Marketing strategy for real estate product - The case of Vinaconex

VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS



Do Van Dan


MARKETING STRATEGY FOR REAL ESTATE PRODUCT
THE CASE OF VINACONEX




MASTER OF BUSINESS ADMINISTRATION THESIS






Hanoi – 2010
VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS


Do Van Dan

MARKETING STRATEGY FOR REAL ESTATE PRODUCT
THE CASE OF VINACONEX

Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS


Supervisors: Dr. Tran Đoan Kim



Hanoi – 2010
vi

TABLE OF CONTENTS
ACKNOWLEDGEMENTS i
ABSTRACT ii
TÓM TẮT iv
TABLE OF CONTENTS vi
LIST OF FIGUGES vi
LIST OF TABLE x
LIST OF ABBREVIATIONS xi
INTRODUCTION 1
1. THE RATIONALE 1
2. RESEARCH QUESTION 2
3. SCOPE OF WORK 2
4. DATA SOURCES AND PROCESSING 2
5. RESEARCH METHODOLOGY 3
6. SIGNIFICANCE 3
7. LIMITATIONS 3

8. EXPECTED RESULTS 3
9. STRUCTURE OF THE THESIS 3
CHAPTER 1 THEORETICAL FOUNDATION 5
1.1 MARKETING STRATEGY 5
1.1.1 WHAT IS MARKETING STRATEGY 6
1.1.2 THE MARKETING STRATEGY PROCESS 6
1.2 THE IMPORTANCE OF MARKETING STRATEGY TO REAL ESTATE 7
1.3 ENVIRONMENT ANALYSIS 7
1.3.1 EXTERNAL ENVIRONMENT ANALYSIS . Error! Bookmark not defined.
1.3.2 INTERNAL ANALYSIS 10
1.3.3 INDUSTRY ANALYSIS Error! Bookmark not defined.
1.4 MARKET SEGMENTS AND SELECTING TARGET MARKET 10
1.5 POSITIONING 15
vii

1.6 TYPES OF MARKETING STRATEGY 16
1.6.1 MARKETING STRATEGY BASED ON PRODUCT LIFE CYCLE 17
1.6.2 STRATEGIES BASED ON MARKET DOMINANCE 21
1.6.3 INNOVATION STRATEGIES 22
1.6.4 GROWTH STRATEGIES 22
1.7 SELECT MARKETING STRATEGY AND APPLICATION 23
1.7.1 BCG MODEL 23
1.7.1.1 BENEFITS OF THE BCG MATRIX 24
1.7.1.2 LIMITATIONS OF THE BCG MATRIX 24
1.7.2 GE MODEL 25
1.8 DEVELOPING MARKETING MIX 28
CHAPTER 2 STATUS OF VINACONEX’S MARKETING STRATEGY
PLANNING 35
2.1 BACKGROUND 35
2.1.1 GENERAL INTRODUCTION 35

2.1.2 ORGANIZATIONAL STRUCTURE 36
2.1.3 BUSINESS OPERATION 37
2.1.4 CAPABILITIES 37
2.2 SCANNING THE ENVIRONMENT 38
2.2.1 EXTERNAL ENVIRONMENT 46
2.2.2 HANOI REAL ESTATE MARKET OVERVIEW 38
2.3 INDUSTRY ANALYSIS 55
2.4 INTERNAL ENVIRONMENT 58
2.4.1 FINANCIAL RESOURCES 58
2.4.2 MATERIAL RESOURCES 58
2.5 SEGMENT AND SELECT TARGET MARKET OF VINACONEX 60
2.6 POSITIONING 61
2.7 LIFE CYCLE FOR REAL ESTATE PRODUCT 65
2.8 BCG AND GE MODEL 69
viii

2.9 STATUS VINACONEX’S MARKETING STRATEGY 72
CHAPTER 3 SELECT MARKETING STRATEGY FOR VINACONEXS’
REAL ESTATE PRODUCT 73
3.1 SETTING UP A FULLY MARKETING DEPARTMENT 73
3.2 CLOSE COORDINATION WITH OTHER DEPARTMENT TO IMPLEMENT
THE SELECTED STRATEGY 74
3.3 SEGMENT AND SELECT TARGET MARKET OF VINACONEX 75
3.3.1 MAJOR FACTORS FOR HOME BUYING DECISION 75
3.3.2 SEGMENTATION 76
3.3.3 SELECT TARGET MARKET 81
3.4 SOME WAYS TO IMPLEMENT THE MARKETING STRATEGY 81
3.5 MARKETING STRATEGIES FOR VINACONEX 82
3.5.1 INVESTMENT AND BUSINESS TRADE CENTER 82
3.5.2 OFFICE FOR LEASE 84

3.5.3 NEW URBAN AREA 87
3.6 ANSOFF STRATEGIC MODEL WITH MARKET - PRODUCT 96
3.7 EVALUATION AND CONTROL 97
3.7.1 ANNUAL-PLAN CONTROL 97
3.7.2 PROFITABILITY CONTROL 98
3.7.3 EFFICIENCY CONTROL 98
3.7.4 STRATEGIC CONTROL 98
CONCLUSION 100
REFERENCES 101
APPENDIX 103





ix

LIST OF FIGUGES

Figure 1.1: Marketing Process 5
Figure 1.2: The Marketing Strategy Process 6
Figure 1.3: The Five Forces model of Michael E. Porter 11
Figure 1.4: Product life cycle 17
Figure 1.5: The BCG Matrix 23
Figure 1.6: General Electric-McKinsey Matrix 25
Figure 1.7: The four Ps: Marketing mix 29
Figure 2.1: VINACONEX Organizational Chart 36
Figure 2.2: Chart on forecasting urbanization growth rate 49
Table 2.1 Hanoi’s population from 2006 – 2009 49
Figure 2.3: Hanoi year to date GDP (% y-o-y Growth Rate) 51

Figure 2.4: Hanoi FDI – Projects (Million USD) 52
Figure 2.5: CPI Growth Rate by Quarter (% y-o-y) 52
Figure 2.6: Vietnam’s Inflation Rate and prediction 53
Figure 2.7: Vietnam stock market 53
Figure 2.8: Supply about residential for sales 40
Figure 2.9: Capital Value and Demand 42
Figure 2.10: Vocancy Office Rate 43
Figure 2.11: Retail Market Supply 44
Figure 2.12: Hotel Occupancy Rate 45
Figure 2.13: Supply about office for lease 65
Table 2.4: Future trade center supplier 66
Figure 2.14: Supply about new urban area 67
Figure 2.15: Hotel occupancy rate 68


x

LIST OF TABLE


Table 2.1 Hanoi’s population from 2006 – 2009 49
Table 2.2: Human resources 59
Table 2.3: Position of VINACONEX compares with competitors 61
Table 2.4: Future trade center supplier 66

xi

LIST OF ABBREVIATIONS

WTO
Word Trade Organization
VINACONEX
Vietnam Construction and Import – Export Joint Stock
Corporation
No
Number
ISO 9001: 2000
International Standard Organization 9001 : 2000
UN
United National
FDI
Foreign Direct Investment
GDP

Gross Domestic Product
CPI
Consumer Price Index
SBU
Strategic Business Unit
CBRE
CB Richard Ellis
CBD
Central Business District
ADR
Associate Director of Research
SBV
State Bank of Vietnam




1

INTRODUCTION
1. THE RATIONALE
Marketing strategy is the key to obtain the success in business and to be an active
approach way. Marketing strategy consists of target market; analyze customer’s
demand, competitors, micro environment, macro environment, strength and weakness
of the firm
Marketing strategy also consists of marketing objectives, positioning strategy, as well
as tactics that are marketing mix: Product, price, promotion, and place. When we build
that strategies and tactics, we have to consider to competitor’s reactive activities and
customer’s target.
The best way, we can access to develop the strategy to be focus on the things which

we can do well (the strength) can use these strengths to determine and grasp
opportunities. And also concentrate in the things we cannot do well (the weakness),
this help us to cope with them the best effect by the way improve or absolutely
rejection.
Nowadays, Marketing in real estate in Viet Nam’s companies is only few have
professional marketing plan, and the way deploys reasonably. Others majority of the
companies are confused or don’t know way to marketing real estate and attract the
target customers.
Without marketing strategy, companies are not only waste of resources, make faded
firm’s image but also bad affect to invest, business operations
According to the present circumstances, almost of real estate companies make
marketing purely paste on poster advertising, send the letter, postcard with connective
address, advertise on newspaper, medium with style is the same, advertising programs
are similar. This doesn’t make differences and not aim at segment of target customer.
Whereas, more and more foreign competitors with the position of multi-sided
strengths, financial, profession, marketing and special to be methodical and
professional marketing strategy.
2

Currently, the situation of VINACONEX, they can not keep focusing on selling out
goods but selling goods at a satisfactory profit and retaining customers for later
products. The real estate market is opening soon under accession to WTO of Viet
Nam. There are more and more foreign investors showing interest in Vietnamese
emerging market and domestic companies have also discovered the lucrative of this
field. In the past, VINACONEX was still successful without any strategic planning
because the market was still under the control of the government and doing business in
real estate was rather new, the market was very potential because there were very high
demand and limited players in this market. Things are changing soon and
VINACONEX must also change.
It is, therefore, necessary to conduct a study on real estate product to deploy marketing

strategy for VINACONEX
2. RESEARCH QUESTION
The research problems lead to a number of research questions
 What kind of marketing strategy does VINACONEX need?
 How to implement the chosen strategy successfully?
3. SCOPE OF WORK
The study is limited to the following time, place and work
 Time: The marketing strategy of VINACONEX is projected for the next 5 years
 Place: The research is conducted in Hanoi market only
 Work: Marketing strategy for real estate product of VINACONEX
4. DATA SOURCES AND PROCESSING
The information used in the sections of this study is primary and secondary
information, which has been collected directly from VINACONEX Corporation and
through other real estate company’s surveys, discussion, interviews and questionnaire
with industry experts, website, books, newspaper, brochures, marketing information
and market reports when available.
3

The study collects information and base on marketing process, marketing strategy
model as well as analyze market, analyze competition, segments and select target
market, position,. The study uses PEST and Five forces model to analyze and find out
threats and opportunities and then uses BCG model, GE model and Product life cycle
from which to make the best marketing strategy for VINACONEX
5. RESEARCH METHODOLOGY
 Research method: Qualitative and quantitative/case study
 Research design: Case study
 Analysis: Descriptive analysis
6. SIGNIFICANCE
The study aims to gain the following significance:
 Theatrical aspect: Contribute some recommendations to theories on marketing

strategy
 Practice aspect: Applying theories on marketing strategy into practice of
VINACONEX.
7. LIMITATIONS
Because of limited time and geographical space, the study has the following limitation:
 Time: Because there are many changes in the future. So that marketing strategy
is projected for the next 5 years
 Place: The research is conducted in Hanoi market only
 Work: Marketing strategy for real estate product of VINACONEX
8. EXPECTED RESULTS
The study is expected to apply successfully theories in marketing strategy for real
estate product of VINACONEX.
9. STRUCTURE OF THE THESIS
The thesis is divided into three chapters
4

Chapter 1: A review of theoretical framework of marketing strategy
Chapter 2: Analysis of the current status of marketing strategy at VINACONEX
Corporation
Chapter 3: Recommended marketing strategy for VINACONEX Corporation

5

CHAPTER 1
THEORETICAL FOUNDATION
1.1 MARKETING STRATEGY
According to Philip Kotler, enterprise’s mission provides value for market
how profit. Sothat, marketing process
1
consists of analyzing marketing
oppotunities, researching and selecing target markets, designing marketing
strategies, planning marketing programs, and organizing, implementing, and
controlling the marketing effort
Figure 1.1: Marketing Process

The four steps in the marketing process are:
Analyzing market opportunities: The marketer’s initial task is to identify potential
long – run opportunities given the company’s market experience and core
competencies. To evaluate its various opportunities, assess buyer needs, and gauge
market size, the firm needs a marketing research and information system. Next, the
firm studies customer markets or business markets to find out about buying behavior,
perception, wants and needs. Smart firms also pay close attention to competitors and
look for major segments within each market that they can profitably serve
Developing marketing strategies: In this step, the marketer prepares a positioning

strategy for existing product’s progress through the life cycle, makes decisions about
competitive strategy, product lines, branding, designs and markets its services


1
Source: Philip Kotler, A Framework For Marketing Management, second edition,
Prentice Hall Publishing, 2001, pp.70 – 71
Customer
Segmentation

Communicate the value
Provide the Value
Choose the value
Market
Selection
Value
Positioning
Product
Development

Service
Develop
ment



Pricing

Sourcing
Making

Distribution
&
Servicing
Sales
force


Sales
Promotion


Advertising
Strategic Marketing

Tactical Marketing

6

Planning marketing programs: To transform marketing strategy in to marketing
programs, marketing managers must make basis decisions on marketing
expenditures, marketing mix, and marketing allocation. The first decision is about the
level of marketing expenditures needed to achieve the firm’s marketing objectives.
The second decision is how to divide the total marketing budget among the various
tools in the marketing mix: Product, price, place, promotion. And the third decision is
how to allocate the marketing budget to the various products, channel, promotion
media, and sales areas
Managing the marketing effort: Marketers organize the firm’s marketing resources to
implement and control the marketing plan, because of surprises and disappointment
as marketing plans are implemented, the company needs feedback and control
1.1.1 WHAT IS MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on the
key concept that customer satisfaction is the main goal.
1.1.2 THE MARKETING STRATEGY PROCESS
Figure 1.2: The Marketing Strategy Process

7

Marketing strategy management process
2
consists of steps: Analyze, selection,
implementation and control marketing strategy. The first, enterprise has to analyze
market. Determine target market. Analyze competitive The next, selecting
marketing strategy which suitable for condition, circumstance, and enterprise’s
capacity, purpose, during implements strategy process, Enterprise must check
frequently performance’s result. Take care arise case or necessary must consider
analyze process and strategic selection aim adjust or change timely strategy
1.2 THE IMPORTANCE OF MARKETING STRATEGY TO REAL ESTATE
One of the mistakes made by real estate businessmen is that they over-believe in their
impulsive decisions and can not perceive the value of marketing in adding value to
their real estate. However, in reality, the more they pay attention to marketing
activities, the more they can earn from their investment. Thus, like other business,
marketing plays an important role in developing real estate business
Marketing strategies bring in many potential values. Through studying and analyzing
the market, marketing activities can help to maximize profit radios as expected. They
provide data base of potential customers, which helps to gain the best ratios in real
estate transaction. Those activities also help to orient and build new market segments
for the firm’s products.
In short, the more effort the real estate firm put on it’s marketing strategy, the more

chances for them to be successful on the market and over its competitors
1.3 ANALYZE MARKET
1.3.1 MARKET OVERVIEW
Introduce about market planning. Analyze supply, demand and elements which relate
to market
1.3.2 ANALYZE MARKET TRENDS


2
Source:www.easy-marketing-strategies.com /marketing-strategy-process.html
8

Changes in the market are important because they often are the source of new
opportunities and threats. Moreover, they have the potential to dramatically affect the
market size. Examples include changes in economic, social, regulatory, legal, and
political conditions and in available technology, price sensitivity, demand for variety,
and level of emphasis on service and support.
Political Factors
Political factors include government regulation and legal issues and define both
formal and informal rules under which the firm must operate. Some examples
include: Tax policy, employment laws, environmental regulations, trade restrictions
and tariffs, political stability, laws which relate to
Economic factors
Economic factors affect the purchasing power of potential customers and the firm’s
cost of capital. The following are examples of factors in the macro-economy:
economic growth, interest rates, exchange rates, inflation rate…
Social factors
Social factors include the demographic and cultural aspects of the external macro-
environment. These factors affect customer needs and the size of potentia markets.
Some social factors include: Health consciousness, population growth rate, age

distribution, career attitudes, emphasis on safety
Technology factors
Technology factors can lower barriers to entry, reduce minimum efficient production
levels, and influence outsourcing decisions. Some technological factors include:
Research and development activity, automation, technology incentives, rate of
technological change
1.3.3 MARKET SEGMENTS
9

A market segment is a subgroup of people or organizations sharing one or more
characteristics that cause them to have similar product needs. A true market segment
meets all of the following criteria: It is distinct from other segments (heterogeneity
across segments), it is homogeneous within the segment (exhibits common
attributes); it responds similarly to a market stimulus, and it can be reached by a
market intervention.
Market segmentation is to divide a market into distinct groups with distinct needs,
characteristics, or behavior who might require separate products or marketing mixes
Market segmentation process will help for
 Maximize the business by using the best appeals for the target market
 Build better relationships with the customers while attracting new ones
 Discover a wealth of information to improve the marketing activities
 The market segmentation process on this site helps us to comprehend
 How people differ by groups
 Look at all the groups that the target market belongs to
 Determine appeals that cross the groups, and build the marketing messages on
those appeals
 Geographical segmentation: Country, region, state, city, density, climate…
 Demographical segmentation: Gender, age, income, education, occupation,
religion, generation, nationality, family size, social class etc
 Psychographics: Life style, values, and personality, etc

 Behavioral segmentation: Typically done first, occasion, benefits, loyalty
status, and attitude toward the product.
10

1.3.4 SELECTING TARGET MARKET
3

Selecting market segments
The firm must look at two factors: The segment’s overall attractiveness, and the
company’s objectives and resources. Firstly, the company must ask whether a
potential segment has the characteristics that make it generally attractive, such as
size, growth, profitability, scale economies, and low risk. Secondly, the company
must consider whether investing in the segment makes sense given the company’s
objectives and resources. Some attractive segments could be dismissed because they
do not mesh with the company’s long – term objectives; some should be dismisses if
the company lacks one or more of the competences needed to offer superior value.
Having evaluated different segments, the company can consider five patterns of
target market selection
Single-segment concentration: Through concentrated marketing, these the company
gain a thorough understanding of the chosen segment’s needs and achieve a strong
market presence. Furthermore, each company enjoys operating economies by
specializing in its production, distribution, and promotion. If it gains leadership, it
can earn a high return on investment. However, concentrated marketing involves risk.
The segment may turn sour because of changes in buying pattern or new competition
Selective specialization: Here the company selects a number of segments, each
objectively attractive and appropriate. They may be little or no synergy among the
segment, but each segment promises to be a moneymaker. This strategy has the
advantage of diversifying the company’s risk.
Product Specialization: Another approach is to specialize in making a certain product
for several segments

3
Source: Philip Kotler, A Flamework for Marketing Management, second edition,
Prentice Hall Publishing, 2001, pp.170 – 185
11

Market specialization: Here, the company concentrates on serving many needs of a
particular customer group
Full market coverage: the company attempts to server all customer groups with all
the products they might need
In undifferentiated marketing: the company ignores segment differences and goes
after the whole market with one market offer
In differentiated marketing: the company operates in several market segments and
designs different programs for each segment
1.3.5 ANALYZE COMPETITION
The Five Forces model of Porter
4
is an outside-in business unit strategy tool that is
used to make an analysis of the attractiveness (value…) of an industry structure. The
Competitive Forces analysis is made by the identification of 5 fundamental
competitive forces
Figure 1.3: the Five Forces model of Michael E. Porter



4
Source: Michael E. Porter, Competitive Advantage, Creating and Sustaining
Superior Performance, 1985
Bargaining

Power of
Supplier
Bargaining
Power of
Buyers
Threat of
Substitute
Products
Threat
Of New
Entrants

Rivalry
Among
Existing
Competitors
12

The threat of substitute products
The existence of close substitute products increases the propensity of customers to
switch to alternatives in response to price increases (high elasticity of demand).
 Buyer propensity to substitute
 Relative price performance of substitutes
 Buyer switching costs
 Perceived level of product differentiation
The threat of the entry of new competitors
Profitable markets that yield high returns will draw firms. This results in many new
entrants, which will effectively decrease profitability. Unless the entry of new firms
can be blocked by incumbents, the profit rate will fall towards a competitive level
The existence of barriers to entry (patents, rights, etc.), economies of product

differences, brand equity, switching costs or sunk costs, capital requirements, access
to distribution, absolute cost advantages, learning curve advantages, expected
retaliation by incumbents, government policies
The intensity of competitive rivalry
For most industries, this is the major determinant of the competitiveness of the
industry. Sometimes rivals compete aggressively and sometimes rivals compete in
non-price dimensions such as innovation, marketing, etc: Number of competitors,
rate of industry growth, intermittent industry overcapacity, exit barriers, diversity of
competitors, informational complexity and asymmetry, fixed cost allocation per value
added, level of advertising expense, economies of scale, and sustainable competitive
advantage through improvisation
The bargaining power of customers
Also described as the market of outputs, the ability of customers to put the firm under
pressure and it also affects the customer's sensitivity to price changes
13

 Buyer concentration to firm concentration ratio
 Bargaining leverage, particularly in industries with high fixed costs
 Buyer volume
 Buyer switching costs relative to firm switching costs
 Buyer information availability
 Ability to backward integrate
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of industry products
The bargaining power of suppliers
Also described as market of inputs, suppliers of raw materials, components, and
services to the firm can be a source of power over the firm. Suppliers may refuse to
work with the firm, or charge excessively high prices for unique resources
 Supplier switching costs relative to firm switching costs

 Degree of differentiation of inputs
 Presence of substitute inputs
 Supplier concentration to firm concentration ratio
 Threat of forward integration by suppliers relative to the threat of backward
integration by firms
 Cost of inputs relative to selling price of the product
14

1.4 INTERNAL ANALYSIS
The internal analysis
5
of strengths and weaknesses focuses on internal factors that
give an organization certain advantages and disadvantages in meeting the needs of its
target market. Strengths refer to core competencies that give the firm an advantage in
meeting the needs of its target markets. Any analysis of company strengths should be
market oriented/customer focused because strengths are only meaningful when they
assist the firm in meeting customer needs. Weaknesses refer to any limitations a
company faces in developing or implementing a strategy (?). Weaknesses should also
be examined from a customer perspective because customers often perceive
weaknesses that a company cannot see. Being market focused when analyzing
strengths and weaknesses does not mean that non-market oriented strengths and
weaknesses should be forgotten. Rather, it suggests that all firms should tie their
strengths and weaknesses to customer requirements. Only those strengths that relate
to satisfying a customer need should be considered true core competencies
The following analyses are used to look at all internal factors affecting a company:
Resources: A good starting point to identify company resources is to look at tangible,
intangible and human resources.
Tangible resources are the easiest to identify and evaluate: Financial resources and
physical assets are identifies and valued in the firm’s financial statements.
Intangible resources are largely invisible, but over time become more important to

the firm than tangible assets because they can be a main source for a competitive
advantage. Such intangible recourses include reputation assets (brands, image, etc.)
and technological assets (proprietary technology and know-how).
Human resources or human capital are the productive services human beings offer
the firm in terms of their skills, knowledge, reasoning, and decision-making abilities


5
Source:www.mystrategicplan.com/resources/internal-and-external-analysis/
15

Capabilities: Such as financial management, expertise in strategic control,
effectiveness in motivating and coordinating business units, management of
partnerships, overall company, resource management, comprehensive and effective
information system that can be used for managerial decision making. Capacity in
basic research, innovation of new products, design capability, brand management and
promotion, promotion and exploiting reputation for quality, understand of and
responsiveness to market trends. Effectiveness in promoting and executing sales,
efficiency and speed of fulfillment, quality and effectiveness of customer service
Goal: To identify internal strategic strengths, weaknesses, problems
1.5 POSITIONING
Positioning is something (perception) that happens in the minds of the target market.
It is the aggregate perception the market has of a particular company, product or
service in relation to their perceptions of the competitors in the same category. It will
happen whether or not a company's management is proactive, reactive or passive
about the on-going process of evolving a position. But a company can positively
influence the perceptions through enlightened strategic action
Positioning
6
is critical to brand building because it is responsible for projecting the

brand identity and creating the perception and image of the brand in the people’s
minds. In other words, Positioning is process of offering the brand appears to be
different and better than all competing brands.
For a chosen target market segment, real estate enterprises need to select suitable
product positioning strategy. Positioning
7
is what the customer believes about your
product's value, features, and benefits; it is a comparison to the other available
alternatives offered by the competition. These beliefs tend to based on customer
experiences and evidence, rather than awareness created by advertising or promotion


6
Source: Paul Temporal, Branding in asia, revised edition, Saik Wah Press, 2000, p.103
7
Source:www.ezinearticles.com/Product-Positioning-Strategies
16

Branding is good for customer in that market segmentation. Positioning strategy need
to make remarkable different features, competitive attributes of enterprise’s products
compared with the other product which is the same, concurrently that different
features are necessary for customer, indicates how the firm would like its product or
brand to be perceived in the eyes and minds of the market target customers,
competitors are hard imitate, customer can pay for that differences
Without a clear and strong positioning strategy, lots of time and money are spent in
vain - not just marketing dollars. If we can’t clearly articulate the positioning, and if
it doesn’t have real, meaningful, differentiated value to the marketplace and our
organization, we are not only drifting somewhat aimlessly, our chances of real
success are greatly diminished
8

1.6 TYPES OF MARKETING STRATEGY
Marketing strategies may differ depending on the unique situation of the individual
business. However there are the ways of categorizing some generic strategies. A brief
description of the most common categorizing schemes is presented below:


8
Source: www.proteusb2b.com/b2b-marketing-blog
17

1.6.1 MARKETING STRATEGY BASED ON PRODUCT LIFE CYCLE
9

Figure 1.4: Product life cycle


Penetration period
Penetration period that begins by a new product is bought on the market
At this period, profit is negative or small because of low consumption, promotion and
distribution cost is very high. Need to have amount of money for attractive partner
and distributors. Promotion cost control the biggest of the sales‖ Due to having
promotion at high level for reporting implicit customer about new product and not
known. Promote to try on product and ensure to distribute to retail outlet‖.


\
9
Source: Philip Kotler, A Framework for marketing management, ―Developing,
Positioning, and differentiating products through the life cycle”, second edition,

Prentice Hall Publishing, 2001, chapter.10








Penetration
Growth
Saturation
Recession
Time
Turnover