Market Positioning #Marketing management MGT.pptx

marketing mangement

1. Presentation Details Presentation Title: "Market Positioning: Strategies and Importance" Prepared by: Bilal Adib 5/15/2024 Subject: Market Management Teacher: Sir Ashna

2. M A R K E T

3. OUTLINE You will learn: POSITIONING THE MARKET OFFERING THROUGH PLC DEVELOPING AND COMMUNICATING A POSITIONING STRATEGY PLC MARKETING STRATEGIES

4. W hy market positioning is crucial for business success? A lmost all companies today use the STP approach in marketing. It stands for  segmentation, targeting, and positioning . 

5. Introduction What is Market Positioning? The process of establishing the image or identity of a brand or product in the minds of target consumers . It involves defining how a product is unique , the benefits it offers , and how it stands out from competitors. Effective market positioning helps a company to occupy a distinct place in the market , which can lead to a competitive advantage .

6. Examples of Market Positioning Tesla and Audi : These luxury car manufacturers position themselves as status symbols.  Their focus is on providing high-quality, innovative vehicles with unparalleled features . Tesla Cyber truck Audi

7. McDonald’s : McDonald’s positions itself as a place to get quick and affordable meals.  Their fast-food offerings cater to customers looking for convenience and value 1 .

8. Microsoft and Apple: These tech giants position themselves as companies that offer innovative and user-friendly products.  Microsoft focuses on software and productivity tools, while Apple is known for its cutting-edge hardware and design

9. Importance of Market Positioning Here’s why market positioning matters: Competitive Advantage : gives a brand a competitive edge. It differentiates your product or service from others making it more appealing to consumers. 2. Building Brand Loyalty : Consistent and well-defined positioning fosters brand loyalty. Customer remain loyal, even when faced with other options.

10. Cont.. 3. Effective Communication : simplifies communication. provides clear message about what your brand represents and why it’s valuable. This clarity makes it easier to connect with consumers and convey your brand’s story. 4. Revenue Generation : to drive revenue.  By positioning your product or service effectively, you attract more customers and increase sales

11. Repositioning   R efers to the major change in positioning for a brand or product. Essentially, repositioning aims to change how people perceive and understand a brand or product. Apple : Apple’s repositioning journey is remarkable. From being a niche computer company, it evolved into a global tech giant.  The introduction of iPod, iPhone, and iPad redefined Apple’s identity, making it synonymous with innovation and design 1 . Apple Evolution

12. Purpose of Repositioning: Strategic Move:  Repositioning is a deliberate strategic move by a company. Adapting to Change:  It allows a brand to adapt to shifts in the market, consumer preferences, or competitive landscape.

13. Challenges of Repositioning: Existing Perceptions:  Repositioning can be challenging, especially for well-established or strongly branded products. It requires changing the target market’s understanding of the product. Risk of Confusion:  There’s a risk of confusing existing customers if the repositioning is not communicated clearly.

14. Examples of Repositioning Product Image:  A luxury car brand may reposition itself as more eco-friendly to appeal to environmentally conscious consumers. Market Segment:  A fast-food chain might reposition its menu to attract health-conscious customers. Brand Identity:  A technology company could reposition itself from a hardware-focused brand to a software and services provider. NOTE: Poor positioning, on the other hand, can lead to bad sales and a dubious reputation

15. POSITIONING THE MARKET OFFERING THROUGH PLC Positioning in the introduction stage: When a company’s product is in the introduction stage, so the company must do strong advertisements to create awareness in the mind of people about company’s product and services. It is fact because companies offer new products/services how we know about them? The answer of this question is that we know it throw electronic media and paper media.

16. Depositioning

17. Positioning in the stage of growth: A stage where companies product/services are becoming popular among the target market and there exists an opportunity to capture more market shares. How companies capture more market shares? Simply by increasing their distribution channels, distribute your products in those areas where it is unknown. May be the customers want to purchase/buy your products/services but they are not aware of it.

18. Cont.. During this stage, the firm uses several strategies to sustain rapid market growth It improves product quality and add new product feature and improved styling It adds new models, product of different sizes, flavors It enters new market segments It increases its distribution coverage and enters new distribution channels It lower prices to attract the next layer of price-sensitive buyers

19. Positioning in the maturity stage: A stage where each and every companies wish to be in. in this stage companies don’t need to expend a lot on advertisements because what they were trying to capture they have captured so now in this stage they are supposed to retain their captured customers. They can do this by modification in their products or using a new market segments.

20. Market modification: Market modification  involves making strategic changes to the target market or segments for a product or service. Companies use this approach to expand their reach, redefine their audience, win over competitors’ customers, or convert non-users. Example: Suppose a local bakery has been selling its artisanal bread primarily to health-conscious consumers. To expand its market, the bakery decides to modify its approach: The bakery introduces a new line of gluten-free bread targeted at individuals with dietary restrictions. By doing so, they tap into a different market segment (those seeking gluten-free options) while retaining their existing customer base.

21. Product modification: Managers also try to increase sales by modifying the product’s characteristics through quality improvement, feature improvement, or style improvement.

22. Product modification Product modification refers to any significant alteration made to the features (such as size, form, color, design, cost, etc.) of an existing product. Companies often engage in product modification to rejuvenate their offerings, enhance demand, and effectively respond to changes in the market. Let’s explore the different types of product modification and provide an example for each: Quality Modifications : These enhancements focus on improving a product’s dependability and durability. Companies achieve this by making changes to the materials used or the manufacturing process. For instance, a laptop manufacturer might upgrade the RAM and processor, replace the battery for improved longevity, and refine the laptop’s design to make it more aesthetically pleasing 1 . Functional Modifications : Functional modifications involve adjustments to a product’s adaptability, efficacy, convenience, or safety. Imagine a hair salon that initially offers basic wash and cut services. To attract a broader range of clients, they decide to expand their services to include perms and nail treatments. This functional modification broadens their market appeal 2 . Style Modifications : Style changes alter a product’s sensory appeal, affecting how it looks, smells, tastes, feels, or sounds. For example, a golf bag manufacturer struggling to sell high-end bags to country club players might modify the bag’s appearance, making it more visually appealing. This unique style could set their product apart from competitors and potentially capture a significant market share 2 . Remember! attract new customers, and stay competitive. By strategically modifying products, companies can enhance revenue and overall sustainability 2 .

23. Positioning in the declining stage: Maintaining the product in hope that competitor will exit, reduce cost and find new uses for the product. Harvesting Divesting

24. DEVELOPING AND COMMUNICATING A MARKET POSITIONING STRATEGY Positioning strategies can be conceived and developed in a variety of ways. It can be derived from the object attributes, competition, application, the types of consumers involved, or the characteristics of the product class. All these attributes represent a different approach (differentiation concept) in developing positioning strategies, even though all of them have the common objective of projecting a favorable image in the minds of the consumers or audience.

25. THERE ARE SEVEN APPROACHES TO POSITIONING   STRATEGIES (1) Using Product characteristics or Customer   Benefits   as a positioning strategy. This strategy basically focuses upon the characteristics of the product or customer benefits. For example if I say imported items it basically tells or illustrates a variety of product characteristics such as durability, economy or reliability etc. Let’s take an example of motorbikes some are emphasizing on fuel economy, some on power, looks and others stress on their durability. Hero Cycles Ltd. positions first, emphasizing durability and style for its cycle.

26. Cont.. At time even you would have noticed that a product is positioned along two or more product characteristics at the same time. You would have seen this in the case of toothpaste market, most toothpaste insists on ‘freshness’ and ‘cavity fighter’ as the product characteristics. It is always tempting to try to position along several product characteristics, as it is frustrating to have some good characteristics that are not communicated.

27. (2)  Pricing   as a positioning strategy  - Quality Approach or Positioning by Price-Quality – Lets take an example and understand this approach just suppose you have to go and buy a pair of jeans, as soon as you enter in the shop you will find different price rage jeans in the showroom say price ranging from 350 rupees to 2000 rupees. As soon as look at the jeans of 350 Rupees you say that it is not good in quality. Why?

28. Cont.. Basically because of perception, as most of us perceive that if a product is expensive will be a quality product where as product that is cheap is lower in quality. If we look at this Price quality approach it is important and is largely used in product positioning. In many product categories, there are brands that deliberately attempt to offer more in terms of service, features or performance. They charge more, partly to cover higher costs and partly to let the consumers believe that the product is, certainly of higher quality.

29. (3) Positioning strategy based on Use or Application  – Let’s understand this with the help of an example like Nescafe Coffee for many years positioned itself as a winter product and advertised mainly in winter but the introduction of cold coffee has developed a positioning strategy for the summer months also. Basically this type of positioning-by-use represents a second or third position for the brand, such type of positioning is done deliberately to expand the brand’s market. If you are introducing new uses of the product that will automatically expand the brand’s market.

30. (4) Positioning strategy based on Product Process  – Another positioning approach is to associate the product with its users or a class of users. Makes of casual clothing like jeans have introduced ‘designer labels’ to develop a fashion image. In this case the expectation is that the model or personality will influence the product’s image by reflecting the characteristics and image of the model or personality communicated as a product user.

31. Cont.. Let’s not forget that Johnson and Johnson repositioned its shampoo from one used for babies to one used by people who wash their hair frequently and therefore need a mild people who wash their hair frequently and therefore need a mild shampoo. This repositioning resulted in a market share.

32. (5) Positioning strategy based on Product Class - In some product class we have to make sure critical positioning decisions For example, freeze dried coffee needed to positions itself with respect to regular and instant coffee and similarly in case of dried milk makers came out with instant breakfast positioned as a breakfast substitute and virtually identical product positioned as a dietary meal substitute.

33. (6) Positioning strategy based on Cultural Symbols - In today’s world many advertisers are using deeply entrenched cultural symbols to differentiate their brands from that of competitors. The essential task is to identify something that is very meaningful to people that other competitors are not using and associate this brand with that symbol. Air India uses maharaja as its logo, by this they are trying to show that we welcome guest and give them royal treatment with lot of respect and it also highlights Indian tradition. Using and popularizing trademarks generally follow this type of positioning.

34. (7) Positioning strategy based on Competitors - In this type of positioning strategies, an implicit or explicit frame of reference is one or more competitors. In some cases, reference competitor(s) can be the dominant aspect of the positioning strategies of the firm, the firm either uses the same of similar positioning strategies as used by the competitors or the advertiser uses a new strategy taking the competitors’ strategy as the base. A good example of this would be Colgate and Pepsodent. Colgate when entered into the market focused on to family protection but when Pepsodent entered into the market with focus on 24 hour protection and basically for kids, Colgate changed its focus from family protection to kids’ teeth protection which was a positioning strategy adopted because of competition.

35. PRODUCT LIFE CYCLE: Product also has various stages of life as human beings. From the time a product is introduced, till it is withdrawn from the market, it goes through 5 stages. Analysis of these stages for the purpose of repositioning the product in the market is called Product Life Cycle management. The following are the stages in a product life cycle. Introduction Stage The Growth Stage The Maturity Stage The Saturation Stage The Decline Stage

36. Questions are most welcome

37. Conclusion Market positioning is not just about marketing: How a business presents itself to the market How competes with others D elivers value to its customers. Effective positioning can lead: to increased market share, higher profitability , and long-term success . Therefore, investing time and resources in developing a clear and strong market positioning strategy is essential for any business looking to thrive in today’s competitive landscape.