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Setting the strategy (Positioning and differentiation (Choosing a…

- - - - Value proposition
        
        the full mix of benefits upon which a brand is positioned
    - - profitable
      - affordable
      - pre-emptive
        
        not easily copied
      - communicable
      - superior
        
        difference is superior in other ways that consumers may not obtain the benefit easily
      - distinctive
        
        something competitors don't offer
      - important
        
        target customers value the benefit
    - - advantage over competitors gained by offering consumers with greater value, either with lower prices or better value for prices
      - possible competitive advantages
        
        image differentiation
        
        unique associations and benefits
        
        people differentiation
        
        employee quality
        
        Channel differentiation
        
        product delivery mechanism
        
        service differentiation
        
        product differentiation
    - - summarises a company or brand positioning
  - - - people are limited perception processors
        
        we simplify and reject the information that we don't already know
      - ladders in the head
        
        we only store info about a few known brands, ranked with categories like "best", it's hard for a brand to change to a higher ranking
        
        options
        
        against
        
        using the existing knowledge of the other brands to establish the brand as a clear number 2
        
        same ladder
        
        almost impossible to go from number two to number 1 with direct comparisons
        
        uncola
        
        using a consumer's knowledge of another brand to appear clearly different
        
        different ladder
    - - Short term
        
        establish leadership in a category
        
        you can define your new ladder (new category), but it must be based on the perceptions of customers
        
        Must be a meaningful category, leader advantage does not extend to multiple categories
        
        worry about the long term, build the size of the category, "we are the best" may turn people off
      - Long term
        
        defend the position against future threats
        
        how is the technology evolving
        
        diversify to prevent new threats
        
        what can the new product do for the brand/position?
        
        Do not dilute the brand
        
        power of the name
        
        multibrand, single position strategy
        
        become identified with the category
    - - Look for a hole
        
        sex, age, usage etc
        
        high price vs low price
        
        think small
        
        go opposite
        
        nowadays
        
        eco friendliness
        
        social responsibility
      - Caution: the hole is not in the product line, you cannot be all things to everyone
      - Don't only copy the leader
        
        "me too" trap: don't think you can do the same thing but do better
- - - - substitutes
      - power of buyers and suppliers
      - competitiors
  - - - targets several different market segments with separate offers
      - higher total sales
      - more expensive than undifferentiated marketing
    - - targets small segment in a large market
      - less resources but more in depth knowledge of segment
      - more effective and efficient
    - - targets whole market with one offering
      - focus on common needs rather than what's different
    - - local marketing
        
        needs and wants of local customer groups
      - individual marketing
        
        needs and wants of individual customers
        
        one-to-one marketing
        
        mass customization
      - tailoring products to suit specific individuals and occasions
  - - - mature then differentiated
    - - uniform then undifferentiated
    - - differentiated then must differentiate
      - undifferentiated then gain advantage by differentiating
    - - limited, then concentrated
    - - homogenous then undifferentiated
- - - - traditional buyers' rights include
        
        the right to expect the product to be safe
        
        the right to expect the product will function as claimed
        
        the right to not buy the product that is being marketed
      - advocates call for
        
        the right to be protected from questionable marketing practices and methods
        
        the right to influence marketing practices in a way that will improve their quality of life
        
        the right to be informed about important aspects of the product
        
        the right to consume now in a way that will benefit the future generation
      - an organised movement of government and citizens to improve the buyers' rights in relation to sellers
    - - environmentalists are not against marketing and consumerism
        
        rather they want organisations to operate with more care for the environment
        
        marketing's goal should be to maximise life quality rather than consumer standards, choice or satisfaction
      - environmental sustainability: making profits while saving the planet (not greenwashing)
      - organised movement from concerned customers, citizens, government and environmentalists to protect and improve the environment
  - - - too few social goods
        
        complaint
        
        businesses sell private goods at the expense of public goods and require more public goods to support them
        
        response
        
        there needs to be a balance between private and public goods
        
        businesses should bear the social costs of producing and consumers should bear the social costs of buying thei rgoods
      - cultural pollution
        
        complaint
        
        advertising and marketing create cultural pollution
        
        response
        
        marketing and advertising are only planned to reach a target audience, advertising makes radio and television free to consumers, and keep costs of newspaper and magazines down. Today, consumers have more means to avoid marketing and advertising from technology
      - false wants and too much materialism
        
        complaint
        
        the marketing system urges too much interest in material possessions, people are judged by what they own rather than what they like creating false wants that benefit the industry more than the consumer
        
        response
        
        people have strong defence against marketing tools and advertising, the low success rate of new products show that companies cannot always control or create demand
    - - unsafe, harmful or shoddy products
      - planned obsolesce
        
        complaints
        
        producers make their previous products obsolete and change consumers' concepts on acceptable styles to encourage more buying and earlier buying
        
        response
        
        planned obsolesce is really the result of competitive market forces leading to ever improving products and services
        
        customers like style changes and want the latest innovations
      - high pressure selling
      - deceptive practices
        
        deceptive promotion
        
        making false claims about product features or promotions that are 'out of stock'
        
        deceptive packaging
        
        misleading consumers on the packaging
        
        deceptive pricing
        
        falsely advertising factory prices or large price reductions
        
        companies use deceptive practices that lead to consumers believing that they get more value than they actually do
      - poor service to disadvantaged customers
      - high prices
  - - - corporate marketing ethics are broad guidelines that everyone in the organisation must follow, including distributor relations, advertising standards, customer service, product, pricing and general ethical standards
      - main issue: who should guid companies? free market? legal system? individual companies? managers?
    - - companies that fulfil customer wants and expectations will thrive, companies that fail to meet needs, or are harmful or socially irresponsible will decline in the future
      - the sustainable company now needs to go beyond caring for the P&L statement and the current needs of customers, and has concerns for tomorrow's customers and the broader world
- - - - What you do (in regards to the product)
        
        behavioral segmentation
        
        user status
        
        usage rate
        
        benefits sought
        
        Occasions
        
        loyalty status
      - Who you are
        
        demographic segmentation
        
        variables such as age, gender, family size, income, occupation, race generation, nationality etc
        
        psychographic segmentation
        
        personality traits
        
        social class
        
        lifestyle
        
        Geographic segmentation
      - multiple segmentation
        
        identifies smaller, better defined target groups
        
        uses more than one variable for segmentation
    - - geographic location
      - economic factors
      - cultural differences
      - political and legal factors
  - - - The segment is profitable enough
    - - the segment is meaningfully different from others
    - - you can actually reach these people
    - - you have the resources to design and implement a functioning marketing plan for this segment