Marketing Managementcase study

“ Progress is measured by degree of differentiation within a society”

-Herbert Read.“The aim of marketing is to know and

understand the customer so well the product or service fits him and sells itself” -Peter Drucker.

The only risk of failure is promotion. -Scott Adams

Major problems:Lack of Product differentiation.Fail in effective marketing.Lack of unity among

departments.Inefficient costing plans.Non- conscious with ‘Brand

Equity’.

Kotler defines differentiation as the process of adding meaningful and valued differences to distinguish the company’s offering from the competition.

A firm can differentiate along 5 dimensions:◦Product◦Service◦Personnel◦Channel◦Image

A base of differentiation must fill somecustomer need: ImageBeautyStatusStyleTasteQualityServiceAccuracy etc.,

Bases of Differentiation:

Almost anything can be a base of differentiation:

Tangible thing (product features, location, etc.)

Intangible concept (reputation, a cause, an ideal, etc.)

limited only by managerial creativity

Competitive advantage:

A product differentiation strategy must meet the VRIO criteria…

Is it Valuable? Is it Rare? Is it costly to Imitate? Is the firm Organized to exploit

it?

Promotion: Promotion is one of the key elements of

the marketing mix. Promotional strategies can be developed

bySegmentationDividing the marketing

into distinct groupsTargetingDeciding which of these groups

to communicate with, and how to talk to them

PositioningHow the product or brand should be perceived by the target groups

MessagingDelivering a specific message in order to influence the target groups

SEGMENTATION:Dividing potential customers into discrete groups is

vital if you want to increase the success rate of any communications message.

 Who are the potential customers? How many sub-groups should you divide them into? How do these groups differ? What are their media consumption habits? What are their expectations and aspirations? What are their priorities? How much disposable income do they have? What are their buying habits? Are they likely to have children? How many holidays do they take a year? How much money do they give to charity? How can you help them?

TARGETING:For the purposes of advertising,

targeting is the process of communicating with the right segment(s) and ensuring the best possible response rate.

The methods you use to target your audience must relate to your marketing plan objectives.

POSITIONING:Positioning is the process of developing

an image for your company or product. Branding is a powerful tool for

positioning your product. Branding is used on almost all customer facing elements of a product, from the packaging design to the style of writing used on posters. 

A corporate identity is a useful tool to ensure that your branding is used in a consistent way throughout the company. 

ADVERTISING:Once you have determined the positioning

for your brand, it's time to develop the message in order to influence your target groups. Advertising objectives should be directly linked to your marketing plan, and tend to fit into the following generic categories:

Inform - raising awareness of your brand & products, establishing a competitive advantage

Persuade - generating an instant response (usually driving sales)

Remind - to maintain interest and enthusiasm for a product or service

SALES PROMOTION:

Consists of media and non-media marketing communications employed for a predetermined, limited time to stimulate trial, increase consumer demand, or improve product availability

Consumer Sales Promotion:◦Directed at Consumers

Trade Sales Promotion:◦Directed at Resellers

The 10 Commandments of Creative Sales Promotion1. Set specific objectives2. Know how basic promotion techniques

work3. Use simple, attention-getting copy4. Use contemporary, easy-to-track graphics5. Clearly communicate the concept6. Reinforce the brand’s advertising message.7. Support the brand’s positioning and image.8. Coordinate promotional efforts with other

marketing plans.9. Know the media you work with.10. Involve the trade.

Repositioning

Strategies:Repositioning is the process of

creating a new or modified brand, company, or product position.

A company may enhance or modify a position, based on market feedback.◦ Yahoo! repositioned from online guide to

Web portal.◦ Amazon repositioned from world’s largest

bookstore to “Earth’s biggest selection.”◦ Facebook now hosts many business page

profiles and third-party applications.

CONCLUSION:

It's a documented fact that creative, well branded, distinctive advertising generates the best results so ensure you use the best possible creative team you can get your hands on.

Whatever you're planning, the strategic thinking behind all advertising is essentially the same – get to know your audience, target them efficiently and position your brand in the way that will benefit your business.