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2-2

Marketing and Promotions

Process Model

Competitiveanalysis

Targetmarketing

Identifying

markets

Marketsegmentation

Selectinga targetmarket

Positioningthrough

marketingstrategies

Product

decisions

Pricingdecisions

Channel ofdistributiondecisions

Promotionaldecisions

advertisingdirectmarketinginternet/interactivemarketingsales

promotionpublicityand publicrelationspersonalselling

Resellers

UltimateconsumerConsumersBusinesses

MarketingStrategy andAnalysis

TargetMarketingProcess

Marketing PlanningProgram Development

Promotion tofinal buyer

Target Market

Purchase

Promotionto trade

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2-3

The Target Marketing Process

Identify markets with unfulfilled needs

Determining market segmentation

Selecting market to target

Positioning through marketing strategies

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2-4

Five-Step Segmentation Process

1. Finding ways to group consumers

according to their needs.2. Finding ways to group marketing actions -

usually the products offered - available tothe organization.

3. Developing a market/product grid to relatethe market segments to the firmsproducts and actions.

4. Selecting the target segments toward

which the firm directs its marketingactions.

5. Taking marketing actions to reach targetsegments.

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2-5

Bases for Segmentation

Geographic Segmentation State - region - country - climate

Demographic Segmentation Age - sex - family status - education -

occupation - income - social class.

Psychographic Segmentation Values - personality traits - lifestyles.

Behavioristic Segmentation

Usage, loyalties, occasions. Benefit Segmentation Types of specific needs or wants to be

satisfied.

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2-6

Segmentation Decision Check List

Can the size of the market segmentbe measured?

Is the market segment large andprofitable enough to serve?

Is the segment identifiedaccessible? Can it be reached

effectively and efficiently?

Can effective marketing programsbe developed to attract and serve

the segment identified?

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2-7

The Positioning Process

Positioning ConceptThe desired perception or

association management wants

target customers to have for a

firm and/or its products

Positioning EffectivenessThe extent to which managements

positioning objectives are achieved

in the market target

Positioning StrategyThe combination of marketing

actions used to portray the

positioning concept to targeted

buyers

Positioning of the brandThe positioning of the brand by

the buyers in the market target

Market

Target

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Positioning Strategy

Development Process

1. Identify the competitors

2. Assess perceptions of them

3. Determine their positions

4. Analyze consumer preferences

6. Monitor the position

5. Make the positioning decision

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Product/Service and

Brand Positioning

BASIC QUESTIONS TO ASK

1. What position, if any do we currently hold inthe mind of customers?

2. What position do we want to hold?

3. Whom do we have to compete against toestablish this position?

4. Do we have the resources to occupy and holdthe position?

5. Can we stay with one consistent positioningstrategy?

6. Does our marketing and advertising match ourpositioning strategy?

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Approaches to Positioning A Product/Service

or Brand

1. By Product or Service Attributes or features

2. By Price/Quality

3. By Use or Application

4. By Product Class

5. By Product or Service User

6. By competition

7. By price or value

8. By brand image (emotional/psychological)

9. By cultural symbols

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Classic Positioning Examples

BrandApparent

TargetMajor

Benefit SupportPositioning

Line

Avis

Pepsi

Rolling Stone

Magazine

Chevy

Trucks

DeBeers

Intel(co-branded)

Businesstravelers

Betterservice

More effort byAvis owner-employees

Were #2.We tryharder

Non-loyal

Coke drinkers

Taste/act

young

Visual/

situational

Pepsi Generation/

Generation Next

AdvertisersReachesinfluentialaudience

Readershipstudies

Perception/Reality

Blue-collar

Truck owners

Quality trucks

Durable,reliable

Product

quality,image

Like a rock

Men (purch.)Women(influencer)

Emotionalgratification

Beauty,timelessnessof product

A Diamondis Forever

MIS mgrs./end-usersoperation

Superiorhardware

Micro-processorperformance

IntelInside

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Product Decisions

A product is a bundle of benefits or values

Product symbolism refers to what a productor brand means to customers

Product quality, branding, packaging, andcompany name contribute to product image

BRANDING: Brand name communicates attributes and

meaning

Advertising creates and maintains brand equity

PACKAGING: Packaging has become increasingly important It is often the customers first exposure to

product

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The Value of Strong Corporate and/or Brand

Identity

Strong corporate identity creates moreoptions for competing against lower-priced competitors

Strong corporate identity builds customerloyalty and enhances employee moraleand pride

Strong corporate/brand identity makes it

easier to withstand economic fluctuationsand marketing crises

Strong brand identity facilitates attractionof top talent

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Strong companies and brands can maintain sell products/services at a premium price and maintain larger profit margins

Strong corporate/brand identity makes customer responsemore inelastic to price increases and elastic to price decreases

Strong corporate/brand identity facilitates expansion into newmarkets and the ability to attract acquisition candidates and

joint venture partners

The Value of Strong Corporate and/or Brand

Identity

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Pricing Decisions

Price must be consistent withperceptions of the product

Higher prices communicate higherproduct quality

Lower prices reflect bargain orvalue perceptions A product positioned as high quality

while carrying a lower price than

competitors will confuse customers Price, advertising and distributionmust be unified to create the positionfor the product or service.

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Distribution Channel Decisions

Channel decisions involve: Selecting Managing

Motivating Independent intermediaries: Wholesalers Distributors Brokers Retailers

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Information Flow

Push Versus Pull

Push PolicyProducer

Retailer

Consumer

Wholesaler

Pull PolicyProducer

Wholesaler

Retailer

Consumer

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The Process of Positioning

MARKET

ANALYSIS SEGMENTATIONTARGET MARKET

SELECTION

INTERNAL

CORPORATE

ANALYSISPOSITION

COMPETITIVE

ANALYSISDIFFERENTIATION BENEFITS

SELECTION

MARKETING STRATEGY

PRODUCT/BRAND

PRICE

CHANNELS

COMMUNICATIONS

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Positioning Assumptions and Realities

Assumption

Company/brands arepositioned by marketers inthe marketplace

Branding is something themarketing department does

Positioning is a decision,followed by an action

Company/brands arepositioned against otherbrands in the category

Once a company/brandpositioning is set, it shouldnot change

Reality

Company/brands arepositioned in the mind of theprospect

Branding must be reflected inevery aspect of a productoffering

Positioning is a continuousrethinking process

Company/brands arepositioned against other

alternatives within theprospects reality

Positioning prompts must becontinually added

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Creating a Position: What Do We Want the Company or Br

Mean To Customers?

Key Elements

Brand or Company Name

Target Customer

Brand Image and Personality

Major End-Benefit

Rational Support/s

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The Core of Brand Equity

BrandName

Product/Service

Performance

Promotion/Merchandizing

MarketingCommunications

Logo/GraphicSystem

SellingStrategies

Brand

Positioning

Strategic

Personality

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"Push" Techniques

Point of sale displays, racks, stands Trade deals, special displays

Dealer premiums, prizes, gifts

Cooperative advertising deals

Advertising materials, mats, inserts

Push money or "spiffs" Collaterals, catalogs, manuals

Company conventions, meetings

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"Pull" Techniques

Sampling, free trial Cents-off promotions Cents-off coupons

Combination offers Premiums or gifts Contests, sweepstakes

Point-of-purchaseadvertising Trading stamps