Professional Documents
Culture Documents
Part : 04
Building Strong Chapter-10
Brands
Marketing
Management 1
MARKETING MANAGEMENT
12th edition
10
Crafting the Brand
Positioning
Marketing
Management 2
Kotler Keller
Chapter Questions
Marketing
Management 3
Marketing Strategy
Segmentation
Targeting
Positioning
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Management 4
Positioning
All marketing strategy is built on STP (Segmentation,
Targeting and Positioning). A company discovers different
needs and groups in the marketplace, targets those needs
and groups that it can satisfy in a superior way, and then
positions its offering so that the target market recognizes the
company‟s distinctive offering and image.
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Positioning
When positioning a product, the marketer wants to convey
the benefit(s) most desired by the target market.
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Management 6
Positioning
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Positioning Strategy
There are three steps in a Positioning Strategy.
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Positioning Strategy
Step-01
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Positioning Strategy
Positioning/Perceptual Map for Tea
Traditional
Flavor
* Lipton
* Tapal
* Luzianne * Tetley
Iced Hot
Unique
Flavor
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Management 10
Positioning Strategy
Step-02
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Positioning Strategy
Step-03
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Repositioning
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Product Life-Cycle (PLC)
PLC is a graphic representation of a product‟s sales history over
time. A company‟s positioning and differentiation strategy must
change as the product, market, and competitors change over the
Product Life Cycle (PLC).
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Management 14
Product Life Cycles (PLC) Patterns
Most PLC curves are bell-shaped. This curve is typically
divided into 4 stages.
a. Introduction
b. Growth
c. Maturity
d. Decline
Three common alternate patterns are
Growth-Slump-Maturity Pattern (e.g. with home appliances)
The Cycle-Recycle Pattern (e.g. with new drugs)
Scalloped Pattern (e.g. with nylon when new uses are
discovered)
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Management 15
Product Life Cycle
Bell-Shaped Pattern
Sales
Time
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Management 16
Product Life Cycle
Growth-Slump-Maturity Pattern
Sales
Time
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Management 17
Product Life Cycle
Cycle-Recycle Pattern
Sales
Time
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Management 18
Product Life Cycle
Scalloped Pattern
Sales
Time
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Style, Fashion, and Fad Life Cycles
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Marketing Strategies
a. Introductory Stage
Sales growth tends to be slow at this stage.
Most studies indicate that the market pioneer gains the most
advantage.
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Marketing Strategies
b. Growth Stage
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Marketing Strategies
b. Growth Stage
During growth stage, the firm uses several strategies to
sustain rapid market growth.
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Marketing Strategies
c. Maturity Stage
At some point, the rate of sales growth will slow, and the product
will enter a stage of relative maturity.
This stage normally lasts longer than the previous stages and
poses big challenges to marketing management.
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Management 25
Marketing Strategies
d. Declining Stage
Sales decline for a number of reasons including technological
advances, shifts in consumer tastes and increased domestic
and foreign competition.
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Marketing Strategies
d. Declining Stage
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Marketing Strategies
d. Declining Stage
According to a study of company strategies in declining
industries, the following strategies are available to the firm.
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The PLC Concept
Critique
The PLC concept helps marketers interpret product and
market dynamics; it can be used for planning and control,
and as forecasting toll; however PLC theory has its share of
critics. They claim
i. Life-Cycle Patterns are too variable in shape and duration.
ii. Marketers can seldom tell what stage the product is in.
iii. PLC Pattern is the result of marketing strategies rather than
an inevitable course that sales must follow.
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Market Evolution
Stages
Emergence Growth
Maturity Decline
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Market Evolution
Stages
The PLC yields only a product-oriented picture rather than a
market-oriented picture.
Like products, markets evolve through four stages.
a. Emergence
b. Growth (If the new product sells well, new firms will enter the
market leading to market-growth stage)
c. Maturity (Eventually, the competitors cover and serve all the major
market segments and the market enters the maturity stage. In
fact, they go further and invade each others‟ segments reducing
everyone‟s profit in the process. As market growth slows sown, the
market splits into finer segments an high Market Fragmentation
occurs. The market fragmentation is often followed by a Market
Consolidation caused by the emergence of a new attribute that has
strong appeal) (The fragmentation is brought by competition, while
consolidation is brought by innovation)
d. Decline
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Management 31
Market Evolution
Maturity Strategies
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Management 32
Additional Resource
For “Positioning Strategy”, please refer
“Marketing”, 12th Edition, By
Michael Etzel
Bruce Walker
William Stanton
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Management 33
Activity
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Management 34