Marketing Management

1. BY
PROF. PRASHANT MISHRA
VIMR, KARHI ROAD, AMOUDHA
SATNA, M.P.

3. Dove
• Dove’s marketing director Stacie Bright had a moral problem in 2006.
• After years of marketing Dove’s soaps using what the mainstream considers
‘beautiful’ models Bright realized this was affecting her own daughter’s self-
esteem, and therefore affecting the self-esteem of everybody’s daughter
subjected to this advertising.
• Bright created a mock-up advert using all of the company directors’ daughters with
text alongside each image saying how these girls believed they weren’t beautiful.
• Bright and her team showed it to the executives, confident that this was a risky but
worthwhile move.
• The risk worked. The Dove executives were of course deeply affected, said a
resounding yes through their tears, and completely overhauled Dove’s marketing
strategy, which has continued to this day.
• Dove doubled profits from £1bn to £2bn and turned the business of selling
soap into a moral campaign.
THE MARKETING STORY…

4. THE BASICS…
• MARKET
• MARKET PLACE
• VIRTUAL MARKET
• META MARKET

5. THE BASICS
NEED
WANT
DEMAND
DESIRE

6. WHAT IS MARKETING?
“Meeting Needs Profitably”
Marketing is an organizational function and
set of processes for creating, communicating
& delivering value to customers and for
managing customer relationships in ways that
benefit the organization & its stakeholders.

7. DEFINITION…
• Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges
that satisfy individual and organizational objectives.
• Philip Kotler defined marketing as:
"Satisfying needs and wants through an exchange process".
• A decade later he defines it as:
“A social and managerial process by which individuals and groups obtain what
they want and need through creating, offering and exchanging products of
value with others".

8. WHAT IS MARKETING MANAGEMENT?
 The art and Science of choosing
target markets and getting,
keeping and growing customers
through creating, delivering and
communicating superior customer
value.
Marketing Management identifies
market opportunities and comes
out with appropriate strategies for
exploring those opportunities
profitably.

9. MARKETING MANAGEMENT DEFINITION
• According to Philip Kotler,
“Marketing Management is the art and science of choosing
target markets and building profitable relationship with them.
Marketing management is a process involving analysis,
planning, implementing and control and it covers goods,
services, ideas and the goal is to produce satisfaction to the
parties involved”.

10. HISTORY…
• Today marketing is known as an advanced blend of strategy and technology, however, it
hasn’t always been this way. The history of marketing as we know it began with humble
beginnings of simply trying to sell goods and services.
• The ideas of marketing as it is understood in the modern era began during the time of the
Industrial Revolution. This period spanned the late 18th century and lasted long into the 19th
century.
• It was during the Industrial Revolution that purchasing goods began to be easier for a
consumer than make things themselves.
• Mass production created many industries engaged in the same endeavor to serve the needs
of a growing consumer market.
• The infrastructure for transportation as well as mass media took hold.
• It created a need for producers to find better ways to develop products customers needed and
a more sophisticated approach to informing them about these commodities.

11. TRADITIONAL MARKETING CONCEPT…
• According to this concept, marketing consists of those
activities which are concerned with the transfer of ownership of
goods from producers to consumers.
• In other words, it is the process by which goods are made
available to ultimate consumers from their place of origin.
• The traditional concept of marketing corresponds to the
general notion of marketing, which means selling goods and
services after they have been produced.

12. Marketing Management Involves:
1.The setting of marketing goals and objectives
2. Developing the marketing plan
3. Organizing the marketing function
4. Putting the marketing plan into action
5. Controlling the marketing program.

13. MARKETING MANAGEMENT CONCEPT
• This concept advocates that a manufacturer should begin his task with the
consumer focus.
• Selling should be preceded by customer study, marketing research and product
development.
• “The aim of marketing is to know and understand the consumer so well that
that the product or service fits him and sells itself.” – Peter Drucker.
• This concept is also called customer orientation.
• “The Marketing concept is a customer orientation backed by integrated
marketing aimed at generating customer satisfaction as the key to satisfying
organizational goals”. – Philip Kotler

14. BASIS OF MARKETING CONCEPT.
i. Focus on customer needs
ii. Providing consumer satisfaction
iii. Integrated Marketing Management
iv. Achieving organizational goals
v. Innovation

15. FEATURES OF MARKETING MANAGEMENT.
• It is a Managerial Process.
• It is Consumer Centric.
• It is based on Research Analysis.
• It involves Planning & Development.
• It involves Building Marketing Framework.
• It focuses on Organizational Objectives.
• It is a Promotional & Communication Process.

16. IMPORTANCE OF MARKETING MANAGEMENT.
1. Analyzing Market Opportunities
2. Determination of Target Market
3. Planning and Decision Making
4. Creation of Customer
5. Helps in Increasing Profit
6. Improvement in Quality of Life
7. Employment Opportunities

17. THE MARKETING PROCESS

18. THE MARKETING CONCEPT
• The Production Concept. This concept is the oldest of the concepts in business. It holds that consumers will
prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on
achieving high production efficiency, low costs, and mass distribution.
• The Product Concept. This orientation holds that consumers will favor those products that offer the most
quality, performance, or innovative features. Managers focusing on this concept concentrate on making
superior products and improving them over time. They assume that buyers admire well-made products and can
appraise quality and performance.
• The Selling Concept. This is another common business orientation. It holds that consumers and businesses, if
left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore,
undertake an aggressive selling and promotion effort. It also assumes that the company has a whole battery of
effective selling and promotional tools to stimulate more buying
• The Marketing Concept. This is a business philosophy that challenges the above three business
orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational
goals (goals of the selling company) consists of the company being more effective than competitors in
creating, delivering, and communicating customer value to its selected target customers.

19. HOLISTIC MARKETING CONCEPT
• According to holistic marketing concept, even if a business is made of various departments, the
departments have to come together to project a positive & united business image in the minds of the
customer. Holistic marketing concept involves interconnected marketing activities to ensure that the
customer is likely to purchase their product rather than competition.
Example of Holistic marketing concept
• An organization will have different departments like sales and marketing, accounting and finance,
R&D and product development and finally HR and operations. Thus, if you want to implement a
holistic marketing concept in your organization, you need to ensure that R&D and product
development take the feedback from marketing and sales to launch the product which is most likely
to attract customers.
• On the other hand they need to work closely with accounting and finance to find out the exact
budget for the project. Sales and marketing need to communicate to the HR the right kind
of people that they need, and finally, admin and operations need to devise a plan to retain these
people.

20. SOCIETAL MARKETING CONCEPT
• The Societal Marketing Concept puts Human welfare on top before profits and
satisfying the wants.
• Societal Marketing emphasizes on social responsibilities and suggests that to
sustain long-term success, the company should develop a marketing strategy to
provide value to the customers to maintain and improve both the customers
and society’s well being better than the competitors.
• Societal Marketing creates a favorable image for the company increases sales.
It is not the same as the terms of social marketing and social media marketing.
It is a term closely related to CSR and sustainable development.

21. FACTORS AFFECTING MARKETING CONCEPT
• Growth of Population
• Changing Concept of Family
• More Disposable Income
• More Discretionary Income
• TechnologyAdvancement
• Media
• Credit Facility

22. NATURE OF MARKETING
• It is a legal process by which ownership is transferred
• It is a system of interacting business activities
• It is a managerial function of organizing and directing
business activities that facilitates the movement of goods
from producers to consumers
• It is a Philosophy based on consumer orientation and
satisfaction
• It has dual objectives- Profit Making and Consumer
Satisfaction

23. SCOPE OF MARKETING
Marketers are involved with marketing majorly these ten types of entities
:
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
• Physical Goods

24. SCOPE OF MARKETING
• Study of Consumer wants and needs
• Study of Buyer Behavior
• Product Planning and development
• Pricing Policies
• Distribution
• Promotion
• Consumer Satisfaction
• Marketing Control

25. DIFFERENCE BETWEEN SALES & MARKETING
Marketing Selling
Focuses on Customer Needs Focuses On Sellers Needs
Begins before Production Begins after Production
Continues After Sales Comes To an End after sale of
Product
Philosophy of Business Routine Process
Profits through customer
satisfaction
Profits through Sales Volume
Long Term Perspective Short Term Perspective
It works on Caveat Emptor
Principle
It works on Caveat Venditor
Principle
Customer First Product First

26. MARKETING MANAGEMENT TASKS
• Developing Marketing Strategies and Plan
• Capturing Marketing Insights
• Connecting with Customers
• Building Strong Brands
• Shaping the Market offerings
• Delivering Value
• Communicating Value
• Creating Long Term Growth

29. Three Phases of Marketing Strategy
2
9
Phase 2
Target Market and Marketing Mix Selection
Phase 3 Product/Brand
Positioning
Phase 1
Market Segmentation

30. INTRODUCTION
• “The process of
dividing a potential
market into distinct
subsets of
consumers and
selecting one or
more segments as a
target market to be
reached with a
distinct marketing

31. Definition & Explanation
• The breaking down or building up of
potential buyers into groups called
Market Segments.
• “The process of defining and subdividing
a large homogenous market into
heterogeneous subunits having similar
needs, wants, or demand characteristics
is called Segmentation.
• Its objective is to design a marketing mix
that precisely matches the expectations of
customers in the targeted segment”.

32. Benefits of Segmentation
• Segmentation Studies discover the needs and
wants of groups of consumers to develop
specialized products to satisfy group needs.
• Segmentation Studies used to identify the most
appropriate media for advertising.
• It Identifies opportunities & niches for new
product development.
• It Helps design marketing programs most
effectively for reaching homogenous groups of
buyers

33. Factors Affecting Market Segmentation
• Measurability
– Size, purchasing power, and
profile of segment
• Accessibility
– Can be reached and served
• Substantiality
– Large and profitable enough
to serve
• Differentiability
– Respond differently
• Actionability
– Effective programs can be
developed

34. Assignment
• Considering the largest bank in your college’s city or
town:
– How might consumers’ needs differ?
– What types of products might meet their needs?
– What advertising media makes sense for the different
segments of consumers?

35. 10

36. Bases for Segmentation
• Geographic
• Demographic
• Psychological
• Psychographic
• Socio cultural
• Use-Related
• Usage-Situation
• Benefit Sought
• Hybrid
Dr. Amitabh Mishra 12

37. Geographic
• Nation
• Region
• State
• City
Demographic
• Age
• Gender
• Marital Status
• Income
• Education
• Occupation.
• Generation
Psychological
• Personality
• Motivation
• Perception
• Learning
• Attitude
Psychographic
• Lifestyle
Dr. Amitabh Mishra 37

38. Behavioral
• Occasion
• Benefits
• Readiness
stage
Socio-
cultural
•Culture
•Religion
•Subculture
•Social class
•Family life
cycle
Use related
• User Status
• Usage rate
• Awareness
status
• Loyalty status
Usage
situation
• Time
• Objective
• Location
• Person
Dr. Amitabh Mishra 38

39. Geographic
Segmentation
Punjab
39

40. Geographic Segmentation
• “The division of a total potential market into smaller subgroups on the basis of geographic
variables is called Geographic Segmentation”. Ex-
• Nation,
• Region,
• State, or
• City
• Where customers live determines some aspect of consumption behavior.
18

41. • “The theory behind Geographic Segmentation strategy is that people who
live in the same area share similar needs & wants and that these needs and
wants differ from those of people living in other areas”
• Ex-
– Climate determine types of Clothing.
– Preference for tea, Skin cleaner, detergent differs across the different states of
India.
– Housing societies are segmented as- LIG, MIG, HIG.
41

42. 42

43. Demographic Segmentation
43
• In demographic segmentation market is divided in to groups on
the basis of variables such as-
– Age.
– Gender.
– Marital Status.
– Income.
– Education.
– Occupation.
– Generation.

44. • Demographic variables are the most popular bases for
distinguishing customer group. The reasons are-
• Consumer’s want, preferences and usage rate are often associated with
demographic variables.
• It is easiest and most logical way to classify people.
• It is most cost effective.
44

45. AGE
45
• Products need often vary with consumer’s age.
• Consumer’s wantsand ability to pay changes with
age.

46. Toothpaste companies produce special
toothpaste for kids
46

47. Mishra 26
Entertainment doge of people change With Age.

48. GENDER
48
• Many products and services inherently designed for either Male or
Female.
• Gender segmentation has long been applied in-
– Clothing
– Hairstyling
– Cosmetics
– magazines

49. Special Magazine for
women
49
Specially designed scooty for
girls.

50. Reebok produces “Tone
up” brand of shoos for
women that help them
tone their body
31
Reebok Toneup

51. INCOME, EDUCATION & OCCUPATION
51
• Income is an indicator of the ability to pay for a product or a specific version
of a given product.
is in practice for products
• Income segmentation
categories as-
– Automobiles
– Clothing
– Travel

52. • A person's occupation affects the goods and services bought. For
example-
– Blue-collar workers tend to buy more rugged work clothes, whereas white-
collar workers buy more business suits.
– Computer software companies will design different products for brand
managers, accountants, engineers, lawyers, and doctors.
52

53. Automobile companies produce different brand for different income
groups
NANO
KIZASHI
SX-4
53

54. Airlines offer different services for different class of travelers
35
Economy
class
in
a
Airline
Business
class
in
a
Airline

55. 55

56. • Psychological characteristics refer to the inner and intrinsic
qualities of individual consumers. Consumers can be
segmented in terms of-
– Personality
– Motivation
– Perception
– Learning
– Attitude
Dr. Amitabh Mishra 56

57. Attitude
Attitude is defined as
a learned tendencyto
towards
People’s
respond
something.
response towards a
product may range
Positive,
from – Enthusiastic,
Indifferent,
Negative, Hostile .
57

58. Dr. Amitabh Mishra 58

59. Psychographic
(Lifestyle)
Segmentation
Dr. Amitabh Mishra 59

60. Psychographic (lifestyle) Segmentation
• Also known as Lifestyle Analysis.
(lifestyle) variables include
• Psychographic
(AIOs)-
– Activities,
– Interests, and
– Opinions.
Dr. Amitabh Mishra 60

61. •As an approach to construct the psychographic profile, AIO
research seeks consumer’s responses to a large number of
statements that measure activities, interest and opinion.
Dr. Amitabh Mishra 61

62. AIO Inventories
Dr. Amitabh Mishra 62
AIO studies envisage a wide variety of variables and measures
the major dimensions shown
Activities
(statements related to)
Interests
(statements related to)
Opinions
(statements related to)
Demographics
(statements related to)
Work Family Themselves Age
Hobbies Home Social Education
Social events Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family size
Club member Fashion Education Geography
Community Food Products City size
Shopping Media Future Lifecycle
Sports Achievements Culture Dwelling

63. Socio-Cultural
Segmentation
Dr. Amitabh Mishra 63

64. Socio-Cultural Segmentation
Dr. Amitabh Mishra 64
• Sociological (group) and Anthropological (cultural) variables i.e
Socio-Cultural variables provide further base for market
segmentation.
1. Culture
2. Subculture
3. Religion
4. Social class
5. Stages in Family life cycle

65. Culture
• Culture is the sum total of learned beliefs, values, and customs that serve to direct the
consumer behavior of members of a particular society.
• Culture is the accumulation of shared meanings, rituals, norms, and traditions among
the members of an organization or society and determines:
– Overall priorities consumer attaches to different activities and products
– Success or failure of specific products and services
Dr. Amitabh Mishra 65

66. TRADITIONAL AFRICAN DRESS
TRADITIONAL CHINESE DRESS
TRADITIONAL CHINESE FOOD
TRADITIONAL CHINESE FOOD
Dr. Amitabh Mishra 66

67. Subculture
Dr. Amitabh Mishra 67
• “ A distinct cultural group that exists as an identifiable segment within a larger,
more complex society/culture”
• “Subculture is any cultural patterning that preserves important features of the
dominant culture/society but provides for values, norms, and behaviors of its
own”.

68. Use-Related
Segmentation
Dr. Amitabh Mishra 68

69. • Such segmentation categorize product,
service or brand usage characteristic,
such as-
1. Rate of Usage
2. User status
3. Awareness Status
4. Brand Loyalty Etc.
69

70. Rate of Usage
• Customers can be segmented on the basis of usage rate of a product
category.
a) Heavy users
b) Medium users
c) Light users &
d) Non-users
• The profiling of heavy users allows this group to receive most marketing attention (particularly promotion
efforts) on the assumption that brand loyalty among these people will pay heavy dividends.
70

71. Mobile companies decide their tariffs on the basis of Rate of
Usage
Dr. Amitab h Mishra 71

72. User status
Dr. Amitabh Mishra 72
• Every product has its-
a) Nonusers,
b) Ex-users,
c) Potential users,
d) First-time users and
e) Regular users.

73. A company cannot always rely on the regular users, it has to
attract the other types as well. The key too attracting
potential users, or possibly, even non-users, is understanding
the reasons due to which they are not using your product.
Dr. Amitabh Mishra 73

74. Brand Loyalty
74
• Consumers can be divided in to 4 groups according
to brand loyalty status-
a) Hard core loyal (Who buy one brand all the time)
b) Split loyal (Who are loyal to two or three brands)
c) Shifting loyal (Shift from one brand to another brand)
d) Switchers (Show no loyalty toward any brand)

75. • Marketers often try to identify characteristics of brand loyal
customers so that they can direct
Dr. Amitabh Mishra 75
their
their
promotional efforts to people with similar characteristics in larger population.

76. J &J enjoys huge no. of hardcore loyal
consumers.
76

77. Usage-Situation
Segmentation
77

78. • Occasions or Situations often determines what
consumers will purchase or consume.
• The consumers are Segmented on the basis of special
occasions or situations. like-
– Time of consumption.
– Objective of consumption.
– Location of consumption.
Dr. Amitabh Mishra 78

79. Celebrations are advertised for festival gifts
79

80. This ad is targeting students, Who enter in to college from the schools .
Dr. Amitabh Mishra 80

81. Mobile operators, Restaurants, Bars Offer
happy hours scheme for some time.
81

82. Benefit
Segmentation
Dr. Amitabh Mishra 82

83. BenefitSegmentation
• “Segmenting on the basis of the most important and meaningful
benefit of the product or services that will be most meaningful to the
consumers”.
• Benefit segmentation can be used to position various products with in
the same product category.
83

84. • people buy something because it causes a benefit to
them.
ANS:- Whiter teeth,
Dr. Amitabh Mishra 84
QUES:- What benefit HAPPYDENT is offering

85. less sugar, lose weight zero sugar, high energy
Healthy fruit juice
Sweetness without drawbacks of sugar
QUES:- What benefit following brands are offering
85

86. Band-aid
offers “flex” as
a
benefit to
consumers.
86

89. A target market is the market or market segments which form the focus of the firm’s
marketing efforts. Once segments have been identified decisions about how many
and which customer groups to target must be made. The options include the
following.
1. Mass Marketing Strategy
2. Single Segment Strategy
3. Multi Segment Strategy

90. • Offering on product / service concept to most of the market, across many
market segments. Although scale economies can be achieved, there is a risk
that few customers will be adequately satisfied.
• The underlying assumption of this approach referred to as undifferentiated
marketing, is that all customers in the market have similar needs and wants
and can therefore be satisfied with a single marketing mix – that is, a
standard product or service, similar price levels, one method of distribution
and a promotional mix which is directed at everyone.

91. •Concentrates on a single segment with a product/ service concept.
•This is relatively cheap in resources, but there is a risk of putting all the eggs in one
basket – if the segment fails the company’s financial strength will rapidly decline.
•Rolex, for example, targets relatively high income consumers with its prestigious
wrist – watches.
•When world economies are buoyant, sales will be good but in times of economic
recession even the better off can change their spending patterns.

92. Undifferentiated or mass marketing:
one product appeals to all segments
with a single marketing mix
Multi-segment strategy: products for
each segment and a different marketing
mix in each case
Single segment strategy:
concentrating with one product on one
segment

93. • Targeting a different product or service concept at each of a number of
segments and developing a marketing mix strategy for each of the selected
segments.
• Although this approach can reduce the risk of being over- committed in one
area, it can be extremely resource – demanding.

94. FACTORS INFLUENCING CHOICE
OF TARGETING STRATEGY

95.  Segmentation strategies are most critical during the
maturity stage of the product- market because buyer’s
needs are different. At the introductory stage of the life
cycle there are few, if any, product – type competitors;
however, competition can occur among alternative product
types. If product – type substitution exists, the new
market entrant may benefit from targeting one ore more
segments in the existing product- markets.

96.  When buyer wants are similar throughout the product –
market, there is less opportunity for –expensive
segmentation than in markets with buyers with different
wants. A product – market made up of a relatively small
number of end-users is more suitable for a broad or
relatively undifferentiated targeting strategy, particularly if
the value of purchases of individual buyers is small.

97. Five factors govern the attractiveness of a segment
(Doyle,1994 , -. 68)
 Segment size
 Segment growth
 Profitability of the segment
 Current and potential competition
 Capabilities of the business

98. The positioning concept may be functional, symbolic, or experiential.
 The functional concepts is relevant to products designed to solve
consumption related problems for externally generated consumption
needs. Toothpastes aiming to prevent cavities and banks offering
convenient service fall into this category.
 The symbolic concept relates to the buyers internally generated need for self
– enhancement, role position, group membership, or ego satisfaction.
Cosmetics relating to lifestyle, and clothes stressing image or
appropriateness of occasion, are examples of this
 The experiential concept is used to position products that provide sensory
pleasure, variety or cognitive stimulation. Documentary films and books,
are example of this.

99.  Define the segments in a particular market, as discussed in
Chapter 7
 Decide which segment or segments to target which the firm
thinks it can successfully exploit.
 Understand what the target customers expect and believe to
be the most important factors or criteria when deciding on a
purchase.
 Develop a product / service or brand which caters
specifically for these spectations.

100.  Evaluate the positioning and images, as perceived by the target market
of competing offerings in the selected market segment or segments.
Positioning is concerned with how the brand will be perceived in the
minds of users with respect to competing brands
 With the knowledge of a product / brand, the needs and expectations of
the target customers, and their perceptions of competing brands
positioning, select and image which sets the products or brand apart
from the competing brands, ensuring that the chosen image matches
the aspirations of the target customers.
 The marketer must communicate with the targeted
customers about the product – the promotional element of the marketing
mix – as well as making the product readily available at the right price,
along with the full marketing mix.

101. 1.
Define the segments
in a particular market
2.
Decide which segments
to target
3.
Specify customers’ key
purchasing
consideration
4. Develop brand to
meet by
purchasing
considerations
5.
Evaluate positioning
images of competing
products in targeted
segments
6.
Select image to set brand
apart from competing
products
7.
Communicate image to
target customers with
appropriate marketing mix

102. POSITIONING
STRATEGY

103.  Producers of goods and services attach their own label or
brand to their particular market offering. For instance, we
talk of a ‘Mars Bar’ or a “Kit Kat’ differentiating one offering
from another. In this particular case the products are made
by different manufacturers but this does not need to be the
case. A single firm may put two or more brands into the
brands into the market which actually complete with one
another. We will discuss this strategy below.

104.  A products positioning indicates what the product represents
and how customers should evaluate it.
 Positioning is accomplished through the use of the marketing
– mix variables, particularly through product design and
marketing communications. Positioning to achieve product
differentiation applies equally to consumer and to industrial
goods.

105. Executives
Over fifties
Frequent travelers
Etc.
On holidays
At parties
At work
Etc.
Safer to use
disposable
Image enhancing
Etc.
reliability
uniqueness
performance
Etc.
Product
Position
User category
By occasions By features
By benefits

106.  Cheaper than the existing product offering
 More economical than the existing product offering
 Both cheaper and more economical, plus offering more features
than the existing product.
 Product features – such as the low calory content of some foods
 Product benefits – e.g. a particular model of car being the most
economical way to get to work by car
 Associating the product with a use or application
– e.g. the wine you have on special occasions
 User category – associating the product with a user or class of
user – e.g. the car for the business executive

107. In order to make the most out of a single brand, a firm should
try to associate itself with a core segment of the market
where it can play a dominant role. In
1. the brand has to be positioned in the market place so that it
can stand competition from the strongest rival brand.
2. its unique position should be maintained by creating the
appearance that it is in fact a different product.

108. Honda
Ford
Jacquar
INNOVATIVE
CONSERVATIVE
Rover
FAST AND LUXURIOUS
Nissan
Toyota
Hyundai VM
ECONOMIC AND

109.  Multiple brands are introduced to the market for
two major reasons:
1.To achieve growth by offering varied
products in different segments of the market.
2. To meet competitors’ threats to a
single brand.

110. REPOSITIONING
STRATEGIES

111.  A competitors new product or service has been
changed
 New customer preference clusters have been
identified that suggest promising opportunities
 The original positioning was incorrect.

112. 1. Among existing users – by the promotion of more varied
uses of a product
2. Among new users – this requires the product to be
presented with a different image to the people who have so
far rejected it.
3. For new users – here one has to search for latent uses of
the product.

113.  Evaluating how successful one had been in positioning a
product is of course an essential task.

114.  A positioning advantage comes about when an
organization can offer, at a lower cost, a bundle of
benefits perceived as equivalent to those of the
competition.

115.  This kind of positioning advantage is based upon
occupying a location in product attribute space the
represents for buyers the most preferred
combination of attributes and is one that is not
currently occupied by any competitor.

116.  This considers the performance of a position. It takes
account of whether a particular value advantage is
worthwhile in terms of revenues and costs.
 In this respect, a successful positioning strategy should be
evaluated on a regular basis to identify shifting buyer
preferences and changes in competitor strategies.