Marketing 5000

1
Marketing 5000
Webster U N I V E R S I T Y

• Week 6 Chapter 11
• Positioning

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OBJECTIVES

• Objectives
• Product Positioning
• Product Differentiation
• Homework
• Product Concept
• Technology Adoption Curve

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DEFINITION POSITIONING

• Positioning is the attempt to control the
  customers perception of a product or service
  compared to competitors
• Quality Gap between US and Japanese cars low
• Perception Gap between US and Japanese cars high

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DEFINITION POSITIONING

• Positioning is how you differentiate your product
  or service from your competitors and then
  determine which market niche to fill

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POSITIONING

• 3 major positions to occupy in customers mind
• Product leadership innovation, quality products
• Operational leader high operational performance
  
• Service leader meeting customer needs
• Product leadership aircraft engines
• Operational leader home appliances
• Service leader engineered plastics

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POSITIONING

• Companies usually promote one position or USP
  (unique selling point)
• Lowest price
• Safest tire Michelin
• On-time delivery Fedex
• Fights cavities Colgate
• If try to promote more benefits, you will usually
  confuse customers

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POSITIONING

• Aquafresh Toothpaste able to promote 3 USP!
• Fresh breath
• Anti-cavity
• Whitening
• Successful because customer could see 3 distinct
  toothpastes!

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POSITIONING

• Three questions to ask when deciding how to
  position
• What's your customer really buying from you?
• How is your product or service different from
  your competitors?
• What makes your product or service unique?

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POSITIONING STATEMENT

• Create a positioning statement for your product
• Describe what distinguishes you from your
  competition in 1-2 sentences
• Test your positioning statement
• Does it appeal to your target audience, their
  wants and needs
• Use the positioning statement
• Use to create all communication about brand or
  product to customers

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POSITIONING STATEMENT

• Example
• To busy professionals who need to stay organized,
  XXXX is a mobile, electronic device that allows
  you to carry your work with you and back up files
  on your PC easier than competitive products.
• Palm

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DIFFERENTIATION

• Positioning delivers the central idea about a
  company or product to the target market
• Differentiation defining meaningful and valued
  differences to distinguish your product from the
  competition
• 5 Types of Differentiation
• Product
• Service
• Personnel
• Channel
• Image

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DIFFERENTIATION
PRODUCT Form Features Performance Reliability Rep
arability Style
SERVICES Order Ease Delivery Installation Customer
Training Maintenance / Repair
PERSONNEL Competence Courtesy Credibility Reliabil
ity Responsiveness Communication
CHANNEL Coverage Expertise Performance
IMAGE Symbols Media Atmosphere Events
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PRODUCT DIFFERENTIATION

• Form
• Aquapod bottle makes children want to drink more
  water!
• Features
• Design makes stacking easy, saves room
• Performance
• Changing recipe (using cheaper ingredients)
  causing lost sales at Hersheys chocolate
• Mars will not allow substitutes

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PRODUCT DIFFERENTIATION

• Reliability
• Maytag brand washing machines never need
  repairman
• Repairability
• Repair center network
• Customer can fix themselves
• Standard parts
• Style / Design
• Arizona Ice Tea Bottles
• Starbuck Coffee Stores
• Apple Computers

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SERVICES DIFFERENTIATION

• Order Ease
• Delivery
• Pizza in 30 minutes
• Film developed in 1 hour
• Installation
• Interactive software setup
• Automatic defaults
• Customer training
• Maintenance Repair
• Warranty

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PERSONNEL DIFFERENTIATION

• Better-trained people are advantage
• Add value to the product/service
• Combination of
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication

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CHANNEL DIFFERENTIATION

• Competitive advantage through better distribution
  channels
• Catepillar has more dealers throughout world
• Avon direct marketing channel
• Iams pet food in special outlets (veterinarians,
  pet stores)

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IMAGE DIFFERENTIATION

• Symbols, Colors, Slogans, and Special Attributes
• Symbol - Apple
• Color IBM blue
• Slogan Coke
• Special Attributes
• Oldest
• Largest

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HOMEWORK

• Product Positioning Statement
• Product Sketch / Differentiation
• List all product differentiating characteristics
• Brand / Logo
• 1 PPT

20
MARKETING PLAN / PRESENTATION

• Contents of Marketing Plan
• Executive Summary
• Current Market Situation (SWOT)
• Opportunity and Issue Analysis
• Product Positioning / Concept / Description
• Objectives
• Marketing Strategy
• Market Leadership / Niche / Challenger
• Marketing Programs
• Financial Projections
• Implementation