Country of Origin Effects on Marketing
February 12, 2025
Brand Associations are not benefits, but are images and symbols associated with a brand or a brand benefit. For example- The Nike Swoosh, Netflix sound, Film Stars as with “Lux”, signature tune Ting-ting-ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable. It is relating […]
CSR Initiatives in Primary and Secondary Education CSR or Corporate Social Responsibility initiatives can extend to the realm of primary and secondary education. This entails close engagement and involvement of corporates in the schools, colleges, and universities where the corporates provide for funds, training, and associated programs with a view to educate the future workforce […]
The Worrying Decline of Corporate Governance Standards Worldwide Of late, there has been a worrying decline in corporate governance standards leading to the exits of many high profile CEOs (Chief Executive Officers) as well as Directors of Boards from such firms, as well as a breakdown in the compact between the corporates and their stakeholders. […]
With the explosion of scandals pertaining to corporates due to mismanagement and fraud in recent years, the regulators all over the world have been implementing a series of policies aimed at improving corporate governance and ensuring that companies follow ethical and normative rules of business. A part of this initiative has been to goad the […]
For understanding the buying behaviour of the customers in retail stores it is very important to analyze the customer psychology, the factors which influence a customer for buying certain products/services from the stores and also an analysis of the customer’s response towards a sales promotion is very critical. Before analyzing the customer’s buying behaviour, let […]
Today’s markets represent the surplus market, with a wide range of product available for sell. Consumer has huge product offering to choose from, for soap, there are more than dozen brands and each brand has at least 4 or 5 varieties. Companies have to work on strategies, which would differentiate their products from competitors. This differentiation strategy also cannot last for long as competition is likely to catch very soon. Companies are aware of the product life cycle; challenge is to work up strategies for positioning and differentiating as to extend product life and making it profitable.
A market place has many segments out of which companies have to make a choice in which to operate. And within the market segment companies need to decide its offering and image. This process of identifying and build the brand image within a segment as to occupy presence in consumer mind is called positioning.
Positioning is all about consumers rather than the product, the challenge is to develop a positive perception in consumer mind. Positioning is done based on an idea the product promotes, too many ideas will confuse the customer. Companies need to decide which idea to promote to be ahead of competition.
Positioning should offer clarity to customer about what product is all about. For example, a competitor has similar positioning ideas, than the company is better positioning product where it enjoys a competitive advantage. Now, it is up to the marketing plan to create programs which highlight this positioning idea.
Positioning related marketing programs are responsible to pass unique selling proposition on to the customer. However, this can be taken forward with differentiation. Differentiation is process of adding more meaning to the product by highlighting attributes beyond the central theme. Task of differentiation is to highlight the relevant benefits in a distinctive manner which cannot be easily followed by competitors and provide profitable benefits to the company.
There are many differentiation tools available to the company to extract maximum benefits. The main variables which offer differentiation are product, service, personnel, channel and image. Product related attributes serve a good base of the differentiation. However, product differentiation varies depending on the nature of industry. For example, commodity products are difficult to differentiate on appearance where as automobiles present an opportunity with plenty of differentiations.
Service plays important differentiation tool where differentiation is difficult based on physical attributes of product. Differentiation in service can be achieved based on ordering ease, customer service during the sell, after sell customer service and consulting. One step forward in service is differentiation by personnel. By exhibiting a professional, reliable, quick and courteous response to customer can differentiate companies from competitors.
The distribution channel plays its part as differentiation tool and can prove to be competitive advantage. For example Dell computer through direct selling approach delivers computer system right at door step of home owners and offices.
Another important differentiation tool is image. There are various ways to achieve image differentiation depending on industry and market segment. Sponsoring of event and causes is one way building up image among consumers.
As pointed out earlier, company’s strategy has to change according to the stage in the product life cycle. The product life has introduction stage, growth stage, maturity stage and saturation stage.
Markets in which companies are operating too have similar phases as products. Companies have to analyze positioning and differentiating strategies at various stages of the product and market life cycle.
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