companies in the luxury fashion sector............................................................... ............................... 183

Margaret Bruce and Christine Kratz

Introduction ................................................ ................................................. ............................................... 183

Understanding the principles of luxury fashion .............................................................. ............................................... 184

Dynamics of development of luxury fashion.................................................................... ................................................. .. 186

Marketing Strategies in the Conditions of Dynamic Market Development.................................................................. ..... 191

illustrative examples ................................................................ ................................................. ............................. 199

Conclusion................................................. ................................................. ......................................... 203

Thanks................................................................. ................................................. ...................................... 204

Sources................................................. ................................................. ................................................... 205

Chapter 8 The Atmosphere in Fashion Retail Stores: A View from Hong Kong .............................................. 209

Alice W. S. Chu and M. S. Lam

Introduction ................................................ ................................................. ............................................... 209

General picture .................................................. ................................................. ...................................... 211

Atmosphere in the store .................................................. ................................................. ........................... 212

The atmosphere created by the store .................................................................. ................................................. .214

A Modern Study of the Influence of Trade Space Factors

choice of a Hong Kong consumer of a fashion casual clothing store .............................................. 218

Conclusions................................................. ................................................. ................................................. 221

Sources................................................. ................................................. ............................................... 225

Chapter 9 Pre-Season Trend Development Process .................................................. 229

Tim Jackson

Research project .............................................................. ................................................. ........................... 229

What is fashion? ....................................................... ................................................. ...................................... 230

Fashion trends ................................................................ ................................................. .................................... 231

Fashion seasons ................................................................ ................................................. ................................... 233

Retailer/brand research.................................................................... ................................................. ...... 235

The role of forecasting in the fashion industry .............................................. ............................................... 237

Sources................................................. ................................................. ............................................... 250

Application. Information about the respondents who answered the questions for this chapter .............................................. 251

Chapter 10. The practice of innovation management in the future .................................................... ..... 253

Beatrice Le Pechot, Trevor J. Little and Cynthia L. Eastuk

Introduction ................................................ ................................................. ............................................... 253

Mapping the Creative Design Process .................................................................. ......................................... 254

Marketing and design .................................................................. ................................................. ............................... 264

Development of design in a complex environment .............................................................. ................................................. 267

Creative design................................................ ................................................. ............................... 274

The practice of innovation management in the future.................................................................. .............. 281

Development of a template language for innovation management.................................................................. .."......... 282

Sources................................................. ................................................. ............................................... 283

Chapter 11 How Consumers and Their Negative Selves Affect Fashion Marketing

Emma N. Banister and Margaret K. Hog

Introduction ................................................ ................................................. ............................................... 287

Symbolic Consumption .................................................................. ................................................. ............... 287

Unwanted Self: "Not Me!" ................................................. ............. 293

Avoided Self: "Hardly Me!" ................................................. ....................... 295

Negative Self: Conclusion ............................................... ................................................. ................... 297

Significance for fashion marketing .............................................................. ................................................. ........... 298

Notes................................................... . :................................................ ......................................... 298

Sources................................................. ................................................. ................................................... 299

Chapter 12

Tony Hines, Rainis Cheng and Ian Grime

Corporate identity .................................................................. ................................................. .............. 303

Perspectives on the Development of Research on Corporate Identity.................................................................. ...... 303

Differences in the assessment of identity .............................................................. ................................................. ..... 304

Components of Corporate Identity .................................................................. ................................................. 306

Presentation of illustrative examples .................................................................. ......................................... 309

Illustrative example of Hennes and Mauritz............................................................. ............................... 314

An illustrative example of Zara.................................................... ................................................. ............ 320

Comparative analysis of illustrative examples of H&M and Zara.................................................................. .......... 326

Conclusions and consequences ............................................................... ................................................. .............. 329

Sources................................................. ................................................. ............................................... 330

Chapter 13 ............................................... 335

Ruth Marciniac and Margaret Bruce

Introduction ................................................ ................................................. ............................................... 335

Who trades via the Internet? .............................................. ................................................. ................. 336

What helps create a good fashion website? .................................... 339

How do fashion retailers develop websites? ................................... 342

Who shop online? .............................................................. ................................................. ..... 345

Who makes purchases through various distribution channels? ......................... 347

Conclusions................................................. ................................................. ................................................. 350

Sources................................................. ................................................. ............................................... 352

Chapter 14. International Flagship Stores,

owned by luxury fashion retailers .............................................. ... 357

Christopher M. Moore and Anna Marie Dougherty

Introduction ................................................ ................................................. ............................................... 357

International Flagship Stores .................................................................. ............................................... 358

The strategic goal of the flagship store .................................................... ......................................... 360

Flagship Stores: Method of Entering the Market ....................................................... ...................................... 361

Flagship Stores: A Channel for Forming and Maintaining Business Relationships .................................. 362

Flagship Stores: Marketing Communications Center .................................................................. .............. 363

Flagship Stores: Development Program ....................................................... ......................................... 365

Location and place .............................................................. ................................................. ...................... 367

Flagship Stores and Distribution Hierarchy .............................................................. ................................... 370

Language of flagship stores.................................................................... ................................................. .............. 372

The role and function of the famous architect ....................................................... ............................................. 373

Flagship store design and positioning .............................................................. ........ 374

Prada's epicenter stores.................................................... ................................................. ... 376

Sources................................................. ................................................. ............................................... 378

Chapter 15 ............................................. 381

Martin Raymond

Sources................................................. ................................................. ................................................... 394

Chapter 16 ............................... 397

Tony Hines

Criticism directed at marketing .............................................................. ................................................. ..... 398

Factors that influenced the conduct of the study .............................................................. ................... 399

Sources ........................ 403

Alphabetical index .................................................................. ................................................. ......................... 405

PREFACE TO THE RUSSIAN EDITION

Fashion is fleeting, it preaches hedonism and gives people the opportunity to express their tastes and statuses. This is a huge, global business. Entertaining and difficult. It is closely intertwined with modern technology, aesthetics and functionality. In sportswear, comfort, lightness, breathability, wear characteristics are important; for a summer evening wardrobe, color, fabric structure and style are of particular importance. The success of a fashion business is unattainable without the talent and skill of many people: designers, materials scientists, chemists (color specialists), supply chain and logistics experts, strategists, buyers, market research professionals, sales staff and others. The fashion industry is involved in all aspects of design, production, marketing and distribution, from product concept development to final product launch, brand development and promotion.

Fashion is dynamic and constantly changing, which makes trend forecasting and planning difficult and risky. Fast fashion operates on a tight timeframe to get products to stores and quickly meet changing demand. Losses associated with the inability to meet demand are high, and the daily experience of price cuts and sales is proof of this.

There are two concepts associated with ensuring rapid response:

Deflationary prices generated by the desire of the consumer to purchase fashion goods at a very

a conspicuous unwillingness to pay a high price for them;

Credit squeeze: a decrease - due to the rapidly rising prices of food, gasoline and mortgages - of consumer income that they can spend on fashion items.

Another concern is how to sourcing fashion in an ethical and potentially exploitative way within the industry. What should be the ethics of visitors who make fashion purchases?

Other pressing issues include sustainable development and a culture of consuming organic products. Some fashion designers consciously prefer organic materials and encourage suppliers to develop and use environmentally friendly coloring and finishing agents. This leads to an increase in the cost of fashion products. But what price are consumers willing to pay for sustainable products?

The book "Marketing in the Fashion Industry" made a significant contribution to the development of the discipline of the same name, and also contributed to the development of a research plan in this area. It is a comprehensive scientific publication and covers the most important aspects of marketing and management. Its chapters cover issues such as market segmentation; strategies for building, structure and interconnection in the supply chain; purchasing and merchandising; retailer identity; luxury fashion; e-commerce and the Internet; consumer behavior and trend forecasting.

Chapter 8: Evaluating Marketing Strategy Choices (Module 22)

The matrix model is designed to assess the current state of the brand in the market. Strategy chosen using the matrix method (market attractiveness is average, competitive position is strong). (Table 11). For a given market and competitive position, selective development is needed:

Invest heavily in the most attractive segments;

Develop the ability to resist competition;

Increase profitability through increased productivity.

The competitive position in the commodity market of ready-made soups is strong. Ready soups are at the stage of maturity. Therefore, Europe Foods (TM Gallina Blanca) should hold its position in the market.

Table 11

To support our decision, we will use the characteristics of behavior in various marketing strategic positions.

Table 12

Based on the data obtained, we will analyze the existing strategy of the company and develop the most optimal...

Analysis and development of a marketing strategy for Wimm-Bill-Dann's "Biomax" drinking yoghurt

The current position of the Biomax product is as follows: - the main competitors are Activia and Ermigurt Prebiotic; - the product is the most competitive according to the results of calculations; - the brand of goods is recognizable and consumers have a commitment to ...

Types of strategies and the process of choosing a development strategy on the example of PUE "Universal Bobruisk" NGO BelOG

When considering strategic proposals, the leader in his activities usually relies on his ideas about their impact on trends in the activities of the enterprise ...

Marketing in the tourism business

Marketing in foreign economic activity

Marketing in foreign economic activity requires consideration and implementation of its strategic goals and international marketing policy. The marketing approach mainly involves the target orientation ...

Marketing strategy of the enterprise

An important role is played by systems for evaluating the effectiveness of the implementation of the developed strategy and monitoring the proper achievement of the planned goals ...

Marketing Strategies

Determination of the company's strategy. The process of choosing a strategy includes the following main steps: understanding the current strategy; Conducting business portfolio analysis; selection of the firm's strategy and evaluation of the chosen strategy ...

Marketing strategies in the activities of a travel company in the foreign market

The main task of the enterprise in the formation of a marketing strategy is to reduce the degree of uncertainty and risk, as well as to ensure the concentration of resources in the selected priority areas of development...

Designing a management system for a catering company "Perfect Lunch"

The choice of the organization's participation strategy in the market is carried out on the basis of the conducted SWOT analysis...

Development of a marketing strategy (on the example of RA "Art-Design")

The reasons for the ineffectiveness of the marketing strategy of RA "Art-Design" is the insufficient level of quality of services of an advertising agency, as it was established in the process of analyzing the external and internal environment of the enterprise ...

Product portfolio, collaboration and ownership strategy

Organizations must pay close attention to the creation and management of their distribution systems, sparing all the resources necessary for this: time, money and effort ...

Theoretical and practical analysis of the organization's marketing strategy

The level of intensity of the competitive environment is a defining moment in the construction of the marketing policy of the enterprise, in the choice of means and methods of competition. The following aggregated factors are distinguished ...

Formation of prices and pricing strategy of the company

Much has been said above about the usefulness of avoiding price competition for most firms. In commercial practice, however, there are many examples of the successful development of firms ...

FOR CUSTOMER ORIENTED ORGANIZATIONS

Prologue

Did you know that Gene Simmons, the leader of the rock band Kiss, lover of make-up and a master of taunts, and Sam Walton, the respectable founder of the world's largest corporation, "brothers in spirit"? You're probably thinking, "What can these two have in common other than they both started their own businesses in the 1960s?" Okay, let's give you an answer: strategy. Both J. Simmons and S. Walton have been guided by an understanding of why consumers shop (what strategy will help get consumers to buy from them) and have become two of the most efficient salespeople in the world.

Company head office wal mart, largest corporation in the world (in terms of sales), located in the town of Bentonville (population - 19,730 people) on Mount Ozark, Arkansas, not far from the first store in the city of Rogers. Understanding consumers allowed the founder of the company Sam Walton, this "little David", to defeat the "Goliaths" of American retail - Montgo-mery Ward, K-mart And Sears. While other retail firms were obsessed with their "accounting", in wai mart organized everything, including technology, workers, product display and logistics, in such a way that it gives pleasure to consumers. With this consumer orientation wal mart ranks first in terms of customer satisfaction according to the results of a survey conducted by J. D. Power & Associates, and the annual sales volume wal mart reached approximately $300 billion (so it looks like wal mart become the world's first $1 trillion corporation).

Company sales volume wal mart food products is $162 billion, more than the combined sales of the next three largest food retailers - Kroger, Safeway And Albertson's. At the same time, the passion that wal mart to low prices, leads to the fact that when wal mart enters a new market, food prices there are reduced by 14% (which saves money even for those customers who do not buy anything in wal mart). By analyzing consumer behavior to determine what other products consumers would like to buy at low prices, wal mart constantly expanding

range of its products and services, and now includes major appliances, fuel, auto repair, banking, and some stores even have chiropractic clinics. The ability to develop and change in accordance with consumer demand is a trait that is also inherent in the group Kiss.

Even though the participants Kiss grew up in New York, this group did not enjoy much success in large cities, unable to compete with more talented musical groups. Gene Simmons admits, "We're not the best musicians," but when Kiss concentrated on rural fairs and events in small towns, their pyrotechnic effects, platform shoes and make-up proved to be much more attractive to local teenagers, since for them the choice of music was often limited to what sounded from someone's car in the parking lot. Just like Walmart, Kiss formed a fan base in small segments rejected by serious brands, used the "Army Kiss" in order to convince radio stations to play their music and gradually reached the level of visibility needed to participate in larger events such as New York's Madison Square Garden. Like Walmart, Kiss became top sellers by analyzing what consumers would like to buy, at what price, and selling 2,500 different products from branded t-shirts and pens Kiss to event tickets and condoms.

Like Kiss, Walmart did not attack K-Mait And Sears"on the forehead", but undertook the classic military strategy of guerrilla warfare, surrounding the superior enemy forces from the flanks. In cases Kiss And wal mart this was expressed in the concentration of power in small consumer segments. wal mart“conquered” rural firms, keeping overhead costs low and reaching such volumes that it was possible to negotiate price cuts with suppliers. The retail giants focused on the metropolitan areas and largely ignored such market segments, deeming them too small to be profitable. Eventually wal mart did not face strong competition. However wal mart, encircling large cities, transferred its values ​​of friendliness and low prices inherent in small cities, first to the suburbs, and then to the main urban areas, and then to other countries, and became the largest retail company in the world. While department stores emphasized the significant difference between the cost and price of products, the consumer-orientation strategy adopted by wal mart, was based on the belief that it is better to earn a lot of money little by little. Now Steve & Barry's(clothes) and Aldi(products) follow a similar strategy, focusing on consumers living in rural areas or those with low incomes in order to accumulate strength for further growth.

Company success wal mart largely due to the values ​​and vision of its founder, Sam Walton, who made his fortune on change - whether it was about changing consumer behavior or technological innovation. Knowing that K-Mart and other retailers often disappoint consumers with the absence of advertised products on the shelves, wal mart invested a lot of money in RFID (Radio Frequency Identification Devices). It was necessary

68 Part 1. Introduction to the study of consumer behavior

in order to track the movement of the product while in warehouses, moving on company trucks or sitting in the back rooms of stores. There should not have been a situation in the company's stores when consumers could not find Tide powder, Gillette razors or Ol' Roy dog ​​food and left wal mart disappointed. Now RF1D is placed only on boxes and pallets, but when costs come down, RFID will be placed on individual products. Consumers will then be able to run their shopping carts through "antennas" that will automatically detect what products they have purchased and calculate their total cost, bypassing manual control lines that waste valuable time for shoppers.

To implement consumer-oriented strategies, technology is needed that provides warehousing and data processing and logistics. RetailLink system owned wal mart, is the largest private database in the world and is designed to track what consumers are buying, reduce overproduction, offer lower prices and improve consumer satisfaction. When the client wal mart purchases a package of Pampers baby diapers, the tinkle of her cash register can be heard in Bentonville thanks to a fast and sophisticated electronic data transfer (EDI) system into a 460 terabyte data store. For comparison, we note that, according to experts, the content of the Internet is not even half of this figure. "Clinking" cash registers wal mart heard in Cincinnati, at the factory Procter & Gamble, manufacturer Pampers. Sharing data with partners in the supply chain helps to plan production and supply more efficiently, and is part of the process of creating effective marketing strategies in consumer-oriented companies.

The era of the consumer

We live in an era that can be called the century of the consumer, since what firms will continue to exist and which will not be determined by the choice of the consumer. Today's consumers are more powerful than ever before, they make up two-thirds of the US economy. Now, consumer analysis has gained particular importance, understanding of trends in consumer behavior, global consumer markets, forecasts of buying and consumption patterns, communication methods for the most effective coverage of target markets. This chapter focuses on the concepts, methods, and skills that you will need to develop consumer-oriented marketing strategies. These concepts and methods include customer relationship management, market segmentation, branding strategies, consumer retention and loyalty programs, global marketing, and communication strategies.

What is a strategy?

Some people believe that marketing involves manipulating consumers, but in reality, successful marketing is manipulative.

the organization is subject to lyatsiya. In this process, the most important role is played by

strategydistribution of resources (capital, technology and personnel) in certain areas. The job of consumer behavior analysts is to understand consumers well enough to predict which direction they will take the organization. For the marketing of business-to-business (B2B) organizations, in other words, serving corporate customers, this process will be similar, since corporate demand is ultimately driven by consumer demand. The difficulty for the subjects of the B2B sphere lies only in the fact that it is necessary to understand not only the thoughts of customers, but also the thoughts of consumers of customers.

In practice, a marketing strategy is a long-term plan, including a series of sequential activities, designed to achieve, usually with a high level of profitability, investments, such an advantageous market position that competitors can only achieve at an incredibly high cost.

In the previous chapters, the most popular approaches to the study of financial markets from the point of view of technical analysis were considered. The described methods can be used both to determine the current state of the market and to predict its further movement. As a rule, the main purpose of such research is to provide investors with recommendations on the most effective behavior in a particular market.

In this case, under the most effective behavior of an investor, we will understand the commission of such trading actions on the market, the result of which is the maximum increase in the ratio of investment profitability to their riskiness.

An analyst's trading advice may be an advice to an investor to open a long or short position in a certain financial instrument, to close a position in this instrument, or to refrain from trading at all at the current moment. The sequence of recommendations of a technical analyst can be viewed as a set of trading signals that allow an investor to determine his position in relation to the market at any time. Since the technical approach to analysis is based on the study of the behavior of only market parameters (prices, trading volumes, etc.), it seems logical to automate the issuance of trading signals, for which it is necessary to formalize the procedure for developing trading recommendations.

According to our assessment, as of 11/22/2019, the best brokers are:

For trade currencies– A Markets;

For trade binary options– Intrade.bar ;

For investment in PAMMs and other instruments - Alpari;

For trade shares– RoboForex.

Formalization of the definition of trading recommendations means the development by the analyst of clear rules for processing incoming market information, which makes it possible to determine the best opening and closing moments, as well as the optimal size of trading positions in the market under study. The set of such rules is called automatic trading strategies or, in other words, mechanical trading systems of technical analysis, since trading signals can be issued by computers as a result of the action of the corresponding computer programs.

Optimal money management methods, as a rule, mean that part of the methods for developing trading strategies that is focused on determining the size of the position being opened.

Price changes in financial markets are essentially non-stationary random processes, i.e. processes whose probabilistic characteristics change over time. The rules by which optimal trading recommendations are built for one period of market development may turn out to be useless in other time ranges. The hypothesis of the efficiency of markets and the related statement about the martingale of price increment processes completely reject the possibility of a successful systematic application of such rules (as well as methods On the contrary, the underlying assumption of the existence of market inefficiencies in technical analysis leads to the possibility of using market analysis methods in trading; however, the question of whether it is possible to establish trading rules that work effectively over sufficiently long periods of time remains open. It should be noted here that trading rules can be changed in accordance with the changing nature of the market, but if the procedure for such optimization of rules is itself formalized, it can be considered part of a trading strategy.

The question of the possibility of constructing rules that make it possible to increase the efficiency of trading operations in financial markets compared to the "buy and hold" strategy is related to the question of whether there are such persistent manifestations of market inefficiency that they can be used for a long time. Observations show that, regardless of the answer to this question, mechanical trading systems can be successfully used in periods of relatively unchanged market conditions, and such periods are sometimes quite long.

In addition to the approach associated with the development of formalized trading rules, or a systematic approach, in technical analysis there is an approach to issuing trading recommendations based on a predominantly visual study of market information in a graphical form. Analysts who adhere to this approach, as a rule, consider models of various types formed on the charts and identify signs of one or another further development of the market situation on them. Each such specialist also has certain rules of analysis, but in this case they are not explicitly formalized and have a significant degree of subjectivity. We will call the supporters of this approach non-system analysts or traders. Both in the systemic and in the non-systematic approach to technical analysis, strengths and weaknesses can be distinguished. In favor of a non-systemic approach, the following arguments are usually given:

Currently, the brain seems to be more efficient at analyzing graphic images (in this case, graphic models) than a computer that obeys a set of certain rules does.

An analyst not bound by strict rules can take into account unusual market behavior at some points in time, in particular, filter out data related to technical errors of bidders, exchange or information systems.

An experienced trader, generally speaking, can detect changes in market conditions faster than a mechanical system registers them. In addition, a trader not connected by the system can additionally take into account information of a fundamental nature.

The following advantages are distinguished in a systematic approach to trading:

Mechanical trading systems can significantly reduce the influence of the subjective factor on trading. In making their decisions, non-systemic traders are influenced by various emotions: fear, hope, greed, as well as stressful situations and a variety of personal considerations. Under the influence of these emotions, the analyst or trader may make decisions that are different from those that would be developed on the basis of his method of analysis in a more relaxed environment. A computer trading strategy, of course, does not have this drawback. Moreover, work on trading systems seriously disciplines trading participants.

A computer trading strategy obliges you to work consistently in the market, i.e. a system trader needs to follow all the signals of the strategy, while a non-system trader does not have such an obligation.

Mechanical trading systems, as a rule, include a mechanism for managing trading risks. Automated trading systems allow you to limit losses on an individual position, thereby preventing ruinous losses.

The influence of fundamental information on the decisions of non-system analysts can also have a negative side. Often, the behavior of asset prices and other market parameters more accurately reflects changes in the market situation than an analyst who takes into account economic, political and other external factors can do. The market can give a diametrically opposite reaction to the arrival of seemingly similar external data.

A computerized strategy allows you to quickly test trading ideas on historical data and determine how effective their use can be. It is much more difficult to check the effectiveness of non-formalized trading principles of non-system analysts.

Trading on mechanical systems has a serious problem: any system is adapted to a certain state of the market, and a change in this state leads to a sharp deterioration in trading performance. However, this problem is not excluded with a non-systemic approach, especially if decisions are made by an insufficiently experienced or insufficiently qualified specialist. Observations show that among the proponents of an active approach to working in the financial markets, some outstanding non-system traders perform better than traders trading mechanical trading systems.

It is also noted that, on average, the results of many system traders significantly exceed the results of the actions of supporters of a non-system approach. It is difficult to judge to what extent these observations can serve as a serious argument for choosing one or another trading method, but in any case, the development and testing of mechanical trading systems, as well as work on these systems, are extremely useful for novice analysts.

Computer trading strategies allow you to develop effective trading techniques, give a general idea of ​​\u200b\u200bwhat can be expected from the use of these techniques in the market, and achieve discipline in the execution of trading decisions. The last factor may be decisive for the effectiveness of all trading activities. In addition, computer trading strategies are taught to work consistently in the market.

Currently, there are a number of computer programs on the software market that allow analysts to significantly simplify the process of developing and testing trading strategies. The best known of these programs is the product of Equis International, 1ps. - MetaStock family and developed by TradeStation Group, Inc. (former name - Omega Research, 1ps.) - a family of Trade Station programs.

Later in this chapter, we will list the main components of an automated trading strategy, describe the main stages of building a mechanical trading system, describe the main types of such systems, and give examples of trading ideas that can be used to generate signals to open or close market positions. The main principles of testing the work of trading strategies on historical market data, optimization methods and parameters for evaluating the performance of mechanical trading systems will be described. In addition, some methods for optimal management of trading capital will be briefly listed.

Content

Chapter 8: Positioning Strategy

Having studied and assessed the market environment, it is necessary to make the first and most important strategic decision on the selection of the target segment by benefits. Once a given segment has been identified, the market planning team must determine the competitive position of their product. These two strategic decisions are decisive as they influence all subsequent marketing decisions.

How is it that small start-up Apple succeeded in an industry dominated by huge, booming computer companies? The answer is positioning. Initially, Apple specifically positioned its product as a standalone personal computer. During the rise of Apple, other computer manufacturers competed to build even bigger, faster computers. At a time when other start-ups like Osborne have come and gone, Apple has evolved and thrived with the educational market in mind. IBM's entry into the market marked the opening of a new segment - the business market for personal computers. Even though the operating system and software were completely incompatible with IBM and MS-DOS, Apple proved to be competitive. Why? Because the firm's target was a business segment requiring graphics, reporting, and desktop publishing. Mice, pointers, software, and Apple's first laser printers helped to ideally position the computer to serve these business segments. The company later expanded on the benefits of product positioning - Apple was presented as a "user-friendly" computer and marketed as a system that was easy to learn.

Apple's success, first in the educational and then in the business market, is primarily due to the company's focus on well-defined segments associated with benefits in the field of use and positioning its product in such a way that it contributes to the provision of these benefits.

Rice. 8-1. Profitability of individual positioning

The main task of a competitive positioning strategy is to develop and market a new product in such a way that the market segment can highlight its specific attractive features. In economics, this is called distancing yourself from price competition among lower-quality substitutes for goods. This approach to substitutability allows the company to monopolize a segment of the market, offer higher prices and earn excess profits.

The economic benefits of such a strategy are shown in this figure. There is a clear relationship between successful differentiation and net profit levels. Brands are perceived by target consumers because there are no substitutes for the product (higher level of differentiation), which makes it possible to earn higher profits. Unique positioning can bring in big money. The same amount of money can also be lost by creating a product that replaces the products of competitors and does not have a price advantage over them (the “me too” situation)

Identifying market positioning opportunities is a serious test of an entrepreneur's ability. Skillful positioning can turn entrepreneurs into millionaires and elevate middle managers to the level of top executives, because smart product positioning can bring profits well above average (Figure 8-1). In the first section of this chapter, we will look at targeting decisions, because at some point a firm must ask itself, “Which customers do we want to target and what benefits do they expect from our product or service?” In the second section of the chapter, we will look at the issues of positioning and differentiation: What benefits do we want to provide to the consumer and how can our product provide a more profitable advantage over competitors? The third section will show you how to use positioning to attack and defend the market. The fourth will explain how the concept of positioning a product on the competitive map translates into a real differentiated product or service: How to develop our product or service to deliver the desired quality to the consumer? The fifth section will explain how to determine the price using added quality analysis: How much are end users willing to pay for the high quality of our product? The process culminates in a cost-benefit study of the proposed positioning: Can the proposed placement, design, and price result in realistic sales forecasts, and is this data consistent with the company's financial goals? Finally, we will discuss some of the market positioning problems that arise in international marketing. The recommended approach to developing a positioning strategy is detailed in Figure 1. 8-2.

Stages of positioning strategy Analytical methods used

Benefit Segmentation:? Deep segmentation, (see Ch. 3)

Define nature by benefits, including

segment size and growth forecast,

demographics, scope,

preference and behavior

Position Mapping? Intuitive Mapping

competitors:? Mapping product substitutes

The position of the product/service in relation to? Preference Mapping

to competitors on the positioning map, ? Feature rating

which also shows sets? Conjugate Analysis

ideal consumer outlets? Cluster analysis (i.e. benefit segments)

Quality Deployment Function (QDF):? Quality Deployment Function (QDF)

Concept transformation? Matrix of product specifications, taking into account PRK

positioning in designed? Map of input and output data of the plan

product or service

Added quality analysis:? Determining the level of FFR

Analysis of monetary value added? Added quality analysis

quality compared to competitors? Conjugate Analysis

Taguchi methods

Performance analysis:? Break even analysis

Evaluation of financial performance? Return on investment analysis

positioning: ? STRATMESH planning

Is it possible to achieve the goals

in terms of sales and market share?

Rice. 8-2. The main stages of the positioning strategy

The concept of differentiated positioning is developed after the definition of market segments by benefits. This concept is then transformed into a product or service with the help of PRK. This project is complemented by added quality analysis and validated to determine the differentiated cost advantage. After that, the cost-effectiveness of the strategy is tested by evaluating sales and tasks for a given market share, as well as exploring the possibilities of achieving the goals.

how much end-users are willing to pay for this extra quality over and above competitors' prices.

As you read the chapter, focus on the following key points:

Positioning begins with market segmentation based on the variety of benefits that each consumer group expects from the product.

Positioning is often intuitive. Sophisticated analytical techniques may be helpful, but they are not necessary. Rough, quick calculation methods are better than haphazard thinking about positioning strategies.

It is useful to develop an ideal market competitor map in terms of determinants such as benefits and quality.

A positioning map can be used to identify opportunities, determine the current and desired market positioning of a product or service.

The main goal is to develop a differentiated product that creates a unique market share of "consciousness", which is especially important for the target market segment.

Positioning involves a thorough understanding of all models within the company's strategy.

Positions are best attacked by concentrating resources and focusing advertising on a particular positioning or quality difference.

Positions are best defended by an aggressive, mobile counteroffensive that involves opposing a given commodity and introducing new models.

During product development, ensure that the quality inherent in the differentiating features most effectively influences the desired competitive positioning of the product in the market.

Set a price for a positioned product or service by determining how much quality is built into the product in excess of the quality offered by competitors, and

When marketing internationally, the product is often first positioned in the international market in the same way as in the domestic market. The positioning is then adapted to the structure of the local segment and competition. Subsequently, the product can be positioned in segments for benefits that cross borders and cultures.

International marketing requires constant repositioning of the product in order to resist new market entrants from other countries. It also includes counterattacks on new entrants in the domestic market.

From the book The End of Marketing As We Know It author Zimen Sergio

Take Positioning Opportunity from Competitors Let's look at the Sprite example again to look at the importance of positioning. Sprite was born almost by accident many years ago when The Coca-Cola Company had overcapacity. Until then, we have not

From the book Economic Theories and the Goals of Society author Galbraith John Kenneth

Chapter XXI The Negative Strategy of Economic Reform Chapter XXII The Emancipation of Opinions Chapter XXIII The Just Organization of the Household and Its Consequences Chapter XXIV The Emancipation of the State Chapter XXV Policy for the Market System Chapter XXVI Equality in Planning

From the book Marketing. And now the questions! author Mann Igor Borisovich

36. What is a marketing strategy and how is it different from just a strategy? When we talk about cost leaders and differentiators, is this a marketing strategy or a business strategy? A question of terminology. A marketing strategy is a marketing strategy.

From the book Beat the financial market: how to make money every quarter. "Short" investment strategies author Appel Gerald

Strategy 2: A three-month directional strategy to choose between Europe, Japan, and emerging markets

From the book Information Technology and Enterprise Management author Baronov Vladimir Vladimirovich

Chapter 4 IT Strategy Chapter 2 discussed the relationship that should be between corporate strategy and the mission of the enterprise. This chapter discusses the same topic, but in relation to information technology. To date, existing in the enterprise

From the book How to work where you want, as much as you want and get a stable income by Fox Scott

Chapter 6 Strategies for Positioning Yourself as an Expert Proper positioning helps. Helps everyone. Twitter post by Peter Shankman, founder of www.HelpaReporterOut.com We each have knowledge that is valuable to someone else. However, before finding

From the book Marketing Management author Dixon Peter R.

Chapter 7 The Amazing System From Internet Millionaires - Ten Steps to Positioning Yourself as an Expert It's easy to get stuck in the thinking phase of a new business. Instead of suffering from analysis paralysis, perhaps you should first do at least

From the book Explosion of Learning: Nine Rules for an Effective Virtual Classroom author Murdoch Matthew

Product differentiation on the competitive positioning map Product differentiation implies that the firm has found a unique product position, that it has come up with a design or a new image of the product that successfully distinguishes it from competitors' products in perception.

From the book Key Strategic Tools by Evans Vaughan

Problems of product positioning in world markets The world market can be viewed from different points of view. The traditional way is to consider each country as a separate market with separate import regulations, tariff laws,

From the book Crossing the Abyss. How to bring a technological product to the mass market by Jeffrey Moore

The Evolution of a Firm's Global Positioning Strategy As discussed above, a US firm will often begin exporting to foreign markets that have 1) segments that accept the firm's selling proposition and 2) weak competition. As you purchase

From the book The Practice of Human Resource Management author Armstrong Michael

Chapter 10 Global Positioning Rule Twitter Post (Maximum 140 Characters) It's getting easier to reach a global audience. But before you apply for this global visa, you need to be aware of the existence of many

From the book Advertising. Principles and Practice by William Wells

77. Good strategy, bad strategy (Rumelt) Tool “For many people in business and education or in government, the word “strategy” is boring. But in fact, the word that can mean anything has already ceased to exist.

From the author's book

Competitive Positioning Compass In high-tech marketing, there are four criteria for product value: technology, product, market, and company. As a product progresses through the stages of the technology adoption life cycle, the criteria for the greatest customer value change.

From the author's book

The Positioning Process When the verb position is used instead of positioning, it refers to the process of conveying a message that has four key components. Statement. The main thing here is to reduce the essence of positioning (statement

From the author's book

CHAPTER 7 HR STRATEGY Human resource management processes are concerned with the development of HR strategies (strategic HR), policies and practices that affect all aspects of HR. This part also discusses other processes that affect most