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assignment...

Differentiate between marketing-strategy formulation for Pure-Play Company and Bricks-and-Mortar Company.

Pure-Play Company and Bricks-Mortar Company different between:

1. Segmentation
2. Target-market selection
3. Positioning

Pure-Play Company

Pure-Play Company is purely based on online company. For example the online company is Yahoo and eBay.

1. Segmentation for Pure Play

• Breaking up market customers into large identifiable groups or segments.
• Bases for segmentation:

1. Demographic

2. Geographic

3. Psychographic

4. Cognitive & behavioral

• Effective segmentation have 3 rules:

i. Meaningful

ii. Actionable

iii. Financially attractive

2. Target-market selection for Pure Play

• Evaluating market segments for overall attractiveness & choosing segments that are consistent with the firm’s marketing strategy & capabilities.
• 3 factors that can be look at:
1. Segment size & growth
2. Segment structural attractiveness
3. Company objectives & resources

3. Positioning for Pure Play

- Features or services such as style or speed of delivery

- Benefits to be perceived such as happiness

- Specific usage occasions such as functional for a given purpose

- User category based on specific type of user

- Against another product- better than competitor

- Product-class positioning – different type of product from what customer expect

- Hybrid/ combination of the above

Positioning Plan for Pure Play: 5 steps

I. Identify actual product positioning

- Through consumer interviews @ questionnaires

- Identify competitors & their positions in the market

II. Determine ideal product position

- Determine areas not being served by other products

- Identify customer preferences that not being met by an existing product.

III. Develop alternative strategies for achieving ideal product position

- Attempt to reposition an existing product to a new position, with @ without a change in the product itself

- Introduce a separate a new product with the characteristics necessary for the ideal positioning

IV. Select & implement the most promising alternative

- Choosing a most favorable plan & consistent with a company’s objectives, resources & strengths.

- Implementation should include specific guidelines concerning what activities to carry out & how they might ultimately be accomplished.

V. Compare new actual position with ideal position

- Measures to track the success of positioning move

- Tracking & evaluation can show any deviation that might occur

- Reveal new opportunities & threats

Bricks-and-Mortar Company

1. Segmentation for BAMs Moving Online

- Change in Segmentation Characteristics Due to Internet

- Changes in Size of Market Segments

- Bases for segmentation:

i. Market expansion

ii. Reclassified expansion

iii. Market reclassification

iv. No change

2. Targeting for BAMs Moving Online

- targeting focus on customer similarity and focus on effort

- there have 4 type of targeting:

i. Blanket targeting - serve same segment online as offline

ii. New-Opportunity targeting - serve new segment online

iii. Beachhead targeting - serve a portion of offline segment online

iv. Bleed-Over targeting - serve part of offline segment as well as new segment online

3. Positioning for BAMs Moving Online

1. Blanket Targeting

• Borrow heavily from existing offline positioning

• Tout basic advantages of the Internet – convenience and accessibility

2. New Opportunity Targeting

• Reposition entirely

• Position differentiations which cater to the new segment

3. Beachhead Targeting

• Also borrow from offline positioning

• Focus more, however, on needs of the smaller group

• Stress value-added advantages of the Internet

4. Bleed-Over Targeting

• Use dual positioning

• Leverage existing positioning

• Position added benefits, such as augmented offerings via the Internet

example: increased product customizability