1. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Strategic Marketing Management Chaudhry Muhammad Nadeem Faisal Cell: 0305-7761061 Email: faisal.uk@live.co.ukfaisal.uk@live.co.uk B-Email: ch.faisal@ayaantraders.comch.faisal@ayaantraders.com Url: www.littlemichael.co.uk/faisal/index.htmwww.littlemichael.co.uk/faisal/index.htm Business Intelligence: www.ayaantraders.com/bi/index.phpwww.ayaantraders.com/bi/index.php

2. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning 1.Market Targeting Strategy 2.Positioning Strategy 3.Developing the Positioning Strategy 4.Determine Positioning Effectiveness

3. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning 1.Market Targeting Strategy The market targeting decision identify the peoples or organization in a product-market toward which an organization directs its positioning strategy. Selecting goof market targeting is one of the managements most demanding challenge should the organization attempt to serve all the buyers who are willing and able to buy the particular good or services ort instead selectively focus on one or more subgroup? Study of the product market, its buyer, the organizations capabilities, resources and the competitors is necessary in order to make the decision. Targeting and positioning consists of (1) Identify & analyze the segments in a product market

4. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning (2) Deciding which segment to be target (3) Designing and implementation of a positioning strategy. Targeting Alternatives The targeting decision determine which customer group the organization will serve. Management may select one or more segment or go ager more complete coverage of he product market by targeting the most f the segments. A specific marketing effort (positioning strategy is directed to word each target the management decide so serve) Market targeting falls in two approaches (1) segment targeting (2) targeting through product differentiation.

5. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Segments clearly defined Target Selected Niche(s) Target Multiple Segments Selective Extensive Strategy Product Specialization Product Variety Segments not clearly defined

6. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Factor Inflecting Target Decision Market segment help to evaluate and rank the overall attractiveness of the segments under consideration as market targets. These evaluation include the customers information competitors positioning, and he finical and market attractiveness of the segments. An important factors in targeting is determining the value requirements of the buyers in each segments. Analysis help to evaluate the existing and potential market. Several factors are influence the choice of the targeting (1) Stage of product market maturity (2) Extent of diversity in buyers resources (3) Industry structure (4) Organizational capabilities & resources (5) Opportunity for gaining competitive advantages

7. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning 2. Positioning Strategy Positioning is a composite of the first two principles – market segmentation and differential advantage. Positioning is the image you are trying to create in the eyes of your customers. It helps in your market segmentation as your positioning will determine what market you are in (i.e. low, medium or high end). Positioning focuses on the target market segment the business seeks to serve and the differential advantage with which it will compete with rivals in that segment. For example, Ferrari is positioned in the prestige segment of the car market with a differential advantage based on high performance and

8. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning The positioning strategy is critical to defining the marketing mix. It will dictate:  what type of product will be brought to market (i.e. high quality, low quality)  where it will be sold  how much it will cost  how you will reach its target audience. Businesses that fail to clearly understand their positioning may have a disjointed marketing approach and fail to reach their target segment. The positioning strategy must be clearly defined in the marketing plan and will have an important impact on the marketing mix.

9. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Positioning Concepts Management Desired positioning Of the product (Brand) by buyers In market target Positioning Effectiveness Positioning Strategy The extent to which management’s The combination of marketing Positioning objectives are achieved action used to communicate Market target the positioning concepts to targets buyers Market Target

10. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Positioning Strategy The buyers in the target market are focus of positioning strategy The positioning concepts The positioning concepts indicate the management desired positioning (Brand) in the eye and mind of the target buyers Positioning Effectiveness Positioning effectiveness consider how the management’s positioning objective are being achieved in the market target The Positioning Decision In deciding how to position, it is useful to study positioning of competing brand using attribute that are important to existing and potential buyers of the competing brand

11. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning 3. Developing the Positioning Strategy Developing a positioning strategy depends much on how competitors position themselves. Do organizations want to develop ‘a me too’ strategy and position themselves close to their competitors so consumers can make a direct comparison when they purchase? Or does the organization want to develop a strategy which positions themselves away from their competitors? Offering a benefit which is superior depends much on the marketing mix strategy the organization adopts. The pricing strategy must reflect the benefit offered and the promotion strategy must communicate this benefit. We look at several consideration regarding the targeting and supporting activities followed by deciding how to develop the positioning strategies

12. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Scope of positioning Strategy The positioning strategy in usually centered on a single brand (Total toothpaste) pr a line of related products (Kitchen appliance) for a specific market target. Weather the strategy is a brand specific or grater in scope depend on such factor as the size of the product market, characteristics of products of a good, services. The number of product involve and product interrelationship in the customer use situation. Marketing Program Decision How the specific retailer combine the marketing mix components into a coordinated strategy. Positioned strategy include the unique merchandise, national and local advertising, strategically located store, attractive

13. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Store environment, outstanding customer services and modern retail system. Most of the retailers goods are imported form china and India. Product Strategy ”Product strategy begins with a strategic vision that states where a company wants to go, how it will get there, and why it will be successful.” ”Product strategy is like a roadmap, and like a roadmap it’s useful only when you know where you are and where you want to go.”

14. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning What is Product Strategy??

15. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning The value chain strategy Management of the value chain form supplier to end user, integrating its global supply network with its retails stores. It use free standing and strip retail sites can quickly and congenitally accessed by customers. Store layout attractively designed. Information system are installed throughout the company operation to provide real time information to manage the business. Pricing Strategy Price planning that takes into view factors such as a firm's overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends.

16. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Promotion Strategy Choosing a target market and formulating the most appropriate promotion mix to influence it, advertising, personal selling and public relation to communicate with customers Competitive advantages Superiority gained by a firm when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.  The product strategy included the how the product(s) will be positioned against the completion in the product market

17. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning  The value chain distribution strategy to be used  The pricing strategy including the role and positioning of price relative to completion  The advertising and sale promotion strategy and the objective these promotion components are expected to achieve  The sale force strategy direct marketing strategy and internet strategy, indicating how they are used in the positioning strategy

18. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Designing the Positioning Strategy First it is necessary to set the major guidelines for each marketing program components, for example will more then one channel of distribution be utilized second management strategies for each of the program components are implemented, informing store managers about the new merchandise providing logistics supports to the store and make necessary changes in the strategies over time

19. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Designing the Positioning Strategy First it is necessary to set the major guidelines for each marketing program components, for example will more then one channel of distribution be utilized second management strategies for each of the program components are implemented, informing store managers about the new merchandise providing logistics supports to the store and make necessary changes in the strategies over time. Cross Functional Relationship The responsibilities for the positioning strategy components ( Product, distribution, price and promotion)

20. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Are assigned to various functional units within a company or business units. This separation of responsibilities highlights the importance of coordination of positioning strategies.

21. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning. Product Positioning Strategy Product management strategy Product Objective Branding Strategy Advertising/ sale Promotion role and objective Advertising Management Strategy Creative Strategy Media and programming Strategy Channels of distribution objective Channel configuration Type of channels Distribution intensity Channel Management strategy Role and objective of sale force Size and Deployment Strategy Sale Force Management Strategy Price position relative to competition Pricing management Strategy How active will price be Pricing Objective Advertising / sales promotion strategy Sale Force Strategy Price Strategy Distribution Strategy Product/ Service Strategy Marketing Program & Positioning Strategy

22. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning 4. Determine Positioning Effectiveness

23. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Estimating how the market target respond to a proposes marketing program and after implementation, determine how the target is responding to the program that has implemented are essential in selecting and managing the positioning strategy. Positioning evaluation include the customer analysis, competitors analysis and internal analysis. “Positioning helps the customers know the real difference among the competing products so they can choose the most value for them”. Several methods are available for analyzing positioning alternative and determining positioning effectiveness.

24. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Customer and Competitor Research Analytical Test Positioning Models Marketing Methods for Accessing Positioning Effectiveness

25. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Customer & competitor Research Research studies provide the customer and competitor information that help in designing the Positioning strategies and evaluating strategies results. Several methods are available e.g. preference map, which measure he customer preference for various competing brands. Methods are available for considering the effects on sales of several marketing program components. E.g. MVT (Multivariate testing). Identify important casual factors affecting market response and its advantage is identify several factors at the same time. For example the medical equipment produce indentifies seven factors that influence s on the sale of new products for use of surgeons in the operation room

26. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning The factors include (1) Special product training for sales Persons. (2) monetary incentives for salespersons (3) vacation incentives for salespersons (4) Distributing product information to physicians (5) mailing product information to operating room supervisors (6) A latter from the firs describing the products (7) Offering a customized surgical products..

27. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Test Marketing Product development stage where the product and its marketing plan are exposed to a carefully chosen sample of the population for deciding if to reject it before its full scale launch. Test marketing is an experiment conducted in a field laboratory (the test market) comprising of actual stores and real-life buying situations, without the buyers knowing they are participating in an evaluation exercise. It simulates the eventual market-mix to ascertain consumer reaction. Depending on the quality and quantity of sales data required for the final decision, test marketing may last from few weeks to several months. Due to its high cost, however, test marketing is more suitable for fast moving packaged goods than for consumer durables.

28. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Positioning Models Obtaining the information about the customers, prospects and analyzing it and the developing a strategies based on the information coupled with management judgment is the crux of positioning analysis. Some promising results have been achieved b incorporating Research data into formal models for decision analysis. These models are developed using historical sale and marketing program data. (Advertising media allocation model). Determining the Positioning Effectiveness Gauging the effectiveness of a marketing program strategy using specific criteria such as market share and profitability is more straight forward the n evaluating the competitive advantages.

29. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Positioning Error 1 Under-positioning: When customer have vague idea about the company and its product and do not perceive anything distinctive about them. 2 Over-positioning: When customers have too narrow an understanding about the company and its product. 3 Confused Positioning: When frequent changes and contradictory messages confuse customers regarding the positioning of the brand. 4 Doubtful Positioning: When the claim made for the product or brand are not regarded as credible by the customers.

30. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Positioning & Targeting Strategies Positioning strategies become particular challenges when management decides to target several segments. The objective is to develop an effective positioning strategy for each segments. The use of a different brand for each targeted segments is one way of focusing a positioning strategy. It is challenge for a company with a clear positioning and segment choice in place to target additional segments which may undermine the strength of positioning in the existing segments.

31. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng Market Targeting & Strategic Positioning Thanks

32. Blekinge Institute of Technology SE-371 79 Karlskrona +46 455 38 50 00 www.bth.se/eng References 1.Victoria L. Crittenden, “ Strategic Marketing management ”, McGraw-Hill, NY,2002. 2.Philip R. Cateora, International Marketing, 9th edition 2000, alpha Sky Printer. 3.http://www.briantracy.com/blog/sales-success/analyzing-your-competition/ 4.http://www.associatedcontent.com/article/259290/developing_a_strategic_vision.html 5.http://www.smallbiz.nsw.gov.au/run/marketing/market/pages/positioningstrategy.aspx 6.D Cravens, N Piercy, Strategic Marketing, 8 th edition, McGraw Hill, 2005 7.http://www.learnmarketing.net/positioning.htm 8.V Rao, J steckel, Analysis for strategic Marketing, Addison Wesley Longmsn, Inc, 1998. 9.Fred R. David, Strategic Management, 6 th edition, Prentice-hall, Inc, 1997.