Unit 2 Market Segmentation, Targeting, Differentiation & Positioning.pdf
- 2. UNIT II MARKET SEGMENTATION, TARGETING, DIFFERENTIATION & POSITIONING ❖Market segmentation –Concept of Market Segmentation, Benefits, Requisites of Effective Segmentation, Bases for Segmenting Consumer Markets ❖Market Targeting – Evaluating Market Segments; Selecting Target Market Segments ❖Differentiation & Positioning for competitive Advantage –Meaning, Positioning Maps, Choosing a Differentiation & Positioning Strategy ❖Product Management: Introduction to Product –Concept, Products Experience; Levels of products, Product classifications ❖Branding: Concept of Branding, Types, Brand Equity,. ❖Product Classification: Individual Product Decisions, Product Line Decisions, ❖New Product Development Strategy: New Product Development Strategies and Product Extension Strategies; Product Life Cycle Strategies ❖Packaging: Packing as a Marketing tool, Role of Labeling in packing.
- 3. MARKET SEGMENTATION •Concept: •A market segment consists of a group of customers who share similar sets of needs & wants •Marketer’s task is to identify the appropriate number & nature of market segments & decide which one(s) to target
- 4. REQUISITES OF EFFECTIVE SEGMENTATION 1. Measurability: size, purchasing power, profiling of the segment & growth of the segment can be measured. Opportunities for growth. Eg: smartphones, online shopping 2. Accessibility: reaching the target audience- effective communication tools 3. Substantiality: size of the market- purchasing power & range of profit should be measured 4. Differentiable: segments are distinguishable and respond differently to different communication from the company 5. Actionable: effective programs can be designed for attracting and serving segments- deploying enough resources for each segment
- 5. BENEFITS OF SEGMENTATION 1. Identification of segments allows companies to know whom to analyse and understand potential & actual customers 2. Tailored marketing programs- specific products 3. Assess the potential demand for its products 4. Knowledge about competing products in the market 5. Increase in sales in market 6. Allows companies to position the product according to the needs and wants of customers 7. Identifying the opportunities
- 6. MARKET AGGREGATION •Form of undifferentiated marketing in which all customers are treated as a single group & are handled in same manner •Reduced cost in marketing the product •Eg: toothpaste, detergents, bathing soaps •Disadvantage- difficult to satisfy needs & wants of the customer in total market •Advantage- more opportunities- larger market •Eg: niche marketing & MS products (home basic, ultimate, professional)
- 7. INTER MARKET SEGMENTATION •Also called as Cross Market Segmentation •Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries •Eg: luxury brands
- 8. BASIS FOR SEGMENTATION Geographic 1.Region (north, east, west & south), 2.City (tier 1,2,3), 3.Rural (population over 10,000) & semi urban areas, small owns (20,000 to 50,000) Demographic 1.Age & life cycle, 2.Family size, 3.Gender 4.Income, 5.Education, 6.Occupation etc Psychographic 1.Social class (upper, lower), 2.Lifestyle (trend setter, adapter, follower) 3.Personality Behavioral 1.Occasions (regular special) 2.Benefits (qlty, service, economy & speed), 3.User status, 4.Usage rate, 5.Loyalty status
- 9. GEOGRAPHIC SEGMENTATION •Divides the market into geographical units such as nations, states, region, cities or neighborhood, ZIP code, City, Country, Radius around a certain location, Climate, Urban or rural •Company can operate one or few areas or on all, but pay attention to local variants •Tailor made programs- needs & wants of the local consumer groups- trading areas, neighborhoods & individual stores- “grassroot marketing” •Eg: banks- relationship executives •Geographical markets- vary their products preferences & requirements. Eg: north extreme climates, south- brewed coffee, other regions tea (different blends of coffee)
- 10. DEMOGRAPHIC SEGMENTATION •Division of market based on age & life cycle, family size, gender, income, education, occupation , nationality & social class •Age & life cycle: consumer wants & abilities- changes with age. •Products like toys, books, magazines, video games, chocolates, candies, fruit juice- target children. •Youngsters- social networking, processed food. •Older audience- spiritual channels. Jewellers for office goers, titan watches- zoop
- 11. Life stage: buying patterns change as a person gets aged. Eg: newly married- setting up house, new born baby, elder people etc. Eg: smart phones for different purpose, airtel services Gender: men & women has different attitudes based on genetic setup & socialization. Differentiation based on clothing, hairstyling, cosmetics, fashion accessories & magazines. Eg: Axe, Hero Honda Pleasure, Fairness Creams, Shampoos etc
- 12. 4. Income: income determines the ability of consumers to participate in the market exchange & hence its is a basic segmentation variable. Eg: rolex, tag heuer, titan xylys, shampoo sachets etc 5. Socio economic classification: classification based on 2 levels- education level & occupation of the head of the household. Rural 4 sections R1,R2,R3,R4 6. Generation: younger generation- initiators & influencers. Social networks
- 13. PSYCHOGRAPHIC SEGMENTATION •Psychographics- science of using psychology & demographics to better understand consumers •Psychographic segmentation- consumers are divided into groups on the basis of psychological/ personality traits, values & lifestyle •VALS system: •VALS signifies values & lifestyles- divides consumer into 8 primary groups based on the response to a questionnaire- 4 demographic & 35 attitudinal questions
- 14. VALS FRAMEWORK Consumers are inspired by 3 motives: 1. Ideals (guided by knowledge & principles), 2. Achievement (motivated by product look- demonstrate success to peers) & 3. Self expression (innovativeness, self confidence, leadership etc) Inno vator s Expe rienc ers Achi evers Think ers Make rs Striv ers Belie vers Primary motivation High resources High innovation Low resources Low innovation Survi vors Belie vers Survi vors Inno vator s Expe rienc ers Think ers Make rs Striv ers Belie vers Survi vors
- 15. 4 groups with HIGHER RESOURCES are: 1. Innovators: successful, sophisticated, active, “take charge” with high self esteem, niche oriented products 2. Thinkers: matured, satisfied & reflective people motivated by ideals- values order, knowledge & responsibility- value in products 3. Achievers: successful, goal oriented people- favor premium products demonstrate success to the peers 4. Experiencers: young, enthusiastic people- seek variety & excitement 4 groups with LOWER RESOURCES are: 1. Believers: conservative traditional people 2. Strivers: trendy fun loving people- resource constrained- purchase of greater material wealth 3. Makers: practical, down to earth- self sufficient 4. Survivors: elderly. Passive people- concerned about change- loyal to their brands
- 16. BEHAVIOURAL SEGMENTATION Marketers divide buyers into groups on the basis of their knowledge of, attitude towards, use of, or response to a product 1. Needs & benefits: Dettol- complete protection, L'oreal paris, surf excel quick wash 2. Decision roles: 5roles: initiator, influence, decider, buyer & user Pharmaceutical- doctors- sales rep influences doctors, women- household, provisions. Kids- different product category
- 17. 3. User & usage: i. Benefit sought: benefits seek from the product like looks, durability, price ii. Product use rate: non users, ex users, first time users & regular users, iii. Occasions: greeting cards, festive gifts (durable products). Eg: diary milk celebrations iv. Volume: Quantities of Purchase v. Brand Loyalty: Hardcore loyals- one brand @ all time Split loyals: 2 or3 brands Shifting loyals: shift from one brand to another Switchers: no loyalty to any brand
- 18. VOLUME SEGMENTATION Volume segmentation refers to quantity of purchase, actual or potential Consumers are segmented based on heavy users, light users or medium users Consumers are segmented into bulk buyers, small scale buyers, regular buyers and one time buyers Company treats each segment differently. Strategies are formulated accordingly 1. Purchase occasion: consumers are segmented based on occasion, whether they are regular buyers or occasion based buyers 2. Attitude towards product: whether consumers are enthusiastic, indifferent or negative in their attitude towards product
- 19. Loyalty to the brand: extent of brand loyalty on the part of consumers based on their buying behavior Buying behavior segmentation: very useful for new products (introductory or establishing stage)
- 20. DEEP SEGMENTATION •Another form of segmentation where segmentation is done more deeper and sharper •Market Gridding: •It is an analytical technique, which facilitates dividing market into segments •Gridding disaggregates the market based on “distinctions in the function served by the product” •Eg: Air conditioners: •Room conditioners •Central air conditioning •Industrial air conditioning •Transport air conditioning
- 21. 21
- 22. TARGET MARKET •A set buyers sharing common needs or characteristics that company decides to serve. 1. What makes product unique?? 2. Whom to sell it?? 3. Why should people buy the product or service from you?- strong logistics, on time delivery, store open for long hours If above 3 questions are answered then 1. Focus on the primary market 2. Research your market •Demographics •Publications •Potential customer 22
- 23. EVALUATING MARKET SEGMENTS •Once the firm has identified its market-segment opportunities, it has to decide how many and which ones to target. •Marketers are combining several variables in and effort to identify smaller, better-defined target groups. •A target market refers to a group of potential customers to whom a company wants to sell its products and services. •This group also includes specific customers to whom a company directs its marketing efforts. •A target market is one part of the total market for a good or service. •Consumers who make up a target market share similar characteristics including buying geography, buying power, demographics, and incomes
- 24. SELECTING TARGET MARKET SEGMENTS 24 •Market Targeting can be carried out at several levels. •Companies target: •Very broadly (Undifferentiated) •Very narrowly (Micromarketing) •Somewhere in between (Differentiated or concentrated marketing)
- 25. SELECTING TARGET MARKET SEGMENTS 1. Undifferentiated marketing strategy or mass marketing strategy: •Market program- entire market. •Strategy- overall marketing cost is low •easier to track the market forces uniformly •Tries to find out commonalities- then segments. Eg: rice, staples, petrol etc Single undifferentiated market 25 Common marketing program
- 26. 2. DIFFERENTIATED MARKETING STRATEGY •Cater different segments of people- cater higher sales-dominant position in each segment •Eg: automobiles, mobile phones 26 Marketing mix 1 Marketing mix 2 Marketing mix 3 Segment 1 Segment 2 Segment 3
- 27. 3. CONCENTRATED MARKETING STRATEGY 27 •Companies decide to enter selected markets- instead of available markets. Niche marketing •Gather market share in small markets against strong & large competitors •Eg: sports channels STAR Sports, ESPN, STAR Cricket etc Focused marketing program Segment A Segment B Segment C
- 28. 4. MICRO MARKETING •Micro marketing is the practice of tailoring products and service according to the needs and wants of specific individuals and locations •Advertising efforts are focused on a small group of highly targeted consumers. •Micro-marketing requires a company to narrowly define an audience by a specific characteristic, such as ZIP code or job title, and tailor campaigns for that particular segment. Two types: 1. Local Marketing & 2. Individual Marketing 28
- 29. 1. Local Marketing: •It involves tailoring brands and promotions the needs and wants of local customer group •Eg: mobile phones with GPS, Store locators 2. Individual Marketing: •Tailoring products and marketing programs to the needs and preferences of individual customer •Also called as one to one marketing/ customized marketing •Eg: Nike ID website- personalized sneakers •Customized T shirts, coffee mugs 29
- 31. POSITIONING •Positioning is an act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market •A good brand positioning helps guide, marketing strategy by clarifying the brand’s essence, identifying the goals it helps the consumer achieve & showing how it does so in a unique way •Eg: Colgate, Fevicol etc 31
- 32. POSITIONING MAPS •Perceptual positioning maps shows consumers perceptions of their brands vs competing products on important buying dimensions •Position of each circle on the map indicates the brand’s perceived positioning
- 33. CHOOSING A DIFFERENTIATION & POSITIONING STRATEGY •Each firm must differentiate its offer by building unique bundle of benefits that appeals to substantial group within the segment •Brand positioning must serve the needs and preference of well defined targets markets •The differentiation and positioning task consist of 3 steps: 1. Identifying possible value differences and competitive advantages 2. Choosing right competitive advantage 3. Selecting overall positioning strategy
- 34. 1. IDENTIFYING POSSIBLE VALUE DIFFERENCES AND COMPETITIVE ADVANTAGES •Competitive Advantage: •An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices. Profitable relationships Customer needs Deliver more customer value Extent of company differentiation and positioning Competitive Advantage
- 35. COMPANIES DIFFERENTIATION THEMSELVES AS FOLLOWS: Product differentiation Differentiated on features, performance, style and design. Eg: Bose speakers, Channel differentiation Companies effectively design their distribution channels- Wal-Mart & Nirma, Eureka forbes, Amway (Direct marketing) People/ Image differentiation Companies crafting powerful, compelling images that appeals to consumer’s social & psychological needs. Eg: color of McD, blue colour in Pepsi etc Service differentiation Designing a better and faster delivery system- more effective & efficient solutions. First Reliability: On Time Delivery, Resilience: Handling Emergencies, Product recalls, inquiries Innovativeness: better information systems, barcoding, order tracking system etc 35
- 36. 1. CHOOSING RIGHT COMPETITIVE ADVANTAGE 1. How many difference to promote? •Company should develop an unique selling proposition (USP) for each brand and stick to it. •Eg: Same day delivery, Cash back, Cash on delivery, Easy returns, no cost EMI, buy now pay later
- 37. 2. Which differences to promote? • The difference delivers a highly valued befit to target buyers Important • Company can offer their products in distinctive way Distinctive • Difference that is superior to other ways that customers might obtain the same benfit Superior • Difference should be communicable and visible to the buyers Communicable • Companies cannot easily copy the difference Preemeptive • Buyers can afford tp pay the difference Affordable • Companies can introduce the difference profitably Profitable
- 38. 2. SELECTING AN OVERALL POSITIONING STRATEGY •Value proposition is the full mix of benefits upon which the brand is differentiated and positioned
- 39. 1. More for More: •“More For More” positioning involves providing the most upscale product or service and charging higher prices to cover the higher cost. •Brands claim craftsmanship, superior quality, durability, performance or style and charges price to match. •Offering is not only high in quality but also gives prestige to the buyer. •Sells “only the best” in every product and service category. •Companies should use this strategy for under developed product category, else cannot sustain, threat of cloned products at cheaper price
- 40. 2. More for the same: •Companies can attack competitor’s more for more positioning b y introducing a brand offering comparable quality with lower price •Eg: Xiaomi, One plus vs Apple 3. The Same for Less: •Companies “Offering Same for Less” can be powerful value proposition •Discount stores like Walmart, Big bazaar •Companies don’t claim to offer different or better products, instead they offer superior purchasing power and deep discounts
- 41. 4. Less for Much Less: • Market almost exist for products that offer less and cost less. •Few customers wants best in everything they buy •Consumers will gladly settle for less optimal performance and exchange for lower price 5. More for Less: •Many companies claim to do “More for Less” •Companies deliver more for less value. •Eg: Tata Cars
- 42. 3. DEVELOPING A POSITIONING STATEMENT • Positioning Statement: •A Statement that summarises company or brand positioning to address: 1. Target Segment 2. Need 3. Point of difference Eg: Dove, Fevicol, Blackberry
- 44. PRODUCT ❖Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want need ❖The product is the total package of benefits the customer receives when he or she buys. ❖Products are almost always combinations of the tangible and intangible.
- 45. PRODUCTS SERVICE AND EXPERIENCES • Company’s product offering often includes both tangible goods and service • Some companies offer pure tangible goods, no service is required • Eg: Soap, toothpaste Products • Few companies offer pure services- primarily service • Eg: Doctor’s service, Banks Service • Experience have been important for marketing • Eg: Wonderla, Disney land, PVR Inox Experience
- 46. PRODUCT LEVELS: THREE LEVELS A Core Customer Value Actual Product Augmented Product Delivery & Credit Product & Support Brand Name After Sales Service Warranty Features Packaging Design Quality Level
- 47. PRODUCT LEVELS 1. Core Customer Value: ❖Addresses the question What is the buyer really buying?- customer is really buying. ❖Eg: hotel- food, ambience, comfort, good service 2. Actual product: ❖2nd level, Companies develop product and service features, design, quality, brand name and packaging ❖Set of attributes- customer generally expects- purchase of product. 3. Augmented product: ❖It is the core benefit and actual product by offering additional features, attributes, benefits, and service -exceeding customer expectations
- 48. PRODUCT AND SERVICE CLASSIFICATIONS 1. Consumer Product: ❖A product by final consumer for personal consumption 2. Industrial Product: ❖ A product bought by individuals and organizations for further processing or for use in conducting business
- 51. INDIVIDUAL PRODUCT DECISIONS Product attributes Branding Packaging Labeling Product Support services
- 52. 1. PRODUCT AND SERVICE ATTRIBUTES i. Product Quality: ❖American Society defined Quality as “the characteristics of product or service that bear on its ability to satisfy stated or implied customer needs”. ❖Product Quality has 2 dimensions: 1.Quality Level Performance Quality Ability of a product to perform its function Eg: Rolls Royce Conformance Quality It means products free from defects and consistently delivering targeted level of performance
- 53. ii. Product Features: ❖Product can be offered with various features ❖Companies then asses each feature’s value to customer vs its cost to the company ❖Features that customer value highly in relation to cost should be added. iii. Product Style & Design: ❖Design is larger concept than style iv. Branding: ❖A brand is name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition.” Style Design Simply describes the appearance of a product Design begins with deep understanding of customer needs Grabs attention and produce pleasing aesthetics Good design contributes product’s usefulness
- 54. iv. Packaging: ❖Packaging is defined as all the activities of designing and producing the container for the product. v. Labelling: ❖The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. vi. Product Support services: ❖Company’s offer usually include support services which can be minor or major part of the total offering. ❖Eg: Fedex, DHL, HP Care
- 55. PRODUCT LINE DECISIONS ❖A product line is a group of products that are closely related, because they perform a similar function, are sold to the same customer groups, are marketed through the same channels or fall within the given price ranges. ❖The product mix may be composed of several product lines. ❖Product line analysis: ❖Product line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. ❖They also need to understand each product’s market profile, i.e. how their product line is positioned against competitors’ product lines (The Product Map).
- 57. PRODUCT LINE LENGTH •Line stretching: occurs when company lengthen its product line beyond its current range. 1. Down market Stretching: occurs when company wishes to tie up with lower end competitors. Uses the parents brand name. eg: Britannia tiger biscuits, 2. Up market Stretching: companies wishes to enter high end of the market to achieve more growth 3. Two Way Stretching: consumers serving the middle market. Eg: Nokia, Samsung, Fastrack- variety of products, price range 4. Filling in the Product Line: adding more items within the present range of line 5. Product Line Modernization: upgrading products- intel, antivirus s/w, Microsoft 6. Product Line Featuring: flagship brand 7. Product Line Pruning: cutting/ stopping the brands
- 58. PRODUCT MIX STRATEGIES ❖A Product Mix (also called Product Assortment) is the set of all products and items that a particular seller offers for sale. ❖A total group of products that an organization markets. ❖A company’s product mix has a certain width, length, depth and consistency. ❖Dimensions of Product Mix: 1. The width of company’s (say HUL’s) product mix refers to how many different product lines the company carries, such as bathing soap, detergents, shampoos, toothpaste, food products. 2. The length of a company’s product mix refers to the total number of items in its product mix. ❖Thus in each of the product line HUL has a number of product items. ❖Eg.in the product line of bathing soaps, HUL has several product items like Lux, Liril, Lifebuoy, Pears.
- 59. Width of Product Mix Product Line length of
- 60. 3. The depth of a company’s product mix refers to how many variants , shades, models, pack sizes are offered of each product in the line. 4. Product/ SKU: SKU (Stock Keeping Unit) denotes independent item of a product offered for sale. •Eg: Dove shampoo is offered in 200 ml, 150ml and 5 ml sachet •Thus if dove comes in three formulations and in three sizes, Dove has a SKU of nine (3x3). 5. The Consistency of the product mix refers to how closely related the various product lines are in end-use, production requirements, distribution channels, or some other way. •HUL’s product lines are consistent in so far as they are consumer goods that go through the same distribution channels.
- 61. BRANDING
- 62. WHAT IS A BRAND? 62 A brand is name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition.”
- 63. TYPES OF BRAND (TAPAN K PANDA PG 357) 63 1. Manufacturer’s Brand : It is a brand owned by manufacturer or producer. 2. Private Brand : Private brands or private label brands are brand names placed on products marketed by wholesalers and retailers. Eg: Stop brand apparel of Shoppers stop, more, reliance. 3. Family brand : It is a brand name that identifies several related products. Eg.Godrej, HUL, P&G, Videocon Brand. 4. Individual Brand : These are unique brand names that identify a specific offering within a firm’s product line. Eg: Surf, Ariel, gillete
- 64. BRAND EQUITY 64 ❖Brand equity is defined as the added value endowed on products & services. ❖It may be reflected in the way consumers feels, think, act with respect to the brand as well as prices, market share & profitability ❖Customer based brand equity- customer reacts more favorably to the brand and identifies- positive brand equity. ❖Negative brand equity- vice versa
- 66. CLASSIFICATION OF NEW PRODUCTS New products are classified into 2 types: 1. Intrinsically new products (new to the world) 2. New products that represent marketing oriented modifications of existing products
- 67. New Product Development Idea generation Is the idea worth considering? Idea screening Choosing best idea- compatible with companies objectives & goals Concept development & testing Good concept for consumers Market strategy development Any cost effective marketing strategy Business analysis Will product meet our profit or goal? Product development Is the product technically & commercially sound product? Market testing Have the product met the sales expectations? Commercializatio n Product sales meeting expectations? Make future plans YES
- 68. Stages In New Product Development 1. Generating new product ideas: • New product ideas may emanate from: • Company’s R & D • Company's Market Research • Employees, suggestion schemes, • Cross functional teams • External research organization • Sometimes idea emerge as Natural happening” 2. Idea Screening: • Is there a felt need for new product? • Is it an improvement over the existing product? • Is it close to our current lines of business? Or totally a new line? • Can existing production & marketing organizations handle the product?
- 69. 3. Concept development & testing: • After screening, new product idea is subjected to “Concept Development” and “Concept Testing” • Selected idea is shaped into a Product Concept- what the proposed product will do, how it will look like, features • Concept testing: when a totally new product- in contrast to “me too” product is being planned for introduction. Eg: Google Glass • Simulation technologies or software plays a vital role in new product development 4. Market Analysis: • Estimation of demand for new products. Done on the basis of 2 methods: i. Substitution method: • New product generally displaces old product/ pattern • Demand estimation/ forecasting is done ii. End use method: • Define new end use and locate potential customers
- 70. 5. Business/Market analysis: • Decide on financial aspects & market point of view • Project’s overall impact on corporate’s financial position, estimate is made only on reliable information aspects 6. Product development: • Pilot production facility is set up. • Active team for developing product, production, marketing is involved 7. Market testing: • New products has to be tried in select market segments • Previous step to full scale manufacturing 8. Commercialization: • Company decides large scale manufacturing based on the previous stage • Company commercialize the new product with required manufacturing & marketing
- 71. PRODUCT LIFE CYCLE •A company’s positioning & differentiation strategy must change as the product, market & competitors change over the PLC •Product life cycle has to assert 4 things: 1. Products have limited life 2. Product sales pass through distinct stages, each posing different challenges, opportunities & problems to the seller 3. Profits rise & fall at different stages of PLC 4. Product require different marketing, finance, HR , manufacturing, purchasing strategies in each life cycle stage •It is a Bell shaped curve • There are 4 Stages: •Introduction, growth, maturity, decline
- 72. PRODUCT LIFE CYCLE 1. Introduction: slow sales growth as the product is new to the market- no profit- heavy expense - product intro- skimming & penetration pricing strategies •Eg: Maggi- instant noodles- working women & children- affordable pricing- no competitors promotion- gift for empty wrappers
- 73. 2. Growth: period of rapid market share acceptance- profit improvement. •It improves product quality and adds new product features and improved styling. •It adds new models and flanker products (i.e., products of different sizes, flavors, and so forth that protect the main product ). •It enters new market segments. •It increases its distribution coverage and enters new distribution channels. •It lowers prices to attract the next layer of price-sensitive buyers. Horizontal integration, vertical integration, conglomerate & concentric diversification 3. Maturity: slowdown in sales growth- products accepted by most potential buyers. Profits stabilize or decline- increased competition 1. Market Modification (expand users) 2. Product Modification (quality, feature & style improvement) 3. Marketing Mix Modification (Prices, Distribution, Advertising, Sales Promotion, Personal Selling, Services)
- 74. 4. Decline: sales show downward drift & profits erode 1. Go Strategy i. Concentration Strategy: •Decreasing the firm’s investment level selectively, by dropping unprofitable customer groups, while simultaneously strengthening the firm’s investment in lucrative niches. ii. Harvesting Strategy: •Divesting the business quickly by disposing of its assets as advantageously as possible. 2. The Drop Strategy •If the company cannot find any buyers, it must decide whether to liquidate the brand quickly or slowly
- 76. PACKAGING •Packaging is defined as all the activities of designing and producing the container for the product. •Packages might include up to 3 levels of material. •Bottle of a cologne is primary package, cardboard box is secondary package and box containing half a dozen bottle is shipping package. Well designed package create convenience and promotional value. •The package is the buyer’s first encounter with product. •Package is the last communication with the customer.
- 77. Well designed package create convenience and promotional value. •The package is the buyer’s first encounter with product. •Package is the last communication with the customer.
- 78. ROLE OF LABELING IN PACKAGING •Sellers must label product. •The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. •Labels eventually become outmoded and need freshening up. Functions of Label •Label identifies the product or brand. •Label might also grade the product . •Label might describe the product like who made it , when it was made , what it contains , how it is to be used and how to use it safely. •Label may promote the product through attractive graphics.
- 79. UNIT QUESTIONS ❖Market segmentation & Benefits, ❖Requisites of Effective Segmentation, ❖Bases for Segmenting Consumer Markets ❖Market Targeting ❖Selecting Target Market Segments ❖Differentiation & Positioning for competitive Advantage –Meaning, ❖Positioning Maps, ❖Product Concept, ❖Products Experience; ❖Levels of products, ❖Product classifications ❖Concept of Branding, Types, Brand Equity ❖Individual Product Decisions, ❖Product Line Decisions, ❖Packaging ❖Packing as a Marketing tool ❖Role of Labeling in packing ❖New Product Development Strategy ❖Product Life Cycle Strategies