STPD Strategies

Pillars of marketing

Prof. Vikram Parekh on Marketing Strategy

Identifying Market Segments and Targets

Prof. Vikram Parekh on Marketing Strategy

Segment Marketing

Targeting a group of customers who share a similar set of needs and wants.

Prof. Vikram Parekh on Marketing Strategy

Customerization

Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.

Prof. Vikram Parekh on Marketing Strategy

Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral

Prof. Vikram Parekh on Marketing Strategy

Bases of segmentation
1. 2. 3. 4. 5. 6. 7. 8. 9. Geographic Demographic Psychological Psychographic Socio-cultural Use-related Use-situation Benefit Hybrid region, city, density, climate age, sex, marital status, family size, income need-motivation, personality, perception, attitude lifestyle culture, religion, language, family life-cycle usage rate, awareness status, brand loyalty time, objective, location, person mix of other bases of segmentation

Prof. Vikram Parekh on Marketing Strategy

Demographic Segmentation
Age and Life Cycle Life Stage Gender Income Generation Social Class

Prof. Vikram Parekh on Marketing Strategy

Behavioral Segmentation
Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

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Behavioral Segmentation Breakdown

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Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Prof. Vikram Parekh on Marketing Strategy

Patterns of Target Market Selection

Prof. Vikram Parekh on Marketing Strategy

Figure 8.6 Patterns of Target Market Selection

Prof. Vikram Parekh on Marketing Strategy

Figure 8.6 Patterns of Target Market Selection

Prof. Vikram Parekh on Marketing Strategy

Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Prof. Vikram Parekh on Marketing Strategy

Introduction
In 2004, HLL (Now HUL) was the largest FMCG company in India. It was present in many segments. HUL is a highly consumer-focused company with different brands catering to different consumer segments with different needs and purchasing power

Surf Rin Wheel Axe Ponds & Rexona Elle 18 (Laxme) Sunsilk (shampoo) Clinic plus

high-end consumers mid-market segment lower end market men women early teens & young adults hair expert healthy hair (anti-dandruff)

Prof. Vikram Parekh on Marketing Strategy

Defining market segmentation

The process of dividing the market on various criteria like age, sex, region, culture, etc. Segmentation can take place at various levels Segment marketing: dividing the market into large homogeneous segments on the basis of variables like common needs, purchasing power, region, or age. Lakme cosmetics, for e.g., caters to the basic need of women to look good Niche marketing: is a specialized market segment, niches are quite small and have much less competition. E.g., magazines targeted at specific sports like golf (Golf Digest) Local marketing: involves customizing the global products to suit local tastes. E.g., McDonalds McAloo Tikki and McVeggie Individual marketing: is the highest level of customization, where each product or service is tailor-made for an individual consumer. E.g., designer cars by Dilip Chabria (DC)

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Market segmentation strategies

Concentration strategy: marketer chooses to target a single segment. This strategy has high risk but it can bring benefits due to economies of scale from using only one marketing mix. E.g., volkswagen, which concentrates only on the small car segment Selective segmentation: pursuing unrelated but commercially promising segments which diversify the firms risk. A separate marekting mix is formulated for each segment. E.g., Living Media India Ltd. Which is an magazine business (India Today and Business Today), news channel (Aaj Tak), music (Music Today), art (Art Today), bookds (Book Club), etc Product specialization: to specialize in one product only and sell it to various segments. E.g., Nokia, which is a mobile-phone marketer, and caters to a large variety of segments Market specialization: focuses on one consumer segment and serves all its needs. Although the products are different, only a single segment is being catered. E.g., Johnson & Johnson for babies Prof. Vikram Parekh on Marketing Strategy

Market segmentation strategies

Full market coverage: big marketers have the resources to cater to the full market. The two strategies which can be adopted for this purpose are
Differentiated marketing strategy for each segment (separate marketing mix for each segment) e.g., Coca-Colas full range of products: Kinley (bottled mineral water); Georgia (hot & cold coffee and flavored tea); Sprite (colorless carbonated cold drink); Thumps up, Vanilla Coke and Coke (Carbonated black cold drink); Mazaa (Mango drink) and Kinley club soda Undifferentiated marketing strategy (targeting multiple segments with one marketing mix). This method is profitable if resources are used more efficiently. It is a mass marketing approach where the whole market is treated as a sing market. For most basic necessitates, an undifferentiated marketing strategy is adopted

Prof. Vikram Parekh on Marketing Strategy

Market segmentation strategies

Counter-segmentation: club all the segments together and formulate a common marketing mix. The need for such a strategy might also arise in case the marketers initially had divided the potential consumers in too many micro segments which led to a diffused focus and drain on resources with lower returns. E.g., marketers of personal care products, find that people are not buying shampoos on the basis of hair types and its products in many segment like shiny, curly, silky etc. are not selling well. as most people buying shampoos on the basis of just cleanliness and bounce, the marketer might consider a counter segmentation strategy can come out of unnecessary niches

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Marketing Debate
Is mass marketing dead?

Take a position: 1. Mass marketing is dead. 2. Mass marketing is still a viable way to build a profitable brand.

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Positioning
STPD

Prof. Vikram Parekh on Marketing Strategy

Positioning
The Idea that each Brand if at all noticed occupies a particular point of space in the individual customers mind

A point which is determined by the consumers perception of the brand in question and in relation to other brands

Prof. Vikram Parekh on Marketing Strategy

Positioning
It is this concept of Perceptual space that forms the theoretical basis for Brand Positioning

The Concept of Perceptual Mapping and Perceptual Space

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Perceptual Mapping
Techniques that use consumer perceptions to identify similarities and differences between brands.
Produces a visual representation of how the target market views competing alternatives.

Prof. Vikram Parekh on Marketing Strategy

Positioning

Is the essence of the Brand in terms of its functional and non functional attributes as Judged by the customers

In a Product Class In relation to its competitors products Benefits offered

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In order to Position a Brand You must decide

Who the Target Consumer is Who your main competitors are How the Brand is similar to your competitors (POP) How the Brand is different from you competitors (POD)

Prof. Vikram Parekh on Marketing Strategy

POP and POD

Category attributes:
that are required to include your product as a member of that category POP Competitive: PODs that negate your competitors PODs

POPs can be good enough, but PODs should be superior

Prof. Vikram Parekh on Marketing Strategy

A well crafted brand position has three primary components:

Prof. Vikram Parekh on Marketing Strategy

Positioning
Positioning is what you do to the mind of the consumer

Prof. Vikram Parekh on Marketing Strategy

Positioning
The Position of a Brand is its Perception among target consumers

This perception is based on the Functional attributes of the Brand Tasty, Aromatic, Sporty
Also it is dependent on the Non Functional Emotional association Modern, Contemporary, Traditional It is Relative to the perception held by that consumer, of the competing brands, all of which can be represented as points or positions in his perceptual space and together, make up the product class
Prof. Vikram Parekh on Marketing Strategy

Positioning Building Blocks

BENEFIT

COMPETITORS

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Brand Position
How a brand is perceived by a target audience so that it is distinguished from competition as being the best at satisfying a particular need

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

7 UP
7 UP USED AS A MIXER WITH HARD DRINKS. HAD STEADY SALES BUT NOTHING AS COMPARED TO A SOFT DRINK. HENCE, WANTED TO POSITION ITSELF AS A SOFT DRINK LIKE COKE AND PEPSI.

Prof. Vikram Parekh on Marketing Strategy

SO HERE COMES

UN COLA

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THE UN COLA DRINK

Prof. Vikram Parekh on Marketing Strategy

Prof. Vikram Parekh on Marketing Strategy

Asian Paints and Hutch

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Positioning Bases
Attribute Price and Quality

Use or Application
Product User

Product Class
Competitor Emotion
Prof. Vikram Parekh on Marketing Strategy

Developing and Communicating a Positioning Strategy

Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning

Which Positioning to Promote?

Prof. Vikram Parekh on Marketing Strategy

Some Positioning Strategies

Raymonds complete man Prof. Vikram Parekh on Marketing Strategy

Some Positioning Strategies

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Coke vs Pepsi

Liril

Honda

Amul

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Category performance - Toothpaste

Prof. Vikram Parekh on Marketing Strategy

Positioning strategies

By Price/ Quality By Competitor By Usage By product User

Nirma Avis Burnol / Dettol Red & White

By Product Class

Bata

Prof. Vikram Parekh on Marketing Strategy

Positioning by attribute
Functional value..Liril uses Freshness Ingredient.Promise with clove oil / Closeup with Gel Additional features..VIP Luggage with 360 wheelers Packaging.Frooti in Tetra pack Product DesignKinetic Honda with self-start ignition Quality/Technology.Cross Pens offer lifelong warranty

Prof. Vikram Parekh on Marketing Strategy

Benefit Positioning
A research into toothpaste marketing revealed the following benefits relevant to toothpaste users: Economy.those looking for low price Cosmetic.those who want white, bright teeth Tastethose to whom taste is important Medicinal.those who are concerned about tooth decay or prevention

Prof. Vikram Parekh on Marketing Strategy

Lintas on Positioning
Since positioning represents the slot the brand occupies in the consumers mind,The best way to define a particular positioning slot is to use 3 or 4 words. The lifelong plywood The fun shoe polish Kitply Cherry Blossom

The freshness soap

The health soap The gentle soap

Liril
Lifebuoy Pears

Prof. Vikram Parekh on Marketing Strategy

Some famous positioning statements

Titan Quartz, the international watch you can pay for in rupees

Four SquareLive life king size.

TVS SuzukiFill it, shut it, forget it. SavlonYeh jale ga nahin ForhansYeh jhag wala hai AvisWe are No.2, but try harder

Maggi Noodlesbus do minute

Prof. Vikram Parekh on Marketing Strategy

Developing and Communicating a Positioning Strategy

Communicating the Companys Positioning

Positioning statement
More car per car.TATA Indica V2 Spoil yourself..TATA Indigo Lets make things betterPhilips For a special journey called life..Chevrolet The difference is German engineering.Corsa Express yourselfAirtel For Managing Tomorrow..Business Today

Prof. Vikram Parekh on Marketing Strategy

Generic format for positioning statements

For (target market) (brand) is the (concept) that (point of difference).

Prof. Vikram Parekh on Marketing Strategy

Diet Coke

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Diet Coke

To weight conscious adults ( target )

Diet Coke is the brand of diet cola ( category )

that tastes best ( benefit )

Prof. Vikram Parekh on Marketing Strategy

Value Proposition for Volvo in North America

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Value Proposition for Volvo in North America

Target market: Upscale American families Benefits offered: Safety Relative price: 20% premium to domestic family cars Generic format for value propositions:
Target market Benefits offered (and sometimes not offered) Relative price

Prof. Vikram Parekh on Marketing Strategy

Example : Mountain Dew

Prof. Vikram Parekh on Marketing Strategy

Example : Mountain Dew To (target group and need) our (brand) is (concept) that (point of differences) Target : young, active soft-drink consumer who have little time for sleep Brand : Mountain Dew Concept : Soft Drink Point of Difference : give you more energy than any other brand because. etc
Prof. Vikram Parekh on Marketing Strategy

A brands Positioning is a key concept it is based on a fundamental principle

all choices are comparative

Prof. Vikram Parekh on Marketing Strategy

Positioning is competitive
When it comes to brands customers make a choice but with products they make comparison

Remember Products increase customer choice brand simply it.

Prof. Vikram Parekh on Marketing Strategy

Now.. Try it Yourself : VW New Beetle

To (target group and need) our (brand) is (concept) that (point of difference)
Prof. Vikram Parekh on Marketing Strategy

Differentiation
Product characteristics

Service characteristics

Image characteristics

Personnel characteristics
Prof. Vikram Parekh on Marketing Strategy

Distribution characteristics