Marketing Techniques Discussion

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The assignment

Identify a product that you feel is a good example of a successful “line extension.” Explain why you feel this product manufacturer or service provider was able to accomplish this, using lessons about line-extensions to support your argument.

(Also, please read:<Introduction to Secondary Research> It will not be a part of this assignment, but you will be tested on this information at a later date.)


  • Read chapters 11-13 of Positioning: The Battle for Your Mind
  • Prove your understanding of the reading
  • Be thoughtful in your analysis
  • Must be formatted according to the following requirement:Font: 11-point Arial Word count: 500 minimum (550 max)

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                                                                          Other books written by Al Ries and Jack Trout Marketing Warfare Bottom Up Marketing Horse Sense The 22 Immutable Laws of Marketing By Al Ries Focus The 22 Immutable Laws of Branding* The 11 Immutable Laws of Internet Branding* By Jack Trout The New Positioning The Power of Simplicity Differentiate or Die *With Laura Ries Positioning : The Battle for Your Mind Twentieth Anniversary Edition By Al Ries, Chairman Ries & Ries and Jack Trout, President Trout & Partners Ltd. Copyright © 2001, 1981 by The McGraw Hill Companies, Inc.. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0071374612 The material in this eBook also appears in the print version of this title: 0-07-135916-8. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. ("McGraw-Hill") and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill's prior consent. You may use the work for your own noncommercial and personal use; 5/332 any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms. THE WORK IS PROVIDED "AS IS." McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/ or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise. Dedicated to the second best advertising agency in the whole world. Whoever ther might be. Positioning became a roaring success, the buzzword of advertising and marketing people around the world. Yet the success of the concept had the unintended consequences of pushing Trout & Ries out of the advertising business and into the marketing strategy business. As it turned out, clients didn't want their advertising agencies to be "strategic"; they wanted them to be "creative." The clients would do their own positioning. So be it. We became marketing strategists and never looked back. Contents Introduction Developed by the authors, "positioning" is the first 1 body of thought to come to grips with the problems of communicating in an overcommunicated society Chapter 1. What Positioning Is All About Many people misunderstand the role of communica- 5 tion in business and politics today. In our overcommunicated society, very little communication actually takes place. Rather, a company must create a "position" in the prospect's mind. A position that takes into consideration not only a company's own strengths and weaknesses, but those of its competitors as well Chapter 2. The Assault on the Mind There are just too many companies, too many 11 products, too much marketing noise. The per-capita consumption of advertising in America is $200 per year. Chapter 3. Getting Into the Mind The easy way to get into a person's mind is to be first. 21 If you can't be first, then you must find a way to 9/332 position yourself against the product, the politician, the person who did get there first Chapter 4. Those Little Ladders in Your Head To cope with our overcomunicated society, people 33 have learned to rank products on mental ladders. In the rent-a-car field, for example, most people put Hertz on the top rung, Avis on the second rung and National on the third. Before you can position anything, you must know where it is on the product ladder in the mind Chapter 5. You Can't Get There from Here A competitor has no hope of going head-to-head 43 against the position IBM has established in computers. Many companies have ignored this basic positioning principle and have suffered the consequences Chapter 6. Positioning of a Leader To be a leader, you have to be first to get into the mind 51 of the prospect. And then follow the strategies for staying there Chapter 7. Positioning of a Follower What works for a leader doesn't necessarily work for a 65 follower. An also-ran must find a "creneau" or hole in the mind not occupied by someone else 10/332 Chapter 8. Repositioning the Competition If there are no "creneaus" left, you have to create one 77 by repositioning the competition. Tylenol, for example, re-positioned aspirin Chapter 9. The Power of the Name The most important marketing decision you can make 89 is what to name the product. The name alone has enormous power in an overcommunicated society. Chapter 10. The No-Name Trap Companies with long, complex names have tried to107 shorten them by using initials. This strategy seldom works Chapter 11. The Free-Ride Trap Can a second product get a free ride on the advertising119 coattails of a well-known brand? In the case of AlkaSeltzer Plus and many other products on the market today, the answer is no. Chapter 12. The Line-Extension Trap Line extension has become the marketing sickness of127 the past decade. Why it seldom works Chapter 13. When Line Extension Can Work 11/332 There are cases, however, of successful line extension145 (GE, for example.) A discussion of when to use the house name and when to use a new name Chapter 14. Positioning a Company: Monsanto A case history that illustrates how Monsanto is estab-159 lishing its leadership in the chemical industry with the Chemical Facts of Life program Chapter 15. Positioning a Country: Belgium A case history of Sabena Belgium World Airlines. The171 answer to the problems of a national airline like Sabena is to position the country, not the airline Chapter 16. Positioning a Product: Milk Duds A case history that illustrates how a product with a179 small budget can get into the mind by positioning itself as the long-lasting alternative to the candy bar Chapter 17. Positioning a Service: Mailgram A case history that illustrates why a really new service183 has to be positioned against the old Chapter 18. Positioning a Long Island Bank 12/332 A case history that shows how a bank can successfully191 strike back when its territory gets invaded by its giant neighbors from the Big City Chapter 19. Positioning the Catholic Church Even institutions can benefit from positioning think-199 ing. An outline of the logical steps that should be taken to position the Roman Catholic Church Chapter 20. Positioning Yourself & Your Career You can benefit by using positioning strategy to ad-207 vance your own career. Key principle: Don't try to do everything yourself. Find a horse to ride Chapter 21. Six Steps to Success To get started on a positioning program, there are six219 questions you can ask yourself Chapter 22. Playing the Positioning Game To be successful at positioning, you have to have the229 right mental attitude. You have to become an outsidein thinker rather than an inside-out thinker. This requires patience, courage and strength of character Index 245 Introduction "What we have here is a failure to communicate." How often have you heard that bromide? "Failure to communicate" is the single, most common, most universal reason given for problems that develop. Business problems, government problems, labor problems, marriage problems. If only people took the time to communicate their feelings, to explain their reasons, the assumption is that many of the problems of the world would somehow disappear. People seem to believe any problem can be solved if only the parties sit down and talk Unlikely Today, communication itself is the problem. We have become the world's first overcommunicated society. Each year, we send more and receive less. A New Approach to Communication This book has been written about a new approach to communication called "positioning." And most of the examples are from the most difficult of all forms of communication Advertising. A form of communication that, from the point of view of the recipient, is held in low esteem. For the most part, advertising is unwanted and unliked. In some cases, detested To many intellectuals, advertising is selling your soul to corporate America. Not worthy of serious study 14/332 In spite of its reputation, or perhaps because of it, the field of advertising is a superb testing ground for theories of communication. If it works in advertising, most likely it will work in politics, religion or any activity that requires mass communication So the examples in this book could just as well have been taken from the field of politics, war, business or even the science of chasing the opposite sex. Or any form of human activity which involves influencing the minds of other people. Whether you want to promote a car, a cola, a computer, a candidate or your own career Positioning is a concept that has changed the nature of advertising. A concept so simple people have difficulty understanding how powerful it is. Adolf Hitler practiced positioning. So does Procter & Gamble as well as every successful politician. We got carried away. The "big lie" was never a part of positioning thinking. On the other hand, we got many calls from Washington political strategists for more information about our positioning concepts. Positioning Defined Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. Perhaps yourself. But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect. A newer definition: "How you differentiate yourself in the mind of your prospect." So it's incorrect to call the concept "product positioning." As if you were doing something to the product itself. 15/332 Not that positioning doesn't involve change. It does. But changes made in the name, the price and the package are really not changes in the product at all. They're basically cosmetic changes done for the purpose of securing a worthwhile position in the prospect's mind. Positioning is also the first body of thought that comes to grips with the problems of getting heard in our overcommunicated society. Thanks to the personal interest of Rance Crain, editorial director of Advertising Age, the magazine ran a three-part series on "positioning" in its April 24, May 1, and May 8, 1972 issues. More than any other single event, this series made positioning famous. It also made a deep impression in our minds about the power of publicity. How Positioning Got Started If one word can be said to have marked the course of advertising in the past decade, the word is "positioning." 16/332 Positioning has become the buzzword of advertising and marketing people. Not only in America, but around the world. Most people think positioning got started in 1972 when we wrote a series of articles entitled "The Positioning Era" for the trade paper Advertising Age. Since then, we have given more than 500 speeches on positioning to advertising groups in 16 different countries around the world. And we have given away more than 120,000 copies of our "little orange booklet" which reprints the Advertising Age articles. Positioning has changed the way the advertising game is being played today Unfortunately, "vagueness" is becoming more prevalent today than "positioning." "We're the third largest-selling coffee in America," say the Sanka radio commercials. The third largest? Whatever happened to those good old advertising words like "first" and "best" and "finest"? The original Avis positioning ad with the most famous last line in advertising history: "The line at our counter is shorter." 17/332 Well, the good old advertising days are gone forever and so are the words. Today you find comparatives, not superlatives. "Avis is only No. 2 in rent-a-cars, so why go with us? We try harder." "Honeywell, the other computer company." "Seven-Up: the uncola." Along Madison Avenue, these are called positioning slogans. And the advertising people who write them spend their time and research money looking for positions, or holes, in the marketplace. But positioning has stirred up interest well beyond Madison Avenue. With good reason. Anyone can use positioning strategy to get ahead in the game of life. And look at it this way: If you don't understand and use the principles, your competitors undoubtedly will. 1 What Positioning Is All About How did a hard-sell concept like positioning become so popular in a business noted for its creativity? In truth, the past decade might well be characterized as a "return to reality." White knights and black eye patches gave way to such positioning concepts as Lite Beer's "Everything you've always wanted in a great beer. And less." Poetic? Yes. Artful? Yes. But also a straightforward, clearly defined explanation of the basic positioning premise. To be successful today, you must touch base with reality. And the reality that really counts is what's already in the prospect's mind. To be creative, to create something that doesn't already exist in the mind, is becoming more and more difficult. If not impossible. The basic approach of positioning is not to create something new and different. But to manipulate what's already up there in the mind. To retie the connections that already exist. Today's marketplace is no longer responsive to the strategies that worked in the past. There are just too many products, too many companies, and too much marketing noise. We had no idea what "too many" really meant. Average supermarket now has 40,000 SKUs or stock keeping units. The question most frequently asked is why. Why do we need a new approach to advertising and marketing? 19/332 The Overcommunicated Society The answer is that we have become an overcommunicated society. The per-capita consumption of advertising in America today is about $200 a year. The $200 per-capita figure was based on a broad definition of advertising. If you count "media expenditures" only, the actual 1972 number was about $110 per person. Today, the comparable number is $880. Truly we live in an overcommunicated society and it's not getting any better. If you spend $1 million a year on advertising, you are bombarding the average consumer with less than a half-cent of advertising, spread out over 365 days. A consumer already exposed to $200 worth of advertising from other companies In our overcommunicated society, to talk about the impact of your advertising is to seriously overstate the potential effectiveness of your message. It's an egocentric view that bears no relationship to the realities of the marketplace. In the communication jungle out there, the only hope to score big is to be selective, to concentrate on narrow targets, to practice segmentation. In a word, "positioning." The mind, as a defense against the volume of today's communications, screens and rejects much of the information offered it. In general, the mind accepts only that which matches prior knowledge or experience. Millions of dollars have been wasted trying to change minds with advertising. Once a mind is made up, it's almost impossible to change it. Certainly not with a weak force like advertising. "Don't confuse me with the facts, my mind's made up." That's a way of life for most people. 20/332 The average person can tolerate being told something which he or she knows nothing about. (Which is why "news" is an effective advertising approach.) But the average person cannot tolerate being told he or she is wrong. Mind-changing is the road to advertising disaster. The folly of trying to change a human mind became one of the most important tenets of the positioning concept. This is the one principle most often violated by marketing people. Literally millions of dollars are wasted every day by companies trying to change the minds of their prospects. The Oversimplified Mind The only defense a person has in our overcommuni-cated society is an oversimplified mind. Not unless they repeal the law of nature that gives us only 24 hours in a day will they find a way to stuff more into the mind. The average mind is already a dripping sponge that can only soak up more information at the expense of what's already there. Yet we continue to pour more information into that supersaturated sponge and are disappointed when our messages fail to get through. 21/332 Advertising, of course, is only the tip of the communication iceberg. We communicate with each other in a wide variety of bewildering ways. And in a geometrically increasing volume. The medium may not be the message, but it does seriously affect the message. Instead of a transmission system, the medium acts like a filter. Only a tiny fraction of the original material ends up in the mind of the receiver Furthermore, what we receive is influenced by the nature of our overcommunicated society. "Glittering generalities" have become a way of life in our over-communicated society. Not to mention that they work. Technically, we are capable of increasing the volume of communication at least tenfold. Already there's talk of direct television broadcasting from satellites. Every home would have 50 channels or so to choose from. Satellite television, of course, has become a big deal and most consumers already have their 50 channels to choose from. Today the talk is about 500 channels in the future. We're not too sure about this prediction. Who needs 500 channels when the average consumer watches no more than 5 or 6 channels? 500 channels? By the time you find something to look at, the show will be over. And there's more to come. Texas Instruments has announced a "magnetic bubble" memory device which can store 92,000 bits of 22/332 information on a single chip. Six times as ...
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School: New York University

Hey there, here is the complete paper, go through it and in case of anything, feel free to alert me.


Marketing Techniques

Student Name
Institution Affiliation


Product Line extension
This concept is a useful marketing technique used by brands which are well known to
introduce items within the same product category. The aim of the manufacturer, in this case, is
to take advantage of the known strong brand and push for the introduction of a new product into
the market targeting the reputable brand customers(Takagoshi and Matsubayashi, 2013). For
example, when Coca Cola Company introduced the Diet Coke, the product aimed coca CocaCola customers in the assumption that they will recognize with the mother brand. H...

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