MODULE 2

DR. ANJALI MOTWANI

 Market Research – Meaning
• Marketing managers often commission formal
marketing studies of specific problems and
opportunities. It is the job of the marketing
researcher to produce insight into the
customer’s attitudes and buying behavior.
•  “Marketing Research is the systematic design,
collection, analysis and reporting of data and
findings relevant to a specific marketing
situation facing the company”
 Nature of Marketing Research
• It is a systematic and critical investigation into a phenomenon.
• It is not a mere compilation, but a purposive investigation; it aims at
describing, interpreting and explaining a phenomenon.
• It adopts a scientific method.
• It is objective and logical, applying possible tests to validate the
measuring tools and the conclusions reached.
• It is based upon observable experiences and empirical evidence.
• It is directed towards finding answers to pertinent questions and
solutions to problems.
• The purpose of marketing research is not to arrive at an answer,
which is personally pleasing to the researcher, but rather one, which
will stand up the test of criticism.
PROCESS OF MARKETING RESEARCH
 Step 1 : Define the problem, the decision
alternatives, and Research objectives
• Defining the problem is more or less taking your
product and service and finding out how that product
or service will fit into the current marketplace. Problem
should not be defined too broadly or too narrowly.
Clarity on the following helps define the problem
appropriately
• What is to be researched? (the content, scope,
objective)
• Why is it to be researched? (the decisions that are the
be made)
• The end product of this exercise has to be a clear
definition of the problem and research objectives.
Step 2: Develop the Research Plan
• Once the objective of the research is determined, it is time to plan out the type of
research that will best obtain the necessary data. This involves decisions on the
data sources, research approaches, research instruments, sampling plan and
contact methods.
• Data sources: The researcher can gather information through secondary data (that
data which are collected for another purpose and already exist) or primary data
(freshly gathered data for a specific research project)
• Primary data can be collected through five ways:
• Observation-Researchers can gather information by observing relevant factors and
settings as they shop or as they consume products.
• Focus groups - Few people ( 6 to 10) are invited to spend a few hours with a
skilled moderator in order to discuss a product, service, organization, or any other
marketing entity.
• Survey – A questionnaire is asked to be filled up by respondents in this kind of data
collection. These are best suited for descriptive research. They are undertaken to
know about people’s beliefs, knowledge, preferences, satisfaction etc.
• Behavioral data: Customers actual purchase behavior is observed and used for
data collection.
• Research Instruments: Marketing researchers generally use three
types of research instruments,
• Questionnaires: It consists of a set of questions presented to the
respondents.
• Qualitative measures: These are unstructured measurement
approaches that permit a range of possible responses.
• Technological devices: Devices like Galvanometers (they measure the
interest or emotions aroused by exposure to a ad or picture) eye
cameras ( they study respondents eye moments to see where their
eyes land first) etc are used occasionally in marketing research.
• Sampling plan: Next the marketing researcher must design a
sampling plan. This includes three decisions:
• Who should we survey?
• How many people should we survey?
• How should we choose the respondents?
• Contact methods: Now the marketing researcher must decide how to
contact the subjects: By mail questionnaires, telephonic interviews,
personal interviews or online interviews.
Step 3 – Collection of Information
• The data collection phase is the most expensive
and time consuming process in marketing
research. Various drawbacks impact the
collection, like some respondents will not give
right information, some refuse to cooperate
and few may be biased while giving
information. Only such information which is
required and useful needs to be recorded. Data
filtering is important at this stage. But the
methods are rapidly improving thanks to
technology.
 Step 4 : Analyze the Information
• The next step is to extract the findings by
tabulating the data and developing frequency
distributions. The researchers now compute
averages and measures of dispersion for the
major variables and apply some advanced
statistical techniques and decision models to
discover additional findings.
 Step 5: Present the Findings
• The researcher presents the findings relevant
to the major marketing decisions facing
management in the understandable and
compelling fashion.
 Step 6: Make the Decision
• Based on the findings, and their trust in the
findings, managers decide to use it or discard
it or carry out some more research.
 Market Segmentation
• Market segmentation is the process of dividing the
heterogeneous market into relatively homogenous
sub-groups of consumers with somewhat similar
characteristics. A market segment consists of a
group of customers who share a similar set of needs
and wants, and the company can offer them tailor
made products or services according to their
requirements. The marketing mix for one segment
or one homogeneous group is always similar.
• https://kupdf.net/download/case-study-of-lux_5c5fa
fe0e2b6f55a41e0d271_pdf
• http://www.drypen.in/case-studies/brand-lux-case-s
 Types of markets
• Monopoly = 1 seller/ many buyers (railways)
• Monopolistic = many sellers/ many buyers
(soap)
• Oligopoly = few sellers/ many buyers
(automobiles/airlines)
• Perfect comp = homogeneous goods
 People oriented Approach
• Geographic segmentation: it calls for dividing the market into different geographic units such
as nations, states, regions, countries, and cities. The company can operate in one or few
geographic areas or operate in all, but, pay attention to local variations. Geographic
segmentation assumes importance due to variations in consumer preferences and purchase
habits across different regions, across different countries, and different states in these
countries.
• Geographical segmentation assists the seller to position retail outlets in most appropriate
locations as well as simply identifying the needs on the basis of the consumers own location.
• For example, one of the major geographical segmentation variables relevant for marketers in
south Asia is the division of markets into rural and urban areas. Rural and Urban areas differ
on a number of important parameters such as literacy levels, income, spending power and
availability of infrastructure such as electricity, telephone network, and roads; as well as
social and cultural orientations of people that affect the market potential and buying patterns
and habits.
• Geographical markets also vary in their product requirements. Also food habits vary
significantly across states and regions. For example, companies like MTR, Ashirwad, kitchens
of India, MDH have varied and variety of curry powders, ready foods etc. according to
regional preferences.
 Demographic segmentation
• Demography is the study of population. The market is divided into groups on the basis of variables such as age, family, size,
life cycle, and gender. These variables are the most popular basis for distinguishing customer groups because they are often
associated with consumer needs and wants. Also, they are easy to measure. Here’s how certain demographic variables have
been used to segment markets.
• Age and life cycle stage
• Consumer wants and abilities change with age. Therefore, age and life cycle stages are important variables to define
segments. Johnson and Johnson’s soap and talcum powder, which are very popular, are classic examples of products for
infants and children. Television channels indicate segmentation based on age and life cycle. There are channels like Aastha,
or sanskar, essentially focused towards older generation and cartoon network, Disney etc for children and channels like MTV
for youngsters.
• Gender:
• Men and women have different attitudes and behave differently based partly on genetic makeup and partly on socialization.
For example, women tend to become more communal and men tend to be more self-expressive and goal oriented.
• A research study examining how men and women shop found that men often need to be invited to touch a product,
whereas women are likely to pick it up without prompting. Men often like to read product information; women may relate
to a product at a more personal level.
• Gender segmentation has been applied to clothing, hairstyling, cosmetics and magazines. Other marketers also notice
opportunities for gender segmentation. For example, Park avenue, the brand of ready-made apparel from Raymond is
positioned as a masculine brand. Emami launched a new fairness cream, Fair and handsome exclusively for men.
• Life stage:
• Life stage defines a person’s major concern, such as getting married, deciding to buy a home, sending the child to the
school, taking care of elder family members etc. These life stages present opportunities for marketers who can help people
to cope with their major concerns. For example, Insurance companies and banks provide life stage specific insurance and
savings schemes.
 Socio Economic Segmentation
• Socio economic characteristics are income, occupation, education, religion, race, generation,
nationality, social class. 
• Income: It is a long standing practice in a variety of products and services. Income determines the
ability of consumers to participate in the market exchange and hence this is a basic segmentation
variable. However, income does not always predict the best consumers for a given product. Even if two
consumers have similar income levels, each may own different types and brands of products based on a
host of factors like lifestyle, attitudes and values. Income segmentation is generally used in
Automobiles, clothing, cosmetics and travel. For example, Nirma washing powder, was launched as the
lowest priced detergent in India primarily targeted at the middle income segment of market.
• Social Class: It has a strong influence on preference in cars, clothing, home furnishing, leisure activities,
reading habits and retailers and many companies design products and services for specific social
classes.
• Occupation -Variables include; bankers, teachers, farmers, clerks, students, housewives, secretaries,
e.t.c. A marketer can choose to specialize in the needs of one occupation group.
• Education - Some primary education, Some high school education, College education, University
education etc.
• Religion - e.g. Hindus, Muslims, Christians etc.
• Race - e.g. white, black etc.
• Nationality – e.g. Asians, Africans e.t.c.
• Generation - Consumer is profoundly influenced by the generation in which it grows up. This influences
one’s inclination to Music, politics, e.t.c.
 Psychographic segmentation
• Buyers are divided into different groups based on personality and values. The term
Psychographics describes a wide variety of psychological and behavioural patterns of an
individual / market. People within the same demographic group can exhibit very different
psychographic profiles.
• Religion has a significant influence on the values and lifestyles. The strict norms that
consumers follow with respect to food habits or even dress codes are representative
examples in this regard.
• For example, McDonald’s changed their menu in India to adapt to the consumer
preferences. 
• Lifestyle: People generally exhibit more lifestyle than is suggested by social classes.
Generally, the goods they consume express their lifestyle; such as cosmetics, alcoholic
beverages, furniture etc.
• Personality: Marketers can use personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.
• Values: Some marketers segment by core values, the belief systems that underlie consumer
attitudes and behaviors. Core values go much deeper than behaviour or attitude and
determine at a basic level people’s choices and desires over long term. Marketers who
segment by values believe that by appealing to people’s inner selves it is possible to
influence their outer selves- their purchase behaviour.
 Product oriented approach
• Occasions:
• Distinguish buyers according to the occasions they develop a need, purchase a product, or use a product.
For example, greeting card brands such as Archies and Hallmark make cards for different occasions such as
birthdays, weddings, Diwali, Eid, rakshabandhan etc. Amul brand of chocolates is promoted as “A gift for
someone you love”
• A number of durables like cars, AC’s, Televisions are heavily advertised and promoted during the festive
occasions. Monaco biscuits come with suggestions for toppings so that biscuits can be served as snacks at
special occasions.
• Benefits:
• Buyers are classified on the basis of the benefits they seek. Many product categories offer different
products targeted at people who seek different sets of benefits. For example, Shampoos offer variety of
benefits according to the individual requirements.
• Benefit segmentation requires determination of:-
• - The major benefits that people seek from the product
• - The kind of people who look for such benefit
• - The major brands that deliver each benefit.
• User status:
• Market segmentation is based on non-users, ex-users, potential users, first time users and regular users of
a product. No company can rely on only regular costumers, they have to attract potential or non users by
understanding the reasons as to why they are not using.
• Usage rate:
• Market is segmented into light, medium and heavy product users. Heavy users are often a small
percentage of the market but account for a high percentage of total consumption. For example, bulk
buyers are offered discounts.
• Loyal status:
• Consumers can be divided into 4 groups according to the brand loyalty status:
• Hard core loyals – Consumers who buy one brand all the time
• - Soft core loyals – Consumers who are loyal to two or three brands
• - Shifting loyals – Consumers who shift from favoring one brand to another.
• - Switchers – Consumers who show no loyalty to any brand
• A company can learn a great deal by analyzing the degrees of brand loyality. Hard core loyals can
help identify the product’s strength, split loyals can show the firm which brands are most
competitive with its own, from shifting loyals, they can learn about its marketing weaknesses and
attempt to correct them.
• Buyer readiness stage:
• A market consists of people in different stages of readiness to buy a product.
• Stages of readiness:
• Aware of product
• Informed about product
• Interested in product
• Desirous of buying the product
• Intention to buy product 
• Attitude:
• Five attitude groups can be found in the market:
• Enthusiastic
• Positive
• Indifferent
• Negative
• Hostile
 REQUISITES FOR EFFECTIVE MARKET
SEGMENTATION
• Measurable: The segment should be measurable. It should be possible to quantify
the segment. The size, purchasing power, and characteristics of the segments can be
measured.
• Accessible: The segment should be accessible through the existing marketing system
– middlemen, advertising media, company sales-force – with a minimum cost and
effort.  
• Substantial: The segments are large and profitable enough to serve. A segment
should be the largest possible homogeneous group that is worth going after with a
tailored marketing program.
• Unique/Differentiable: The segment can be distinguished from other market
segments in terms of its responding differently to different marketing mix and
programs.
• Appropriate: It must suit the organisation's objectives and resources.
• Actionable: an effective program can be formulated for attracting and serving the
segment.
• Stable: its behaviour in the future can be predicted with a sufficient degree of
confidence.
 MARKET TARGETING- MEANING
• Market Targeting is a decision regarding the
market segments to be served. Organizations
should carefully evaluate various segments
and decide which segments should be served.
• Once the organisation has identified the
opportunities existing in different market
segments, it has to decide and select on how
many and on which particular segment(s) to
focus on and offer their market offering.
 TARGET MARKET SELECTION STRATEGIES

1. Segment size and growth:

• Marketing segment has to be ‘right size’. Size can be measured in
terms of sales volume. Companies should not only concentrate
on sales volume but also on the growth potential of the
segment.
2. Segments structural attractiveness – A segment might have desirable size
and growth characteristics and still not profitable. The company should
evaluate the long-run profitability of the market segment. Michael Porter has
identified five forces that determine the intensive long-run attractiveness of
the whole market or any other segment within it. These FIVE FORCES are: -
• Threat of intense segment rivalry -A segment is unattractive if it already
contains strong or aggressive competitors.
• Threat of new entrants -A segment is unattractive if it is likely to attract
new competitors who will bring in new capacity, substantial resources and
a drive for market share growth.
• Threats of substitute products -A segment is unattractive if there exist
actual or potential substitutes for the product.
• Threats of growing bargaining powers of buyers -A segment is unattractive
if the buyers possess strong or increasing bargaining power. Interested in
low prices but high quality.
• Threat of growing bargaining power and suppliers -A segment is
unattractive if the suppliers possess a strong or increasing bargaining
power. They can raise prices or reduce the quality and quantity of products
and services offered.
3. Objectives of the company: Even if the segment
has positive size and growth and it is attractive, the
company has to consider its own objectives and
resources. The segment can be dismissed because
it does not fit in the company’s long-run objectives.
Even if segments fit the company’s objectives, it
must consider whether it has the required skills
and resources to succeed in that segment.
4. Segment interrelationships : Segments selected
should be inter-related in terms of costs,
performance and technology for effectiveness.
• Single segment /concentrated marketing strategy
(Example: - Mont black pens for the upper income segment,
McDonald's on fast-food, Zodiac brand concentrates on
formal shirts for executives, Porsche on sports car.)
• Selective specialization or multi segment specialization
strategy
• Product specialization strategy (For example: - A
manufacture of high quality microscopes can sell his product
to labs for schools and colleges as well as diagnostic
centers.)
• Market specialization strategy (For example: -A firm can sell
an assortment of products only to university laboratories.)
Full market coverage strategy: - The firm attempts to serve all customer
groups with all the products they might need. Only very large firms, such as
Microsoft, General Motors etc, can undertake a full market coverage strategy.
Large firms can cover a whole market in two broad ways:
a) Undifferentiated strategy: - The firm ignores segment differences and
goes after the whole market with one offer. This is a strategy where one
single product, with the same brand, and, the same selling qualities, is
offered throughout the market. It designs a product and a marketing
program that will endow the product with a superior image and appeal
to the broadest number of buyers and it relies on mass distribution and
advertising.  
b) Differentiated market strategy: - The firm operates in several market
segments and designs different products for each. Here, the entire
market is covered by offering different products to different market
segments. Differential marketing typically creates more total sales than
undifferentiated marketing. the marketer targets a variety of different
segments with a series of differentiated products. This is typical in the
motor industry which has a variety of products such as diesel, four-
wheel-drive, sports saloons, and so on. For example, Colgate offers
different tooth pastes for different segments
 PRODUCT POSITIONING- MEANING
• Positioning is the process of establishing and
maintaining a distinctive place in the market for the
organizations’ product or brands. Positioning starts
with the product, but positioning is not what you do
to a product. Positioning is what you do to the mind
of the customer.
• According to Philip Kotler product position may be
defined as the “process of designing the company’s
image and offering to occupy distinct and valuable
place in the mind of the target customers’ mind”
 Examples
• Tesla and Audi position themselves as a luxury
status symbol
• Starbucks positions itself as a trusted source of
upscale quality coffee and beverage
• McDonald’s positions itself as a place to get quick
and cheap meals
• Microsoft and Apple position themselves as a
tech company that offers innovative and user-
friendly products.
 DIFFERENT TYPES OF POSITIONING
•  Attribute positioning: - A product attribute is a specific feature or
benefit of the product. Positioning in this way focuses on one or
two of the product’s best features/benefits, relative to the
competitive offerings.
•  Benefit positioning: - In this positioning, a distinct benefit of the
product is highlighted;
•  Use or application positioning: - In this positioning, the use in the
application is highlighted. With this approach, the product/brand is
positioned in terms of how it is used in the market by consumers,
indicating that the product is the best solution for that particular
task/use
•  User positioning: -This positioning approach highlights the user
(the ideal or representative target consumer) and suggests that the
product is the ideal solution for that type of person and may even
contribute to their social self-identity.
• Product category positioning: -
• Under this positioning a specific category of the
product offering is highlighted so that consumers
identify the product in a new light.
•  Competitors positioning: -
• Under this positioning the product is highlighted
on the additional benefits it gives as compared to
the competitors.
•  Quality price positioning: -
• This positioning explains the superior quality of
the product or service in respect to its lower
price.
 BRANDING – INTRODUCTION AND
MEANING
• There are millions of products and services all over the world, each claims to be the
best among their category. But, every product is not equally popular. Consumer
doesn't remember every product, only few products are remembered by their name,
logo, or slogan. Such products generate desired emotions in the mind of consumer. It
is branding that makes product popular and known in the market.
• Branding gives personality to a product; packaging and labeling put a face on the
product. Effective packaging and labeling work as selling tools that help marketer sell
the product.
• The most unique skill of professional marketers is their ability to create, maintain,
enhance and protect brands. Starbucks, Sony, Nike, brands command a price premium
and elicit deeper customer loyalty.
• According to Philip Kotler - “Brand is a name, term, sign, symbol, design, or a
combination of them, intended to identify the goods or services of one seller or group
of sellers and to differentiate them from those of competitors”
• A brand is thus a product or service whose dimensions differentiate it in some way
from other products or services designed to satisfy the same need. These differences
may be functional, rational, or tangible, symbolic, or emotional- related to what the
brand represents
 CONCEPTS OF BRANDING
• BRAND AWARENESS
• Brand awareness is the probability that consumers are familiar
about the life and availability of the product. It is the degree to
which consumers precisely associate the brand with the specific
product.
• Brand awareness includes both brand recognition as well as brand
recall. Brand recognition is the ability of consumer to recognize
prior knowledge of brand when they are asked questions about
that brand or when they are shown that specific brand, i.e., the
consumers can clearly differentiate the brand as having being
earlier noticed or heard.
• While brand recall is the potential of customer to recover a brand
from his memory when given the product class/category, needs
satisfied by that category or buying scenario as a signal.
 BRAND NAME
• Brand name is one of the brand elements which helps the
customers to identify and differentiate one product from another.
It should be chosen very carefully as it captures the key theme of
a product in an efficient and economical manner.
• It can easily be noticed and its meaning can be stored and
triggered in the memory instantly. Choice of a brand name
requires a lot of research. Brand names are not necessarily
associated with the product.
• For instance, brand names can be based on places (Air India,
British Airways), animals or birds (Dove soap, Puma), people
(Louise Phillips, Allen Solly). In some instances, the company
name is used for all products (General Electric, LG).
 BRAND LOYALTY
• Brand loyalty is the extent to which a consumer
constantly buys the same brand within a product
category. The consumers remain loyal to a specific
brand as long as it is available. They do not buy
from other suppliers within the product category.
• Brand loyalty exists when the consumer feels that
the brand consists of right product characteristics
and quality at right price. Even if the other brands
are available at cheaper price or superior quality,
the brand loyal consumer will stick to his brand.
 BRAND EQUITY
• Brand Equity is the value and strength of the Brand
that decides its worth. It can also be defined as the
differential impact of brand knowledge on consumers’
response to the Brand Marketing. Brand Equity exists
as a function of consumer choice in the market place.
The concept of Brand Equity comes into existence
when consumer makes a choice of a product or a
service. It occurs when the consumer is familiar with
the brand and holds some favourable positive strong
and distinctive brand associations in the memory.
 BRAND ELEMENTS
• Brand elements are those trade-makeable devices that identify
and differentiate the brand. Marketers must choose brand
elements to build as much brand equity as possible. The
• Test of brand building ability of these elements is what
consumers would think or feel about the product if the brand
element were all they know.
• A brand element that provides a positive contribution to brand
equity, for example conveys certain valued associations or
responses.
• Brand names are not the only important brand element. Often,
the less concrete brand benefits are, the most important it is that
brand elements capture intangible characteristics. Slogans, logos,
symbols, Jingles, packaging all are a part of brand elements.
 Brand element choice criteria
There are six main criteria while choosing brand elements: 
1. Memorable: A brand element must be easily recalled and recognized. For example, lux, LG, Taj are
short and memorable brand elements. 
2. Meaningful: Brand elements must be credible and suggestive of the corresponding category. It must
suggest something about a product ingredient or the type of person who might use the brand. For
example, Fair & Lovely fairness cream, Mother’s recipe pickles.
3. Likable: Brand element must be aesthetically appealing. It should be likable visually, verbally and in
other ways also. For example, Scorpio, Splendor, Sony
4. Transferable: The brand element must be able to be used to introduce new products in the same or
different categories. It should ass to the brand equity across geographic boundaries and market
segments. For example, Amazon.com initially was online book seller, but never called itself Books R
Us. Amazon is the world’s biggest river, and the name suggests the wide variety of goods that could be
shipped and diverse range of products the company sells.
5. Adaptable: Brand element must be adaptable and updatable. Lifebuoy for example, was launched in
the year 1895, underwent lot of changes, in the year 2002 the biggest change took place with new
formulations, color, fragrance and packaging to make the brand contemporary. But the brand still
maintains its core value proposition of Health.
6. Protectable: The brand element must be legally protectable. For example, names like Xerox, Kleenex
which became synonymous with product categories should retain their trademark rights and not
become generic.
 SIGNIFICANCE OF BRANDING
Branding is absolutely critical to a business because of the overall impact it makes
on your company. Branding can change how people perceive your brand, it can
drive new business and increase brand awareness.
• Branding Gets Recognition : The most important reason branding is important
to a business is because it is how a company gets recognition and becomes
known to the consumers. The logo is the most important element of branding,
especially where this factor is concerned, as it is essentially the face of the
company. This is why a professional logo design should be powerful and easily
memorable, making an impression on a person at first glance. Printed
promotional products are a way of getting this across.
• Branding Increases Business Value : Branding is important when trying to
generate future business, and a strongly established brand can increase a
business’ value by giving the company more leverage in the industry. This
makes it a more appealing investment opportunity because of its firmly
established place in the marketplace.
• Branding Generates New Customers : A good brand will have no trouble drumming up
referral business. Strong branding generally means there is a positive impression of the
company amongst consumers, and they are likely to do business with you because of the
familiarity and assumed dependability of using a name they can trust. Once a brand has been
well-established, word of mouth will be the company’s best and most effective advertising
technique.
• Improves Employee Pride And Satisfaction : When an employee works for a strongly
branded company and truly stands behind the brand, they will be more satisfied with their
job and have a higher degree of pride in the work that they do. Working for a brand that is
reputable and help in high regard amongst the public makes working for that company more
enjoyable and fulfilling. Having a branded office, which can often help employees feel more
satisfied and have a sense of belonging to the company, can be achieved through using
promotional merchandise for your desktop.
• Creates Trust Within The Marketplace : A professional appearance and well-strategized
branding will help the company build trust with consumers, potential clients and customers.
People are more likely to do business with a company that has a polished and professional
portrayal. Being properly branded gives the impression of being industry experts and makes
the public feel as though they can trust your company, the products and services it offers and
the way it handles its business.
• Branding Supports Advertising : Advertising is another component to branding, and
advertising strategies will directly reflect the brand and its desired portrayal. Advertising
techniques such as the use of promotional products from trusted companies such
as Outstanding Branding make it easy to create a cohesive and appealing advertising strategy
that plays well into your branding goals.
 PRODUCT POSITIONING
• Product positioning is the creation of a clear image in the minds of consumers within the
targeted segment about the nature of the product and the benefits to be gained from
purchasing the product. Positioning is the compliment of segmentation.
• Product positioning is closely related to market segment focus. Product positioning involves
creating a unique, consistent, and recognized customer perception about a firm’s offering
and image. A product or service may be positioned on the basis of an attitude or benefit, use
or application, user, class, price, or level of quality.
• It targets a product for specific market segments and product needs at specific prices. The
same product can be positioned in many different ways. Another common framework for
product positioning is taken from a series of questions.
• According the Journal of Advertising Research. “Product Positioning refers to a brand’s
objective (functional) attributes in relation to other brands. It is a characteristic of the
physical product and its functional features”.
• For example, the ads for sugar free suggest it as not just an alternative to sugar for diabetic
patients, but as health product to keep the body slim. Nestle India positioned Cadbury’s
Chocolates as associated with celebrations and could make it to enter into the evoked set for
gift giving. Dettol, an antiseptic lotion, must be found in every house, is now shown as a
cleaning agent to give a germ free environment in the house.
 USING PRODUCT CHARACTERISTICS OR CUSTOMER
BENEFITS AS A POSITIONING STRATEGY
• This strategy basically focuses upon the characteristics of the
product or customer benefits. For example if I say Imported items it
basically tell or illustrate a variety of product characteristics such as
durability, economy or reliability etc. Lets take an example of
motorbikes some are emphasizing on fuel economy, some on
power, looks and others stress on their durability. Hero Cycles Ltd.
positions first, emphasizing durability and style for its cycle.
• At times if you would have noticed that a product is positioned
along two or more product characteristics at the same time. You
would have seen this in the case of toothpaste market, most
toothpaste insists on ‘freshness’ and ‘cavity fighter’ as the product
characteristics. It is always tempting to try to position along several
product characteristics, as it is frustrating to have some good
characteristics that are not communicated.
PRICING AS A POSITIONING STRATEGY
• Quality Approach or Positioning by Price-Quality – Lets take an example
and understand this approach just suppose you have to go and buy a pair
of jeans, as soon as you enter in the shop you will find different price rage
jeans in the showroom say price ranging from 350 rupees to 2000 rupees.
As soon as look at the jeans of 350 Rupees you say that it is not good in
quality.
• Why? Basically because of perception, as most of us perceive that if a
product is expensive will be a quality product where as product that is
cheap is lower in quality. If we look at this Price – quality approach it is
important and is largely used in product positioning. In many product
categories, there are brands that deliberately attempt to offer more in
terms of service, features or performance. They charge more, partly to
cover higher costs and partly to let the consumers believe that the
product is, certainly of higher quality.
POSITIONING STRATEGY BASED ON USE OR
APPLICATION
• Lets understand this with the help of an example
like Nescafe Coffee for many years positioned it self
as a winter product and advertised mainly in winter
but the introduction of cold coffee has developed a
positioning strategy for the summer months also.
Basically this type of positioning-by-use represents
a second or third position for the brand, such type
of positioning is done deliberately to expand the
brand’s market. If you are introducing new uses of
the product that will automatically expand the
brand’s market.
 POSITIONING STRATEGY BASED ON
PRODUCT PROCESS
• Another positioning approach is to associate the product with
its users or a class of users. Makes of casual clothing like jeans
have introduced ‘designer labels’ to develop a fashion image. In
this case the expectation is that the model or personality will
influence the product’s image by reflecting the characteristics
and image of the model or personality communicated as a
product user.
• Lets not forget that Johnson and Johnson repositioned its
shampoo from one used for babies to one used by people who
wash their hair frequently and therefore need a mild people
who wash their hair frequently and therefore need a mild
shampoo. This repositioning resulted in a market share.
 POSITIONING STRATEGY BASED ON
PRODUCT CLASS
• In some product class we have to make sure
critical positioning decisions For example,
freeze dried coffee needed to positions itself
with respect to regular and instant coffee and
similarly in case of dried milk makers came out
with instant breakfast positioned as a
breakfast substitute and virtually identical
product positioned as a dietary meal
substitute.
 POSITIONING STRATEGY BASED ON
CULTURAL SYMBOLS
• In today’s world many advertisers are using deeply
entrenched cultural symbols to differentiate their brands
from that of competitors. The essential task is to identify
something that is very meaningful to people that other
competitors are not using and associate this brand with
that symbol. Air India uses maharaja as its logo, by this
they are trying to show that we welcome guest and give
them royal treatment with lot of respect and it also
highlights Indian tradition. Using and
popularizing trademarks generally follow this type of
positioning.
 POSITIONING STRATEGY BASED ON
COMPETITORS
• In this type of positioning strategies, an implicit or explicit
frame of reference is one or more competitors. In some cases,
reference competitor(s) can be the dominant aspect of the
positioning strategies of the firm, the firm either uses the
same of similar positioning strategies as used by the
competitors or the advertiser uses a new strategy taking the
competitors’ strategy as the base. A good example of this
would be Colgate and Pepsodent. Colgate when entered into
the market focused on to family protection but when
Pepsodent entered into the market with focus on 24 hour
protection and basically for kids, Colgate changed its focus
from family protection to kids teeth protection which was a
positioning strategy adopted because of competition.
 DIFFERENCE BETWEEN PRODUCT
POSITIONING AND BRAND POSITIONING?
Product Positioning v/s Brand Positioning
Product positioning is the process used to Brand positioning refers to the rank in
determine how to best communicate product customers’ mind the company’s brand
attributes to the target customers based on possess in relation to the competition.
customer needs.

Nature
Product positioning is based on competitive Brand positioning is based on emotional
differentiation. experience.

Focus
The focus of product positioning is to fill all Brand positioning is focused on catering to
the need gaps of the customer base. specific customer needs.

Measure
The success of product positioning can be The success of brand positioning is largely
measured by market share. intangible in nature.
 PRODUCT POSITIONING
V/S
BRAND POSITIONING

• The difference between product positioning and

brand positioning mainly depends on whether
the company focuses on managing and
promoting the company’s product portfolio
(product positioning) or attempt to build the
company brand name (brand positioning). There
may be many products under a single brand
name, and each will have to be managed
differently. In the process of this, the company
should ensure that clear and consistent brand
image is communicated to customers at all times.
 REPOSITIONING
• Repositioning refers to the major change in positioning for the
brand/product. To successfully reposition a product, the firm has
to change the target market’s understanding of the product. This
is sometimes a challenge, particularly for well-established or
strongly branded products.
• Firms may consider repositioning a product due to declining
performance or due to major shifts in the environment. Many
firms choose to launch a new product (or brand) instead of
repositioning because of the effort and cost required to
successfully implement the change.
• “Sometimes, marketers feel the need to change the present
position of the brand to make it more meaningful to the target
segment. This change in position, and finding a new position for
the brand, is called brand repositioning.” (Vashisht, 2005).
Examples;-
• Cadbury India Ltd
• Cadbury India Ltd now named, Mondelez India Foods Pvt. Ltd) is the largest
chocolate brand in the country. They began its operations in 1948 and have
pioneered cocoa cultivation in India. Currently the brand operates in five
categories such as Chocolate confectionery, Beverages, Biscuits, Gum and Candy.
• But earlier in 2006 the company had to fight a lawsuit since its chocolate products
were found plagued with worms. But they came back strongly with an
advertisement casting ‘Big B’, which explained the functioning of their factories
and the new packaging also contributed in repositioning their brand.
• Flipkart
• The e-commerce giants Flipkart had its big day on October 6th 2014, through ‘Big
Billion day’. The sale was introduced as a promotional strategy, even though
Flipkart achieved the target this led to public outcry and widespread criticism
among consumers, competitors and partners, heavily damaging its reputation.
• Most of the products were sold for less than cost price, and Flipkart was accused
of killing competition. The promoters Sachin Bansal and Binny Bansal had to
address the mass and apologies for the inconvenience caused. But over coming all
the turmoil, Flipkart still manages to be on the top of their business.