1. Developing Marketing Strategies
Ian Mejia 2009
Redfield College

2. Syllabus Points Covered
developing marketing strategies
• market segmentation and product/service differentiation
• product and service
– positioning
– branding
– packaging
• price including pricing methods — cost, market and competition-based
– pricing strategies/tactics — skimming, penetration, loss leaders, price points
– price and quality interaction
• promotion
– elements of the promotion mix — personal selling, advertising, below-the-line promotions, public relations
– the communication process including opinion leaders and word of mouth
• place/distribution
– distribution channels and reasons for intermediaries
– channel choice including intensive, selective, exclusive
– physical distribution issues including transport, warehousing, inventory
• environmental effects on distribution — technology, local government

3. Market Segmentation
Market segmentation is the process of identifying niche markets within a mass market.
Market segmentation is effective because it gathers people with similar characteristics and allows a business to be more specific with its strategies.

4. Markets can be identified through
Demographic factors
Geographical factors
Psychographic factors
Behavioural factors

5. Demographics
Age
Sex
Education
Income
Occupation
Religion

6. Geographical Factors Where do customers make purchase decisions?
Seasonal variations? Climate, conditions etc.
Type of living conditions
City / Suburbs / Rural

7. Psychographic Why does a customer buy a product or service?
Lifestyle characteristics
Personality types
Self perception
Beliefs
Any personal influence on a buying decision.

8. Behavioural Factors
What is the purchase situation when making a purchase?
Customer loyalty
Usage rates (how often)
Purchase occasion (what is occurring during the purchase)

9. Product Differentiation
Product differentiation is a marketing strategy designed to reinforce the distinctions between products intended for a similar market segment.
This occurs to:
-tailor a base product.
-differentiate from competition.

10. Tailoring a Base Product
This allows businesses to penetrate a range of markets and allows customers to purchase a product more suited to them.
Extras on cars, i-pods, mobile phone accessories

11. Differing from Competition
Make one product seem superior or better at meeting the needs of a customer.
May increase the market share of a business
May allow a premium price to be charged for a good or service, justified by a superior product.

12. The Four P’s.
Product
Price
Promotion
Place

13. Product
Positioning
-Positioning is a marketing term that describes how customers percieve a product in relation to a similar product in a market.
-Products are positioned to tap in to target markets to create value in a consumers mind.

14. Perceptual Maps

15. Effective Positioning
Determine
What do customers think of the product now?
What does the business want consumers to think about the product?
Which differentiation strategy will elevate the consumers’ current perceptions to the desired perception.

16. Positioning Strategies
Product Users – emphasis on the type of user, someone they can relate to or emulate to.
Product Usage – emphasis on the benefits of usage or how it can be used
Competition – positioning in relation to competitors