Definitions Lecture 8-26

• Positioning Statement


  brief description of service and an explanation of how it fulfils a particular need of the target market.

  goal = align marketing efforts with company's brand and value proposition
• Mission statement vs positioning statement

  when asking what, why and how of your business, a mission statement answers the why and the positioning statement answers the what
• Value proposition 


  describes what sets your product or service apart from competitors. It gives an overview of the benefits a product or service offer
• Positioning statement should include:

  • who you serve
  • what value you offer
  • how you position your offer
  • why you're in business
  • what makes you different from competition?
• Writing a position statement

  • description of target market
  • description of target market needs
  • how business will meet those needs
  • what differentiates your product/service from competition
  • why consumers in your target market should believe your brands claims
• Elements of a strategic market positioning

  • target market
  • market category
  • customer pains
  • brand promise
  • brand identity and values
• Perceptual map


  diagram mapping out what the customer think about your products and services
• Perceptual mapping

  1. select attributes
  2. set dimensions
  3. decide products/brands to map
  4. conduct a survey
  5. create the map
• Unique selling proposition (USP)

  the essence of what makes your product or service better than competitors
• Brand


  any distinctive feature like a name, term, design, or symbol that identifies goods or services
• Brand name should:

  • indicate benefits and characteristics
  • be easy to pronounce, recognise, remember
  • be distinctive
  • be extendable
  • be easy to translate into other languages
  • be capable of registration and legal protections
• Brand extension

  • extending an existing product name to new product categories
  • e.g., Colgate
  • Toothpaste to toothbrush = success
  • Toothpaste to lasagne = failure
• Brad equity


  = brand awareness + brand image
• Brand awareness

  • depth of brand awareness = how easily customers can recall and recognise brand
  • breadth = range of purchase and consumption situations where the brand comes to mind
• Brand image

  • a consumer's interpretation of your company and its products and services
  • the set of mental representations, both cognitive and affective, that a person or group holds towards the brand
• Brand meaning

  • primary characteristics and supplementary features
  • product reliability, durability, and serviceability
  • service effectiveness, efficiency, and empathy
  • style and design
  • price
• Brand identity

  • values
  • mission
• Importance of brand

  • to companies
  • source of equity and value
  • build relationships with customers
  • symbolic benefits difficult to copy
  • to consumers
  • image, status, impression management
  • risk reduction and information efficiency benefits
• Trademarks and brand names

  • can register your trademark to protect your brand, e.g. the name of your product or service
  • when you register your trademark:
  • can sell and license your brand
  • take legal action against those who use your brand without permission
• Trademark can include

  • words
  • sounds
  • logos
  • colours
• Trademark cannot

  • be offensive
  • describe goods or services it will relate to
  • be misleading
  • be too common and non-distinctive
• Products 


  anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
• Services


  form of product that consists of activities, benefits, or satisfaction offered for sale, that are intangible and do not result in the ownership of anything
• Types of products

  • convenience products - snacks, toothbrush, detergent
  • shopping products - clothes, home appliances
  • speciality/luxury products - luxury brands, lawyer, wedding dress
  • unsought products - car insurance, funeral planning
• Product levels

  • core product - core benefit/service - may be a functional or emotional benefit
  • embodied (actual) product - physical good or service that provides expected benefit - features, durability, brand name, promotion
  • augmented product - embodies product + factors that are necessary to support the purchase and post-purchase activities e.g. customer service
• Services:

  • intangible
  • inseparable
  • variable
  • perishable
  • lack ownership
• Service Innovation Development 

  Stage 1 – product-centric manufacturer

  -       Services used as aftersales product support. 

  Stage 2 – As-needed service provider 

  -  Aftersales services used to upsell the core product. 

  Stage 3 – Full-line service expert 

  -   Services and products used together to solve clients’ lifecycle problems. 

  Stage 4 – Integrated solutions provider 

  -       Services become a fully integrated element in the overall offering. ‘servitization’ – can’t separate the product from the service. 
• New Product Development (NPD)

  • Ansoff Matrix
• NPD Funnel

  • idea generation
  • idea screening
  • marketing analysis and research
  • development
  • market testing
  • launch
  • post-launch
• Product lifecycle

  • market development
  • growth
  • maturity
  • decline
• Distribution channels


  set of interdependent organisations that help make a product available for use or consumption by the consumer of business user
• Type of distribution channels

  • direct distribution
  • producer to end user
  • indirect distribution
  • producer, wholesaler, retailer, end user
• Types of flows in distribution channels

  • physical flow
  • flow of ownership
  • payment flow
  • information flow
  • promotion flow
• Horizontal conflict


  dispute between two or more channel partners of the same level in the same channel. e.g., two retailers
• Vertical conflict


  dispute between market partners of different levels in the same channel e.g., between and manufacturer and retailer
• Direct selling - direct to consumer (D2C)

  • producer to end user
  • a direct channel
  • single/multilevel marketing
  • e.g., Zara, Apple
• Retailers

  • sell goods and services directly to final consumer for personal use
  • e.g., department store
  • supermarket
  • speciality store
• Wholesalers

  • sell to other firms buying for resale or business use
  • often buy large quantity of products directly from producer
  • largely unknown to customer
  • e.g., Brakes (food)
• Distribution intensity

  • intensive e.g., dairy milk bar
  • selective e.g., cars, clothing
  • exclusive e.g., Chanel bag
• Intensive distribution

  • widespread market coverage
  • widely accepted channel
  • diversity of outlets
  • multiple locations
  • convenience oriented