http://www.businessplans.org/market.

html You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories:
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If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering. If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective. If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits. If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business (for instance, if this segment completes a product line range) or if it absorbs some of the overhead costs of a more profitable segment. Otherwise, you should determine the most cost effective way to divest your enterprise of this offering.

Having selected the direction most beneficial for the overall interests of the enterprise, the next step is to choose a strategy for the offering that will be most effective in the market. This means choosing one of the following 'generic' strategies (first described by Michael Porter in his work, Competitive Advantage).
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A COST LEADERSHIP STRATEGY is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution. A DIFFERENTIATION STRATEGY is one of creating a product or service that is perceived as being unique "throughout the industry". The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to your industry. This uniqueness should also translate to profit margins that are higher than the industry average. In addition, some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creative personnel, the ability to perform basic research and a good reputation. A FOCUS STRATEGY may be the most sophisticated of the generic strategies, in that it is a more 'intense' form of either the cost leadership or differentiation strategy. It is designed to address a "focused" segment of the marketplace, product form or cost management process and is usually employed when it isn't appropriate to attempt an 'across the board' application of cost leadership or differentiation. It is based on the concept of serving a particular target in such an exceptional manner, that others cannot compete. Usually this means addressing a substantially smaller market segment than others in the industry, but because of minimal competition, profit margins can be very high.

Pricing Having defined the overall offering objective and selecting the generic strategy you must then decide on a variety of closely related operational strategies. One of these is how you will price the offering. A

pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control. There are three basic strategies you can consider.
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A SKIMMING STRATEGY If your offering has enough differentiation to justify a high price and you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high. A MARKET PENETRATION STRATEGY If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low. A COMPARABLE PRICING STRATEGY If you are not the market leader in your industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case you can price your offering comparably to those of your competitors.

Promotion To sell an offering you must effectively promote and advertise it. There are two basic promotion strategies, PUSH and PULL.
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The PUSH STRATEGY maximizes the use of all available channels of distribution to "push" the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising. The PULL STRATEGY requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

There are many strategies for advertising an offering. Some of these include:
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Product Comparison advertising In a market where your offering is one of several providing similar capabilities, if your offering stacks up well when comparing features then a product comparison ad can be beneficial. Product Benefits advertising When you want to promote your offering without comparison to competitors, the product benefits ad is the correct approach. This is especially beneficial when you have introduced a new approach to solving a user need and comparison to the old approaches is inappropriate. Product Family advertising If your offering is part of a group or family of offerings that can be of benefit to the customer as a set, then the product family ad can be of benefit. Corporate advertising When you have a variety of offerings and your audience is fairly broad, it is often beneficial to promote your enterprise identity rather than a specific offering.

Distribution You must also select the distribution method(s) you will use to get the offering into the hands of the customer. These include:

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On-premise Sales involves the sale of your offering using a field sales organization that visits the prospect's facilities to make the sale. Direct Sales involves the sale of your offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact. Wholesale Sales involves the sale of your offering using intermediaries or "middle-men" to distribute your product or service to the retailers. Self-service Retail Sales involves the sale of your offering using self service retail methods of distribution. Full-service Retail Sales involves the sale of your offering through a full service retail distribution channel.

Of course, making a decision about pricing, promotion and distribution is heavily influenced by some key factors in the industry and marketplace. These factors should be analyzed initially to create the strategy and then regularly monitored for changes. If any of them change substantially the strategy should be reevaluated. The Environment Environmental factors positively or negatively impact the industry and the market growth potential of your product/service. Factors to consider include:
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Government actions - Government actions (current or under consideration) can support or detract from your strategy. Consider subsidies, safety, efficacy and operational regulations, licensing requirements, materials access restrictions and price controls. Demographic changes - Anticipated demographic changes may support or negatively impact the growth potential of your industry and market. This includes factors such as education, age, income and geographic location. Emerging technology - Technological changes that are occurring may or may not favor the actions of your enterprise. Cultural trends - Cultural changes such as fashion trends and life style trends may or may not support your offering's penetration of the market

The Prospect It is essential to understand the market segment(s) as defined by the prospect characteristics you have selected as the target for your offering. Factors to consider include:
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The potential for market penetration involves whether you are selling to past customers or a new prospect, how aware the prospects are of what you are offering, competition, growth rate of the industry and demographics. The prospect's willingness to pay higher price because your offering provides a better solution to their problem. The amount of time it will take the prospect to make a purchase decision is affected by the prospects confidence in your offering, the number and quality of competitive offerings, the number of people involved in the decision, the urgency of the need for your offering and the risk involved in making the purchase decision. The prospect's willingness to pay for product value is determined by their knowledge of competitive pricing, their ability to pay and their need for characteristics such as quality, durability, reliability, ease of use, uniformity and dependability.

Likelihood of adoption by the prospect is based on the criticality of the prospect's need, their attitude about change, the significance of the benefits, barriers that exist to incorporating the offering into daily usage and the credibility of the offering.

The Product/Service You should be thoroughly familiar with the factors that establish products/services as strong contenders in the marketplace. Factors to consider include:
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Whether some or all of the technology for the offering is proprietary to the enterprise. The benefits the prospect will derive from use of the offering. The extent to which the offering is differentiated from the competition. The extent to which common introduction problems can be avoided such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect. The potential for product obsolescence as affected by the enterprise's commitment to product development, the product's proximity to physical limits, the ongoing potential for product improvements, the ability of the enterprise to react to technological change and the likelihood of substitute solutions to the prospect's needs. Impact on customer's business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer's operations and the costs to switch to your offering. The complexity of your offering as measured by the existence of standard interfaces, difficulty of installation, number of options, requirement for support devices, training and technical support and the requirement for complementary product interface.

The Competition It is essential to know who the competition is and to understand their strengths and weaknesses. Factors to consider include:
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Each of your competitor's experience, staying power, market position, strength, predictability and freedom to abandon the market must be evaluated.

Your Enterprise An honest appraisal of the strength of your enterprise is a critical factor in the development of your strategy. Factors to consider include:
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Enterprise capacity to be leader in low-cost production considering cost control infrastructure, cost of materials, economies of scale, management skills, availability of personnel and compatibility of manufacturing resources with offering requirements. The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition. The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect. The prominence of the enterprise.

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The competence of the management team. The adequacy of the enterprise's infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities. The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, creditors, investors and other outside influences. Freedom from having to deal with legal problems.

Development A review of the strength and viability of the product/service development program will heavily influence the direction of your strategy. Factors to consider include:
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The strength of the development manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the development personnel. Personnel who understand the relevant technologies and are able to perform the tasks necessary to meet the development objectives. Adequacy and appropriateness of the development tools and equipment. The necessary funding to achieve the development objectives. Design specifications that are manageable.

Production You should review your enterprise's production organization with respect to their ability to cost effectively produce products/services. The following factors are considered:
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The strength of production manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the manufacturing personnel. Economies of scale allowing the sharing of operations, sharing of production and the potential for vertical integration. Technology and production experience The necessary production personnel skill level and/or the enterprise's ability to hire or train qualified personnel. The ability of the enterprise to limit suppliers bargaining power. The ability of the enterprise to control the quality of raw materials and production. Adequate access to raw materials and sub-assembly production.

Marketing/Sales The marketing and sales organization is analyzed for its strengths and current activities. Factors to consider include:
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Experience of Marketing/Sales manager including contacts in the industry (prospects, distribution channels, media), familiarity with advertising and promotion, personal selling capabilities, general management skills and a history of profit and loss responsibilities. The ability to generate good publicity as measured by past successes, contacts in the press, quality of promotional literature and market education capabilities. Sales promotion techniques such as trade allowances, special pricing and contests.

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The effectiveness of your distribution channels as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering. Advertising capabilities including media relationships, advertising budget, past experience, how easily the offering can be advertised and commitment to advertising. Sales capabilities including availability of personnel, quality of personnel, location of sales outlets, ability to generate sales leads, relationship with distributors, ability to demonstrate the benefits of the offering and necessary sales support capabilities. The appropriateness of the pricing of your offering as it relates to competition, price sensitivity of the prospect, prospect's familiarity with the offering and the current market life cycle stage.

Customer Services The strength of the customer service function has a strong influence on long term market success. Factors to consider include:
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Experience of the Customer Service manager in the areas of similar offerings and customers, quality control, technical support, product documentation, sales and marketing. The availability of technical support to service your offering after it is purchased. One or more factors that causes your customer support to stand out as unique in the eyes of the customer. Accessibility of service outlets for the customer. The reputation of the enterprise for customer service.

http://knol.google.com/k/marketing-strategy-differentiating-and-positioning-the-market-offering#

Marketing Strategy

Philip Kotler discussed five issues of marketing strategy in his 9th edition of Marketing Management

Differentiating and Positioning the Market Offering Developing New Products Managing Life cycle Strategies Designing marketing Strategies for Market Leaders, Challengers, Followers, and Niches Designing and Managing Global Marketing Strategies

These issues are covered in different knols by me. This knol describes differentiating and positioning.

Differentiating and Positioning the Market Offering

The issues discussed in the area of differentiating and Positioning the market offering are:
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Tools for Competitive Differentiation Developing a Positioning Strategy Communicating the Company s Positioning

Tools for Competitive Differentiation Differentiation - Definition: is the act of designing a set of meaningful differences to distinguish the company's offering from competitor's offerings. Boston Consulting Group's differentiation opportunities matrix: Actually it is a competitive advantage matrix applicable to differentiation opportunities. Four types of industries identified by BCG matrix are: Volume industry: only a few but very large competitive advantages are possible. The benefit of the advantage is proportional with company size and market share. Example given - construction industry Stalemated industry: in this type there are only few opportunities and the benefit from each is small. The benefit is also not proportional to the size or market share. Example: Steel industry - It is hard to differentiate the product or decrease its manufacturing cost. Fragmented industry: in this type, there are many opportunities, but the benefit of each of them is small. Benefit does not depend on size or market share. Specialized industry: in this type, the opportunities are more and benefit of each opportunity is high. The benefit is not related to size or market share. Kotler mentions, MilindLele's observation that companies differ in their potential maneuverability along five dimensions: their target market, product, place (channels), promotion, and price. The freedom of

maneuver is affected by the industry structure and the firm's position in the industry. For each potential competitive opportunity or option limited by the maneuverability, the company needs to estimate the return. Those opportunities that promise the highest return define the company's strategic leverage. The concept of maneuverability brings out the fact that a strategic option that worked very well in one industry may not work equally well in the other industry because of low maneuverability of that option in the different industry and by the firm in consideration.

Five Dimensions of Differentiation

Regarding the tools of differentiation, five dimensions can be utilized to provide differentiation. Product Services that accompany marketing, sales and after sales services. Personnel that interact with the customer Channel Image

Differentiating a Product Features Quality: performance and conformance Performance - the performance of the prototype or the exhibited sample, Conformance - The performance of every item made by the company under the same specification

Durability Reliability Reparability Style Design

Services differentiation

Ordering ease Delivery Installation Customer training Customer consulting

Miscellaneous services Personnel Differentiation Competence Courtesy Credibility Reliability Responsiveness Communication Channel differentiation Coverage Expertise of the channel managers Performance of the channel in ease of ordering, and service, and personnel Image differentiation First distinction between Identity and Image - Identity is designed by the company and through its various actions company tries to make it known to the market. Image is the understanding and view of the market about the company. An effective image does three things for a product or company. 1. It establishes the product's planned character and value proposition. 2. It distinguishes the product from competing products. 3. It delivers emotional power and stirs the hearts as well as the minds of buyers. The identity of the company or product is communicated to the market by Symbols Written and audiovisual media Atmosphere of the physical place with which customer comes into contact Events organized or sponsored by the company.

Developing a Positioning Strategy

Levitt and others have pointed out dozens of ways to differentiate an offering(Theodore Levitt: "Marketing success through differentiation-of anything", Harvard Business Review, Jan-Feb, 1980)

While a company can create many differences, each difference created has a cost as well as consumer benefit. A difference is worth establishing when the benefit exceeds the cost. More generally, a difference is worth establishing to the extent that it satisfies the following criteria.

Important: The difference delivers a highly valued benefit to a sufficient number of buyers. Distinctive: The difference either isn't offered by others or is offered in a more distinctive way by the company. Superior: The difference is superior to the ways of obtaining the same benefit. Communicable: The difference is communicable and visible to the buyers. Preemptive: The difference cannot be easily copied by competitors. Affordable: The buyer can afford to pay the higher price Profitable: The Company will make profit by introducing the difference.

Positioning Positioning is the result of differentiation decisions. It is the act of designing the company's offering and identity (that will create a planned image) so that they occupy a meaningful and distinct competitive position in the target customer's minds.

The end result of positioning is the creation of a market-focused value proposition, a simple clear statement of why the target market should buy the product. Example: Volvo (station wagon) Target customer-Safety conscious upscale families, Benefit - Durability and Safety, Price - 20% premium, Value proposition - The safest, most durable wagon in which your family can ride.

How many differences to promote?

Many marketers advocate promoting only one benefit in the market (Your market offering may have many differentiators, actually should have many differentiators in product, service, personnel, channel, and image). Kotler mentions that double benefit promotion may be necessary, if some more firms claim to be best on the same attribute. Kotler gives the example of Volvo, which says and "safest" and "durable". Four major positioning errors 1. Underpositioning: Market only has a vague idea of the product. 2. Overpositioning: Only a narrow group of customers identify with the product. 3. Confused positioning: Buyers have a confused image of the product as it claims too many benefits or it changes the claim too often. 4. Doubtful positioning: Buyers find it difficult to believe the brand s claims in view of the product s features, price, or manufacturer. Different positioning strategies or themes 1. Attribute positioning: The message highlights one or two of the attributes of the product. 2. Benefit positioning: The message highlights one or two of the benefits to the customer. 3. Use/application positioning: Claim the product as best for some application. 4. User positioning: Claim the product as best for a group of users. - Children, women, working women etc. 5. Competitor positioning: Claim that the product is better than a competitor. 6. Product category positioning: Claim as the best in a product category Ex: Mutual fund ranks Lipper. 7. Quality/Price positioning: Claim best value for price

http://www.brandingstrategyinsider.com/2009/10/10-branding-and-marketing-trends-for-2010.html

10 Branding and Marketing Trends for 2010 Niels Bohr once noted that "prediction is very difficult, especially about the future," but then he didn't have access to predictive loyalty metrics. Happily, we do. And, as they measure the direction and velocity of consumer values 12 to 18 months in advance of the marketplace and consumer articulations of category needs and expectations, they identify future trends with uncanny accuracy. Having examined these measures, we offer 10 trends for marketers for 2010 that will have direct consequences to the success - or failure of next year's branding and marketing efforts. 1) Value is the new black Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This spells trouble for brands with no authentic meaning, whether high-end or low. 2) Brands increasingly a surrogate for "value" What makes goods and services valuable will increasingly be what's wrapped up in the brand and what it stands for. Why J Crew instead of The Gap? J Crew stands for a new era in careful chic --being smart and stylish. The first family's support of the brand doesn't hurt either. 3) Brand differentiation is Brand Value The unique meaning of a brand will increase in importance as generic features continue to plague the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success --meaning sales and profitability. 4) "Because I Said So" is so over Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can't just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement. 5) Consumer expectations are growing Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive - and prosper. 6) Old tricks don't work/won't work anymore

In case your brand didn't get the memo here it is -consumers are on to brands trying to play their emotions for profit. In the wake of the financial debacle of this past year, people are more aware then ever of the hollowness of bank ads that claim "we're all in this together" when those same banks have rescinded their credit and turned their retirement plan into case studies. The same is true for insincere celebrity pairings: think Seinfeld & Microsoft or Tiger Woods & Buick. Celebrity values and brand values need to be in concert, like Tiger Woods & Accenture. That's authenticity. 7) They won't need to know you to love you As the buying space becomes even more online-driven and international (and uncontrolled by brands and corporations), front-end awareness will become less important. A brand with the right street cred can go viral in days, with awareness following, not leading, the conversation. After all, everybody knows GM, but nobody's buying their cars. 8) It's not just buzz Conversation and community is all; ebay thrives based on consumer feedback. If consumers trust the community, they will extend trust to the brand. Not just word of mouth, but the right word of mouth within the community. This means the coming of a new era of customer care. 9) They're talking to each other before talking to the brand Social Networking and exchange of information outside of the brand space will increase. Look for more websites using Facebook Connect to share information with the friends from those sites. More companies will become members of Linkedin. Twitter users will spend more money on the Internet than those who don't tweet. 10) Engagement is not a fad; It's the way today's consumers do business Marketers will come to accept that there are four engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there is only one objective for the future: Brand Engagement. Marketers will continue to realize that attaining real brand engagement is impossible using out-dated attitudinal models. Accommodating these trends will require a paradigm change on the parts of some companies. But whether a brand does something about it or not, the future is where it's going to spend the rest of its life. How long that life lasts is up to the brand, determined by how it responds to today's reality.

.. http://www.marketingmo.com/strategic-planning/brand-strategy/

Brand Strategy

What is a brand? Is it a logo? A name or slogan?A graphic design or color scheme? Your brand is the entire experience your prospects and customers have with your company. Its what you stand for, a promise you make, and the personality you convey. And while it includes your logo, color palette and slogan, those are only creative elements that convey your brand. Instead, your brand lives in every day-t0-day interaction you have with your market:
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The images you convey The messages you deliver on your website, proposals and sales materials The way your employees interact with customers A customer s opinion of you versus your competition

Branding is crucial for products and services sold in huge consumer markets. Its also important in B2B because it helps you stand out from your competition. It brings your competitive position and value proposition to life; it positions you as a certain something in the mind of your prospects and customers. Your brand consistently and repeatedly tells your prospects and customers why they should buy from you. Think about successful consumer brands like Disney, Tiffany or Starbucks. You probably know what each brand represents. Now imagine that youre competing against one of these companies. If you want to capture significant market share, start with a strong and unique brand identity or you may not get far. In your industry, there may or may not be a strong B2B brand. But when you put two companies up against each other, the one that represents something valuable will have an easier time reaching, engaging, closing and retaining customers. A strong brand strategy can be a big advantage. Successful branding also creates brand equity the amount of money that customers are willing to pay just because its your brand. In addition to generating revenue, brand equity makes your company itself more valuable over the long term.

By defining your brand strategy and using it in every interaction with your market, you strengthen your messages and relationships.
Best Case Neutral Case Worst Case

Prospects and customers know exactly what you deliver. It s easy to begin dialogue with new prospects because they quickly understand what you stand for. You close deals more quickly because your prospects experience with you supports everything you say. You can charge a premium because your market knows why you re better and is willing to pay for it.

The market may not have a consistent view or impression of your product and company, but in general you think it s positive. You haven t thought a lot about branding because it doesn t necessarily seem relevant, but you admit that you can do a better job of communicating consistently with the market. You re not helping yourself but you re not hurting yourself either.

You don t have a brand strategy and it shows. It s more difficult to communicate with prospects and convince them to buy. They don t have an impression of your product or why it s better. What you do, what you say and how you say it may contradict each other and confuse your prospects. Competitors who communicate more strongly have a better shot at talking with and closing your prospective customers.

Key concepts & steps

Before you begin Before working on your brand strategy, make sure youve identified your competitive positioning strategy your brand strategy will bring it to life. If you have a brand strategy, make sure its as effective as possible
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Poll your customers, employees and vendors. Are their impressions consistent with your strategy? If not, work on the elements you can improve.

Develop your brand strategy around emotional benefits

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List the features and benefits of your product / service. A feature is an attribute a color, a configuration; a benefit is what that feature does for the customer. Determine which benefits are most important to each of your customer segments. Identify which benefits are emotional the most powerful brand strategies tap into emotions, even among business buyers. Look at the emotional benefits and boil them down to one thing that your customers should think of when they think of you. That s what your brand should represent.

Define your brand

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Think of your brand as a person with a distinct personality. Describe him or her, then convey these traits in everything you do and create. Write positioning statements and a story about your brand; use them throughout your company materials. Choose colors, fonts and other visual elements that match your personality. Determine how your employees will interact with prospects and customers to convey the personality and make sure your brand lives within your company.

Whats next?
Together with your competitive positioning strategy, your brand strategy is the essence of what you represent. A great brand strategy helps you communicate more effectively with your market, so follow it in every interaction you have with your prospects and customers. For example, youll communicate your brand strategy through your pricing strategy, name and corporate identity, messages, literature and website. It may also drive the need to implement a better CRM system to manage customer relationships. If you have a marketing question, feel free to ask a Marketing M.O. expert. Well send you a detailed response, and its free. If youd like to download detailed brand strategy content and tools, check out Growth Panel, our intelligent marketing management platform.