man
Prof. Vikram Parekh on Marketing Strategy
Some Positioning Strategies
Coke vs Pepsi Liril
Prof. Vikram Parekh on Marketing Strategy
Honda
Amul
Prof. Vikram Parekh on Marketing Strategy
Category performance - Toothpaste
Prof. Vikram Parekh on Marketing Strategy
Positioning strategies
By Price/ Quality Nirma
By Competitor Avis
By Usage Burnol / Dettol
By product User Red & White
By Product Class Bata
Prof. Vikram Parekh on Marketing Strategy
Positioning by attribute
Functional value…………..Liril uses Freshness
Ingredient………………….Promise with clove oil / Closeup with Gel
Additional features………..VIP Luggage with 360” wheelers
Packaging………………….Frooti in Tetra pack
Product Design……………Kinetic Honda with self-start ignition
Quality/Technology……….Cross Pens offer lifelong warranty
Prof. Vikram Parekh on Marketing Strategy
Benefit Positioning
A research into toothpaste marketing revealed the following benefits relevant to toothpaste users:
Economy………….those looking for low price
Cosmetic………….those who want white, bright teeth
Taste………………those to whom taste is important
Medicinal………….those who are concerned about tooth decay or prevention
Prof. Vikram Parekh on Marketing Strategy
Lintas on Positioning
The lifelong plywood
The fun shoe polish
The freshness soap
The health soap
The gentle soap
Kitply
Cherry Blossom
Liril
Lifebuoy
Pears
Since positioning represents the ‘slot’ the brand occupies in the consumers
mind,The best way to define a particular positioning slot is to use 3 or 4 words.
Prof. Vikram Parekh on Marketing Strategy
Some famous positioning statements
Titan Quartz, the international watch you can pay for in rupees
Four Square…Live life king size.
TVS Suzuki…Fill it, shut it, forget it.
Savlon…Yeh jale ga nahin
Forhans…Yeh jhag wala hai
Avis…We are No.2, but try harder
Maggi Noodles…bus do minute
Prof. Vikram Parekh on Marketing Strategy
Developing and Communicating a Positioning Strategy
Communicating the Company’s Positioning
Positioning statement• More car per car……….TATA Indica V2
• Spoil yourself…………..TATA Indigo
• Lets make things better……Philips
• For a special journey called life…..Chevrolet
• The difference is German engineering….Corsa
• Express yourself……Airtel
• For Managing Tomorrow…..Business Today
Prof. Vikram Parekh on Marketing Strategy
Generic format for positioning statements
For (target market)(brand) is the
(concept) that
(point of difference).
Prof. Vikram Parekh on Marketing Strategy
Diet Coke
Prof. Vikram Parekh on Marketing Strategy
Diet Coke
To weight conscious adults ( target )
Diet Coke is the brand of diet cola ( category )
that tastes best ( benefit )
Prof. Vikram Parekh on Marketing Strategy
Value Proposition for Volvo in North America
Prof. Vikram Parekh on Marketing Strategy
Value Proposition for Volvo in North America
Target market: Upscale American families
Benefits offered: Safety
Relative price: 20% premium to domestic family cars
Generic format for value propositions:Target market
Benefits offered (and sometimes not offered)
Relative price
Prof. Vikram Parekh on Marketing Strategy
Example : Mountain Dew
Prof. Vikram Parekh on Marketing Strategy
Example : Mountain Dew
To (target group and need) our (brand) is (concept) that (point of differences)
Target : young, active soft-drink consumer who have little time for sleepBrand : Mountain Dew
Concept : Soft DrinkPoint of Difference : give you more energy than
any other brand because…. etc
Prof. Vikram Parekh on Marketing Strategy
A brands Positioning is a key concept it is based on a fundamental principle
all choices are comparative
Prof. Vikram Parekh on Marketing Strategy
Positioning is competitive
When it comes to brandscustomers make a choice
but with products they
make comparison
RememberProducts increase customer choice
brand simply it.
Prof. Vikram Parekh on Marketing Strategy
Now.. Try it Yourself : VW New Beetle
To (target group and need) our (brand) is (concept) that (point of difference)
Prof. Vikram Parekh on Marketing Strategy
Differentiation
Product characteristics
Service characteristics
Personnel characteristics
Distribution characteristics
Image characteristics