Strategic Marketing: Chapter # 01 Market-Driven Strategy

Strategic
Marketing
Chapter # 01
Market-Driven Strategy
Wednesday, December 8, 2021 1

Resource Person
Profile
Graduated From Uni of Western Sydney – Australia in 1997
Have more than 13 years of experience in Sales and Marketing
Have worked in FMCG, Telco and Business to Business environment
of large organizations including Haleeb Foods, Dupont, Ptcl.
Have worked with Global Inst and Comsats. Currently associated with
IMS as permanent faculty and UMT as visiting.


Course Statement
The present day strategic orientation to marketing
has evolved through multiple stages. In strategic
marketing the dynamism can only be maintained by
proactive approach to strategic thinking. This calls for
using systems and methods, which can enhance the
responsiveness of the firm to its stakeholders. The
crux of effective marketing action is contingent upon
continuous and real-time planning, analysis,
implementation and control. The hallmark of strategic
marketing, therefore, is proactive and future oriented
strategic stance. This module attempts to sensitize
participants towards the proactive thinking,
dynamism and action orientation of strategic
marketing.
Strategic Marketing
Marketing Evolution

The Evolution of Marketing
Marketing emerged as a discreet discipline in the early 1900s, but it didn't

affect most companies right away. In general, business was first driven
by production, then by sales, and then by marketing.
PRODUCTION ERA SALES ERA MARKETING ERA

Industrial 1930 1950 Present
Revolution

The Production Era
The period extending from the industrial revolution to about 1930, during
which companies focused on perfecting their manufacturing techniques.
The production era had sellers' markets in many industries, meaning that
demand for products exceeded supply.

The Evolution of Marketing (Cont’d)
The Sales Era
The period from approximately 1930 to 1950, during which companies
focused on promoting and distributing their products.

Manufacturers believed business success lay in outselling the
competition.

Companies emphasized product promotion, formed direct sales
forces, and established relationships with dealers and other firms that
could push their products into the market. Advertising also took on
new importance during this time.

The Evolution of Marketing (Cont’d)
The Marketing Era
The period that began in the 1950s and continues today, during which
companies formed marketing departments, began to pay attention to
customer wants and needs, and started to implement the marketing
concept.
Production efficiencies in the latter part of the production era led to
buyers' markets in many cases; that is, supply exceeded demand. This
resulted in;
1) The marketing concept
2) Vigorous competition
As the marketing era progressed, the method of conducting business

shifted from pushing products on customers to finding out what buyers
wanted and then filling that need.
The Marketing CONCEPT
The idea of maximizing long-term profitability while integrating marketing
with other parts of the company and meeting customer needs and wants.

The marketing concept came into existence in the 1960s and continues to
develop and expand. To apply this concept, marketers;
1. Meet customer needs
2. Achieve and maintain long-term profitability
3. Integrate marketing with the other functions in the company.

1) SENSITIVITY TO CUSTOMER NEEDS AND WANTS
This dedication requires two steps:
a) Understanding what customers expect
b) Meeting those expectations better than your competitors

Customer Orientation: A management philosophy in which the customer
is central to everything the company does.

The Marketing CONCEPT (Cont’d)
2) LONG-TERM PROFITABILITY
The second component of the marketing concept is maintaining
acceptable profit levels year after year while meeting customer needs.
Companies that focus on short-term profits are less inclined to invest in
research laboratories, support personnel, repair facilities, and other
elements needed to satisfy customers.

3) FUNCTIONAL INTEGRATION
One study of new product development projects showed that in cases
where "severe disharmony" existed between marketing and R&D, 68% of
the projects failed and only 11 percent were commercially successful.

Marketing Strategy
The overall plan for marketing a product that includes selecting and
analyzing a target market and creating and maintaining a marketing mix.
External forces play a role in the definition and management of your
marketing mix.

There are three fundamental elements of the marketing strategy:
1) Target Consumer (Market)
The consumers which are selected as the focus of the marketing
program; it covers the potential customers you think are most likely to
need or want your product.
Advertising Target Vs. Consumption Target

2) Market Position
The spot that a product holds in the minds of current and potential
customers, relative to competitive products.
Positioning is the most important foundation concept in marketing.

Marketing Strategy (Cont’d)
3) Marketing Mix
The marketing toolkit;
Product Price Place (Distribution) Promotion
Product Value
A measure of the value that products represent to customers; equal to the
benefits a product provides minus the costs of acquiring and owning it.

Price
The value, usually in monetary terms, that sellers ask in exchange for the
products they are offering.


Marketing Strategy (Cont’d)
Place (Distribution)
The process of moving products from the producer to the consumer,
which may involve several steps and participation of multiple companies.
Wholesaler
Manufacturer ------Distributor--------- Retailer --------Consumer
Example B
Manufacturer ---- Customer

In many industries, mass marketing is gradually being replaced by target
marketing as companies target groups of customers that are smaller and
more focused.

Marketing Strategy Basic Definitions
 Strategy is derived from Greek word ‘strategia

 Means and ways of achieving objectives
 3 levels of application i.e corporate, business
and functional

Characteristics of 3 levels of Strategies
CORPORATE BUSINESS FUNCTIONAL
LEVEL OF TOP CORPORATE SENIOR FUNCTIONAL

RESPONSIBILITY LEVEL MANAGER MANAGER
SCOPE ENTIRE SBU PRODUCT OR

ORGANIZATION COMPANY CUSTOMER
AREA
TIME SPAN 5 YEARS OR 1-5 YEARS 0-1 YEAR
MORE
CRITERION GENERAL OPERATION ACTION

STATEMENT OF ORIENTED ORIENTED
INTENT

Types of Strategies

MARKET-DRIVEN STRATEGY
 Becoming Market Oriented

 Distinctive Capabilities
 Creating Value for Customers
 Becoming Market Driven
 Challenges of a New Era for Strategic Marketing

MARKET-DRIVEN STRATEGY
Fundamental Statement
 All business strategy decisions should start with a
clear understanding of markets, customers, and
competitors.
 The market and the customers that form the
market should be the starting point in shaping
business strategy.

Flow of a Market-Driven Strategy

Why Pursue a Market-Driven
Strategy?
 Strong supporting logic

 Achievements of companies displaying market-driven
characteristics are impressive
Examples include:
 Dell Inc.
 Southwest Airlines
 Tesco
 Tiffany & Co.
 Wal-Mart
 Zara

Must To Become Market Oriented
 Customer is the focal point of the organization

 Commitment to continuous creation of superior
customer value
 Superior skills in understanding and satisfying
customers
 Requires involvement and support of the entire
workforce
 Monitor rapidly changing customer needs and
wants
Cont.

Must To Become Market Oriented
 Determine the impact of changes on

customer satisfaction
 Increase the rate of product innovation
 Pursue strategies to create competitive
advantage

Characteristics of Market
Orientation
 Customer Focus
 What are the customer’s value requirements?
 Competition Intelligence
 Importance of understanding the competition as well as the customer
 Cross-Functional Coordination
 Remove the walls among business functions
 Performance Consequences
 Market orientation leads to superior organizational performances

How to make Market-Oriented
Organization?

Market Orientation
 Information Acquisition
 Gather relevant information on customers, competition, and
markets
 Involve all business functions
 Inter-functional Assessment
 Share information and develop
 Innovative products with
 people from different functions
 Shared diagnosis and action
 Deliver superior customer value as resultant

Distinctive Capabilities
“Capabilities are complex bundles of skills
and accumulated knowledge, exercised
through organizational processes, that
enable firms to coordinate activities and
make use of their assets.”

Case Study 1:
Southwest Airline’s Distinctive Capabilities
1. Organizational Processes
Southwest uses a point-to-point route system rather than

the hub design used by many airlines. The airline offers
services to 57 cities in 29 states, with an average trip about
500 miles. The carrier’s value proposition consists of low
fares and limited services (no meals). Nonetheless, major
emphasis throughout the organization is placed on building
a loyal customer base. Operating costs are kept low by
using only Boeing 737 aircraft, minimizing the time span
from landing to departure, and developing strong customer
loyalty. The company continues to grow by expanding its
point-to-point route network.

Southwest Airline’s Distinctive
Capabilities
2. Skills and Accumulated Knowledge
The airline has developed impressive skills in operating its business

model at very low cost levels. Accumulated knowledge has guided
management in improving the business design over time.

Capabilities Cont.
3. Coordination of Activities
Coordination of activities across business

functions is facilitated by the point-to-point
business model. The high aircraft utilization,
simplification of functions, and limited
passenger services enable the airline to
manage the activities very efficiently and to
provide on-time point-to-point services
offered on a frequent basis.
Capabilities Cont.
4. Assets
Southwest’s key assets are very low operating costs, loyal

customer base, and high employee motivation.

Capabilities

Creating Value for Customers
 Customer Value:
 Value for buyers consists of the benefits less the costs
resulting from the purchase of products.
 Creating Value:
 “Customer value is the outcome of a process that
begins with a business strategy anchored in a deep
understanding of customer needs.”

The Value Delivery Process
1-32
Becoming Market Driven

Market Driven Initiatives
 Market Sensing Capabilities
 Effective processes for learning about markets
 Collected information needs to be shared across
functions and interpreted to determine proper actions
 Customer Linking Capabilities

 Create and maintain close customer relationships

Aligning Structure and Processes to
Become Market Oriented Organization
 Potential change of organizational design
 Improve existing processes
 Process redesign
 Cross-functional coordination and involvement
 Primary targets for reengineering
 Sales and marketing, customer relations, order fulfillment, and
distribution

Challenges of new Era for
Strategic Marketing
• Strategic marketing faces unprecedented
challenges and opportunities:
 Turbulent markets
 Intense competition
 Disruptive innovations
 Escalating customer demands
• Ethical Challenges
• Societal and Global Change
 Social Responsiveness of Organizations

Strategic
Marketing
Chapter # 02
Corporate, Business and
Marketing Strategy

Corporate – Business &
Marketing Strategy
 Corporate strategy
 Business and marketing strategy
 Marketing strategy process
 Preparing the marketing plan

Corporate Headquarters’ Planning
Activities
Define the corporate mission

Establish SBUs
Assign resources to each SBU
Assess growth opportunities
1-39
Good Mission Statements
 Focus on limited number of goals
 Stress major policies and values
 Define major competitive spheres
1-40
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market Share

Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, cost-
effective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our uncompromising Commitment
to Customer Satisfaction.” 1-41
Motorola
“The purpose of Motorola is to honorably

serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”
1-42
eBay
“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all – collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
1-43
Characteristics of SBUs
 It is a single business or collection of related
businesses
 It has its own set of competitors
 It has a leader responsible for:
 Strategic planning
 Profitability
 Efficiency
1-44
CORPORATE, BUSINESS AND
MARKETING STRATEGY

CORPORATE STRATEGY

Characteristics of Successful
Corporate Strategy
 Unique competitive position for the company.
 Activities tailored to strategy.
 Clear trade-offs and choices vis-à-vis competitors.
 Competitive advantage arises from fit across activities.
 Sustainability comes from the activity system not the
parts.
 Operational effectiveness a given.

Corporate Strategy Components
 Management’s long-term vision for the

corporation
 Objectives
 Assets, skills, and capabilities
 Businesses in which the corporation competes
 Structure, systems, and processes
 Creation of value

Marketing Strategy Process

Situation Analysis

Designing Market Driven
Strategies

Positioning Strategy Development

Implementing and Managing
Market Driven Strategy

The Strategic-Planning, Implementation, and
Control Process
1-54
Marketing Plan and its Levels
 Strategic  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of marketing  Pricing
opportunities  Sales channels
 Service
1-55
Marketing Plan Outline
01. Strategic Situation Summary
Summarize the key points from your situation

analysis (market analysis, segments,
industry/competition) in order to recount the major
events and provide information to better understand
the strategies outlined in the marketing plan.

02. Market-Targets and Objectives
The market target may be defined demographically (key characteristics only),
geographically, or in social/economic terms. Each market target should have needs
and wants that differ to some degree from other targets. These differences may be
with respect to types of products purchased, use situation, frequency of purchase,
and other variations that indicate a need to alter the positioning strategy to fit the needs
and wants of each target. An objective is a quantified goal identifying what is expected
when. It specifies the end results expected. The objectives should be written for each
target market. Objectives should also be included for the following program components:
(1) product,
(2) price,
(3) distribution,
(4) promotion (sales force, advertising, sales promotion, and public relations) and
(5) Technical services.

03. Positioning Statements
Write statements that describe how you want each market target
to perceive each product relative to competition. State the core
concept used to position the product (brand) in the eyes and
mind of the targeted buyer. The positioning statement should
describe:
 (1) What criteria or benefits the customer considers when
buying a product along with the level of importance,
 (2) What we offer that differentiates our product from
competition and
 (3) The limitations of competitive products.

04. Market Mix Strategy for Each Market Target
A. Product Strategy
Identify how each product fits the market target. Other issues
that may be addressed would be new product suggestions,
adjustments in the mix of existing products, and product deletion
candidates.
B. Price Strategy
The overall pricing strategy (I.e., competitive, premium-priced,
etc.) should be identified along with a cost/benefit analysis if
applicable. Identify what role you want price to play, i.e.,
increase share, maintenance, etc.

C. Distribution Strategy
Describe specific distribution strategies for each market target. Issues to be
addressed are intensity of distribution (market coverage), how distribution will be
accomplished, and assistance provided to distributors. The role of the sales force in
distribution strategy should also be considered.
D. Promotion Strategy
Promotion strategy is used to initiate and maintain a flow of communication between
the company and the market target. To assist in developing the communications
program, the attributes or benefits of our product should be identified for each
market target. How our product differs from competition (competitive advantage)
should be listed. The sales force’s responsibilities in fulfilling the market plan must
be integrated into the promotion strategy. Strategies should be listed for
(1) personal selling, (2) advertising, (3) sales promotion, and (4) public relations.

E. Marketing Research
Describe the market research problem and the kind of
information needed. Include a statement which addresses
why this information is needed. The specific market research
strategies can be written once the above two steps have
been followed.
F. Coordination with Other Business Functions
Indicate other departments/functions that have
responsibilities for implementing the marketing plan.
G. Sales Forecasts and Budgets
H. Contingency Plans
Indicate how your plans should be modified if events should
occur that are different from those assumed in the plan.
Evaluating a Marketing Plan
 Is the plan simple?

 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?
1-62
Strategic
Marketing
Chapter # 03
Markets and
Competitive Space

Markets and Competitive
Space
 Markets and Strategies

 Product-Market Scope and Structure
 Describing and Analyzing End-Users
 Analyzing Competition
 Developing a Strategic Vision about the Future
 Market Size Estimation

Markets and Competitive Space
The Challenges
 Markets are increasingly complex, turbulent, and interrelated.
 Importance of a broad view of the market.
 Essential to develop a vision about how the market is likely to
change in the future.
Continuous Monitoring is Necessary
 Find promising opportunities
 Identify shifts in value requirements
 Understand competitors’ positioning
 Guide targeting and positioning decisions
Forming Market Strategies

Impact Strategies
 Market changes often require altering strategies
 Forces of change create both market opportunities and threats
 Inherent danger in faulty market sensing

Value Migrations
 Customers shift purchasing to new business designs with
enhanced value offering
 Beware of disruptive technologies
 Market sensing and organizational learning are essential

Product - Market Scope &
Structure
 Matching Needs with Product Benefits
 Product-Market Boundaries and Structure
 Forming Product-Markets for Analysis
 The Changing Composition of Markets

What Is Product- Market?
Matching needs with benefits
“A product –market is the set of products judged to be substitutes within
those usage situations in which similar patterns of benefits are sought
by groups of customers.”*
*Srivastava, et al. (1984) Journal of Marketing, Spring, 32.

Product –Market Boundaries and
Structure
Determining Product-Market Structure
 Start with the generic need satisfied by the product category of
interest to management
 Identify the product categories (types) that can satisfy the
generic need
 Form the specific product –markets within the generic product –
market

Forming Product –Markets for
Analysis
 Factors influencing product –market
boundaries:
• Purpose of analysis
• Changing composition of markets
• Extent of market complexity

The Changing Composition of
Markets
 Change due to new technologies and
emerging competition
 Consider existing and emerging markets
 Identify alternative ways to meet needs
 Extend product-market analysis beyond
industry boundaries (e.g. Fast-foods)

Extent of Market Complexity
Three characteristics of markets:
 Functions or uses of the product

 The enabling technology of the product
 Customer segments in the product-market

DEFINING AND ANALYZING
MARKETS
Define Product-Market Boundaries and Structures
Identify and Describe End-Users
Analyze Industry and Value Added Chain
Evaluate Key Competitors
Forecast Market Size and Growth Trends

How Buyers Make Choices
BUYING DECISION PROCESS
 Problem recognition
 Information search
 Alternative evaluation
 Purchase decision
 Post-purchase behavior

Environmental Influences
 External factors influencing buyers' needs

and wants:
 Government, social change, economic shifts,
technology etc.
 These factors are often non-controllable
but can have a major impact on
purchasing decisions

Building Customer Profiles
 Start with generic product –market
 Move next to product-type and variant
 Customer profiles guide decision making
(e.g. targeting, positioning, market
segmentation etc.)

Analyzing Competition

Levels of Competition

Industry Analysis
 Industry size, growth, and composition
 Typical marketing practices
 Industry changes that are anticipated (e.g.
consolidation trends)
 Industry strengths and weaknesses
 Strategic alliances among competitors

Defining Industry Structure &
Characteristics
Suppliers
Producers
Wholesalers/Distributors
Retailers/Dealers
Consumers/Organizational End Users

Competitive Forces
 Rivalry among existing firms.
 Threat of new entrants.
 Threat of substitute products.
 Bargaining power of suppliers.
 Bargaining power of buyers.

Key Competitor Analysis
 Business scope and objectives
 Management experience, capabilities, and weaknesses
 Market position and trends
 Market target/s and customer base
 Marketing program positioning strategy
 Financial, technical, and operating capabilities
 Key competitive advantages (e.g., access to resources,
patents)

MARKET SIZE ESTIMATION
Product-Market Forecast Market Potential

Relationships Estimate
(area denotes sales in $’s)
Unrealized
Potential
Company Industry
Sales Sales
Forecast Forecast
Strategic
Marketing
Chapter # 04
Strategic Market
Segmentation
STRATEGIC MARKET
SEGMENTATION
 Segmentation and market-driven strategy
 Identifying market segments
 Forming segments
 Finer segmentation strategies
 Selecting the segmentation strategy

Segment Marketing
Targeting a group of customers

who share a similar set of
needs and wants.
1-89
Why Segmentation?
© Malcolm McDonald
1-90
Patterns of
Target Market Selection
1-91
Patterns of
1-92
Patterns of
1-93
Segment-by-Segment
Invasion Plan
1-94
Four levels of Micromarketing
Segments Niches
Local areas Individuals
1-95
Flexible Marketing Offerings
 Naked solution  Discretionary

 Product and service options
elements that all  Some segment
segment members members value
value  Options may carry
additional charges.
1-96
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.
1-97
Effective Segmentation Criteria
Measurable
Measurable
Substantial
Substantial
Accessible
Accessible
Differentiable
Differentiable
Actionable
Actionable
1-98
Segmenting Consumer Markets
Geographic
Geographic
Demographic
Demographic
Psychographic
Psychographic
Behavioural
Behavioural
1-99
Demographic Segmentation
Age
Age and
and Life
Life Cycle
Cycle
Life
Life Stage
Stage
Gender
Gender
Income
Income
Generation
Generation
Social
Social Class
Class
1-100
Profiling American
Generations
 Silent Generation  Generation X

 1925-1945  1965-1977
 Baby Boomers  Generation Y
 1946-1964  1978-1994
 Millennial
 1995-2002
1-101
Behavioural Segmentation
Decision Roles Behavioural Variables
 Initiator  Occasions
 Influencer  Benefits
 Decider  User Status
 Buyer  Usage Rate
 User  Buyer-Readiness
 Loyalty Status
 Attitude
1-102
The Brand Funnel Illustrates Variations
in the Buyer-Readiness Stage
 Aware
 Ever tried
 Recent trial
 Occasional user
 Regular user
 Most often used
1-103
The Conversion Model
Convertible Shallow Average Entrenched
Users Nonusers
Strongly Weakly Ambivalent Available

unavailable unavailable (uncertain) (certain)
1-104
Segmenting for Business
Markets
Demographic
Demographic
Operating
Operating Variable
Variable
Purchasing
Purchasing Approaches
Approaches
Situational
Situational Factors
Factors
Personal
Personal
Characteristics
Characteristics
1-105
Segmentation and Market-Driven
Strategy
SEGMENTS
VALUE
OPPORTUNITIES
CAPABILITIES/
SEGMENT
MATCH
TARGET (S)
POSITIONING
STRATEGY

From Mass Markets to Micro Markets
OLD NEW
CONSUMERS Passively receive Empowered media users
whatever TV control and shape content
networks thanks to TiVo, iPodand
broadcast Internet
ASPIRATIONS To keep up with To standout from the

the crowd crowd
TV CHOICE Three networks Hundreds of channels

plus maybe a plus video on demand
PBS station
MAGAZINES Age of the big Age of the special interest

glossies: Time, magazine for every age
Life, Newsweek
ADS Everyone hums Talking to a group of

the Alka-Seltzer one, ads go ever
jingle narrower
BRANDS Rise of the big, Niche brands, product

ubiquitous extensions and mass
brands from customization mean many
Coca-Cola product variations
to Tide
Market Segmentation Activities and Decisions
Market to be
Segmented
Strategic Decide
Analysis How
Of Segments to Segment
Finer Form
Segmentation Segments
Strategies

Segmentation Niche/Depth
Generic
Segmentation
e.g., Beverages
Product Type
The Most Attractive
for Market Driven
Segmentation
e.g., Carbonated
Segmentation Soft Drink
Product Variant
Segmentation
e.g., Pepsi, Teem, Marinda and
Mountain Dew

Requirements for
Segmentation
Identifiable segments
Response Actionable
differences segments
Segmentation
Requirements
Stability
over Favorable
time cost/
benefit
Selecting the Segmentation Strategy
 Deciding how to segment

 Strategic analysis of market segments
 Customer analysis
 Competitor analysis
 Positioning analysis
 Estimating segment attractiveness

Strategic
Marketing
Chapter # 05
Continuous Learning About
Markets

Continuous Learning About
Markets
 Market orientation and organizational learning
 Marketing research information
 Information systems
 Marketing intelligence systems and knowledge
management
 Ethical issues in collecting and using information

Learning About Markets
Open
Minded
Inquiry
Keeping and Synergistic

Gaining Access Information
to Prior Distribution
Learning
Mutually
Informed
Interpretations
Case Study
The Bombay Company
 Turnaround strategy at The Bombay Company started with customer
research examining shopping experiences and what consumers really
wanted from a home furnishings supplier
 This drove major changes in how goods were displayed and presented
to overcome perceptions of confused merchandizing and pricing
 Stores were re-merchandized around themes to overcome consumer
feelings that the company was too “stuffy”
 The research showed that catalogs were used for decorating ideas not
product listings, so they were restyled around lifestyle choices
 The Bombay Company strategy is driven by extensive market research
and response to customer feedback
Types of Marketing
Information
 Marketing research studies
 Standardized information services
 Management information systems
 Decision support systems
 Customer relationship management (CRM) systems
 Competitor intelligence systems

Strategic
Marketing
Chapter # 06
Market Targeting &
Strategic Positioning

Market Targeting and Strategic
Positioning
 Market Targeting Strategy
 Targeting in Different Market
Environments
 Positioning Strategy
 Developing the Positioning Strategy
 Determining Positioning Effectiveness

Market Targeting Strategy
 The Marketing Targeting Decision Identities the People or
Organizations in a Product-Market Toward Which a Firm
Directs Its Positioning Strategy
 Guided by an understanding of:
 The product-market
 Its buyers
 Firm’s capabilities and resources
 Competition

Market Targeting and Strategic
Positioning

Core dimensions of market-driven strategy: deciding which
buyer’s to target and how to position the firm’s products
 Effective targeting and positioning strategies are essential in
gaining and sustaining superior performance

Market Targeting Alternatives
Segments Clearly Defined
Target Selected Target Multiple

Niche/s Segments
Selective Extensive
Targeting Targeting
Product Product
Specialization Variety
Differentiated But Segments

Not Clearly Defined

Factors Influencing Targeting
Decisions
 Stage of product –market maturity
 Extent of diversity in preferences
 Industry structure
 Capabilities and resources
 Opportunities to gain competitive advantage

Targeting in Different Market
Environments
 Emerging
 Fragmented
 Transitional
 Declining
 Global

Emerging Market
 Buyer Diversity
 Segmentation limited due to similarity of buyers' preferences
 Industry Structure
 Typically small new organizations
 Limited access to resources
 Capabilities and Resources

 Unique benefit (differentiation) strategy rather than low-cost
 First-mover advantage
 Targeting Strategy
 Single target or a few broad segments

Growth Market
 Buyer Diversity
-Segments should exist
 Industry Structure
-Numerous competitors
 Capabilities and Resources

-Survival requires aggressive actions by firms that seek large market positions
 Targeting Strategy
-Extensive market coverage by firms with established businesses in related markets

-Selective targeting by firms with diversified product portfolios
-Very focused targeting strategies by small organizations serving one or a few
market segments.

Strategies for Mature Markets
 Buyer Diversity
 Segmentation essential for competitive advantage
 Intense competition for market share
 Emphasis on cost and service, and pressures on profits
 Capabilities and Resources

 Management’s objectives: cost reduction, selective targeting, product
differentiation
 Firms pursuing extensive targeting strategies may decide to exit from certain
segments

Global Markets
 Global Reach and Standardization
 Identify market segments that span global markets and serve these needs with global
positioning strategies
 Local Adaptation
 Consider requirements of domestic buyers
 Buyers' needs and preferences affected by social, political, cultural, economic, and
language differences
 Restructuring, acquisitions, mergers, and strategic alliances altering industries and
competition
 Targeting a single country, regional (multinational) targeting, or global targeting

Positioning Strategy
Deciding the desired perception/ association of an
organization/ brand by market target buyers…and
designing the marketing program to meet (or exceed)
buyers’ value requirements.

Basic concept
 Act of designing the company’s offer and image
so that it occupies a distinct and valued place in
target market’s mind’.
(kotler)
 Positioning ingredients are (1) who the target
consumer (2)who the main competitor (3) how
the brand similar to competition (4) how the
brand different from competition
Points of parity Points of difference

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Target Market
 A market is the set all actual and potential buyer
who have sufficient ability, motivation and
opportunity to buy the product.
 Segmentation involves dividing the market into
distinct groups of homogeneous consumers who
have similar needs and consumer behavior and
thus require similar marketing mixes.
12/08/21 130
Points of Difference
 PODs are strong, favorable and unique brand
association. These are attributes or benefits
that consumer strongly associate with the
brand, evaluate it, and believe that they could
not find it in competitive brand. As per CBBE
model, brand association can be classified in
either performance related or imagery related
considerations.
12/08/21 131
Points of Parity
 POP are associations that r not unique to the
brand but r shared with others are strong,
favorable and unique brand association.
12/08/21 132
Standard Format of
Positioning Statement
 Step 1 TARGET MARKET:
I am the type of person who
Places her family above everything in life
(habit or attitude relating to product usage)
I like to think of myself as
Self-assured, eager to experiment and taste new things
(relevant values)
I want to be seen as
A person who makes heart-winning choices for her family
(social image)
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 Step 2: FRAME OF REFERENCE
So when I’m shopping for (in the market for)
a Milk
(category/ segment name)
I prefer
Haleeb
(your brand name)
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 Step3: OWNED BENEFIT
Because it gives me a feeling of
Satisfaction
(their feeling or experience)
(Optional) as a result of
Extra cream
(factual support)
12/08/21 135
The Statement – An illustration
 TO: (Core target market)
 Young and middle-aged housewives
 Haleeb Gold
 (Brand Name)
 IS THE:
 Thickest Full Cream Milk with Extra Fat
 (Frame of Reference)
 THAT:
 Adds an extra taste to my family’s healthy, active lifestyle
 (Owned Benefit)
 BECAUSE:
 Rich with extra cream
 (Reasons to believe, optional)
12/08/21 136
Positioning Strategy
POSITIONING
CONCEPT
The desired positioning of
the product (brand) by
targeted buyers
POSITIONING POSITIONING
EFFECTIVENESS STRATEGY
The combination of marketing
The extent to which positioning
objectives are achieved for Market actions used to communicate
the positioning concept to
the market target
Target targeted buyers

DEVELOPING THE POSITIONING
STRATEGY
 The Positioning Strategy Places the
 Marketing Program (mix)
 Components into a Coordinated Set of Actions Designed to
Deliver Superior Customer Value
PRODUCT
VALUE
PROMOTION CHAIN
PRICE

Positioning Issues
 The positioning concept applies to a specific brand rather than all
the competing brands that compose a product classification
 The concept is used to guide positioning decisions over the life of
the brand
 Multiple concepts are likely to confuse buyers and may weaken
the effectiveness of positioning actions

Determining Positioning Effectiveness
The marketing offer (product, distribution, price, and
promotion) is both distinct and valued in the minds of the
customers in the market target.

Customer and
Competitor
Research
Methods for
Determining
Positioning
Effectiveness
Analytical
Positioning Test
Models Marketing

Positioning Errors
1. Under-positioning–customers have only vague
ideas about the company and do not perceive
anything distinctive about it
2. Over-positioning–customers have too narrow an

understanding of the company, product, or brand
3. Confused positioning–frequent changes and

contradictory messages confuse customers
4. Doubtful positioning–claims made for the product

or brand are not regarded as credible

Strategies for Obtaining Information

Advantages and Limitations of
Questioning Methods
Personal Interviews
Advantages Limitations
 Most versatile and  High cost
flexible
 Possibility of
 Long questionnaires
interviewer bias
handled more easily
 Possibility of cheating
 Presence of interviewer
allows more flexibility in by interviewer due to
procedure lack of supervision
 More enjoyable for  Project time often
respondents lengthy
 Fewer refusals
Questioning Methods
Telephone Interviews
 Fewer interviewers  More noncommittal
needed answers
 Relatively inexpensive  Some households over
 Rapid method of data represented
collection  Lengthy and detailed
 Can reach large number questions often not
of households feasible
 More control over
interviewers

Questioning Methods
Mail surveys
 Higher-quality  Questionnaire cannot be
information changed
 Better for collecting  Complex
information on possibly  Can be completed by
embarrassing subjects person other than
 Relatively cheaper to intended
conduct  Follow-up expensive
 No interviewer bias Response often slow
incoming

Special Research Studies
Basic Definition
 Marketing Research is the systematic
design, collection, analysis, and reporting of
data and findings relevant to a specific
marketing situation facing the company.
1-147
1-147
The
Marketing
Research
Process
1-148
1-148
The Marketing Research Process
 Step 1: Define the Problem, the Decision

Alternatives, and the Research Objectives
 Must be careful not to define the problem too
broadly or to narrowly.
 Example: Offering New First Class Service in
Air Blue

The Marketing Research Process
 Step 2: Develop the Research Plan

 Data Sources – secondary/ primary data
 Research Approaches
 Observational research -
 Focus group research
 Survey research
 Behavioral data – purchasing behavior/ direct marketing
 Experimental research – to capture cause and effects
relationship/ can explain the results.

Research Instruments
 Questionnaires – closed-end/ opened

questionnaires
 Quantitative measures – unstructured
measurement approaches.
 Mechanical Devices – technology media/
diaries (e.g. people meters)

Closed-end Questions

Open-end Questions
1-153
1-153
Sampling Plan
 Sampling unit – Who is to be surveyed?

 Sample size – How many people should be
surveyed?
 Sampling procedure – How should the
respondents be chosen?

Probability and Nonprobability Samples
Probability Sample
Simple random sample Every member of the population has an

equal chance of selection
Stratified random The population is divided into mutually

sample exclusive groups (such as age groups),
and random samples are drawn from
each group
Cluster (area) sample The population is divided into mutually
exclusive groups (such as city blocks),
and the researcher draws a sample of
the groups to interview
1-155
1-155
Probability and Nonprobability Samples
Nonprobability
Sample
Convenience sample The researcher selects the most
accessible population members
Judgment sample The researcher selects population

members who are good prospects for
accurate information
Quota sample The researcher finds and interviews a

prescribed number of people in each
of several categories
1-156
1-156
Group Assignment
 Conduct an active research for a
brand measuring category and brand
awareness, demand forecast for the
brand, price elasticity, top of mind,
brand frequently used, elements of
campaign etc. ?

Strategic
Marketing
Chapter # 07
Strategic
Relationships
Strategic Relationships
 The rationale for inter-organizational
relationships
 Types of organizational relationships
 Developing effective relationships
between organizations
 Global relationships among organizations
Cont.

Strategic Relationships Cont.
Suppliers Customers
Joint Distribution
Ventures Strategic Channels
Relationships
Internal
Alliances
Partnering
Mapping the Path to Market Leadership
Market-Oriented
Culture and
Process
Organizational Superior
Relationship
Change Customer
Strategies
Value
Proposition
Positioning
Wednesday, December 8, 2021
with Distinctive 161
Competencies
Strategic Relationships Between
Various Organizations
Channel
Member Competitor
Company
Customer Supplier

Drivers of Inter-organizational
Relationships
Value Enhancing
Opportunities
THE RATIONALE
Skill and Environmental

Resource Gaps
Turbulence and
163
Diversity
Growth in Strategic
Relationships
 By 2001, the top 500 global businesses had 60
major strategic alliances each
 By end of 1990s, U.S. alliances had grown more
than 25 percent annually for previous 5 years
 Reliance on alliances is high (20-30% of
revenue) in U.S. and European companies

Motives Underlying Entry of
Firms into Strategic Alliances
 Market entry and market position-related
motives
 Product-related motives
 Product/market-related motives
 Market structure modification-related motives
 Market entry timing-related motives
 Resource extension-and risk-reduction
related motives
 Skills enhancement-related motives

Strategic Relationship Issues
 The role of strategic relationships in market-
driven strategy
 Moving from hierarchies to process driven

structures
 Fit of relationship strategy with organizational

design
 Marketing and organizational change

Global Relationships Among
Organizations
 Types of global organizations
 the network corporation
 trading companies
 The strategic role of government
 single nation partnership
 multiple nation partnership
 government corporations
 government legislation

Strategic
Marketing
Chapter # 08
Planning for
New Products
PLANNING FOR NEW PRODUCTS
 Importance of New Products
 Customer Driven Process
 Steps in New Product Planning
 Idea Generation
 Screening/Evaluating/and Business Analysis
 Product and Process Development
 Marketing Strategy and Market Testing
 Commercialization
 Variation in the Generic Planning Process

Importance of New Products
 Innovation at top of potential value drivers
(Ernst & Young)
 Innovation initiatives extend beyond new goods and
services to include ideas, processes, and business
practices
 Organizations must build a culture of

innovation

New Product Planning as a Customer
Driven Process
 New product classifications:
1. Newness to market
2. Newness to company
 New product types:
 Transformational innovations
 New product category
 Product line extensions
 Incremental improvements

Finding Customer Value
Opportunities
 Matching Capabilities to Customer Value
Opportunities
 Fit between capabilities and product offering
 Transformational Innovations
 “new-to-the-world” ideas
 Customers not always the best guides

Characteristics of Successful
Innovations
Creating an Innovative Culture
Leveraging Selecting The Right

Capabilities Innovation Strategy
STRATEGIC
INITIATIVES
Making Resource Developing and Implementing Effective

Commitments
Wednesday, December 8, 2021 New Product Processes 173
Developing an Innovation Culture
 Innovation Workshop for top executives to
develop an innovation plan.
 Innovation Statement highlighting objectives and
senior management’s role and responsibilities.
 Training programs for employees and managers.
 Communicate the priority of innovation.
 Speakers to expose employees to innovation
authorities.

NEW PRODUCT PLANNING PROCESS
Customer
Needs
Analysis
(HnA Studies)
Idea Screening Business

Generation And Analysis
(concept test) Evaluation (pay back, NPV, IRR)
Marketing
Product
Strategy
Development Development
(Ad test) (use tests)
Testing (Road Tests etc)
Wednesday, December 8, 2021 Commercialization (Consumer panels) 175

INNOVATION FUNNEL
Idea
Feasibility
Capability
Implementation
L
A
U
N
C
H
Factory To
Confirm Trade
Evaluate Opportunity
Opportunity
Prospecting
Check LIST Capability Stage
•Confirm Brand Name
•Complete full consumer tests
•Check product and concept meet the action standards
•Agree Packaging Format
•Complete packaging artwork
•Test and complete advertising / PR / support material
•Agree pricing strategy
•Confirm Volume targets
•Agree product claims / descriptors with Unilever legal
•Get design registration / trade mark registration
•Agree launch plan
•Carry a full competitor analysis / evaluation

Check List Contract Gate
•Provide initial product prototypes and samples for initial consumer research.
•Undertake initial process trials.
•Undertake initial storage capability tests.
•Agree the packaging / product standards.
•Establish the likely formulation / process route.
•Identify key technical hurdles / key technical viability.
•Evaluate capital investment required.
•Check safety clearance of ingredients / process / packaging.
•Check legal / nutritional and environmental issues.

Check List Feasibility Stage
•Consumer appeal Measurement
•Set action standards for product.
•Set action standards for the packaging.
•Define the USP of the concept
•Draw up full project plan and time lines.
•Set Volume and profit targets.
•Reconfirm strategic fit of the project.
•Reconfirm Marketing spend.
•Decide product Price Point.
•Apply for design registration / trade mark protection.
•Identify key risk.
•Examine competition strength / weakness and likely
response.
Achieving Cross-Functional
Interaction and Coordination
R&D
Operations Marketing
Finance
Direct
Alliances/
Search
Acquisition/ Technological
Licensing Innovation
METHODS
National OF Exploratory
Policy GENERATING Customer
Studies
IDEAS
Creative Facilitating
Methods Lead User
Linking Analysis
Marketing
and Technology 181
PRODUCT AND PROCESS
DEVELOPMENT
NEW
PRODUCT
CONCEPT
PRODUCT MARKETING
DEVELOPMENT STRATEGY
AND USE DEVELOPMENT
TESTING
MARKET
TESTING

LAUNCH
Does it have the
required attributes?
Verify PURPOSE OF Ideas for

Claims
USE TESTS improvements
Identify use
situations

MARKETING STRATEGY AND MARKET
TESTING
 Marketing Strategy Decisions
 Market Targeting
 Positioning Strategy
 Market Testing Options

 Simulated Test Marketing
 Conventional Test Marketing (CLTs)
 Selecting Test Sites
 Length of the Test
 External Influences

COMMERCIALIZATION & P0ST LAUNCH
 The Marketing Plan
 Complete marketing strategy
 Responsibilities for execution
 Cross –functional approach
 Monitoring and Control

 Real –time tracking
 Role of the Internet
 Include product performance metrics with
performance targets

Strategic
Marketing
Chapter # 09
Strategic Brand
Management
STRATEGIC BRAND MANAGEMENT
 Challenges in Building Strong Brands
 Strategic Brand Analysis
 Brand Identity Strategies
 Managing Products/Brands
 Managing the Brand Portfolio

Brand Definitions
 What is Brand? ‘a name , sign, symbol used to
identify items or services of the seller(s) and to
differentiate them from goods of competitors.
(Dic of Business & Management)
 ‘brand is most valuable real estate in the world,
a corner of customer’s mind’
 ‘a collection of perceptions in the mind of the
consumer (and all other stake holders). If
properly managed these perceptions secure
long term revenue for the business and create
lasting value’
12/08/21 188
Brand Element
 The key to create a brand is to be able to
choose a name, logo, symbol, package
design, or other attributes that identify a
product from other. These different
components of brand that identify and
differentiate can be called brand elements
12/08/21 189
Brands Vs Products
 Product is anything that can be offered to a
market for attention, acquisition, attention,
use or consumption that might satisfy need or
want. Product has various levels including
core benefit, generic product, expected
product, augmented product and potential
product but does not carry brand elements
(as of brands)
12/08/21 190
Brand Vs Product
 Brand exist in mind
 These perception, if properly managed,
change consumer behavior.
 The role of advertising is to sell and it does
this by positively influencing people’s
perceptions (the brand)
12/08/21 191
Brands are valuable
 Coca-cola 75 billion $ (In 2000)
 Microsoft 70 billion $
 IBM 53 billion $
“if all coca cola assets are destroyed overnite,
whoever owned the coca cola name could go
into the bank and get loan to rebuild everything”
(VP coke)
“we all know that the Disney brand is our most
valuable asset” (CEO Disney
12/08/21 192
How brands affect Consumer
Behavior?
 Increasing usage over time
 Less vulnerable to price based competition
 Requiring less marketing and sales investment
 Paying a premium over other customers
A Brand secures a future stream of profits for the

organization
12/08/21 193
Branding Challenges In new Era
 Savvy Consumers: Contemporary consumer has
changed wants and demands
 Brand Proliferation: Branding environment is proliferated
with new brands due to rise inline and brand extension.
 Media Fragmentation: Traditional advertising media has
converged into interactive media and other alternative
communication vehicles.
 Increased Competition: Market place has become more
competitive resulting into discounts and promotions.
 Increased Cost: Cost of introducing new brand or
supporting existing brand has rapidly increased resulting
in less attention towards brands.
12/08/21 194
The Brand Equity Concept
 Brands with equity provides ‘an ownable,
trustworthy, relevent, distinctive promise to
consumers.
 Brand equity is willingness for someone to
continue to purchase your brand
12/08/21 195
Sources Of Brand Equity
 Authenticity
 Consistency
 Reassurence
 Differentiation
 Transformation of the experience
12/08/21 196
Measuring Brand Equity
Several measures are needed to capture all relevant aspects of brand equity
 loyalty (price premium, satisfaction/loyalty),

 perceived quality/leadership measures (perceived quality,
leadership/popularity),
 associations/differentiation (perceived value, brand
personality, organizational associations),
 awareness (brand awareness), and
 market behavior (market share, price and distribution
indices).
These components provide the basis for developing operational measures of
brand equity.
Brand Management process
1. Preparing for effective brand
management
2. Understanding your current brand
3.Defining your desired brand
4.Delivering your desired brand
5.Keeping track over time

12/08/21 198
1. Preparing for effective
brand management
6 principles to follow….
1. Brand value is built in mind
2. Brand r built through everything they do and
say
3. Think and talk about your brand
4. Brand can be driving force for your business
5. Brands draw strength from consistency
6. Brands can live forever
12/08/21 199
2.Understand your current
brand
 agree a frame work
 Identify your brand stakeholders
 Gather existing info
 Reach consensus on your current brand
12/08/21 200
3.Defining your desired brand
 Analyse
1.Market place
2.Competitor
3.Consumer (wants and need)
4.SWOT
12/08/21 201
4. Delivering your Desired
brand
 Plan and implement brand marketing
programs to reach your desired level of brand
12/08/21 202
5. Keeping track over time
 Develop your environmental monitoring….
1.Visit market
2.Check vision & values of your competitor
3.Mystery shopping to your own brand and
competition.
4.Keep in touch with opinion builders in social
set up
5.Conduct brand health tracking
12/08/21
GROW & SUSTAIN BRAND EQUITY 203
Advantages of Strong Brand
 Improved perception about performance
 Loyalty
 Less vulnerable to competitive market
 Inelastic response of consumer to price increase
 Elastic response to price decrease
 Increase communication effectiveness
 Licensing opportunities
 Brand extension opportunities
12/08/21 204
Advantages of Strong Brand-
Buyer perspective
 Reduce customer search costs by identifying products
quickly and accurately,
 Reduce the buyer’s perceived risk by providing an

assurance of quality and consistency (which may then
be transferred to new products),
 Reduce the social and psychological risks associated

with owning and using the “wrong” product by
providing psychological rewards for purchasing brands
that symbolize status and prestige.
Advantages of Strong Brand –
Manufacturer perspective
 Repeat purchases
 The introduction of new products, because the customer is familiar

with the brand from previous buying experience,
 Promotional effectiveness by providing a point of focus,
 Premium pricing by creating a basic level of differentiation

compared to competitors,
 Market segmentation by communicating a coherent message to

the target audience, telling them for whom the brand is intended
and for whom it is not,
 Brand loyalty, of particular importance in product categories where

loyal buying is an important feature of buying behavior.
Brand Knowledge is Key of
Making Brand Strong
 Brand Knowledge is comprising two
components
Brand Knowledge
Brand Awareness Brand Image
12/08/21 207
1. Brand Awareness
 Related to strength of brand node or trace in
memory, as reflected by consumer ability to
identify the brand under different conditions.
It is necessary but not always sufficient in
building brand equity. Brand image often
come into action.
12/08/21 208
Contnd…..
 Comprises brand recognition (consumer ability
to recognize the brand when given the brand as
a cue) and brand recall (ability to retrieve from
memory when given the category or usage cue)
 Consequences of Awareness:
>Learning: brand node is created in mind
> Consideration: awareness increases the likelihood
that your brand will be part of handful of consideration
set.
>Choice: awareness affect choices among brand in
consideration set
12/08/21 209
Contd….
 The Elaboration Likelihood Model explain the
attitude change and persuasion. As per this
model, consumer require minimum level of
brand awareness in low involvement. Low
involvement occurs when consumer lack either
purchase motivation (they don’t care about
product or services) or purchase ability (they
don’t know anything else about t he brand in
category).
12/08/21 210
Contd…
 1. Purchase motivation: lack of perceived
difference among brands in category lead to
consumer who r unmotivated regarding the
brand choice process. (gasoline purchases).
 2. Purchase ability: sometimes consumer don’t
have necessary knowledge or experience to
judge differences among the products (eg
students doing self cooking will purchase a
brand that has fresh message in mind).
12/08/21 211
How to build brand
awareness?
 1. Increase the familiarity of the brand
through repeated exposure (for brand
recognition)
 2. Strong association with the appropriate
product category or other relevant purchase
or consumption cues (for brand recall)
12/08/21 212
2. Brand Image
 Important concept but not measurable
 Defined as perception in the mind of consumer
as reflected by association held in consumer
mind
 Brand Image for Haleeb
trusworthy
nurturing
friendly
best in quality
12/08/21 213
How To maximize brand
equity?
1. Invest
2. Product management into consumer
management
3. Reduce acquisition of consumer base cost
4. Track equity against various marketing
program
5. Develop plan separately for acquisition &
retention
12/08/21 214
Components of equity and
drivers
 Value Equity (what is given up for what is received) and
drivers are quality, price & convenience (objective
assessment).
 Brand Equity (consumer assessment of the brand
beyond the objectively perceived value) and drivers are
brand awareness and consumer perception of brand
ethics.
 Relationship Equity (consumer tendency to stick with
the brand beyond objective & subjective assessment of
brand) and drivers are loyalty programs, special
consumer recognition programs and community building
programs.
12/08/21 215
Steps in brand building
 Questions in mind of consumer:  Answers through
building steps
1.Who r u (brand identity)
1.Identification of brand and
associational mind of
consumer
2. What r u (brand meaning) 2.Establish tangible and
intangible association with
certain properties.
3. What about u (brand response)
3. Evolve consumer response to
this brand identification and
4. What association I keep with u brand meaning.
4.Convert response to create
(brand relationship) intense, loyal relationship
12/08/21 216
Brand Building blocks
Resonan 4. Relationship
ce
Judgment 3.Response
Feelings
Performance 2.Meaning
Imagery
1.identity
12/08/21 SALIENCE 217

Sub dimensions of brand
building blocks
loyalty
Quality Social
approval & self

respect
Product reliability Personality

&values
Category identification to satisfy needs
12/08/21 218
Brand Management Challenges
 Internal and external forces create hurdles for

product brand managers
 Intense Price and Other Competitive Pressures
 Fragmentation of Markets and Media
 Complex Brand Strategies and Relationships
 Bias Against Innovation
 Pressure to Invest Elsewhere
 Short-Term Pressures

Responsibility for Managing
Products
 Product/Brand Management
 Planning, managing, and coordinating the strategy for a
specific product or brand
 Product Group/Marketing Management
 Product director, group manager, or marketing manager
 Product Portfolio Management
 Chief executive at SBU
 Team of top executives

Marketing’s Role in Product Strategy
1. Market sensing
2. Identifying the characteristics and performance

features of products
3. Guiding target market and program-positioning

strategies
Strategic brand management decisions are

relevant to all businesses, including suppliers,
producers, wholesalers, distributors, and
retailers.
Strategic Brand Management
Brand Identity
Brand
Equity
Identity Implementation
Brand Strategy Over Time
Strategic Managing the Brand Portfolio

Brand
Analysis

Leveraging the Brand
Tracking Product Performance
Set Performance
Objectives
Select Method/s for

Product Evaluation
Identify Problem
Products
Decide How to
Eliminate the
Problems
Product life
cycle
analysis
Financial
analysis
Analyzing
Brand
Performance
Brand
Positioning
maps
Research
studies
Standardized
Information
Wednesday, December 8, 2021 services 224
BRAND IDENTITY
STRATEGIES
Brand identity is a unique set of brand associations that
the brand strategist aspires to create or maintain. These
associations represent what the brand stands for and
imply a promise to customers from the organization
members.
Four Brand Identity Perspectives
 Product
 Organization
 Person
 Symbol
Specific
Product
Private Line
Branding Of
Basis Products
Of
Identification
Combination Company
Basis Name
MANAGING
PRODUCTS/BRANDS
 Building the Product/Brand Over Time
 Product Line Strategies
 Product/Brand Portfolio Strategies

Strategies for Improving
Performance
Product
Cost Improvement Alter
Reduction Marketing
Strategy
Add Product line Eliminate

new Strategy specific
Product/s Product/s
Product mix strategy
Delete Change Add new

Product Line/s
product line Product 228
priorities Line/s
Strategies for Brand Strength
 Brand-Building Strategies
 Developing the brand identification strategy
 Coordinate identity across the organization
 Brand Revitalization
 Find new uses for mature brands
 Add products related to heritage
 Strategic Brand Vulnerabilities
 Brand equity can be negative
 Retailer private brands compete with manufacturer brands
 Major shifts in consumer tastes
 Competitive actions
 Unexpected events
Brand Leveraging Strategy
LINE Minor variants of a single
product are marketed
EXTENSION under the same brand
name
BRAND Extensions of the brand

name to other product
EXTENSION categories
--Similar
--Dissimilar

Leveraging Alternatives
LINE BRAND
EXTENSIONS EXTENSIONS
Another Range of
HorizontalE Vertical Product Class Brand Co-
xtension Extension Branding
Up from Down from

Core Core
Brand Brand
BRAND LEVERAGING EVALUATION
CRITERIA
 Brand Relevance/Differentiation
 Capabilities/Perceived Value Match
 Market/Segment Opportunity
 Cannibalization Risks
 Potential for Core Brand Damage
 Clarity of Product Offerings
 Estimated Financial Performance
 Brand Equity Impact

SEVEN DEADLY SIGNS OF BRAND
MANAGEMENT
1. Failure to fully understand the meaning of the
brand.
2. Failure to live up to the brand promise.
3. Failure to adequately support the brand.
4. Failure to be patient with the brand.
5. Failure to adequately control the brand.
6. Failure to properly balance consistency and
change with the brand.
7. Failure to understand the complexity of brand
equity measurement and management.
ASSIGNMENT
 Consider your self as brand. Define various
brand elements and analyze the brand
management process?
 Submit detail document in next session.
12/08/21 234

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Strategic

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Marketing emerged as a discreet discipline in the early 1900s, but it didn't

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As the marketing era progressed, the method of conducting business

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 Strategy is derived from Greek word ‘strategia

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LEVEL OF TOP CORPORATE SENIOR FUNCTIONAL

SCOPE ENTIRE SBU PRODUCT OR

CRITERION GENERAL OPERATION ACTION

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 Becoming Market Oriented

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 Strong supporting logic

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 Customer is the focal point of the organization

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 Determine the impact of changes on

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 What are the customer’s value requirements?

 Importance of understanding the competition as well as the customer

 Remove the walls among business functions

 Market orientation leads to superior organizational performances

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 Deliver superior customer value as resultant

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“Capabilities are complex bundles of skills

and accumulated knowledge, exercised

through organizational processes, that

enable firms to coordinate activities and

make use of their assets.”

Southwest uses a point-to-point route system rather than

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The airline has developed impressive skills in operating its business

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Coordination of activities across business

Southwest’s key assets are very low operating costs, loyal

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 Customer Linking Capabilities

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Define the corporate mission

“Our vision is to be the Global Market Share

“The purpose of Motorola is to honorably

“We help people trade anything on earth.

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