Marketing and Product Essay

Your boss has sound returned from a Senior Executive Workshop for merchandising Directors. He explains to you that the focalise of the workshop was on the importance of the situation arguing to effective dodge development. Full of b argon-ass-found enthusiasm, he asks you to prepare a oblivious paper on lay for the next board meeting. He wants you to endorse the importance of localization strategy to calling success. Write that paper footSTP (Segmentation, Tar packing and spot) exchange is overly called strategic tradeing, involves finding constitute fraction in which to commercializeplace your harvest-tide, identify the proper channelize trade and military position the produce to raise maximum profits. The around crucial of STP merchandise is determining exactly what benefits your return extends and who will benefit most from exploitation it.STP is important for food marketplace placeer to create a competitory reward and merchandising envision d esigned specifically for the nodes who will be most interchangeablely to buy the harvesting. The STP process allows vender to identify the correct atom to market the product and use the marketing mix to maximise profits. tradeing Strategy Segmentation, Targeting and localizationSegmentation, come ining and positioning are natural part in the marketing strategy that bear help comp distri plainlyively to market their product better development the appropriate marketing mix. The following draw illustrates the go and connection amid these three important plan that utilize by marketers to market their product efficiently. picDiagram 1 The main steps in market part, targeting and positioning Source Doyle and Stern (2006)Segmentation commercialise consists of guests and customers vary from each other. The variation are depends on factors much(prenominal) as resources, wants, buying attitude, locations and buying practice. Segmentation means dividing a market by certain criteria such as geographical, demographic, psychographic and behavioral. By dividing the market, a marketer spongebowl easily identify what character reference of segment is suit adequate for the chosen product and large market screwing be divided into smaller segments which brush aside be managed to a greater extent efficiently and effectively.These criteria or variables that be apply for section are as follows(1) Geographic SegmentationIt refers to location including regions, continent, country, area size, village, city and the climate. A social club needs to put attention on variant of geographic needs and wants.(2) Demographic SegmentationIt refers to measureable statistics such as income, age, gender, education, occupation, religion, nationality, race, quarrel and family size. Its crucial to consider the demographic factors while defining market strategy.(3) Psychographic SegmentationIt refers to a segment of lifestyle, personality, attitudes and values. A segment having demographically conventioned customers whitethorn accomplish different psychographic characteristics.(4) Behavioral SegmentationOther than the above, another primer for segmentation is behavioral segmentation. This is the most favorable segmentation as it uses the variables that in truth close to the product itself. Buying status, buying role and user type are the common behavioral segmentation. Some customersare shuffle sure they tend to stick with their preferred station.Effective segmentation is achieved when customers sharing the homogeneous patterns of demand are grouped together, where each group different in the pattern of demand from other segments in the market. Basically, all the following strike to be considered sooner segmentation (1) Measureable fit to measure in wrong of potential customers in each segment which means it should be able to tell how umpteen potential customers as well as how many foes in the same segment.(2) Accessible adapted to reach selected market targets with its unmarried marketing suits which means segment should be accessible through any types of communication method and distri moreoverion such as transportation, distributors and internet. (3) Meaningful Able to differentiate preferences or needs and show clear variations in market behavior and response to each designed marketing mix. (4) Substantial Able to lead to segments which sufficiently large to be economically and practically served as market targets with selected marketing mix.TargetingAfter segmentation, the next step is targeting. Targeting is the process of selecting a segment to aim. According to Kotler and Armstrong (2004), the following three main strategies that give the sack be used to enter and exploit the segments.(1) Undifferentiated strategies (mass marketing) The aim of the strategy is to offer a prefatory product that would suit and be used by almost all age groups and lifestyle. (2) variantiated strategies (segmented mark eting) Focus on targeting twain or more markets, each of them use different marketing programme. (3) strong strategies (niche marketing) The partnership focuses on targeting a large share of one or a few segments. The niche marketing defines the specific product features focus to satisfy specific market needs.Generally, targeting is depending on several factors as the followings The vivacious level of rival and the ability to meet customer needs. The size of the segment (how large and how bear it grow). The strengths of a conjunction that can help to compendium a group customer ( companionship reputation). The ability to communicate with the segment.Basically, the services of target marketing are selling opportunities and gaps will be more accurately indentified. The gaps can be the real social function about the product or how customers survey the product emotionally. By indentifying this, an appropriate advertising message can be implemented in the themes of custome rs. Market and product appeals through the manipulation of marketing mix will be more suitable to the needs of potential customers. Marketing effort can be focus on the market segment which would be a potential for the confederacy to achieve its goal and maximize the profit. putAfter segmenting a market and thus targeting a customer, the next process is to position a product in the market. Positioning is about perception and creating the fore canvas of the product in customers head teacher. In other words, positioning is about delivering the alone(predicate) exchange advantage of the product. Positioning is useful in holy read to understand what we can offer that the other products are not able to offer. On crown of that, the customers needs and wants can be satisfied. . A product has to hurt a clear and distinctive determine in the listen of the customer. This is exactly what positioning creates. Basically, the positioning strategy is mainly foc utilise on the followin g points Provide value to customer with the competitive advantage, strengths and distinctive competencies. Market segmentation forms the basis for focused strategies. Finding the comical merchandising advise by distinguishes a spot from its foes. Conduct analysis to study on internal, market & competitor.Positioning is the process of creating, the stunt woman the product holds in the mind of customers about the product. For example, Gardenia and FederalBakery both are in the bakehouse industry. Although Federal Bakery may try to compete they will notwithstanding be seen as down market from Gardenia.Positioning helps customers understand what is unique about the products when compared with the competitors. Gardenia has been positioned base on the process of positioning by contribute comparison with other competitors such as Italian Baker (Massimo) and Silverbird (Hi-5), and have positioned their products to benefit their target market. Most people create an look-alike of a product by comparing it to another kindred product and the image of that has been positioned by the customers about Gardenia is particularly on the mannikin that they offers and its healthy ingredients.The company can use Point of Different (POD) and Point of parity (PAP) in the effort to make a better positioning strategy. By using POD and PAP, the company would be able to see the difference and similarities between their products and competitors post. Its important to establish the POD but its also important to decrease the competition by duplicate it on the POP.picDiagram 2 Point of Different and Point of Parity employ Point of Different (POD) and Point of Parity (PAP) for Gardenia and its competitors in the bakery industry, the result are as shown belowPoint of Different (POD) Large variety of breads such as sunflower seed loaf, love life loaf. No preservatives and use natural ingredients.Point of Parity (PAP) Produce the basic thing like the competitors (loaf, bun). S ome customers prefer to buy Gardenia than its competitor such as Federal Bakery, Massimo and Hi-5 because of the differences that other competitors cant offer. The variety of bread (other than normal white loaf) that they are offerings is not available with competitors brand and they also sellother things like waffles and muffins.The wideness of PositioningIt is important for a successful business to market itself right. through with(predicate) positioning, a lot of advertising money can be saved. Positioning is about communication of the overall value proposition that has been created and maintains it to the customers. In order to be effective, the basic value proposition by the company has to be well-nighthing relevant to the target market and it must(prenominal) be differentiated from the competitors. It must also sustainable and communicated clearly to that market. Therefore, differentiation at product, brand or company level is straightaway been recognized as one of the k eystone piece of establishing a stable market positioning.The differentiating can be based on the features or attributes of the product (actual) or based on the image of the product (perceived). Differentiation can be done with different element of the marketing mix. It may involve the features of attributes that gives customers more benefits than the competitor or from the brand unique image itself.A reasoned and quality product is not a guarantee to be success in the market. The most important is the product has to have a clear and distinctive image in the mind of the customers. This is the reason why positioning needs to be created.Positioning has to be managed at every aspect where customers have the contact with the company mainly in communication and telephonic interaction. This is one of the effective ways to avoid any confusion about the product in the mind of the customers.Positioning helps company to give a direction to their marketing plan. foregoing to that, whats im portant is the company must develop it core competencies earlier announce to others what it can offer.picDiagram 3 Implementing Chosen Image and call forth to Chosen SegmentPositioning is important when the company wish how its products to be viewed by customers. From here, the company can decide where it wants to compete and it would be able to compete. The perception from customers is what they believe about certain product. The product competitive advantage not only mendd to the features and attributes of the product alone, but also related to its perceived image.For example, Research In Motion (RIM), the company that produces Blackberry phone has chosen to position itself as the maker of Qwerty-Keys smartphone which enable to compose and read the e-mail better. Hence, RIM has done a lot through its advertising to promote the features.The perceived image of the product is very important if the company wants to compete in the minds of target customers. What customer believes or perceives are actually ascertain the purchase decision.A strong brand positioning direct marketing strategy by explaining the brand details, the uniqueness of the brand and its similarity with competitors brand in the market. Positioning is the basic strategy for growing and enhancing the experience and perception of the customers. For example, Maybelline cosmetics represent youth and excitement to their target customers young girls who tone for affordable and quality cosmetics.A systematic positioning can create the brand identity and a proper brand image. The company can increase the market share and company profits if the right positioning used in their marketing strategy. Moreover, it can prevent the company make a wrong positioning.There are various positioning mistakes such as(1) under(a) PositioningUnder this scenario, customers are unable to get the clear idea of the brand. It happens when the company failed to present a strong primaeval benefits and reason to buy th e product. For example, MonaVie Inc is the company that markets a supplement in tranquil form called MonaVie but many customers do not know what sort out of product that they are actually selling. Some customers think that they are selling normal juices.(2) Over PositioningUnder this scenario, customers have a restrict awareness of the brand. It happens when the company makes the product too specific for certain group of customers and other customers may believes that the product is not for them maybe because of the high value or other reasons. For example, Uluwatu, a clothing brand from Indonesia has position itself as a premium Indonesian boutique although they are also selling medium priced clothes.(3) Confused PositioningUnder this scenario, customers have a abrupt opinion of the brand. It is because the company claimed two or more benefits that contradict each other. For example, Tutti Frutti claims that the company is serving a healthy and low fat icy yogurt but thither are certain topping which is from a preserved canned fruits that are not really good for health. Which is more important, the healthy aspect or taste ?(4) Doubtful PositioningUnder this scenario, customers do not accept the claims of a brand. Customers will doubt on the benefits that the brand can actually deliver. For example, Garnier has market a facial wash that claims to be effective in making a skin fairer but no successful testimonial has been shown so far.The Approaches in Positing StrategyPositioning strategy can be authentic in object attributes, application, target customers and the characteristics of the product itself.These factors represent a different approach in developing positioning strategy. Once a company decides what approach to be chosen in positioning, it must start to communicate the message to the customer at every contact point. The following are the approaches to position strategy(1) Using Product Characteristics or Customer BenefitsThe characteristic of t he product or customer benefits are the main focus in this strategy. For example, motor vehicles are ordinarily emphasized on product characteristic such as give notice economy, power and other features. Certain products are positioned along with more than hotshot product characteristics at the same time.(2) Using PricingSometimes, customers tend to relate the price of the products and the quality (price-quality). This is the perception that most of the customers perceive that expensive product is often to have a higher quality than a brasslike one. This so called quality approach is important if the marketer wants to set a premium image in their product.(3) base on Use or ApplicationIn this type of strategy, a second or third base position is using to expand the brands market. By introducing the new uses of the product, automatically it will expand the brand market. For example, Milo for many age positioned itself as an energy pledge other than normal chocolate drink.(4) f ound on Product ProcessUnder this strategy, the product is associated with its users or a class of users. For example, Longines, a watch brand has appointed Aishwarya Rai as the product ambassador to develop a fashion and luxury image in their brand. In this case, the expectation is the model or celebrity will influence the products image by reflecting their image which communicated as a productuser.(5) Based on Product ClassSome products withdraw critical positioning. For example, coffee powder needed to position itself with creamer or condensed milk. For example, Nescafe has positioned itself with the instant creamer.(6) Based on Logo / SymbolSymbol or logo is being used to differentiate their brands from other competitors. Using and implementing trademarks in the main follow this type of positioning. For example, Malaysian Airlines logo which is tralatitious kites-wau logo can be recognized by many peoples.(7) Based on competitorsIn this strategy, one or more competitors are u sing as a reference. Basically, the similar positioning strategy used by the competitors or use a new strategy by winning the competitors strategy as the basis. For example, Celcom has published an advertisement that compares their service with other competitors such as Maxis and Digi using the competitors somatic colors.Brand Positioning Princess ShoesOne of the most important things in managing a brand positioning is positively compare it with competitors brand in the mind of customers in target market. Its essential for the brand to communicate the key values of the products and the business.Princess is the Malaysian company which produces women enclothe for the medium price market segment. Previously known only as a brand that only sells shoes for low income customers, but straightaway its already expanded to medium price market segment.Princess has developed elements such as pride and fashion with their product and within its unique selling proposition. They are successfull y building their own unique brand image and reaching their target customers. Their marketing objective is to reposition its brand (from normal shoes to high fashion shoes) and capturing new markets. The marketing strategy aimed to the follows Introduce the new design which is more up-to-date chance on customers excited about the brand Create a sense of swagger about the brand.Analyzing the marketing mix (the 4Ps) that they are implementing, basically its like the followsTarget Low and medium income women. Product Fashionable and comfortable shoes. cost Sell at affordable price. Place Sell at shop malls and shop lots. Promotion Uses internet and newspaper to announce their new products.decisivenessPositioning is how the target market defines the brand in relation with the competitors. Its what we called the brand identity.A brand is a relationship between the company and customers. When we form a relationship, we have to show who we are to our customers. Through positioning, the c ompany should be able to communicate with the customers effectively and efficiently.One of the benefits of good business planning is strategic positioning especially in the modern military man where technology is improving from time to time and market grow eternally and become more defined. The marketer can use the business plan with review and revision is done as and when needed,in order to concur track on the right positioning.The constant change in segmentation sometimes can happen. Take broadcasting industry as an example, 15 years ago we have not more than 4 channels, now we have various channels under Astro. Therefore, in certain situation, some broadcasting companies have to review and revise their positioning in order to keep on being competitive in the growing markets. unconstipated when a marketer involve in the process of choosing a brand name, create design, develop promotion strategy and define the pricing strategy, they have to remember the most crucial above all th is are a good positioning.When defining a positioning strategy, the marketer should consider how the positioning makes the brand unique and more significantly, all the qualities can be perceived as value added by the target customers. For example, if one shoes brand is hand made from rare leather, how many customers in the target market actually would see this as strength (in point of different). If they really see this as a unique point, then it can be used as positioning. Otherwise, being different cannot bring any special charity no value added or benefit to the brand or customers. Indeed, the effort to branding a product is time consuming and positioning is just a first step to build a relationship with the customers. in the first place start with the brand positioning, the marketer have to see who are the competitors that already in the market before the unique positioning can be planned. By measuring the competition, the marketer would know whether the customers in the target market already satisfied with competitors brand or there is any chance for another brand can take advantage of. For example, if a new brand is going to be marketed although there are 5 brands already in the market, its really important for a marketer to think how to compete. Without a strong positioning, the product will be seen as imitator or copycat rather than a smart new brand. The competitions allow the customers to know what they can expect from certain brand.The marketer should think how to compete by showing the different to the customers compared to other similar brands in the market. The key is to exhibit what the brand can offer as value added if the competitors have similar product offerings and know how to overcome them if the competition is too high.The purpose of market study is to help the marketer to realize what market and potential customers that they will targeted before making an investment. There are varieties of strategy that the marketer can use when determ ining positioning. The great thing about this is when the similar product or concept already in the market, the marketer can use a specific positioning strategy and identify the point of different. For example, 100 Plus is positioned as an isosmotic drink brand focusing on active lifestyle while the competitor, stick out (another isotonic drinks brand) is now positioned as cola flavoured isotonic drink. They are basically the same products, the base is same which is isotonic drinks, but each of them are focusing on different positioning that giving them a competitive advantage and unique identity.Having a good product does not guarantee success. Some great products failed in the market because they cannot position themselves correctly. A marketer should think about positioning before anything else like design and packaging.As a conclusion, the positioning strategy is a must if a product needs to compete in the market. The image that creates in the mind of customer will determine w hether the product can be sold because that is one of the reasons before customer make a purchase. By having the comprehensive positioning strategy, the company would survive and more importantly to increase the market share and maximise the profits.Bibliographyhttp//en.wikipedia.orghttp//www.ehow.com/info_8693419_stp-marketing.htmlKotler, P., and Armstrong, G. (2004) Principles of marketing, 10th edition, N.J., Pearson Education.http//www.managementstudyguide.com/brand-positioning.htmCallin Gilliam(2010) Marketing Segmentation, Targeting and Posistioning ,p339http//www.ivoryresearch.com/nicole-johnson.php