Marketing and product composition

“Your boss has just returned by a Older Executive Workshop for Marketing Directors. He explains to you personally that the concentrate of the the workshop was around the importance of the positioning declaration to effective strategy expansion. Full of new-found enthusiasm, he asks one to prepare a short paper about positioning for the next board conference. He would like you to show the importance of positioning strategy to business accomplishment. Write that paper

Introduction

STP (Segmentation, Targeting and Positioning) advertising is also known as strategic advertising, involves locating correct portion in which to sell your item, identify the proper target market and positioning the item to create optimum profits.

The most important of STP FOREX marketing is definitely determining exactly what benefits the product offers and that will benefit many from using that.

STP is very important for internet marketer to create a competitive advantage and marketing prepare designed especially for the customers who will be almost certainly to buy the item. The STP process allows marketer to distinguish the correct segment to market the product and utilize the marketing blend to maximize income.

Marketing Strategy: Segmentation, Targeting and Positioning

Segmentation, targeting and positioning are necessary parts in the marketing strategy that will help company to promote their merchandise better using the appropriate marketing mix. The following diagram displays the steps and connection between these 3 important prepare that employed by marketers to advertise their item efficiently. [pic]

Diagram 1: The main stages in market segmentation, targeting and positioning Supply: Doyle and Stern (2006)

Segmentation

Industry consists of consumers and clients vary from the other person. The variation are is determined by factors just like resources, wishes, buying frame of mind, locations and purchasing practice. Segmentation means dividing a market simply by certain conditions such as geographical, demographic, psychographic and behavioral. By separating the market, a marketer may easily identify which kind of segment is suitable for the selected product and large market could be divided into smaller sized segments that can be managed more proficiently and effectively.

These criteria or variables that be applied for segmentation are as follows:

(1) Geographic Segmentation

This refers to position including parts, continent, country, area size, village, metropolis and the local climate. A company has to put interest on variability of geographic needs and wants.

(2) Demographic Segmentation

It refers to measureable statistics such as income, age, gender, education, occupation, religion, nationality, race, terminology and friends and family size. Is actually crucial to consider the demographic factors while defining industry strategy.

(3) Psychographic Segmentation

It refers to a section of life-style, personality, attitudes and principles. A part having demographically grouped clients may will vary psychographic qualities.

(4) Behavioral Segmentation

Apart from the above, one more basis pertaining to segmentation can be behavioral segmentation. This is the best segmentation mainly because it uses the variables that basically close to the merchandise itself. Obtaining status, ordering role and user type are the common behavioral segmentation. Some customersare brand devoted; they tend to stay with their desired brand.

Powerful segmentation is achieved once customers showing the comparable patterns of demand are grouped together, where each group diverse in the pattern of require from other sections in the market. Basically, all the pursuing have to be deemed before segmentation: (1) Measureable: Able to measure in terms of potential clients in every segment meaning it should be capable of tell just how many potential customers as well as just how many rivals in the same segment.

(2) Accessible: Able to reach chosen market targets with its person marketing initiatives which means section should be available through any kind of types of communication technique and distribution such as travel, distributors and internet. (3) Meaningful: Able to differentiate personal preferences or requires and show very clear variations in market tendencies and response to each designed marketing mix. (4) Considerable: Able to result in segments which sufficiently large to be financially and virtually served since market objectives with chosen marketing mix.

Targeting

After segmentation, the next phase is targeting. Aimed towards is the procedure for selecting a segment to purpose. According to Kotler and Armstrong (2004), the following three main tactics that can be used to and exploit the sections.

(1) Undifferentiated strategies (mass marketing)

” The aim of the strategy is usually to offer a basic product that would suit and become used by just about all age groups and lifestyle. (2) Differentiated approaches (segmented marketing)

” Focus on concentrating on two or more markets, each of them employ different marketing program. (3) Concentrated strategies (niche marketing)

” The company focuses on concentrating on a large talk about of one or possibly a few sections. The online marketing defines the actual product features focus to satisfy specific marketplace needs.

Generally, targeting is definitely depending on a lot of factors because the followings: ¢ The current level of competition and the ability to meet customer needs.

¢ The size of the segment (how large and how can it grow). ¢ The strengths of a company that will help to charm a group buyer (company reputation).

¢ The ability to speak with the portion.

Basically, the advantages of target marketing happen to be:

¢ Marketing possibilities and ‘gaps will be more accurately indentified. The gaps is most likely the real thing about the item or how customers see the product emotionally. By indentifying this, a proper advertising message can be executed in the minds of clients. ¢ Industry and merchandise appeals throughout the manipulation of promoting mix will be more suitable to the needs of potential customers. ¢ Marketing hard work can be focus on the market part which might be a potential for the company to achieve it can goal and maximize the profit.

Positioning

Following segmenting a market and then focusing on a customer, another process is always to position a product in the market. Placement is about ‘perception’ and creating the image of the item in user’s mind. In other words, positioning is all about delivering the initial selling good thing about the product. Placing is useful to be able to understand what we are able to offer the other products are not able to offer. On top of that, the customer’s needs and desires can be pleased.. A product really needs a clear and distinctive graphic in the head of the consumer. This is exactly what placing creates. Essentially, the positioning strategy is mainly focusing on the next points:

¢ Provide benefit to buyer with the competitive advantage, strengths and special competencies. ¢ Market segmentation forms the foundation for concentrated strategies. ¢ Finding the one of a kind selling idea by distinguishes a brand from the competitors. ¢ Conduct research to study in internal, industry & rival.

Positioning is definitely the process of creating, the image the merchandise holds inside the mind of shoppers about the product. For example , Gardenia and FederalBakery both are in the bakery industry. Although National Bakery might try to remain competitive they will still be seen as straight down market coming from Gardenia.

Setting helps consumers understand what is exclusive about the items when compared with the competitors. Gardenia has been placed based on the positioning by simply direct evaluation with other competitors such as Italian language Baker (Massimo) and Silverbird (Hi-5), and have positioned their products to profit their target audience. Most people produce an image of the product by comparing this to another identical product as well as the image of that has been positioned by customers about Gardenia is particularly on the variety that they offers and its healthy and balanced ingredients.

The organization can use Point of Different (POD) and Point of Parity (PAP) inside the effort to produce a better positioning strategy. By using POD and PAP, the company would be able to start to see the difference and similarities among their products and competitor’s brand. It’s important to create the POD but it’s also important to decrease the competition by coordinating it on the POP.

[pic]

Plan 2: Stage of Different and Point of Parity

Using Point of various (POD) and Point of Parity (PAP) for Gardenia and it’s competition in the food handling business industry, the end result are while shown below:

Point of Different (POD)

¢ Large variety of breads such as sunflower seedling loaf, sweetie loaf. ¢ No preservatives and use natural ingredients.

Stage of Parity (PAP)

¢ Create the basic issue like the opponents (loaf, bun). Some clients prefer to purchase Gardenia than it’s rival such as National Bakery, Supremo and Hi-5 because of the differences that additional competitors won’t be able to offer. The range of bread (other than typical white loaf) that they are offerings is not available with competitor’s brand and in addition they sellother items like waffles and muffins.

The value of Positioning

It is important for the successful organization to market on its own right. Through positioning, a whole lot of advertising and marketing money could be saved. Positioning is about interaction of the overall value proposition that has been created and maintains it to the customers. In order to be effective, the standard value task by the firm has to be a thing relevant to the point market and it must be differentiated from the competitors. It must likewise sustainable and communicated obviously to that marketplace. Therefore , differentiation at merchandise, brand or company level is now been recognized as one of the key element of building a stable industry positioning.

The differentiating could be based on the features or advantages of the product (actual) or based upon the image in the product (perceived). Differentiation can be done with different element of the marketing mix. It could involve the characteristics of attributes that gives clients more rewards than the competitor or through the brand exceptional image alone.

A good and quality system is not a guarantee to be accomplishment in the market. The main is the item has to have a definite and exclusive image inside the mind of the customers. This is the reason why positioning must be created.

Positioning has to be been able at every feature where consumers have the exposure to the company mainly in communication and telephonic interaction. This really is one of the methods to avoid virtually any confusion about the product inside the mind with the customers.

Placing helps business to give a direction to their marketing strategy. Prior to that, what’s important is the organization must develop it main competencies prior to announce to others what it will offer.

[pic]

Plan 3: Implementing Chosen Picture and Charm to Chosen Segment

Placement is important when the company wish how it can products being viewed by simply customers. Came from here, the company can easily decide wherever it desires to compete and it would be in a position to compete. The perception via customers is exactly what they believe about certain product. The product competitive advantage not merely related to the features and attributes of the product only, but as well related to is actually perceived graphic.

For example , Exploration In Motion (RIM), the business that creates Blackberry phone has chosen to position alone as the maker of Qwerty-Key’s touch screen phone which enable to write and read the e-mail better. Hence, EDGE has done a whole lot through is actually advertising to advertise the features.

The perceived picture of the product is important if the organization wants to be competitive in the minds of concentrate on customers. What customer feels or interprets are actually effect the purchase decision.

A powerful brand setting direct online marketing strategy by outlining the brand details, the uniqueness of the brand and it’s really similarity with competitor’s manufacturer in the market. Placing is the fundamental strategy for developing and improving the knowledge and perception of the customers. For instance , Maybelline cosmetic makeup products represent junior and exhilaration to their goal customers; girls who trying to find affordable and quality makeup products.

A systematic placement can create the brand identification and a suitable brand picture. The company can easily increase the business and business profits in the event the right placement used in all their marketing strategy. Furthermore, it can avoid the company making a wrong positioning.

There are various placement mistakes such as:

(1) Beneath Positioning

Underneath this scenario, consumers are unable to get the clear concept of the brand. It occurs when the organization failed to present a strong central benefits and reason to get the product. For instance , MonaVie Incorporation is the firm that market segments a supplement in liquid form called “MonaVie but many customers do not know what sort of product that they are actually selling. Some buyers think that they may be selling usual juices.

(2) Over Placement

Under this, customers have got a limited understanding of the brand. It happens when the company makes the product too certain for certain number of customers and other customers may well believes which the product is designed for them maybe because of the higher price or other reasons. For example , ‘Uluwatu, a apparel brand via Indonesia offers position by itself as a superior Indonesian store although they can also be selling method priced clothes.

(3) Mixed up Positioning

Beneath this scenario, customers have a confused thoughts and opinions of the brand. For the reason that the company claimed two or more rewards that contradict each other. For instance , Tutti Frutti claims which the company is definitely serving a wholesome and reduced fat frozen yogurt but there are specific topping which is from a preserved canned fruits which are not really good for health. Which is more important, the healthy aspect or taste?

(4) Uncertain Positioning

Underneath this scenario, clients do not accept the says of a brand. Customers is going to doubt for the benefits that the brand can in fact deliver. For instance , Garnier provides market a facial wash that says to be effective to make a skin fairer although no successful testimonial has been demonstrated so far.

The Approaches in Positing Strategy

Positioning approach can be designed in thing attributes, software, target buyers and the features of the product itself. These factors symbolize a different way in producing positioning approach. Once a firm decides what approach to be chosen in positioning, it should start to connect the message to the customer at every contact point. The following are the approaches to position strategy:

(1) Using Item Characteristics or Customer Benefits

The feature of the merchandise or client benefits are the main focus in this strategy. For example , motor vehicles are usually emphasized on item characteristic just like fuel economy, electricity and other features. Certain items are positioned along with more than individual item characteristics simultaneously.

(2) Applying Pricing

At times, customers usually relate the price tag on the products plus the quality (price-quality). This is the belief that most in the customers perceive that high-priced product is as often as you can have a better quality when compared to a cheap a single. This so called quality strategy is important in case the marketer would like to set reduced image within their product.

(3) Based on Work with or Application

In this kind of strategy, another or third position is definitely using to broaden the brand’s market. Simply by introducing the brand new uses with the product, quickly it will expand the brand marketplace. For example , Milo for many years positioned itself while an energy drink other than typical chocolate drink.

(4) Based upon Product Procedure

Under this plan, the product is definitely associated with its users or a category of users. For example , Longines, a watch manufacturer has appointed Aishwarya Rai as the item ambassador to build up a fashion and luxury photo in their manufacturer. In this case, the expectation may be the model or celebrity will certainly influence the product’s graphic by highlighting their image which communicated as a productuser.

(5) Based on Product Class

Some products require critical positioning. For instance , coffee natural powder needed to situation itself with creamer or condensed dairy. For example , Nescafe has located itself with the instant other additives.

(6) Depending on Logo as well as Symbol

Image or company logo is being used to differentiate their particular brands from other competitors. Applying and applying trademarks generally follow this sort of positioning. For instance , Malaysian Airline’s logo which is “traditional kites-wau logo can be recognized by many peoples.

(7) Based on competitors

In this strategy, one or more rivals are using as a reference. Essentially, the identical positioning technique used by the competitors or use a new strategy if you take the competitor’s strategy because the basis. For instance , Celcom has published a great advertisement that compares their particular services to competitors just like Maxis and Digi using the competitor’s business colors.

Manufacturer Positioning: Queen Shoes

One of the most important things in managing a company positioning can be positively assess it with competitor’s manufacturer in the head of customers in target market. Is actually essential for the brand to connect the key values of the companies the business.

“Princess is the Malaysian company which usually produces ladies shoes pertaining to the medium price market segment. Recently known only as a brand that only sells shoes and boots for low income customers, but today it can already widened to moderate price industry segment.

Little princess has developed elements such as pride and style with their product and within its unique advertising proposition. They are really successfully building their own unique brand image and reaching all their target clients. Their marketing objective is to reposition is actually brand (from normal shoes and boots to excessive fashion shoes) and capturing new marketplaces. The marketing strategy aimed to the follows:

¢ Introduce the newest design which is more up-to-date

¢ Make customers excited about the brand name

¢ Create a feeling of “fashionable about the brand.

Analyzing the marketing blend (the 4Ps) that they are implementing, basically is actually like the employs:

Target: Low and medium income girls.

¢ Product: Fashionable and comfortable sneakers.

¢ Price: Promote at low cost.

¢ Place: Offer at departmental stores and shop lots.

¢ Promo: Uses net and paper to declare their new releases.

Conclusion

Placement is how a target market describes the brand in relation with the competitors. It’s what we called the brand name identity.

A brandname is a romance between the organization and consumers. When we contact form a romantic relationship, we have to show who we are to our customers. Through placing, the company will be able to communicate with absolutely free themes effectively and efficiently.

Among the benefits of good business organizing is tactical positioning especially in the modern universe where technology is increasing from time to time and market increase constantly and turn more described. The online marketer can use the business enterprise plan with review and revision is completed as and when required

so that track for the right setting.

The constant difference in segmentation sometimes can happen. Take broadcasting market as an example, 15 years ago we have only 4 stations, now we have numerous channels beneath Astro. Consequently , in certain situation, some transmitting companies have to review and revise their positioning so that on being competitive inside the growing markets.

Even when a marketer require in the process of selecting a brand name, create style, develop campaign strategy and define the pricing strategy, they have to remember the most crucial above all this are a good positioning.

Once defining a positioning approach, the marketer should consider how a positioning makes the brand unique and more significantly, all the features can be perceived as value added by the target consumers. For example , if perhaps one sneakers brand can be hand made via rare natural leather, how various customers in the target market in fact would discover this since strength (in point of different). If they genuinely see this as a exclusive point, it can be used while positioning. Otherwise, being several cannot provide any exceptional attraction not any value added or benefit towards the brand or perhaps customers. Certainly, the effort to branding an item is frustrating and positioning 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 already in the market ahead of the unique positioning can be planned. By testing the competition, the marketer knows whether the customers in the marketplace already content with competitor’s brand or there is any chance for another brand usually takes advantage of. For example , if a fresh brand will be marketed however are a few brands already in the market, is actually really important for the marketer to think how to compete. Without a good positioning, the merchandise will be viewed as imitator or copycat rather than fresh new brand. The contests allow the consumers to know the actual can expect by certain manufacturer.

The marketer should believe how to compete by demonstrating the different to the customers in comparison to other comparable brands available in the market. The key is to demonstrate what the manufacturer can offer since “value added if the competitors have comparable product offerings and discover how to overcome all of them if the competition is too excessive.

The purpose of industry study is to help the marketer to realize what market and potential customers that they may targeted before making an investment. There are varieties of technique that the internet marketer can use when determining placement. The great thing about this is how the related product or concept currently in the market, the marketer are able to use a specific positioning strategy and identify the actual of different. For instance , 100 In addition is positioned while an isotonic drink manufacturer focusing on lively lifestyle as the competitor, Surpass (another isotonic drink’s brand) is now located as “cola flavoured isotonic drink. They are basically the same products, the camp is same which is isotonic drinks, but each of them will be focusing on diverse positioning that giving them a competitive edge and unique identity.

Possessing a good merchandise does not ensure success. Some great products failed in the market since they cannot situation themselves correctly. A marketing expert should think about positioning let me give you like design and packaging.

As a realization, the placement strategy is important if a product needs to contend in the market. The image that produces in the mind of buyer will decide whether the merchandise can be sold because that is one of the reasons just before customer spend money. By having the comprehensive positioning approach, the company will survive plus more importantly to enhance the market talk about and increase the profits.

Bibliography

http://en.wikipedia.org

http://www.ehow.com/info_8693419_stp-marketing.html

Kotler, S., and Armstrong, G. (2004) “Principles of marketing, tenth edition, In. 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

1