Group HR 1 GEMS – Marketing module Session 3 Faculty: Dr. Richa Vyas

Group HR Recap – Session 1 & 2 Introduction to Marketing, Evolution of Marketing Difference between selling & Marketing Difference between Needs, wants & demand Customer Value Concept Marketing Mix Customer Satisfaction 2

Group HR Learning from Assignment-2 Can you relate Customer Value, Customer Dissatisfaction and Complaint Management? Did the exercise make you understand the value of Marketing and customer services in the consumer’s life? 3

Group HR 4 Agenda for Session 3 Choosing a marketing strategy Differentiation Brand positioning Q: What is marketing strategy?

Group HR 5 Marketing Strategy Steps in choice of strategy Defining the market – opportunities and threats Analyzing competitors – strengths and weaknesses Choosing a competitive strategy

Group HR 6 Marketing Strategy – defining the market Identifying opportunities in a market based environment scanning and taking into account the competence and resources available with the firm E.g. – – material handling equipment (high infrastructure growth is the agenda) Tata Nano (uplifting the middle class family for a secure ride)

Group HR 7 Marketing Strategy – analyzing competitors Based on competitors’ strengths and weaknesses, the strategy needs to be decided E.g. Mercedes, BMW and Audi – German Automakers- vs Ford, GM and Chrysler What if a small player wants to launch a soap against Unilever / P&G ?

Group HR 8 Choosing a strategy Options: Defense (undertaken by market leader like Colgate) Challenger (undertaken by those who are trying to make their mark like Facebook-Orkut) Followe r (matching the market leader’s features – Samsung, imitation) Niche (Harley Davidson Royal Enfield)

Group HR Competitive Strategies Porter’s competitive strategies – Cost leadership, Differentiation, Focus 9

Group HR 10 Differentiation Why do we need ‘Differentiation’? To create an edge over competitors – stand out among all the soaps in the market (e.g. Dove-3/4 moisturizer,) To communicate the value proposition to our target customers (e.g. Sunsilk- We work with leading hair experts to give you the best hair care) Inspiring romance every day

Group HR See this Print Ad 11

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Group HR 13 Positioning Positioning – the act of differentiation Designing the company’s or the brand’s image to occupy a distinct place in the minds (and hearts) of customers E.g: Starbucks Vodafone

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Group HR 15 Deciding the positioning Issues to consider: Competitive frame of reference – check what competitors are offering (mindspaces already rented out by customers! E.g. Soft Skin- Dove) Check the product category – points of parity (e.g. a bank – savings account, ATM facility, FDs, cheque book, internet banking etc.) Incorporate these and then choose a suitable ‘point of difference’ Examples: Fedex – overnight; Nike – achiever Dettol - hygiene

Group HR 16 Considerations for positioning Choosing the positioning: Relevance – for the target customers (e.g. a wall clock that is waterproof – not of much relevance; but Ponds age Miracle; gives you back the lost romance): Nike– enables you to achieve more

Group HR Considerations for positioning Choosing the positioning: Distinctiveness – the positioning must be easily distinguishable from competitors and also be superior than others Vodafone in India created animated characters to promote its various services, it helped them break the clutter 17

Group HR 18 Considerations for positioning Choosing the positioning Believability : Target customers must find the positioning credible. E.g. a health drink promising double growth in children’s height! Lexus compared itself feature to feature with Merc

Group HR 19 Positioning Deliverability criteria: Feasibility – will the product be able to match the positioning? (e.g. Ambassador car claiming to be a style icon for the youth) Communicability – can the message be communicated effectively? (e.g. a brand that promises a ‘heavenly’ feeling) Sustainability – can the positioning be sustained? (e.g. a brand that uses a hollywood movie’s craze to position the brand – the positioning could become weak once the movie is gone)

Group HR 20 Positioning Methods Various methods used for positioning: Features of the product (e.g. a car with a powerful engine ) Benefits (e.g. Vodafone– best network connectivity) People (e.g. the Singapore Airlines cabin crew) Image (e.g. Nike– focusing on achievers)

Group HR 21 Branding What is a brand? A brand offers more value than the basic purpose of the product. E.g: A Jaguar is more than just a car – it offers prestige, status, extra comfort etc. Branding is the process of endowing products and services with the power of a brand. This is done through the creation of a suitable image in the customer’s mind.

Group HR Brand/Not to brand? Brands though an asset for a company, are expensive to build and manage Apple-i-phone (outsourced) Intel-inside (Ingredient branding) 22

Group HR 23 Branding A brand offers a ‘promise’ to customers. This is also referred to as value proposition Lets look at some examples:

Group HR 24 Branding What do you need to create the brand? Logo, name, visual imagery – for easy recall Features and performance – value proposition – for conveying the benefit to customers Associations – the brand gets identified with something the customers like (e.g. cricket) – for brand association Playing an active part in the customer’s life – brand resonance- Unilever

Group HR 25 Differentiation and Branding Choose a differentiation and use branding based on the customer’s psyche – their preferences, desires, attitudes… More examples: Coca Cola – Samsung – Next is What?

Group HR 26 Branding Brand equity is the added value endowed to products and services – this is reflected through the customer’s attitude towards the brand A brand can be extended into other categories – like Maggi noodles – sauces Tata brand – highly extended. The core value – trust has endured through all the extensions

Group HR 27 Home Work BRANDING: Write a short one page note on the brand you love, your write up should include following points: 1.Which Brand You Love? 2.When did you buy it first? 3.How did you get to know about it? (retailer, advertisement, friends) 4.Why did you buy this over other brands? 5.Did you buy it again? Did you recommend it to someone? 6.Why do you like/love this brand?

Group HR 28 Any questions?