BJC 216

MARKETING
COMMUNICATION
 WEEK 1

DEFINING MARKETING, THE

MARKETING PROCESS AND
IMPORTANCE
Market Definition
• Marketing if an arrangement to provide an opportunity to
exchange goods
Marketing Definition
• Marketing is the sum total of all activities related to the flow of
goods from production to consumption
• Marketing is driven from customer’s demand
Importance of Marketing
1. Helps achieve, maintain and raise living standards
2. Increases employment opportunities (30-40% depend directly or
indirectly on marketing)
3. Increases national income
4. Maintains economic stability and development
5. Links producers and consumers
 Importance of Marketing Continued

• Removes imbalance of supply and demand by

transferring surpluses
• Creates utilities of time, possession and place.
• Generates revenue
• Aids in decision making process with regard to how
much, when and what to produce, transport and
store
• Aids in innovations and management
 Marketing Concepts
1. Exchange Concept
• Exchange is part of the total marketing process
• Other parts of marketing are not covered e.g. value
creation, satisfaction, customer orientation and
creative selling
2. Production Concept
• Concentrates on production efficiency
• Rarely appreciated by customers
• Production in large volume, at low cost is acceptable
to customers
• May do well in distribution
 Marketing Concepts Continued
3. Product Concept
• Believes that customers automatically buys products of
high quality
• Do not bother to study the market and consumer in depth
• Focus on design and quality of products.
4. Sales Concept
• Involves advertising, public relations, publicity,
discounts and large scare promotions
• Believes that customers need to be persuaded to buy
products
• Does not take care of the need of the customer
 IMPORTANCE OF STUDYING MARKETING
COMMUNICATION
• Marketing lectures allow individuals to
develop not only their personal skills but also
presentation skills
• Marketing Offers People Career Opportunities
• In every business and industry, there will be a
marketing team
• Marketing benefits society in general by
improving people’s lives in two ways
to understand the customer
 WEEK 2 : BRANDING
Definition
• Branding is the imagery a company uses to make us
IDENTIFY them and pick them out from their
competition

• Branding can involve the use of a CONSISTENT range of

colour or a LOGO

• The “Brand” can be the company e.g. SHOPRITE; or it

can be a product range that is a “Brand” e.g. “Lynx”
(made by Unilever)
 IMPORTANCE OF BRANDING

• Branding Creates Trust: When a company presents

themselves in a professional way, and when there is
social proof that their products and service are quality,
prospects will trust that company and feel more
comfortable giving it their hard-earned money
• Branding Improves Recognition: While your logo should
not be the be-all-end-all of your branding efforts, you
should still put the time and effort into coming up with
a professionally-designed, memorable logo. Not only
should your logo be memorable, it should give the
desired impression of your company so when people
see it, they instantly think and feel what you want them
to think and feel
 IMPORTANCE OF BRANDING CONT’D
• Branding Supports Your Marketing Efforts: Marketing is an
important component of your brand. The mediums and
channels chosen as well as the demographic targeted helps to
build your brand. Be careful of too narrow of a marketing
focus, or you’ll risk being “pigeon holed” and lose your ability
to expand into new markets. Then again, too broad of a
marketing focus could lead to an inability to create a definable
impression of your company in consumers’ minds

• Branding Motivates Employees: Anyone can hire employees,

but only a strong brand can hire motivated employees that are
inspired to carry your vision and mission forward. When your
brand feels pride, your employees do as well. Having a strong
brand is essential for employee morale and productivity
 IMPORTANCE OF BRANDING CONT’D

Branding Generates New Revenue: Branding is one of

the best ways to get referral or word-of-mouth
business
• This is why it is important that your logo, marketing,
and reputation work cohesively to form an indelible
impression on consumer minds
• Think about it, you cannot tell your friend about the
amazing golf clubs you just bought if you cannot
remember the brand
 WAYS OF BUILDING A BRAND
• Always Have Your Customer in Mind: Your brand must align itself with your
customers’ needs and wants. When starting any branding campaign, always
have your customer in mind

• Create Messaging That Illustrates Your Value: You have got to create a direct
and simple message of WHY your brand should matter to your customer. Most
consumers don’t have the time or inclination to figure this out on your behalf.
Your brand must create a story that answers the question, “why you?”

• Use Emotion: If you give consumers a reason to care and feel something about
your brand, they have a reason to buy. Most people make purchasing decisions
based on emotions not logic, so create an emotion in your prospects every time
they see your brand

• No matter what size they are, the most successful businesses are the ones that
have established themselves as a leader in their industry by creating a strong
brand. And, when these businesses focus on building valuable customer
experiences, they easily transform customers into brand ambassadors
 WEEK 3

MARKETING CONCEPTS
 MARKETING CONCEPTS
• Exchange Concept - Exchange is only a small part of the total marketing
process. - Other parts of marketing like customer orientation, satisfaction,
value creation, creative selling etc are not covered
• Production Concept - Production in large volume, at low cost will be
acceptable to customers - Concentrates on production efficiency - May do
well in distribution - Rarely appreciated by customers
• Product Concept - Focuses on design and quality of products - Believes
that customers will automatically buy products of high quality - R&D is
essential element - Do not bother to study the market & consumer in
depth
• Sales Concept - Believes that customers need to be persuaded to buy the
products - Involves advertising, large scale promotions, publicity,
discounts, public relations etc. - Does not take care of the need of the
customer
• Marketing Concept - Starts with determination of consumer needs - Ends
with satisfaction of these needs - Organizational activities revolve around
customer - Products & Services are designed to serve customer needs -
Satisfied customer will only produce profits
 MARKET PROCESSES
1. Situation Analysis: Identifying opportunities to satisfy
unfulfilled customer needs. Before identifying customer
needs, firms needs to understand its own capabilities in which
its operating
• Firms need to analyze the external and internal environment.
( macro & micro environment ) Situation analysis should
include past, present and future aspects. Framework that can
be used to add structure to the situation 1analysis
• 5C analysis – Company. Customers, competitors, climate.
Company covers internal situation and the rest external
situation
• PEST analysis – political, economic, social and technological
• SWOT analysis – Strength, weaknesses, opportunity and threat.
 MARKET PROCESSES CONTINUED
2. Marketing Strategy: Once you have identified the best
opportunity to satisfy unfulfilled customer needs, a marketing
strategy or a strategic plan can be developed.• The marketing
strategy involves :
i. Market Segmentation - Identification of the market that are
different from one another - Market segment is important as
customers have different needs and wants and its impossible to
serve them all alike. Requirements of Market Segments:-
Segmentation criteria should be evaluated against the following
criteria:
a) Accessible – reachable through communication and
distribution channel
b) Identifiable – must be measurable so that they can be
identified
c) Substantial - segments should be large to justify resources
 MARKETING PROCESSES CONTINUED
3. Marketing Mix Decisions: Marketing Mix
decisions falls into 4 controllable categories
i. Product- Brand name, quality, styling, safety
packaging
ii. Price – Pricing strategy, flexibility, discrimination
iii. Place- distribution channel, centre's, member
iv. Promotion- Promotional campaign
development, advertising, sales promotion
 MARKETING PROCESSES CONTINUED
4. Implementation & Control. At this point we assume
that the marketing plan has been developed and the
product has been launched.
• As the market changes, marketing mix can be
adjusted to accommodate the changes either
changing the advertising message or redesign the
entire product entirely
• Implementation is needed to accommodate these
changes and continual monitoring us needed to fulfill
customer needs consistently
• Control makes sure that the marketing program
moves in the direction set for it
WEEK 4
PRICING
Definition
• Pricing is the attaching of a cost or a value on an already produced
good
• It is the method of determining the value a producer will get in exchange of goods of goods
and services.

Pricing Process
• Set the objectives

• Develop the pricing strategy

• Determine the demand

• Estimate costs

• Review competitive offerings and cost

• Select pricing methods

• Establish pricing policies

 POSITIONING A BRAND RELIES ON FOUR
FACTORS OR THE FOUR CS OF POSITIONING
• Clarity : it must be obvious to the customers. What the
brand is and where it sits relative to other brands
• Credibility: the position must be logical and believable- an
obviously cheap and basic product cannot position itself
as a premium brand and the reverse is true
• Consistency : what ever position is adopted, the
marketers must maintain a consistent brand message
• Competitiveness: successful positioning should mean that
the company is not trying to occupy a position already
taken by a competitor. It is far better to find a position
which is currently not subject to competition
 OBJECTIVES OF PRICING

• Profit Oriented: pricing is made to realize a

target return on investment or to maximize
profits
• Sales oriented: they aim to increase sales
either in currency or unit terms or to
penetrate markets and increase share
• Status quo oriented: it includes meeting
competition or choosing to compete on a non
– price basis
 STRATEGIES FOR PRICING
• Firm: A company may set prices basing on the companies objectives. It
may also set the prices basing on the costs that where involved in
producing or making the good or product

• Customer: A company may set prices basing on the value attached to the good
by the customer.
• It may also set the prices basing on the customers ability to pay. Companies may
also set prices basing on the customers perceptions of the product or the
company

• Competitors: A company may set prices basing on the companies competitors

prices or costs. It may also set the prices basing on competitors offerings

• Environment :A company may set prices basing on the government regulations

like price controls, import duties and quotas as well as taxes. It may also set the
prices basing on the inflations in the country
• Prices may also be determined by the currency value and stability and the
economy
 IMPORTANCE OF PRICING
• It generates revenue to the company
• It conveys messages about the quality of the products
• It controls the features and benefits of the product
• It enables the company to meet the cost of manufacturing one
single unit
• It enables the company to advertise the products since the
advertising costs are added or embedded on to the cost of
each unit
• It influences or it motivates people to buy the goods
• It can be used to out compete competitors
 WEEK 5: INTERGRATED MARKETING
COMMUNICATION (IMC)

 Definition
• Integrated Marketing Communication (IMC) is the
coordination and integration of all marketing
communication tools, avenues, and sources within a
company into a seamless program that maximizes the
impact on consumers and other end users at a minimal
cost”
 Integrated Marketing Communication
(IMC)
Elements of IMCs
• Personal selling is the interpersonal arm of
marketing communications, in which the sales
force engages customers and prospects to
build relationships and make sales
• Sales promotion consists of short-term
incentives to encourage the purchase or sale
of a product or service
OBJECTIVES OF INTEGRATED MARKETING
COMMUNICATION (IMC)
• One of the main objectives of IMC is building
attention and awareness for your brand
• IMC helps people recognize your brand across
media
• IMC cultivates the desire in your customers to
make a purchase
• IMC promotes customers to take action on a
purchase
 ELEMENTS OF INTEGRATED MARKETING
COMMUNICATION
Following are the elements of INTERGRATED
MARKETING COMMUNICATION or marketing
communication mix:-
• Advertising - Advertising is any paid form of non
personal presentation and promotion of ideas,
goods, or services by an identified sponsor
• Personal selling - Personal presentation by the
firm's sales force for the purpose of making sales
and building customer relationship
• Sales promotion - Short term incentives to
encourage sales or purchases of a product or service
 ELEMENTS OF INTEGRATED MARKETING
COMMUNICATION CONTINUED
• Public relation - Building good relationship with the company's
various publics by obtaining favorable publicity, building up a good
corporate image, and handling unfavorable rumors, stories, and
events

• Direct marketing - Direct communication with carefully targeted

individual consumers to obtain immediate response and cultivate
lasting relationship

• Sponsorship - Sponsorship is about providing money to an

event, in-turn the product or company is acknowledged for doing so

• E-marketing - Online marketing is also gaining importance these

days
 REASONS FOR DOING INTEGRATED
MARKETING COMMUNICATION

• It increases the consumers awareness of a

products
• It stimulates demand of the products
• It increases companies sales
• It increases company profits
 WEEK 6
CONTINUOUS ASSESSMENT TEST
ONE (CAT I)

Your lecturer will advise on the modalities

of taking the CAT.
 WEEK 7: MANAGEMENT AND EVALUATION OF
INTEGRATED MARKETING COMMUNICATION (IMC)
TWO BROAD CATEGORIES:
• Message Evaluation Program considers:
– COGNITIVE: Recall, Recognition…(often both quantitative and qualitative)
– AFFECTIVE: Peripheral cues such as emotion, attitude…(typically
qualitative)
• Evaluating Respondent Behaviour:
– Observing and measuring visible customer actions: store visits, inquiries,
purchases (typically quantitative).

MATCH METHOD WITH IMC OBJECTIVE

• Conduct Pre and Post test analyses
• Levels of Analysis:
– Short-term outcomes (sales, redemption rates)
– Long-term results (brand awareness, loyalty and equity)
– Product-specific awareness
– Corporate Awareness
–
 MESSAGE EVALUATIONS - APPROACHES
• CONCEPT TESTING:
– Focus on content of ad and impact thereof on
customer
– Usually Focus Groups

• COPY TESTING
– Used when piece is near finished, prior to
production
– PORTFOLIO TEST: display print ads
– THEATRE TEST: display TV ads
– Mall intercept technique (pre-test)
 MESSAGE EVALUATIONS – APPROACHES
CONT’D
• RECALL tests:
– What do you recall over a span of time as well as information
about the ad(s) that they remember
• Day-after recall (DAR)
• Unaided recall
• Aided recall

• RECOGNITION tests:
– Give copy of ad and ask if they recognize or have seen it
before
• Attitude and Opinion
• Emotional Reaction
• Physiological Arousal
• Persuasion
 EVALUATION CRITERIA
Establish Quality Evaluation Criteria
such as PACT (positioning advertising copy testing)
• Should be relevant to objectives being measured
• Agreement on how the results will be used
• Use multiple measures to evoke more precise
evaluations
• Test should be based on some theory or model of
human behavior
• Consider multiple exposures.
• Validity necessitates that comparative tested ads are in
the same stage of their development process
• Adequate Controls to prevent biases and external
factors
• Samples must be “representative”
• Tests should be Reliable and Valid (generalizable)
 EVALUATING THE OVERALL IMC PROGRAM
• Peter Drucker identified goals that define overall well-being
of a company:
– Market Share
– Level of Innovation
– Productivity
– Physical and Financial Resources
– Profitability
– Manager performance and development
– Employee performance and attitudes
– Social Responsibility

• IF these goals are being reached, the IMC plan is likely in

good order
 ADVANTAGES OF EVALUATING INTEGRATED
MARKETING COMMUNICATION
• It gives us feedback on the company products
• The company understands the best medium to
use to advertise their goods
• It can be a source of improving on the quality
of the products
• It helps the company to improve on the
technology that is top notch
• It helps to build a stronger reputation
 WEEK 8: CONSUMER BEHAVIOUR
 Definition

• Consumer Behaviour is the study of when, why, how and where

people buy or do not buy a product
• It basically depends on the psychology of the consumer. It
attempts to understand the buyer decision making process both
individually & in groups
• It studies the individual consumers such as demographics &
behavioral aspects to understand the people’s wants
• In the study of consumer behaviour, the main focus is customer
satisfaction because the customer is the only person with
whose presence businesses actually exists
 CHARACTERISTICS OF CONSUMER BEHAVIOUR

• It is a process where consumer decide what to buy, when to

buy, how to buy, where to buy & how much to buy
• It comprises of both mental and physical activities of
consumer
• Consumer behaviour is very complex and dynamic which
keeps on changing constantly
• Individual buying behaviour is affected by various internal
factors like his needs, wants, attitudes & motives and also by
external factors like social groups, culture , status,
environmental factors etc
• Consumer behaviour starts before buying and even after
buying
 TYPES OF CONSUMER BEHAVIOUR
1. Routine response: When you go to the grocery store and are trying to grab a loaf of
bread, odds are you will either buy the variety you are familiar with or the one that is
carrying the lightest price tag. In these situations, products are essentially purchased
without any significant thought.

2. Limited decision making: If you’re in the market for some new clothes or a new
collapsible chair that you can bring camping, you might do a little bit of research on brands.

3. Extensive decision making: Imagine you are a first-time homebuyer looking to settle into
your first home with your new spouse. You have never bought a house before, but
obviously you understand how big of an investment and how expansive a decision such a
purchase is. Such a decision comes with evident economic risks. But how are you going to
feel, personally, about the purchase? How are your peers going to look at you? Extensive
decision making requires the most research.

4. Impulsive buying: Consumers who buy something impulsively wake up that day without
knowing that they are going to spend money on a particular item. But all of a sudden, they
are inspired for whatever reason and they make the purchase. Impulsive buying requires no
conscious planning.
 FACTORS INFLUENCING CONSUMER BEHAVIOUR

• Psychological factors
• Social Factors: like Consumer needs & Reference group
motivation (Maslow’s need); Role and status hierarchy theory ,
Family and Perception
• Personal factors: like Learning , Age, Beliefs & attitudes , Stages
in life cycle
• Cultural factors : like Occupation in economic, Culture status,
Sub culture , Life style, Social class and Personality
• Economic factors: like Environmental, Personal income Factors,
Family income ,Political situation, Income expectations ,Legal
forces , Savings, technological , Liquidity position advancement,
Consumer credit and Ethical considerations
 REASONS FOR STUDYING CONSUMER
BEHAVIOUR
• To make better strategies for increasing profits
• To take into consideration customer’s health,
hygiene & fitness
• To know the buying decisions and how consumer
make consumption
• Consistent change in Consumer’s tastes or
preferences
• Consumer behavior study is necessary to make
pricing policies
• To avoid future market failures
 WEEK 9: SOCIAL MEDIA

 Definition of social media marketing

• Social media marketing (SMM) is a form of

Internet marketing that utilizes social
networking websites as a marketing tool

• The goal of SMM is to produce content that users will

share with their social network to help a company
increase brand exposure and broaden customer
reach
 TYPES OF SOCIAL MEDIA

- Face book
- YouTube
- WhatsApp
- Twitter
- My space
- Instagram
- Snap chat
 CHARACTERISTICS OF SOCIAL MEDIA MARKETING
PLATFORMS

• It needs to be everywhere your customers are

• Social Media discipline
• It provokes engagement
• The ideal brand presence is trend focused
• It is driven by visuals
• It is humane
• It must be fun
• End words
 ROLE OF SOCIAL MEDIA IN MARKETING

• Social media is one of the most

important marketing technique used for business or brand
promotion
• Most of marketers use this platform for their business
marketing. Hence, it plays a vital role in business marketing
• It helps in increasing traffic, leads and sales
• Social platforms help you connect with your customers
• increase awareness about your brand
• and boost your leads and sales.
 ADVANTAGES OF SOCIAL MEDIA MARKETING FOR A BUSINESS

• Increased Brand Awareness

• More Inbound Traffic
• Improved Search Engine Rankings
• Higher Conversion Rates
• Better Customer Satisfaction
• Improved Brand Loyalty
• More Brand Authority
• Cost-Effective
 WEEK 10: MARKETING ETHICS

Definition:

• Ethics is the art and science of determining good and

bad or right and wrong moral behavior of a single or
group of people.
 UNETHICAL PRACTICES IN MARKETING

• Many retailers sell products that have crossed expiry date is unethical
• Exerting influence to cause vendors to reduce display space for competitors'
products is unethical
• Promising shipment when knowing delivery is not possible by the promised date
is also unethical
• Promising guarantee and warranty yet there is no such offer
• Refusing customers to take what they have bought, “NO test Selling”
• Change of expiry and manufacturing dates
• Paying vendors to carry a firm's product rather than one of its competitors are
also unethical
• Most drug stores would give too many drugs without prescription from a
qualified doctor are also unethical
• Products are moved in unsafe vehicles ,are also unethical.
• Hiding faults of products
• Lying about the products sold
• Selling of counterfeit products
 UNETHICAL PRACTICES IN MARKETING
CONTINUED
• Deceptive Pricing: Where a salesperson tries to influence
lure customers into a store. Thereafter, a salesperson tries to
influence to buy a higher-priced item
• Unfair Pricing: When competitors are driven out by low
prices the company raises price back to their former level
• Price Discrimination: It can be unethical if similar buyers are
charged different prices for the same based on their ability
to pay. i.e. Local students tuition which is paid in Ugandan
shillings compared international students tuition which is
paid in dollars
• Price fixing: It is an agreement among firms in an industry to
set up prices at certain levels
 ETHICAL VALUES
• Honesty: to be truthful and forthright in our dealings with
customers and stakeholders
• Responsibility: to accept the consequences of our marketing
decisions and strategies
• Fairness: to try to balance justly the needs of the buyer with
the interests of the seller
• Respect: to acknowledge the basic human dignity of all
stakeholders
• Openness: to create transparency in our marketing operations
• Citizenship: to fulfill the economic, legal and societal
responsibilities that serve stakeholders in a strategic manner
 IMPORTANCE OF ETHICS OF MARKETING

• When an organization behaves ethically, customers

develop more positive attitudes about the firm, its
products, and its services
• To create Values or trust with key stakeholders
• To build good image about the organization in the
minds of customer, employees, shareholders and the
society
 WEEK 11

MARKET SEGMENTATION
Definition:
Market segmentation is the process of dividing groups of consumers based
on their purchasing behavior and reaction to promotions and
communications from the company.
Reasons for Market Segmentation
• Better Satisfy Customer Needs and Wants: Through segmentation, a
company can match customers’ needs and wants. Since all customers
have differing needs, they must be handled in different ways
• Better Communication : A marketing message needs to be targeted to
specific customer segments for it to be effective
• Opportunity for Growth: Segmentation enables identification of
potential customers who wouldn’t normally buy a product.
• Higher Profits/Market Share: Consumers have different price sensitivities
so by segmenting the market, different prices can be charged to extract
the most consumer surplus
• Retain more customers : Customer circumstances change, for example
they grow older, form families, change jobs or get promoted, change
their buying patterns
 SEGMENTATION BASES FOR CONSUMER
MARKETS
 The four bases for segmenting consumer market are as follows:
• A. Demographic Segmentation
• B. Geographic Segmentation
• C. Psychographic Segmentation
• D. Behavioural Segmentation

SEGMENTATION BASES FOR CONSUMER MARKETS

1. GEOGRAPHIC SEGMENTATION:
Geographic segmentation refers to dividing a market into
different geographical units such as nations, states, regions,
cities, or neighborhoods.
• Geographic variables such as climate, terrain, natural resources,
and population density also influence consumer product needs
 DEMOGRAPHIC SEGMENTATION
1. Age: It is one of the most common demographic variables used to segment
markets. Some com­panies offer different products, or use different marketing
approaches for different age groups. For example, McDonald’s targets
children, teens, adults and seniors with different ads and media. Markets that
are commonly segmented by age includes clothing, toys, music, automobiles,
soaps, shampoos and foods.
2. Gender: Gender segmentation is used in clothing, cosmetics and magazines.
3. Income: Markets are also segmented on the basis of income. Income is used
to divide the markets because it influences the people’s product purchase. It
affects a consumer’s buying power and style of living. Income includes
housing, furniture, automobile, clothing, alcoholic, beverages, food, sporting
goods, luxury goods, financial services and travel.
4. Family cycle: Product needs vary according to age, number of persons in the
household, marital status, and number and age of children. These variables
can be combined into a single variable called family life cycle. Housing, home
appliances, furniture, food and automobile are few of the numerous product
markets segmented by the family cycle stages.
 PSYCHOGRAPHIC SEGMENTATION

• Psychographic segmentation pertains to lifestyle and personality traits.

In the case of certain products, buying behaviour predominantly
depends on lifestyle and personality characteristics
1. Personality characteristics:
• It refers to a person’s individual character traits, attitudes and hab­its.
Here markets are segmented according to competitiveness, introvert,
extrovert, ambitious, aggressiveness, etc. This type of segmentation is
used when a product is similar to many compet­ing products, and
consumer needs for products are not affected by other segmentation
variables
2. Lifestyle:
• It is the manner in which people live and spend their time and money.
Lifestyle analysis provides marketers with a broad view of consumers
because it segments the markets into groups on the basis of activities,
interests, beliefs and opinions. Companies making cosmetics, alcoholic
beverages and furniture’s segment market according to the lifestyle
 BEHAVIOURAL SEGMENTATION
• In behavioral segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude towards, use of, or response to a product
1. Occasion: Buyers can be distinguished according to the occasions when they
purchase a product, use a product, or develop a need to use a product. It helps
the firm expand the product usage.
2. User status: Sometimes the markets are segmented on the basis of user status,
that is, on the basis of non-user, ex-user, potential user, first-time user and
regular user of the product.
3. Usage rate: Markets can be distinguished on the basis of usage rate, that is, on
the basis of light, medium and heavy users.
4. Loyalty status: Buyers can be divided on the basis of their loyalty status—
hardcore loyal (con­sumer who buy one brand all the time), split loyal (consumers
who are loyal to two or three brands), shifting loyal (consumers who shift from
one brand to another), and switchers (consum­ers who show no loyalty to any
brand).
5. Buyer readiness stage: The six psychological stages through which a person
passes when deciding to purchase a product. The six stages are awareness of the
product, knowledge of what it does, interest in the product, preference over
competing products, conviction of the product’s suitability, and purchase.
 WEEK 12: POSITIONING

• Positioning is the process of creating a desired image

for a company and its products in the minds of a
chosen user segment
• The way customers perceive a product relative to
competing products
• Refers to the place the product occupies in the
customer’s perceptual map of the market
POSITIONING STRATEGIES USED BY COMPANIES
OR ORGANIZATION TO MARKET THEIR
PRODUCTS
• Price leaders: companies may position themselves as the lowest
price among all the other competitors or service providers e.g.
Africell advert that says do not let others cheat you. We other
internet bundles at 500 Ugandan shillings only shows that they
where using the price leader as a positioning strategy
• High quality : Companies may position themselves as those that
make high quality products compared to their competitors.
Examples of companies that use high quality is Apple phones and
computers, Rwenzori Natural mineral water
• Multifunction: Companies may position themselves as those that
manufacture products that have a variety of functions to the
consumers for example, smart phones
 POSITIONING STRATEGIES CONT’D
• Uniqueness: Companies may position themselves as unique,
offering unique services as compared to their competitors.
For example International University of East Africa and
Victoria University give first year students a laptop on
admissions compared to other universities. Another example
is the pot water compared to other drinking water
• Quantity: Companies may position themselves as those that
offer the highest quantity of goods offered. For example
highland mineral offers 650 ml bottles as compared to their
competitors that offer 500 ml bottles of water
• Packaging: companies may position themselves through
packaging different for example Hill water positions
themselves differently in a nice molded bottle that looks
cooperate like bottles unlike all the other drinking water
packaged badly
 Positioning Strategies Continued
• Product or service attribute: here the advert may emphasize the
product attributes so that the consumers can be able to
differentiate it from that of its competitors and other counter
feint products. It may include features such as size, color,
ingredients, speed, etc.

• Technology positioning: Positioning on the basis of technology

shows that a firm is on the cutting edge as far as technology is
concerned. For example, Equity bank with mobile bank and Equi
DUUKA show that they are a head of all the other banks available
in Uganda

• Benefit positioning: Benefit positioning is generally a stronger

basis for positioning because it answers the consumer question:
What will this product/service do for me?
Importance of positioning to companies

• Customers can be able to differentiate the

products from fake products
• Companies make attract new customers
• Companies may retain also old customers
• It will increase the companies sales
• Leading to profit maximization