Customer-Driven Marketing Strategy & Integrated

Marketing Mix
Introduction
Differentiation & Positioning
 Value Proposition – how the company will create differentiated
value for targeted segments & what position it wants to occupy in
those segments.
 Product Positioning – the way a product is defined by
consumers on important attributes—the place the product
occupies in consumers’ minds relative to competing brands.
 “Products are created in the factory, but brands are created
in the mind.”
 Tide is positioned as powerful, all-purpose family detergent.
Ivory Snow is positioned as the gentle detergent for fine
washable & baby clothes. At Subway you “Eat Fresh”.
 Toyota Yaris & Honda Fit are positioned on economy. Mercedes
on luxury, Porsche on performance, Toyota Prius as the fuel-
efficient/high-tech solution to energy shortage.
Differentiation & Positioning
 Why position a product?
 Consumers are overloaded with information about
products & services. They cannot reevaluate products
every time they make a buying decision. To simplify the
buying process, consumers organize products, services &
companies into categories & “position” them in their
minds.
 A product’s position is the complex set of perceptions,
impressions and feelings that consumers have for the product
compared with competing products.
 Consumers position products with or without the help of
marketers. So its imperative for marketers to plan a
position. It’s inevitable anyways.
 Differentiation & Positioning
 Positioning Map
 Marketers often prepare perceptual positioning maps, which show
consumer perceptions of their brands versus competing products
on important buying dimensions.

Range Rover
Price (thousands of $)

Large Luxury
SUVs Escalade (Cadillac)

Land Cruiser

Luxury Performance
Orientation
Differentiation & Positioning
Differentiation & Positioning
 Sometimes it’s easy to position your products. A company
positioned for quality can go for the same position in a
new segment.
 But, it becomes hard when two companies go for the
same position.
 “Then”, a marketer should differentiate its offer by a
unique bundle of benefits that attracts a substantial group
within that segment.
 (the next THREE steps will make this more clear)
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a
position.
 Choosing the right competitive advantage
 Selecting an overall positioning strategy
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a position.
 Competitive Advantage – an advantage over competitors gained
by offering consumers greater value, either through lower prices
or by providing more benefits that justify higher prices.
 But solid position cannot be built on empty promises.
 The company must first live the slogan. (real marketing)
 An alert company should find ways to differentiate itself at every
customer contact point.
 Product Differentiation, Service Differentiation, Channels
Differentiation, People Differentiation or Image
Differentiation.
Differentiation & Positioning
Assignment
Real Marketing
Staples:
Positioning Made Easy
(Principles of Marketing, 12th Edition, Pages 193-194)
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a position.
 Product Differentiation:
 on one extreme physical products can be differentiated little: chicken,
salt, steel or aspirin.
 Still Perdue claims that its branded chicken is better, fresher & more
tender – and gets a 10% premium in prices.
 On the other extreme, physical products can be easily differentiated e.g.
automobiles, clothing & furniture.
 Such products are usually differentiated on features, performance or
style.
 Volvo promises new & better safety features.
 Whirlpool designs its dishwasher to run more quietly.
 Moreover, these attributes are also a source of differentiation i.e.
consistency, durability, reliability & reparability.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a
position.
 Service Differentiation
 The services that accompany the product can differentiate too.
 Speedy, convenient & careful delivery.
 Commerce Bank has positioned itself as “the most convenient bank
in America.”
 Installation services & repair services can too.
 Training services & consulting services
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a position.
 Channel Differentiation
 The way they design their channel’s coverage, expertise &
performance.
 Amazon, Dell & Caterpillar do it through their smooth-functioning
direct channels.
 People Differentiation
 By hiring & training better customer-contact people than competitors
do.
 Disney trains their people thoroughly to ensure they are competent,
courteous & friendly from hotel check-in agents to monorail drivers.
 Singapore Airline’s air-hostesses’ grace adds more than anything to it.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Identifying a set of possible customer value differences that
provide competitive advantage upon which to build a
position.
 Image Differentiation
 An image is not done with a magic wand.
 Its words and actions should demonstrate it.
 Symbols, colors, characters or person are part of image.
 McDonald’s golden arches, the Nike swoosh & the Google’s colorful
logo provide strong company or brand recognition.
 Nike’s Tiger-Woods gold products or Air Jordan shoes.
 Color – IBM is blue, Coke is red etc.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Choosing the Right Competitive Advantage
 Afterdiscovering potential differentiations that promote
competitive advantage, the company must choose how many
and which ones to build its position around.
 How Many
 Many marketers believe that ONE differentiator is enough a.k.a. USP
(Unique Selling Proposition)
 Choose ONE and tout being Number One in that.
 Number One is easy to remember in this over-communicated society.
 Crest does it by holding the Cavity Protection.
 Wal-Mart by always low prices.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Choosing the Right Competitive Advantage
 Afterdiscovering potential differentiations that promote
competitive advantage, the company must choose how many
and which ones to build its position around.
 How Many
 On the other hand, many marketers also think that ONE differentiator is not
enough ESPECIALLY when two or more competitors are claiming to be the
best on the SAME Attribute.
 Unilever did it by offering THREE-IN-ONE BAR Soap
 Cleansing, deodorizing & moisturizing
 It succeeded.
 However, as companies increase the number of positions/claims for their
brands, they risk disbelief & loss of clear positioning.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Choosing the Right Competitive Advantage
 After discovering potential differentiations that promote
competitive advantage, the company must choose how many
and which ones to build its position around.
 Which Ones
 Not all differences are meaningful or worthwhile.
 Westin Stamford said that “it’s the tallest hotel.”
 It was distinctive but not important to tourists.
 Following Criteria must be followed:
 Important
 Distinctive
 Superior
 Communicable
 Pre-emptive (not be imitated easily)
 Affordable
 Profitable
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Selecting an Overall Positioning Strategy
 Value Proposition – the full positioning of a brand, the full mix-
of-benefits upon which differentiation is done.
 Volvo’s value proposition hinges on safety but also includes
reliability, roominess & styling, all for a price higher than
average but seems fair for this mix of benefits.
 The figure on next slide shows possible value propositions upon
which a brand can be differentiated.
 Greens are the winning points (competitive advantage)
 Reds are fail zones
 Yellow is a marginal proposition.
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Selecting an Overall Positioning Strategy
Price
More The same Less

More for More for More for

More
more the same less
Benefits

The same The same The same

The same for more for the same for less

Less for Less for the Less for

Less
more same much less
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Developing a positioning Statement
 A statement that summarizes the brand or company position.
 It takes this form;
 To (target segment or need), our (brand) is (concept) that (point of
difference).
 Mountain Dew for example;
 To young, active soft-drink consumers who have little time for sleep,
Mountain Dew is the soft drink that gives you more energy than any other
brand because it has more caffeine. With Mountain Dew, you can stay alert
and keep going even when you haven’t been able to get a good night’s
sleep.”
 First, state the product category (it’s a soft drink).
 Then, state the point-of-difference(has more caffeine).
Differentiation & Positioning
 Differentiation & Positioning involve THREE steps
 Communicating & Delivering the Chosen Position
 Once the position is chosen, take strong actions to WALK THE
TALK.
 i.e. Deliver and Communicate it.
 Marketing Mix is tactical now.
 Easy to find a positioning strategy, hard to implement it.
 Acquire the position through Delivering and Communicating.
 And maintain it by;
 Constant Communication
 Monitoring Competitors strategy
 Monitoring Consumer Needs changes
 Never confuse consumer by constantly changing the position, rather
allow the product evolve naturally with the ever-changing
environment.