Good marketing practice tells us that the foundation for a marketing strategy is to position clearly in the market. This is something that determines the whole of the marketing tools. If your business is positioned at the top end of the market, consumers expect more. The market size maybe smaller, more value must be added. This will determine the price and that requires careful calculation to ensure that the costs of adding the value are not higher than price the consumer is prepared to pay.
The market dynamics are also ever changing. Using Starbucks, as an example. They orginally occupied the top end of the market. Then moved into the mass market with lattes on every street corner. That market looked attractive and along come the likes of MacDonald who repositioned to compete by offering lattes and healthier options.
So how does Starbucks respond? They are now testing the top end of the market and offering more value adds. Interesting to see how that is received and how the competitors respond. Best marketing practice suggests that clarity and being able to differentiate is key to success.
Consider how your marketing practice in your business can use this idea. Think about the way in which the current assets are used. You might want to offer a streamlined version e.g express, or essentials. Marks and Spencer, Waitrose are examples of businesses that have offered a simpler version of their main business as an example of good marketing practice.
Another example is Only Men Aloud, the popular Welsh Choir who won a television competition and have gone onto enjoy successful concerts and record sales. They are now offering a slimmed down version for special parties and events. Not everyone has the space for a full choir so Only 4 Aloud. Clever use of the brand and being able to tailor the assets of the business, in this case the choir to the needs of the customer. A really good example of marketing practice at its best
If you are sitting a marketing exam this is a really good example of competitive strategy, positioning and branding. It shows how marketing practice builds the profitability of the business