3.0 Product Planning It is very important
3.0 The importance of BusinessPosition 3.1 ProductPlanningIt is very important tounderstand the positioning of the product before entering the market.
Productpositioning is a very important tool for an effective marketing strategicplanning. Product positioning creates an image of the company’s products in themind of consumers, highlighting the most important benefits that differentiatethe product from similar products in the market. Product positioning startswith identifying the specific, niche market segments to target. Aftersegmenting the target market by demographic and psychographic qualities, allmarketers must understand the needs of the customers, this will help themdefine the target segments and also the product positioning this helps thebusiness meet particular needs in the market segment. In this Dissertation Ihave added a questionnaire to see all the different kind of consumers andbusiness owners there are and to see how they target the needs of theconsumers. Marketers must keep an eye on the competition while consideringpositioning elements of their marketing strategy.
The next stage is how tocommunicate the differentiated offerings to the identified niche marketsegments. This is possible by selecting the appropriate communication channelsthat are tailored to connect with the identified target audience when they willbe most open to these messages. So for example having advertisement shown on TVand also billboard so that the business can communicate with the consumers.
The business should includethe product positioning across all sides of the business, includingmanufacturing and customer service in order to ensure reliability of thepositioning from the consumer’s side. Using strong product positioning is a keycomponent to the success of the Marketing Strategy and to meeting overallcorporate objectives. 3.2 Brand Positioning Having your brand relevant tothe target market is very important. Brand positioning is when you are servinga need or want that your target market is aware of. If the product or serviceneeds solves a problem that the target market is not aware of the business orcompany would need to educate them and show them the problem so that it can getfixed.
Positioningfor your market. Brand positioning is defined as the conceptual place you want toown in the target consumer’s mind. You can easily draw your own marketpositioning chart by identifying two important factors and positioning productofferings around them. A brand’s position is the set of perceptions,impressions, ideas and feelings that consumers have for the product comparedwith challenging products. Marketers plan positions that give their productsthe greatest advantage in selected target markets, and they design marketingmixes to create these planned positions.( See Appendix 3) This is importantwhen setting your own business having a perceptional map ready you can see whattype of things you wil be targeting different consumers.In planning theirpositioning, marketers often prepare perceptual maps that show consumerperceptions of their brand versus competing brands on attributes that areimportant to the consumer, whether functional or symbolic.3.
3 Brand LoyaltyHaving a brand positioning and also a marketdecision it is very important to fix the decision with the overall message.Having a strong brand positioning are the one with the single focused message,one that’s easily adjust by the market. If the brand message is not beenpromoted properly the message becomes weak, and much less effective. Having aloyal customer base can help a business push past its competitors and give itthe competitive advantage it needs to succeed in the marketplace.Companies with strong brand loyalty will seecustomers frequently buy the products or services, regardless of changes inprice or convenience.
Having higher sales than those without brandloyalty, companies that have successfully established a loyal following canenjoy a growing customer base as well. Loyal customers have the potential toturn into open advocates and brand ambassadors for a company. Satisfaction witha business will drive them to spread brand awareness and refer new customers,effectively providing a company with costless advertising.
4.0 Marketing MixThe marketing mix is one ofthe most famous marketing terms. The marketing mix is the tactical oroperational part of a marketing plan. Marketing Mix are the set of tools that acompany uses to check its marketing objectives in the target market they areknown as the 4ps in marketing they are Product, Price, Promotion and alsoPlace.Product is all about thevariety the quality and design of the brand the packaging the design and alsothe features all customers look at the product first if the item is likablethey have an interest at looking more in to it. “Product means the goods-and-services combination the companyoffers to the target market.
” (Kotler and Armstrong (2010). Price is about is all aboutthe discounts the allowance the payment period and also the credit terms. Priceis the amount the consumer must exchange to receive the offering. (Solomon etal (2009).
Promotion is the advertisingthe PR the sales force and the product promotion. Place is the location,transport, assortments. “Promotion includes all of the activities marketersundertake to inform consumers about their products and to encourage potentialcustomers to buy these products.” (Solomon et al (2009).15.0Kotler’s Five Product Level model provides businesses with a recognized method for organizing theproduct portfolio to target various customer segments.
This enables them toanalyses product and customer profitability (sales and costs) in a structuredway.2 “According to Philip Kotler, who is aneconomist and a marketing guru, a product is more than a tangible ‘thing’.3(Kotler)A product meets the needs of a consumer and in count to a real valuethis product also has an abstract value.
5.1. Core ProductThis isthe basic product and the focus is on the purpose for which the product isintended. For example, an umbrella will protect you from the rain.5.2.
Generic ProductThissignifies all the qualities of the product. For a umbrella it is about how thematerial and shape of the product is.5.3. Expected ProductThis isabout all features the consumer expects to get when they purchase a product. Sothe umbrella it should protect them from the rain it should be strong for windydays not too heavy.
5.4. Augmented ProductThis isall about the additional factors which sets the product apart from thecompetition.
And this mainly involves brand identity and image. Is umbrella instyle, does the color stand out But also factors like service, warranty andgood value for money play a major role in this.Moreover,in the marketing of a product, there are three distinct levels, the third ofwhich is the augmented aspect. The first two levels include the core benefitand the actual product.
The core customer benefit describes the value a productoffers to consumers.( Appendix 4)NewProduct Development (NPD) will take in to account the consumer’s preference forbenefits over features by considering research into their needs. NPD deliversproducts which offer benefits at the core, actual and augmented levels.5.5.
Potential ProductThis isabout expansions and transformations that the product may undergo in thefuture. The competition between all businesses mainly focuses on theindividualism of the augmented product. “Competition is determined not so muchby what companies produce, but by what they add to their product in the form ofpackaging, services, advertising, advice, delivery (financing) arrangements andother things that can be of value to consumers”.4(Kotler) All five levels of the products add value for the customer. The moreproduction companies make at all levels the more they have a chance to beunique.6.
0 BCG Model In 1968 Bruce Hendersoncreated this BCG Chart to help all organisations with the task on helping themto analyse their product line or portfolio. This Model helps to assess theproducts on two dimensions. The first dimension focuses on the products generalgrowth within the market. The second dimension measures the entire products marketshare to the largest competitor in the industry. Analysing products in this wayprovides a useful insight into the likely opportunities and problems with aparticular product. Products are classified into four distinct groups, Stars,Cash Cows, Problem Child and Dog.
Stars (high share and high growth)Star products all have rapidgrowth and dominant market share. This means that star products can be seen asmarket leading products. These products will need a lot of investment to retaintheir position, to support further growth as well as to maintain its lead overcompeting products. Cash Cows (high share, low growth)Cash cows don’t need thesame level of support as before. This is due to less competitive pressures witha low growth market and they usually enjoy a dominant position that has beengenerated from economies of scale. Dogs (low share, low growth)Product classified as dogsalways have a weak market share in a low growth market.
These products are verylikely making a loss or a very low profit at best. These products can be a bigdrain on management time and resources. Problem Child (low share, high growth)These products are in a highgrowth market but do not seem to have a high share of the market. The could bereason for this such as a very new product to the marketA completed matrix can beused to assess the strength of your organization and its product portfolio.Organizations would ideally like to have a good mix of cash cows and stars.57.0 SWOT Analysis Including a SWOT analysiswithin a business is very important as this allows the business to see what thestrong a weak points are.
This can make a business strong if it has been added,and it can help to face all the threats in the market plac.S.W.O.T. stands forStrengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is anorganized list of the business greatest strengths, weakness, opportunities andthreats. All strengths and weakness are all internal to the company they canall change over time.
Opportunities and threats are external like supplier’scompetitors and price. To get the most complete,objective results, a SWOT analysis is best shown by a group of people withdifferent viewpoints and rewards in the company. Management, sales, customerservice, and even customers can all contribute effective insight.
Moreover, theSWOT analysis process is an opportunity to bring your team together andencourage their input in and devotion to company’s resulting strategy.After SWOT analysis the Towsanalysis has to be done once the SWOT results, have been done then the businesscan develop all the short term and also the long term strategies for thebusiness. This is called a TOWSanalysis, looking at the strengths identified, and then come up with ways touse those strengths to maximize the opportunities Then, look at how those samestrengths can be used to minimize the threats identified (these arestrength-threats strategies). Continuing this process, use the opportunities youidentified to develop strategies that will minimize the weaknesses(weakness-opportunity strategies) or avoid the threats (weakness-threatsstrategies). ASWOT analysis is often created before a business is been introduced .Whencreating the analysis, people are asked to pool their individual and sharedknowledge and experience. The more relaxed, friendly and constructive thesetting, the more truthful, comprehensive, insightful, and useful your analysiswill be.
So getting all the information for your idea before introducing it tothe public is very important.8.0 Porters GenericStrategyMichael Porter, an economicresearcher, examined competitive behaviors that include a successful business.In the early 1980s, he set out to uncover the ways companies maintain long-termadvantages over their competitors. Over the work then he created a PortersGeneric Strategy three connected concepts that many organizations use todevelop key operating procedures. Understanding the ins and outs of Porter’stechniques will offer growing entrepreneurs insight most business models.
6A firm’s position within theindustry decides whether the firm’s profitability is above or even below theindustry average. There are two basic type of competitive advantage a firm canown they are Low cost or differentiation. The two basic types of competitiveadvantage combined with the scope of activities for which a firm seeks toachieve them, lead to three generic strategies for achieving above averageperformance in an industry: cost leadership, differentiation, and focus. Thefocus strategy has two variants, cost focus and differentiation focus.7Cost Leadership is when afirm sets out to become the low cost producer in its industry. A low costproducer must find and exploit all sources of cost advantage. if a firm canachieve and sustain overall cost leadership, then it will be an above averageperformer in its industry, provided it can command prices at or near theindustry average.Differentiation strategy thebusiness seeks to be unique in its industry along some dimensions that arewidely appreciated by the consumers.
It selects one or more qualities that manybuyers in an industry see as important.Focus The generic strategy of focus rests on the choice of anarrow competitive scope within an industry. The focuser selects a segment orgroup of segments in the industry and tailors its strategy to serving them tothe exclusion of others.In costfocus a firm seeks a cost advantage in its target segment, while in (b)differentiation focus a firm seeks differentiation in its target segment.
Bothvariants of the focus strategy rest on differences between a focuser’s targetsegment and other segments in the industry. Sometimes some business fallin the middle of the generic strategy the differentiation and also the costleadership, this happens when company don’t offer the high value for money andindividual product or service that you get from a differentiated business. Sofocusing on this issue is very important when coming up with a business planall these issues have to sorted and looked over with.1 http://www.marketingteacher.
com/marketing-mix/ 2 https://www.cgma.org/resources/tools/cost-transformation-model/kotlers-five-product-level-model.htmlhttps://www.toolshero.com/marketing/five-product-levels-kotler/ 3 4 2.Kotler, P. (1967).
Marketing Management: Analysis, Planning andControl. Prentice Hall.5 https://www.professionalacademy.com/blogs-and-advice/marketing-theories—boston-consulting-group-matrixNigel Piercy,William Giles, (1989) “Making SWOT Analysis Work”, MarketingIntelligence & Planning, Vol.
7 Issue: 5/6, pp.5-7, David, F.(1993). Strategic Management, 4th Ed. New York, NY: Macmillan PublishingCompany. 6 http://www.capsim.
com/blog/an-introduction-to-porters-generic-strategies/ 7 Porter, Michael E., “Competitive Advantage”. 1985, Ch. 1,pp 11-15.
The Free Press. New York.