Positioning

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Positioning
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• Define Demonstrate
• Positioning Strategy
• Outline the Positioning
• Research Process
• Delineate logic techniques
• of Positioning Strategies
• Innovate
• Relocate
• Procreate
• Denigrate

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Where were at The 3rd Level of Strategy
Corporate Level
Business unit Level
Functional Strategy
Research development
Information systems
Manufacturing
Finance
Marketing
Human resources
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What Weve done
Situation Analysis
SWOT Analysis
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What We Know

• Mission, resources, Strengths Weaknesses,
  growth competitive strategies
• How the market is segmented relevant factors
  that influence consumers purchasing decisions
• The nature magnitude of competition for the
  consumers time
• Existing emerging Macro-E Trends that can
  impact on strategic decisions

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Strategic Planning
Situation Analysis
Marketing Strategy
The Marketing Mix

• Company
• Consumers
• Competitors
• Conditions
• PEST

Growth Competitive Strategies
Positioning Strategy
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What We do Now

• Targeting
• The process of evaluating segments selecting
  those that are most attractive to pursue

Positioning Determining how a brand should be
perceived fit into lives of target consumers
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Key to Successful Marketing Strategy

• Convincing the right person(s) that you offer
  the best product, available at best place, at the
  best price

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Marketing Strategy Success Contingent on
Formulating right Marketing Mix around the most
profitable target competitive position
Price
Product
Target Position
Customer Needs
Distribution
Promotion
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Marketing Strategy Success contingent on
formulating your Marketing Mix so that it

• Specifies - the way you want consumers to think
  feel about your product/service
• Defines - how you will be differentiated thus
  compete in marketplace

Positioning is the Centerpiece (literally
figuratively) of Marketing Strategy
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• Positioning is not what you do to product
• Positioning is what you do to the Consumers Mind

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Positioning is- the place the product occupies
in consumers mind-- Relative to other
competing products
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The Consumer Mind - Set
Consumers organize the product field according to
communicated conventions
MercedesBest ArmaniBest PentiumBest BudMost
Pop. Wal-Mart Low Price, High Variety
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The Product Ladder

• Every product field has a pecking order
• The top brands
• the also available

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To find Your Products Position
You Need to get into consumers head Map the
product field from the consumers point of view

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Mapping Product Positions
Gives you a visual representation of where
consumers place competing brands along key
dimensions
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Steps in Creating Product Position Maps

1. Identify relevant set of competitive brands
2. Identify key attributes consumers use to evaluate
   brands
3. Determine consumers perceptions of each brand
   -on each attribute
4. Plot products position across attributes
5. Plot customer ideal points (market segments)

Evoked Set Consideration Set
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Paired Comparisons 1---------100
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Paired Comparisons 1---------100
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Semantic Differentials SA----------SD
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Multi-Dimensional Scaling
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Position Map Automotive market
Figure 5-6
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Position Map - Bar Soap
High moisturizing

• Tone

• Zest

7
4

• Lever 2000

• Dove

2
5

• Lux

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Nondeodorant
Deodorant
3
1
With Relative Size of Consumer Segments

• Lava

• Dial

• Lifebuoy

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Low moisturizing
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W/ Position Map In Hand

• Every Marketing strategist has 4 options
• Innovate
• Relocate
• Procreate
• Denigrate

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Positioning Strategy Option 1 Innovate

• Develop Introduce a New product in a New
  Position

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Cherchez Le Creneau!

Find a new or unoccupied position that is
important to consumers
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Find Un-Occupied Soap Space
High moisturizing

• Tone

• Zest

7
4

• Lever 2000

• Dove

2
5

• Lux

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Nondeodorant
Deodorant
3
1

• Lava

• Dial

• Lifebuoy

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Low moisturizing
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Find Un- Occupied Beer Space
1

• BUD

4
5
2

• Miller

Cheap
3
7
6
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Its Good to Be the 1st

• 1st Light Beer
• 1st Cheap Pen
• 1st Womens Cigarette

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People remember who is 1st

• Who was 1st person to walk on moon?
• The 2nd?
• Who was your 1st Big-Nooky?
• Your 2nd?

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Staking out a Position w/ a Proposition

• The first person to claim a benefit is the one
  who becomes associated with it in the minds of
  consumers.

You Deserve a Break Today
Thick Juicy/ Where's the Beef
Have it Your Way
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--Finding an Open Lucrative Position is
Difficult--

• Product Space already very competitive
• Mind-Space is very limited already occupied

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PRODUCT POSITIONING

• Evoked Consideration Sets-occupied
• The mind will hold only a few alternatives in
  memory disregards all others

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Whats in Your Evoked Set?
Rental Cars?
Tissue?
Soft Drinks?
Fast Food?
Potato Chips?
Computer Chips?
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Positioning Strategy Option 2 Relocate

• Redesign Re-introduce an Existing product
  in a New Position

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Re-Position Nearer to Ideal of most/more
profitable target group
Expensive
Excedrin
Bufferin
Ideal
Anacin
For Body Aches
For Headaches
Motrin
Reformulate, Repackage /or more directly
Promote Tylenol for effective Headache Relief
Medipren
Ideal
Inexpensive
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Larger Seg
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Juxtaposition
Old Style Market Rollout
TASTES As Good As Budweiser But Costs a Whole
Lot Less!
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Positioning requires Consumer Partipulation

• You have to get the consumer to participate in
  their own manipulation
• Manipulate what is already in the mind of the
  consumer
• Do not challenge existing perceptions

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is 1
If you cant be 1st at least be Real

• Avis is only 2 in rental cars
• So why go with us?
• We try harder

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The Classic Juxtaposition
The Originals
Avoids contradicting whats really in consumers
mind
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Positioning involves Comparatives not
Superlatives
Not the BEST Thing

• Coca Cola The Real Thing
• Infer all others are imitators

• Lite Beer from Miller.
• Everything you always wanted in a beer. And
  less.

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Positioning Strategy Option 3 Procreate

• Develop Introduce a number of New products
• in multiple Positions

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Expensive
Procreating calls for developing positioning
multiple products
For Body Aches
For Headaches
Inexpensive
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The Master of Multi- Branding Procter Gamble
Every Brand w/ its own Position

• Tide for family market
• Cheer for clothes -conscious w/ color guard
• Bold for value-conscious w/ fabric softener
• Gain for scent-conscious w/ aromatics
• Era for dirt-conscious w/ stain
  removers
• Dash for price-conscious
• Dreft for new mothers
• Ariel for eco-conscious

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Michelob Light, Michelob Dry.
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Michelob Diluted its Position

• Michelob was the first high-priced
  Premium-domestic beer---
• Then they launched into Michelob Light, Michelob
  Dry Honey Lager HefeWeizen

• They started to become everything to everybody
  and they became nothing

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A note of Caution about Multi-Branding

• Be Careful when introducing/ positioning a new
  product-- especially if you're using the family
  brand-name

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Be careful w/ Brand Extensions (using existing
brand name in new product category)

• Kodak Crayons
• Exxon Office Furniture
• Gerber Life Insurance
• Life Savers Gum
• Xerox Computers
• Kleenex Towels

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Arm Hammer ProductsA Success- Established
perceptions readily transfers product classes
utubes
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Positioning Strategy Option 4 Denigrate

• Place Competitor's product
• in a less Favorable Position

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Repositioning the Competition
Royal Doulton, the china of Stratford-on-Avon
Vs. Lenox, the china of Pomona, New Jersey
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Repositioning the Competition
uTube

• Nuprin vs. Tylenol vs. Aspirin
• Tylenol campaign pointed out the negative affects
  of aspirin (stomach upset)
• Scope vs. Listerine

Now Listermint w/ Cinnamon
uTube
Minty Breath Not Medicine Breath
uTube
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Repositioning the Competition
Visa They wont take American express
NOT
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Developing Implementing Positioning Strategy
Differentiation
The World On Time
Communication
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Choosing Implementing a Differentiation
Strategy

• best quality
• lowest price
• best value
• most reliable

1. Stakeout optimum position Based on your most
   salient competitive advantage
2. Focus on Single-Competitive Advantage often
   bestHelps to gain positioning intensity
3. Position strengthened by noting your strengths in
   conjunction with your competitors weaknesses

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Developing Differentiating Statements
For (target customers)
Who are dissatisfied w/ (current market alternatives)
Our product is (a new product category)
That provides (key capability)
Unlike (competing alternatives)
We provide (the desired alternative).
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Nordstroms Differentiating Statement
For discriminating shoppers
Who are dissatisfied w/ long-lines and substandard customer service
Our product is offering only the highest quality and service,
That provides the premiere prestige retailer
Unlike other retailers who take your business for granted,
We are committed to making you our most important customer.
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Targets Differentiating Statement 
For who appreciate value and service
Who are dissatisfied w/ impersonal big box retailers who sell inferior products
Our product is Target is the premiere value retailer
That provides offering a unique mix of quality products, low prices and a friendly shopping environment
Unlike other discount retailers who offer low quality products and stores,
We are committed to offering the most enjoyable and valuable shopping experience
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Wal-Marts Differentiating Statement 
For shoppers seeking the lowest price every time
Who are dissatisfied w/ clipping coupons and waiting for sale- promotions
Our product is Wal-Mart is the premiere discount retailer
That provides offering every day low prices,
Unlike other discount retailers who make you shop (for sales) when they want you to
We provide are committed to offering you the lowest prices everyday.
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Differentiate or Die Survival in Our Age of
Killer Competition
In our Hyper-Competitive-Global market The need
to differentiation grows greater everyday

• From the early 1970s to late 1990s, the number of
  automobile models grew from 140 to 260
• the number of over-the-counter pain relievers
  went from 17 to 141.
• That makes positioning -
• the marketing tactic of differentiating a product
  or company in the mind of a prospect-
• more important than ever
• Jack Trout

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The ultimate success of any positioning strategy
comes down to 2 Key Decisions

• Choosing most salient variable w/ which to
  distinguish your product from competitors
• Selecting best communication platform to convey
  your products unique position

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Your 1st Decision

• On What Dimension or Variable
• do you want to compete?
• Differentiation Strategy

Putting your Best Foot Forward
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Criteria for Selecting the Right Competitive
Advantage
Determinant
Must be relevant to a consumer need that
motivates purchase/usage
Affordable
Distinctive
Criteria for Determining which Differences to Prom
ote
Superior
Profitable
Preemptive
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Differentiation Variable Options
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Product Levels
Augmented Product
Service
Payment plan- Credit
Brand Name
Features
Actual Product
Distribution Delivery
Price Quality
After- Sale Support
Design
Packaging
Installation
Warranty
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Differentiation Variables

• Product Attributes
• features
• performance
• durability
• reliability
• repair-ability
• style
• design

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Differentiation Price/Quality -Attributes
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Differentiation variables

• Customer-Service Attributes
• delivery
• installation
• customer support

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Differentiation variables

• Employees/ Personnel
• competence
• courtesy
• credibility
• reliability
• responsiveness
• communication

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Differentiation variables

• Channel
• Coverage
• Expertise
• Performance

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Differentiation Variable Options
Product
Consumer
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Consumers Buy Benefits not Products

• People buy Holes, not drills!

• People buy Hope, not cosmetics!

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Toothpaste Market Differentiated by Benefit
Segments
Figure 5-3
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Procter Gamble Each Brand offers a Unique
Benefit
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Positioning by use or application

• Differentiation based on
• How a product is used
• The number / variety of uses
• New / Changing patterns of use

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• Differentiation thru Product use -

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REPOSITIONING-Revitalize sales w/ New uses
(mature product)
Jell-O

• From old-Fashioned Dessertto--
• Childrens /or adult fun product
• Arm Hammer Baking Soda

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Expensive
Tylenol
For Body Aches
For Headaches
Medipren
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Inexpensive
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Product Positioning Consumer Positioning
Consumers Buy Products to define differentiate
themselves

• Designer Label- clothes, cosmetics, perfume
• Top-Shelf Liquor
• Automobiles

• Image Congruence between Products Qualities /
  Connotations
• Consumers Personality / Persona

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• Differentiation by user Revolt Jeans

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The Marlboro Man
uTube
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uTube
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Finally you must effectively communicate your
competitive Advantage

• Choosing the most salient variable w/ which to
  distinguish your product from the competitors
• Selecting the best communication platform to
  convey your products unique position

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Communication Strategies
Cognitive- Logical Affective- Emotional
focuses on problems, solutions or benefits sought by customers how product features help solve problems or achieve benefits appeals to the heart focuses on emotions, feelings, or drives associated with product / service
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• When a company doesn't present a clear message
• that its product is unique
• in a way that is relevant to customers,
• those customers have no reason to buy it

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Four Major Positioning Errors
1. Under-positioning - consumers have only vague
idea of the brand. 2. Over-positioning -
consumers have too narrow a view of the
brand. 3. Doubtful Positioning - consumers dont
believe the brands claims 4. Confused
Positioning - consumers confused about the brand
due to frequent changes or too many claims.
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Burger Kings search for Position

• 86-87 This is a Burger King town.
• 87 The best food for fast times.
• 87-89 We do it like youd do it.
• 89-91 Sometimes you gotta break the rules.
• 91-92 Your way. Right away.
• 92-94 BK Tee Vee I love this place!
• 94 Back to basics
• 94-96 Get your burgers worth.
• 96-98 It just tastes better.
• Go the distance
• Got the Urge
• 01-02 The Whopper Says
• 02-03 At Burger King You Got It

• 76 Have it your way.
• 77-78 America loves burgers and were Americas
  Burger King.
• 78-80 Whos got the best darn burger?
• 80-82 Make it special. Make it Burger King.
• 82 Arent you hungry for Burger King now?
• 82-83 Battle of the burgers.
• 83 Arent you hungry?
• 83-85 The big switch.
• 85-86 Search for Herb.
• 86-87 This is a Burger King town

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Papa Johns
Hi Quality
Variety
Pizza Hut
Fast
Slow
Dominos
Caesars
Low Quality