BA320

1
Targeting/Positioning Products Services

• BA320
• Summer 2006

2
Agenda for Today

• Explain how companies identify attractive market
  segments and choose a target marketing strategy.
• Discuss how companies position their products for
  maximum competitive advantage in the marketplace.
• Define product and the major classifications of
  products and services.

3
Evaluating Market Segments

• Segment Size and Growth
• Analyze current segment sales, growth rates, and
  expected profitability.
• Segment Structural Attractiveness
• Consider competition, existence of substitute
  products, and the power of buyers and suppliers.
• Company Objectives and Resources
• Examine company skills resources needed to
  succeed in that segment.
• Offer superior value and gain advantages over
  competitors.

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Figure 6-2Target Marketing Strategies
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Micromarketing

• Tailoring products and marketing programs to suit
  the tastes of specific individuals and locations.
• Local Marketing Tailoring brands and promotions
  to the needs and wants of local customer
  groupscities, neighborhoods, specific stores.
• Individual Marketing Tailoring products and
  marketing programs to the needs and preferences
  of individual customers.

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Custom Printed MMs

• http//www.mymms.com/customprint/index.asp

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Choosing a Market Coverage Strategy

• Factors to consider
• Company resources
• Product variability
• Products life-cycle stage
• Market variability
• Competitors marketing strategies

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Positioning for Competitive Advantage

• Products position is the way the product is
  defined by consumers on important attributes, or
  as the place the product occupies in consumers
  minds relative to competing products.
• Perceptual position maps can help define a
  brands position relative to competitors.

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Figure 6-3Positioning Map Large Luxury SUVs
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Choosing a Positioning Strategy

• Identify a set of possible competitive advantages
  on which to build a position.
• Choose the right competitive advantages.
• Select an overall positioning strategy.

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Identifying Possible Competitive Advantages

• Key to winning target customers is to understand
  their needs better than competitors do and to
  deliver more value.
• Competitive advantage extent to which a company
  can position itself as providing superior value.
• Achieved via differentiation.

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Identifying Possible Competitive Advantages

• Product differentiation
• Services differentiation
• Channel differentiation
• Image differentiation
• People differentiation

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California Cheese
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Nike
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Choosing Right Competitive Advantages

• Important
• Distinctive
• Superior
• Communicable
• Preemptive
• Affordable
• Profitable

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Overall Positioning Strategy

• Full positioning of the brand is called the
  brands value proposition.
• Potential value propositions include
• More for More
• More for the Same
• The Same for Less
• Less for Much Less
• More for Less

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Marketing in Action
Value Propositions
Diaka Vodka is positioned as the world's most
expensive vodka, due to its unique diamond
filtration process. Nearly one hundred diamonds
of up to one carat in size are used to filter the
spirit, resulting in a Vodka with unsurpassed
clarity and smoothness.
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Communicating and Delivering the Chosen Position

• Company must take strong steps to deliver and
  communicate the desired position to target
  consumers.
• The marketing mix efforts must support the
  positioning strategy.
• Must monitor and adapt the position over time to
  match changes in consumer needs and competitors
  strategies.

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Lets Talk!

• Take a look at the ad shown at right.

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What Is a Product?

• Anything that can be offered to a market for
  attention, acquisition, use, or consumption and
  that might satisfy a want or need.
• Includes physical objects, services, events,
  persons, places, organizations, ideas, or some
  combination thereof.

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What Is a Service?

• A form of product that consists of activities,
  benefits, or satisfactions offered for sale that
  are essentially intangible and do not result in
  the ownership of anything.
• Examples banking, hotel, airline, retail, tax
  preparation, home repairs.

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The Product-Service Continuum
Restaurant
Sugar
Education
Pure Tangible Good
Pure Service
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Figure 7-1Three Levels of Product
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Convenience Products

• Purchased frequently and immediately
• Low priced
• Mass advertising
• Many purchase locations

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Shopping Products

• Bought less frequently
• Higher price
• Fewer purchase locations
• Comparison shop

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Specialty Products

• Special purchase efforts
• High price
• Unique characteristics
• Brand identification
• Few purchase locations

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Lets Talk!
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Rest Stop Reviewing the Concepts

• Explain how companies identify attractive market
  segments and choose a target marketing strategy.
• Discuss how companies position their products for
  maximum competitive advantage in the marketplace.
• Define product and the major classifications of
  products and services.