Developing Marketing Strategy

DEVELOPING MARKETING STRATEGY

Introduction

·       A marketing strategy is a comprehensive plan formulated to achieve an organization's marketing objectives.

·       It involves understanding customer needs, creating value, and communicating it effectively.

·       A well-developed strategy enhances competitive advantage and market positioning.

Differentiating the Market Offering

·       Differentiation is the process of distinguishing a product or service from competitors on attributes that are meaningful to customers.

·       It helps a company to create unique value in the minds of target customers.

Bases of Differentiation

1. Product Differentiation
• Features, design, performance, reliability, or style
• Example: Apple iPhones (design and innovation)
2. Service Differentiation
• Delivery, installation, customer support, training
• Example: Amazon (fast and reliable delivery)
3. Personnel Differentiation
• Better trained, more courteous, or more knowledgeable staff
• Example: Ritz-Carlton Hotel (exceptional customer service)
4. Channel Differentiation
• Coverage, expertise, or performance of delivery channels
• Example: Coca-Cola's strong distribution network
5. Image Differentiation
• Brand image, heritage, symbols, media use
• Example: Nike (emotional branding and endorsements)

Tools for Competitive Differentiation

1. Unique Selling Proposition (USP)
• A clear statement of what makes a product unique and valuable
2. Branding
• Establishing a strong, favorable brand identity in the minds of consumers
3. Innovation
• Introducing new or improved products/services to stay ahead of competitors
4. Customer Relationship Management (CRM)
• Building strong relationships through personalized marketing and loyalty programs
5. Value Proposition
• Clearly communicating the benefits and value offered to the customer
6. Quality Leadership
• Competing based on superior product quality (e.g., Toyota’s durability)

Positioning the Market Offering

·       Positioning is the act of designing a company’s offering and image to occupy a distinct place in the minds of the target market.

·       It answers “Why should customers choose our product over others?”

Objectives of Positioning

• Create a clear, distinct, and desirable image in customers’ minds
• Communicate competitive advantages effectively
• Influence customer perception and buying decisions

Developing a Positioning Strategy

1. Identify the Target Market
• Understand customer needs, demographics, psychographics, and behaviors.
2. Determine Key Competitive Advantages
• Evaluate what differentiates your product from competitors (price, features, service, etc.)
3. Select the Positioning Approach
• Attribute-based (e.g., Volvo = safety)
• Benefit-based (e.g., Colgate = cavity protection)
• Use/Application-based (e.g., Gatorade = sports hydration)
• Competitor-based (e.g., Avis: "We try harder")
• Quality/Price-based (e.g., Tata Nano = affordable car)
4. Develop a Positioning Statement
   Format:
   “For [target audience], [brand] is the [category] that [benefit] because [reason to believe].”

Example:
“For busy professionals, Starbucks is the premium coffee brand that energizes your day because of its rich flavor and welcoming stores.”

5. Communicate the Positioning
• Through advertising, packaging, media, pricing, etc.
6. Evaluate and Adjust Positioning
• Monitor market response, competition, and customer feedback

Repositioning

·       Sometimes companies need to reposition due to market changes, competition, or poor performance.

·       Example: Old Spice repositioned itself from an old-fashioned brand to a cool, youthful brand through humor and social media.

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