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

• Identify relevant set of competitive brands
• Identify key attributes consumers use to evaluate
  brands
• Determine consumers perceptions of each brand
  -on each attribute
• Plot products position across attributes
• 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

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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

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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?
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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

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

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Developing Differentiating Statements
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Nordstroms Differentiating Statement
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Targets Differentiating Statement 
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Wal-Marts Differentiating Statement 
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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
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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