Market Positioning of New Product

What is marketplace The word Marketing in narrow reason is victimisation upd as the sum up of selling edge. Now a days selling is considered as managing lootable node kindreds. Hence, we define commercializeing as the process by which companies create shelter for nodes and hit pissed customer relationships in order to capture harbor from customers in call back. here(predicate) the figure 1. 1 presents a simple five step simulation of the tradeing process. In the eldest four steps companies work to rede consumers, create customer value and build heavy customer relationships.In the final step companies reach the reward of creating superior customer value. By creating value for customers , they in turn capture value from customers in the ca-ca of sales, attains, and long term customer equity. In the face of todays changing clientele , to succeeder , this expand model of marting is precise much helpful. All steps of this merchandising process is important. A s a first step, food market placeers regard to understand customers take and needinessinesss and the market place deep down which they operate.Once its fully understood , consumers and marketplace, Marketing management use a customer driven merchandise system. In the next steps, marketers construct a trade program that actually deliver superior value done building profitable customer relationships by capturing value from customers. Here we lead concenter on customer driven merchandise dodge of entree a merchandise or avail. Customer driven market strategy and marketing management orientations that guide marketing strategy To design a winning marketing strategy , the corporation essential first shape who it give serve.It does this by dividing the market into members of customers(market segmentation) and selecting which segments it leave behind cultivate( smear marketing). Next , the compevery essential decide how it forget serve objective lensed customer s(how it will variousiate and position itself in the marketplace). Marketing management wants to design strategies that will build profitable relationships with tar cast consumers. There be five alternative images under which organizations design and black market out their marketing strategies. These argon - *Production theory *Product concept *Selling concept *Marketing concept *Social marketing concept roduction concept The philosophy that consumers will favor harvest-homes that are available and super affordable, and that management should in that respectfore instruction on improving production and diffusion efficiency product concept The mentation that Cl will favor products that offering the most quality, performance and gasconades, and that the organisation should thitherfore, devote its energy to making uninterrupted aver improve merits selling concept The idea that consumers will non buy enough of the organisations products un little the organisation undertak es large-scale selling and promotion essay arketing concept The marketing management philosophy which holds that achieving organizational goals depends on find the call for and wants qf target markets and delivering the desired satisf achievements more effectively and efficiently than enemys do. social marketing concept The idea that the organization should determine the need, want and arouses of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a ay that chief(prenominal)tains or improves the consumers and societys well-being.There is no hard and fast rule to purely follow any particular concept. These concept are followed by disparate companies as their convenience as their business legation. This may vary for different companies beside roughly companies may follow the combination of these orientation. Marketing cock The site of controllabletactic-id marketing tools- product, price, place and promotion that tliv dissolute blends to producethe response it wants in che target market functional chewing and bubble gums pic ProductAnything that flush toilet be offered to a market for attention, acquisition, use or consumption that might satisfy a want. It includes physical objects, persons organizations and ideas, price. The amount of money charged for a product or function, or the sum of the values that consumers ex counterchange for the benefits of having or using the product or divine service. place. All the company activities make the product or service available to target customers. promotion Activities that communicate the product or service and its merits to target customers a persuade them to buy.SWOT Analysis The SWOT epitome section draws from the market audit. It is a brief list of the searing success factors in the market, and rates strengths and weaknesses against the competition. The SWOT outline should include costs and saucily(prenominal) non marketing variables. The outstanding opportunities and threats should he given. If plans depend upon assumptions about the market, the delivery or the competition. SWOT analysis draws the critical strengths, weaknesses, opportunities and threats (SWOT) from the strategic audit.The audit contains a riches of data of differing importance and reli susceptibility. SWOT analysis distils these data to show the critical items from the internal and external audit. The number of items is small for forceful communications, and they show where a business should focus its attention. The s.t.p. Process The growing use of the s.t.p. process has occurred as a subscribe to result of the prevalence of mount up markets, the greater diversity in customer needs, and the ability to reach vary or niche segments.As much(prenominal) marketers are increasingly segmenting markets and identifying winning segments (i. e. who to focus on and why? ), in order to identify new product opportunities, develop suitable positioning and communications strategies (i. e. what message to communicate), and effectively allocate resources to key marketing activities (i. e. how much should we spend and where? ). Organizations will oftentimes commission segmentation explore when they want to re-scope their marketing strategy, giveigate a declining brand, launch a new product, or restructure their pricing policy.Organizations in operation(p) in highly dynamic environments seek to conduct segmentation research at regular intervals, to keep in touch with changes in the marketplace. STP refers to the three activities segmentation, targeting, and positioning Key benefits of the STP process include Enhancing a companys competitive position by providing educateion and focus for marketing strategies such as targeted air, new product development, and brand differentiation. For example, Coca-Cola determine through market research that its Diet drive of light brand (also marketed as Coca-Cola Lite) was egarded as girly and feminine by male consumers. As a direct result the company developed a new product, branded Coke Zero, which is targeted at the health-conscious male segment of the soft drinks market. Examining and identifying growth opportunities in the market through the identification of new customers, growth segments, or new product uses. For example Arm & Hammer was able to attract new customers when brisk consumers identified new uses for their baking soda (Christensen, Cook, and Hall, 2005).Lucozade also changed the positioning and targeting from its authorized marketing strategy positioned for sick children and rebranded to target athletes as an energy drink. more than effective and efficient matching of company resources to targeted market segments promises the greatest return on marketing arrangement (ROMI). For example, financial institutions like HSBC and Barclays and large sell multinationals such as Tesco and ASDA Wal-Mart are utilizing data-informed segmentation strategies to effectively target direct marketing messages and rewards to customers they aim classified as offering long-term value to the company, i. . they are profitable customers. Market Create values for customers and build customer relationship An expanded model of the marketing process Marketing dodging Target consumers are at the centre of the marketing strategy. The company identifies the fare market, divides it into smaller segments, selects the most promising segments and focuses on serving them. It designs a marketing mix using mechanisms under its control product, price, place and promotion.The company engages in marketing analysis, planning, implementation and control to find the best marketing mix and to take action. The company uses these activities to enable it to watch and adapt to the marketing environment. We will at present way briefly at eieh factor in the marketing process and say where it is developed elsewhere in this book. The ideal of Market Segmentation Market s egmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements.Or to put it an new(prenominal) way, market segmentation is the division of a commode market into identifiable and distinct groups or segments, each of which choose frequent characteristics and needs and display similar responses to marketing actions. Market segmentation was first defined as a condition of growth when core markets suck in already been developed on a generalised basis to the transfer where additional promotional expenditures are yielding diminishing returns (Smith, 1956). There is now widespread agreement that they form an important foundation for successful marketing strategies and activities (Wind, 1978 Hooley and Saunders, 1993).The purpose of market segmentation is to leverage scarce resources in former(a) words, to ensure that the elements of the marketing mix, price, scattering, products and promotion, are designed to m eet particular needs of different customer groups. Since companies have finite resources it is non possible to produce all possible products for all the people, all of the time. The best that can be aimed for is to return selected offerings for selected groups of people, most of the time.This process allows organizations to focus on specific customers needs, in the most efficient and effective way. As Beane and Ennis (1987) eloquently commented, a company with restrict resources needs to pick only the best opportunities to pursue. The market segmentation concept is related to product differentiation. If you aim at different market segments, you might adapt different variations of your offering to satisfy those segments, and as if you adapt different versions of your offering, this may appeal to different market segments.Since there is less competition, your approach is less likely to be copied and so every approach will do. Market consists of buyers and buyers differ in one or m ore ways. They may differ in their wants ,resources, locations, buying attitudes and buying practices. through and through market segmentation , companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products operate that match their unequalled needs.In this section we discuss four important segmentation topics segmenting consumer markets, segmenting business markets, segmenting international markets, and requirements for effective segmentation. Segmenting Consumer Markets There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structures. Table 7. 1 outlines the major variables that might be used in segmenting consumer markets. Here we look at the major geographic , demographic, psychographic, and behavioral variables. Geographic World contribution or solid ground North America, West Europe, Mi ddle east, Pacific rim, China, India, Canada sylvan region Pacific, Mountain, West matrimony central, West south central, East north central, East south central, South atlantic, Middle atlantic, New England. City or metro size Under 50005000-2000020000-5000050000-100000100000-250000 250000-5000000500000-1000000 Destiny Urban, suburban, rural Climate Northern, southern Demographic Age Under 66-1112-1920-3435-4950-6465+ Gender male, womanish Family size 1-23-45+ Family life cycle upstart, single, Young married, no children, Young married with children, Older, married with children, older married no children Income Under1000010000-2000020000-3000030000-5000050000-100000 Occupation passkey and technicalmanagersofficialsproprietorsclericalsales Crafts people supervisorsoperatives Education Grade instruct or lesssome high civilisehigh school graduatesome college Race AsianHispanicblack discolor Generation Baby boomer.Generation x, generation y Religion catholic, protestant, jewish, muslim, hindu, separate Nationality North American, South American, British, French, German, Italian, Japanese Psychographic Social class Lower lowers, focal ratio lowers, working class, middle class, upper middles , upper uppers Life style Achievers, strivers, survivors disposition Compulsive, gregarious, authoritarian, ambitious Behavioral Occasions Regular occasion, Special occasion Benefits Quality, service, economy, convenience, speed User situation Non exploiter, ex- drug user, potential user, first time user, regular user User rates Light user, medium, user, heavy user Loyalty status None, medium, strong, absolute Readiness stage Unaware, aware, informed, interested, desirous Attitude toward product Enthusiastic, positive, indifferent, negative, aggressive Segmenting seam Markets Consumer and business marketers use many of the same variables to segment their markets. Business buyers can be segmented geographically, de mographically, or by benefit sought, user status, user rate and loyalty status. Yet business marketers also use some additional variables, such as customer ope place characteristics, buying approaches , situational factors and personal characteristic.By going after segments instead of the whole market, companies can deliver the just the right value proposition to each segment served and capture more value in return. Requirements for Effective Segmentation Clearly, there are many ways to segment a market, but non all segmentations are effective. For example, buyers of table salt could be divided into fair and b broadenette customers. Target Markets The second important part of the STP process is to determine which, if any, of the segments uncovered should be targeted and made the focus of a all-embracing marketing programme. Ultimately, managerial discretion and judgement determines which markets are selected and exploited and which others are ignored.Kotler (1984) suggested that in order for market segmentation to be effective, all segments must be Distinctis each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, will be necessary. Accessiblecan buyers be reached through appropriate promotional programmes and distribution channels? Measurableis the segment prospering to identify and measure? remunerativeis the segment sufficiently large to bequeath a stream of everlasting future revenues and profits? This approach to the evaluation of market segments is often referred to by the DAMP acronym, making it easier to remember.Another approach to evaluating market segments uses a rating approach for different segment attractiveness factors, such as market growth, segment gainfulness, segment size, competitive intensity within the segment, and the cyclical genius of the industry (e. g. whether or not the business is seasonal, e. g. retailing, or dependent on government political cycles as some large-scale defence contracts are). separately of these segment attractiveness factors is rated on a scale of 010 and loosely categorized in the high, medium, or low columns, based on either set criteria, or subjective criteria, dependent on the accessibility of market and customer data and the approach adopted by the managers chore the segmentation programme. pic ? Six steps in market segmentation, targeting and positioning specialty & Positioning Strategies Marketers can follow several positioning . strategies. These strategies use associations to change consumers perception of products. Product attrilmtes position many technical products. The positioning of Ericssons EH237 sprightly phone is its Low weight and number $ features, objet dart much of BMWs advertising promotes individual technical items- like fresh air filters. In the goop watch market Breitling. Baume & Mercier and Audemars Piguets positioning are on their mechanical movements. nearly of their designs leave the mechanisms exposed and one ad argues Since 1735 there has never been a quartz Rlanepain. And there never will be. The benefits they offer or the needs they fill position many products Crest toothpaste reduces cavities. Aim tastes good and Macleans reasonable relieves the pain of sensitive teeth. In the confectionery industry, Italian Gaci and Ferrero Rocher are gifts, while Mars and Snickers bars satisfy hunger. Huhtamaki is Finlands largest industrial company but LEAF, its confectionery division, is only ten in size worldwide. It developed competitive favor Marketing Services to remain flexible has also led to firms hiring services that provide use without ownership. Finally, an increasing number of firms are keen to focus on their core competences.They are beginning to contract out non-core activities, such as warehousing and transportation, thus stimulating the growth of specialist business service organizations. All these developments have, in turn, led to a growing interest in the special problems of marketing services. Brand Positioning Marketers need to position their brands clearly in target customers minds. They can position brands at any of three levels. Branding poses challenging decision. *Sample of marketing strategy of storehouse market consulting firm Finance Hauler Lead life less tension Our company is an service providing company. The goal of our company is to provide service , provide information about entrepot market in counterchange of a particular fee. Ours is an unique company, so far.We are targeting specific segments in the consumers and business markets, taking the opportunity of current situation of stock market. The primal objective is to serve in Rajshahi, shaheb bazaar, then it will be unlogical in the whole country, where broker houses stands. In business there is a come about of loss and also profit, we will try to make profit from the first year. Question may arise why this type of consultancy firm? T he answer is the present condition of stock market. The main reason stool this is lack of proper knowledge about stock market. Investors doesnt know where to invest and when to invest. Our duty is to make him clear. As Bangladesh is a swell deficiency country, so the capital we have need to invest properly.As we are the bookman of Finance & Banking , our duty is to analyze the stock market, thats why we have planned to open such type of firm. At present some brokerage house & ICB some provide information to their investors un officially. These informations are not so profitable. But there is no specialized firm who provide proper information about stock market, thats why we intend to open such a consulting firm. By describing the targeted segments in detail, it can be said that our firm will satisfy the customers need, want, and their demand , as we have planned to scatter it in the every city of Bangladesh. Bangladesh is a capital defficiency country.As peoples save less consump tion more , so we need to invest the savings into right sector, We will provide information to invest in the profitable sector. So at a time the economy of Bangladesh will be increased. The standard of living of common people will be raised. The growth and development of our country will be accelerated. As we will open a firm we need specialised employees by recruiting whom we will help them to lead a better life. Features of our service A product or service need three characteristics 1. Unique 2. monetary value 3. Availability According to these characteristics our service or product is perfect. Its unique.By our lawsuit and efficiency it will be available in the whole country after a year or two year, As it is a era of globalization , anyone can get our service by using internet or telephone service from anywhere. We will take a minimum fee for registration and membership which will be easy to pay by the clients. Marketing planning aims and objectives Behind the bodily objectiv es, which in themselves offer the main context for the marketing plan, will lie the corporate mission, which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only proceed and reward frontline staff fairly but also to align marketing activities with corporate mission.This corporate mission can be thought of as a definition of what the organization is, of what it does Our business is . This definition should not be too narrow, or it will constrict the development of the organization a too rigorous concentration on the view that We are in the business of making meat-scales, as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless We want to make a profit is not too helpful in developing specific plans. Abell suggested that the definition should cover three di mensions customer groups to be served, customer needs to be served, and technologies to be used.Thus, the definition of IBMs corporate mission in the 1940s might well have been We are in the business of handling accounting information customer need for the larger US organizations customer group by means of punched cards technology. Perhaps the most important factor in successful marketing is the corporate vision. Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their Superordinate Goals. In Search of Excellence said Nothing drives progress like the imagination. The idea precedes the deed. If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that futur e). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBMs marketing activities were underpinned by its philosophy of customer service, a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture. Needs and equal features/benefits of Finance Hauler Targeted segment Customer need Corresponding feature Professionals . Time saving and Holiday evasion. Usually professionals are agile so they need time less consuming scheme and information, (consumer market) and in holiday they will get informations. . Students have less money so they need fast moving but less price trade information, as Students . Seminar and money saving they know less they will get free seminar discussion. (consumer market) scheme . Lazy money investment scheme . They need to secure their retireme nt pension money, from which they will get fast profit Retired person and stable market. (consumer market) . Special scheme . Women are totally unmindful(predicate) about stock market but they can make a great contribution in Women country economy by investment funds their small savings into stock market.We have a special (consumer market) scheme and care for women. Competitive follow-up As our firm is new and unique, so far no competitor in our sector. This type of business is out of stock(predicate) in our country. At future there may be competitor but now no one. Distribution review Distribution review needs distribution channels for a product. As our service is unique so there is no better distribution channel. We have to advertise through television , radio , news paper etc. And most importantly through brokerage house. We will distribute handbills and posters. SWOT analysis Strengths Our strengths depends on the followings * Innovative servi ce *Security *Pricing helplessness Weakness are internal elements that may interfere with the companys ability to achieve its objectives. The weakness of our firm is only the brand awareness. Opportunities *Increased ordinary demand *Lower technology cost. Threats *At present no competitor so far but near future there may be competitor then there will rise our threat. little(a) give objectives * First we will open our firm in Rajshahi to provide service. *Try to increase member *Profit maximisation Long run objectives *Scatter our services all over the country *Wealth maximization Issues In relation to the service launch issue is the ability to confirm a well regarded brand name linked to a purposeful positioning.We must invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. Marketing research & Development In this segment how marketing research will be used to support development, implementation and evalua tion of strategies and action programs. As our service on stock market, we mainly focus on capital market, economic conditions, performance of companies research & development. Action programs Action programs should be interrelated with the resources and activities of other services. The first action is to know about the capital market to the people. Then make a positive concept about stock market and how to gain in the market in short run and long run. BudgetsBudgets serve two main purposes one is to project profitability and another to help managers plan for expenditures ,scheduling and operations related to each action program. In our services We need a flat for our office purchase furniture, equipments and other elements. Controls Controls help management assess results after the plan is utilize identify any problems or performance variations and initiate corrective action. We are developing contingency plans to address fast-moving, new technology and new competition. gener al anatomy profitable relationships and create customer delight Construct an integrated marketing program that delivers superior value Design a customer-driven marketing strategyUnderstand the market place and customer needs and wants Customer relationship management build strong relationships with chosen customers Product and service design build strong brands Select customers to serve market segmentation and targeting Research customers and the marketplace Pricing create real value Manage marketing information and customer data Decide on a value proposition differentiation and positioning Customer relationship management build strong relationships with chosen customers Distribution manage demand and supply custody Partner relationship management build strong relationships with marketing partners promotion communicate the value proposition 2