Marketing Strategy
in Service Business
- amegaro@unisa.it -
Programme
• Marketing and Service Marketing: an overview
• Marketing plan
• Complexity management
• New approaches: Relationship Marketing and Many-to-Many
network; Experiential marketing; Unconventional marketing
• Service Theories: from S-D logic & Service Science to service
ecosystems & service systems
• Technologies as Decision Support Systems for marketing
strategies
Case studies
Examples
Project work
Agenda: Lesson 2 - Pt.1
• Marketing plan: structure and aims
• Strategic marketing
Examples
The Marketing Plan
2.1
RESEARCH
Systematic, structured process that
involves :
Marketing Planning
Implementing,
evaluating and
controlling
marketing
activities.
Research and analysis of current
and future market and business
situation
Development and Diffusion of firm’s
objectives, strategies and programs,
Segmenting
Targeting
Positioning
…
Marketing
mixControl
A mission statement is a
short description of
organization’s raison d’être,
of its overall goal and of the
objectives for the future
(VISION).
Segmenting
Targeting
Positioning
…
Marketing
mix
Control
Examples
of mission
statements
Example: PASTA Market
Environmental
friendly
Healthy
Culture and
LifestyleJoy
Traditions
and
Habits
Corporate Strategy: A strategy that
determines the means for the use
of resources in the various
functional areas to reach the
organization’s goals.
Segmenting
Targeting
Positioning
…
Marketing
mix
Control
SWOT Analysis
Underserved markets
Few competitors in your area
Emerging needs for your product-
service
Press/media coverage of your
company
Things your company lacks
Things your competitors do better
than you
Internal Resource limitations
Unclear unique selling proposition
Qualities that separate your firm
from competitors
Internal resources (skills,
knowledge, staff)
Tangible assets: intellectual-capital
property, technologies
Emerging competitors
Changing enviornmental
conditions (law, regulation)
Changing customer’s attitude
toward the company (need)
Negative Press/Media coverage
SWOT Analysis: Example
Segmenting
Targeting
Positioning
Development and maintenance of
strategic alignment between:…
Marketing
mix
Control
• Goals/organization’s capabilites
• Market opportunities/competitor’s
behaviors.
"The marketing strategy lays out target
markets and the value proposition that
will be offered based on an analysis of the
best market opportunities." (Kotler &
Keller)
To guide business process in the short and in
the long run based on users’ expectations and
competitor’s actions.
MARKETING MIX & the 4 Ps
Strategic and Operational Marketing
Marketing Managers
Strategic marketing Operational marketing
Strategic Marketing
2.2.
Strategic Marketing
Tools and techniques required for the analysis, measurement and
selection of dynamic scenario and potential targets for value
proposition.
AIMS
1. To decrease errors;
2. To identify the targets interested in
the offering (or potentially
intereseted);
3. To codify strategic guidelines to
create or establish/consolidate the
reputation and awareness of the
offering.
Framework your business: Abell’s
Matrix
Framework your business: Abell’s
Matrix
S
T
P
1. To identify customers’ needs and expected benefits
2. To classify segments
STP- segmentation, targeting,
positioning
3. To measure segments’ attractiveness, profitability,
accessibility and differences
4. To select target segments
5. To establish the positioning for each target
6. To develop a marketing mix plan for each target
Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it
Select
& study a
market
Choose
bases
for
segmen-
tation
Select
segmentati
on
variables
Profile
and
analyze
segments
1 2 3 4
STP: segmentation
The importance of segmentation
• Markets have a variety of product needs and preferences.
Market
Marketers
Decision
makers
• Decision makers can define objectives and allocate
resources more accurately.
• Marketers can better define customer needs
Segmentation
• Definition: Division of the total market into smaller, relatively
homogeneous groups
S
• Why?
• Levels: Mass, Segment, and Niche
Example: PASTA Market
• Heavy consumers
• Culture of food and
meals consumption
as «rituals»
• Medium interest in
product quality
• High Price sensitivity
TRADITIONALISTS
• Light users
• Low familiarity with
cooking and
«processed» food
• Low interest in
product quality
• Medium Price
sensitivity
POST-MODERNISTS
• Heavy consumers of
organic, lactose-free
and gluten-free food
• Specific requirements
on organoleptic
properties of products
• Low Price sensitivity
HEALTHY CONSUMERS
Segmentation Criteria
Mass Market
Segmentated Market
Niche Market
One-to-
one
Market
PersonalizationSegmentation
Geographic
Demographic
Behavioural
Psychographic
SEGMENTATION VARIABLES
Segmentation Criteria
DemographicBehavioural Psychographic
Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it
Select and
define
the most
suitable
target(s)
Define the
market(s)
Select
the needs
for each
segment
1 2 3
STP: TARGETING
(2)Targeting
Selection of one or more segments
Targets to “deliver” :
• value propositions
• offering design
• strategies and tactics
b
e
c
o
m
i
n
g
Process that identifies potential markets by analyzing the
marketing opportunities arising from the different segments.
This complex decision should balance:
At the end of the process, firms can choose a target market, that is
the set of customers with homogeneous needs and features that
companies aim at «striking»: the target.
GOALS
EFFECTIVENESS
RESOURCES
EFFICIENCY
Targeting as a process
After the analysis of external environment and after
segmentation, companies use the quantitative and qualitative
obtained from data to evaluate and decide the
segments/targets to whom offering can be delivered through
focused marketing actions.
SEGMENTATIONS: How many and which segments are in the
market?
TARGETING: Among the different segments, with whom
should firms create value?
RESEARCH: how does the external environment look like?
Targeting: identification of market(s)
• COMPETITOR ANALYSIS
Targeting: Main steps
• MARKET COVERAGE
Competitor Analysis
After the identification of the
segments that help the definition
of the markets, firms should
evlauate the trade-off:
Segments/ Investements required
to satisfy the segments
Businesses should relate the
that can be sustained and
the potential to be
achieved.
(1)Targeting: competitor analysis
To define how many and which segments should be selected through
an assessment of segment(s) attractiveness based on firm’s
capabilities to employ resources to satisfy it/them.
Two main factors affect the decision:
External
Contextual factors that
surround business’ activities,
for instance the time period in
which resources should be
available.
Medium & Long-term goals
related to volumes of
production and sales, market
penentration and
(perspective) profits
Internal
(1) Competitor Analysis
Market “portion” reached through marketing activity or
campaign, or, in relation to sales, through employees and
salesforce (market share).
After the step of analysis, firms should assess the possible
opportunities deriving from it and identify the possibility to
competitive advantage
(2) Market Coverage
Undifferentiated marketing strategies
Differentiated marketing strategies
Concentrated marketing strategies
Market Coverage: Different
Targeting, Different Strategies
Target: whole market
Offering: single
Marketing plan:
standard
Communication:
undifferentiated
Distribution channels:
Mass
Target: one or more
segments
Offering: differentiated
for each target
Marketing plan: One for
each target
Communication/
Distribution channels:
differentiated for target
Target: a single segment
or a sub-section
Offering: focused
Marketing plan: unique
for the target selected
Communication/
Distribution channels:
tailored for the target
Undifferentiated
Marketing
Concentrated
Marketing
Differentiated
Marketing
Goal: to attract the
highest possible number
of customers
Pros: costs and price
Cons: high competition
Goal:to conquer big
segments of market
Pros: targeted marketing
activities
Cons: high costs (multiple
offering)
Pros: costs reduction;
better knoweldge of the
segment; enhancement
of the image.
Cons: dissolution of
segment or modification
of tastes.
Goal:to «nurture» a
specific market
Market
Unique segment
Different segments
Niche
Single
customer
X
X
X XX
Xa
Mass customers
Standard goods
Unidirectional
communication
To Conquer the
customer
Individual customer
Unique product and
tailored production
One-to-one
communication
Users’ loyalty
UNDIFFERENTIATED
MARKETING
DIFFERENTIATED
MARKETING
CONCENTRATED
MARKETING
Different kinds of marketing
 Possibilities to exploit the advantages economies of scale in
production and selling;
 Lower costs (e.g. for communication, single marketing mix)
 To maintain leadership
(1) Undifferentiated marketing
PROS
 Complexity of markets and evolution of consumers’ needs and
degree of satisfaction;
 Difficulties in the coverage of small segments with specific needs.
CONS
The brand is too strong to identify the entire market and/or the
segment in consumer’s mind. The brand embodies the whole market.
(1) Undifferentiated marketing
(2) Differentiated (Segmented)
marketing
 Target several segments and design separate offers for each
Coca- Cola (Coke, Sprite, Coca
Zero/ Diet, Fanta, etc)
Armani (Giorgio Armani, Emporio
Armani, Armani Junior, etc)
Toyota (Aygo, Yaris, Corolla,
Prius, Camry, etc)
 Possibilities to boost the overall selling opportunities;
 Possibility to maintain market share.
PROS
CONS
 Higher costs for production, distribution and
communication;
 Criticalities in the definition of strategic choices of
control. (BRAND PORTFOLIO)
(2) Differentiated marketing
(3) Concentrated and Niche marketing
 Target one or a couple of small segments with very
specialized interests
Status symbol
Specific
needs
Luxury Goods
 Risk of the unexpected inability to survive in the market due to
iperspecialization. The success of the firm depends only on a
specific segment or product-service. The risk of business is not
fragmented.
PROS
CONS
(3) Concentrated and Niche marketing
 Possibilities to acquire economies of scale and learning
economy through the focus on a specific segment;
 Specialization of products (and competencies).
The buyer persona is the portrait of a
user who embodies a segment of our
target. It is the generalized
representation of a company's ideal
customer, the starting point for
identifying potential customers.
Defining buyer personas is useful
and makes easier to customize the
content within the strategy. In fact, it
is easier to develop ideas and
customize messages if companies
have a person with defined
characteristics in mind.
Moving towards a personalized
marketing with buyer personas
Divide your target audience and decide who you want to focus on and
who you want your brand or product to reach. You can have more types of
buyer personas to contact.
Step 1: to analyze
• Interviews - Talking to people is the best way to get more ideas about
your typical customers and inspiration for developing content in your
future strategy.
• Questionnaires - You can set up an online questionnaire and email it to
your current customers. You will understand what motivates them the
most in following you and choosing your products.
Moving towards a personalized
marketing with buyer personas
• Analytics and Social Media Insights - Take advantage of the analytics
available to your website and the insights of social media. From a geographic,
demographic and interest point of view, you will have a lot of data.
• Confrontation with the sales team - Managers and agents who are dedicated
to sales can have useful input on customers. Even from a simple chat you can
get really useful information, more than any statistical data or questionnaire!
Moving towards a personalized
marketing with buyer personas
Step 2: to Imagine
What are their names? What do they look like?
Try to give it a name and take an image that can identify a your
typical customer. It will help you to make everything more
realistic. Then identify the age, geographic location, type of job,
hobbies, interests, character, family situation.
Try to find a phrase that can identify his/her personality. A very
useful exercise, essential for developing your marketing
campaign and targeting your messages to personalized
audiences that will be more responsive to topics of interest to
them.
Moving towards a personalized
marketing with buyer personas
Moving towards a personalized
marketing with buyer personas
Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it
1
STP: (3) POSITIONING
“Position”
the
offering
into the
market
Define the
most
relevant
features
of the
offering
Estabish
how
consumers
should
perceive
the offering
2 3
Positioning defines the way in
which a brand or a firm are
perceived by potential
consumers as different from
competitors
The definition of Positioning
“to create a product image in order to give the brand a
favorable place, in the evaluation of consumers, differentiated
from competitor’s position» (Ries and Trout, 1991)over
Positioning
Main goals:
• Favorable perception of potential buyers;
• Brand Awareness (reputation, notoriety)
Positioning is a tool for the analysis employed by firms to
define the optimal strategy to attain competitive
advantage
Positioning
Positioning
Positioning represents the position
occupied by the company's brand in the
consumer's mind, according to the
perception of the latter concerning to
specific reference factors and the value
proposition of competitors.
Positioning
Aim: to define and make perceived the
tangible and intangible attributes of the
product AS A FUNCTION OF RELEVANT
EXPECTED BENEFITS, by DIFFERENTIATING
the offer from that of the COMPETITORS,
in order to create a STABLE PREFERENCE
for the brand / product offered
Positioning Strategies
3. Repositioning in relation to competitor’s offerings,
that involves a process of positioning shifting from an
old to a new location in potential consumer’s mind
2. Research and achievement of a new positioning
based on new attributes not yet used or promoted as
new value for consumers;
1. Stabilization of current positioning of the product,
brand or firm in consumer’s mind;
It’s a change in positioning if and when market conditions
change. It usually happens for two reasons:
• To counter new competitors;
• To be more responsive to consumer preferences.
The repositioning must be carried out without creating confusion
in the perception of customers, adopting a specific
communication strategy that is credible and consistent with the
previous image.
The Repositioning
«We’re an organic tea company. A
premium juice company. A coconut
water company. And much more»
Coca-Cola's attempt to reposition itself
as a "good" product also for health,
following the growing attention on the
health risks associated with the
consumption of sugary soft drinks.
The Repositioning
#CocaColaRenew
Positioning: Analysis and Strategies
Positioning involves two different moments:
.
Research for a satisfactory place
for the offering and for the brand
by identifying the tools (marketing
policies) to occupy and defend the
positioning from competitors'
actions
Strategic plan
focus the attention on the identification of the
benefits of the product perceivable by the
consumer with respect to the expected benefits
and assessment of the ability to satisfy them by
the competitor’s offering
Analytic plan
Positioning
Analytic plan
The main activity is the identification of required benefits:
Strictly connected with product’s
attributes; referred indirectly to the
brand
Referred to product’s and consumer’s
value and to brand’s ability to put
users in relations with the others and
with their reference group
Functional benefits
Symbolic benefits
Example: Pasta Market
Functional
benefits
Symbolic Benefits • Health and physical well-being (weight, fitness)
• Helthy way of life
• Conviviality
• Complete nutrition
• Taste
• Digestibility
Example: Positioning
• Functional benefits of the brand «Nutella»:
- Nutritional properties
• Symbolic benefits of the brand «Nutella»:
- Emotional/hedonistic: delight for taste
- Sentimental: childhood memories
• Functional benefits of the brands «Bulgari and Cartier»:
- Quality of raw materials (stones, emerald, metals etc.)
• Symbolic benefits of the brands «Bulgari and Cartier»:
- Exclusivity
- Status symbol
Example: Positioning
Criteria for Positioning
Strategic plan
Main features to differentiate a product (the brand) in the
perception of buyers:
• Physical attributes of the product
• Symbolic attributes of the product
• Benefits offered
• Price
• Contrast to a competitor
• Association with a class of products
• Identification with a class of users
• Identification with an opinion leader
• Appropriateness for given occasions of use
• Image of the manufacturer or country of origin
Positioning
1. Physical attributes: to emphasize the main (inner
characteristics) features that affect performance
Food companies can stress the
colors, the appearance, the
freshness of their goods
Intense perfume; tapered
shape; juicy pulp; absence
of seeds.
Rich of vitamin C and
essential oils. Delicious,
natural, suitable for the
preparation of fresh recipes
Positioning
2. Symbolic attributes
To adopt a given
(dynamic, exclusive,
sporty, adventurous)
lifestyle
Positioning
3. Offered benefits
Ferrarelle lights up your vitality
because it envelops the well-being of
100% effervescence, perfectly
balanced, with a unique and full
taste.
Creamy, rich in taste and fat-free,
many pieces of fruit.
Anti bacterial; Anti plaque; It
protects caries; Helps and
strengthens the enamel; Helps
protect the gums; Effective on the
tongue; Acts in hard-to-reach areas;
It guarantees long lasting freshness.
Positioning
4. Price
Price lower than
competitors’ services.
Focus on basic features
and essential
characteristics.
Positioning
5. Opposition to a competitor
A drink created to
challenge Coca-Cola, the
«hystorical» competitor.
At the beginning, Pepsi
aims at curing stomach
pains.
Positioning
6. Association with a category of products
… Decaffeinated coffee…
… Analgesics…
… Roll kitchen paper…
7. Identification with a segment of users
«Dishes as good as
homemade… Ready meals»
Users: Singles, working
mothers
Positioning
Positioning
8. Identification with leaders or celebrities
The «personality» of
celebrities are associated
with brand’s and
product’s personality
(elegance, exclusivity,
refinement)
Positioning
9. Suitability for given occasions of use
On San Valentine’s Day
one candy one chocolate
candy out of three is
«Perugina»
Positioning
10. Image of Producer (brand) and Country of Origin Effect
… the focus is not (only)
on the features of goods,
but on feelings and sense
of belonging…promotion
of citizenship
Positioning Map
AIMS:
• understand the perception of consumers and
the existence of correspondence between
consumer preferences and offer positioning
• compare the positioning of competing
products
• identify any ideal free positions
Positioning Maps is a tool that represents graphically the
positioning or perception of each group of competing
products in respect of two specific product characteristics
Perceptual Positioning Maps
Display consumer’s perceptions through a visual picture of
how customers perceive their brand versus the competing
products or services on relevant buying dimensions
Example:
atletic
footwear
Positioning Map: Fashion
HIGH PRICE
LOW PRICE
HAUTE COUTUREBASSE COUTURE
Positioning Map: car market
LOW PRICE
HIGH QUALITYLOW QUALITY
HIGH PRICE
Marketing management steps: a
synthesis
1. To identify the bases
to segment the market
2. To profile segments
3. To measure segment’s
attractiveness
4. To select the
segment(s)/ target(s)
6. To define the positioning for
each target
SEGMENTATION
TARGETING
POSITIONING5. To analyze the current
positioning of products and
competitors in customer’s mind
Antonietta Megaro
amegaro@unisa.it
THANK YOU.
Questions?
Comments?