Marketing L4: Problems of Positioning

David Robinson faculty.haas.berkeley.edu/robinson/ugba106 Haas School of Business ugba 106 Marketing © D. Robinson, 2009 Lecture 4: Problems of Positioning

Lecture 4: Problems of Positioning

Examples of positioning

What positioning means

How so “problems”?

How we achieve it

How marketers use positioning - Perceptual Maps

Some examples of positioning

Defining positioning

Definition

Positioning is the (multi-dimensional) place that our product holds in the mind of customers (actual and prospective) as compared to competitors offerings

Four Steps to Marketing Strategy Define the Market Segment the Market, Choose attractive segments Design a Marketing Mix to Appeal to the Target Position our offering In the minds of customers As compared to competitors’ offerings

Great Truths about Positioning

1. Ideal position flows from the “attractive market”

If we decide 35 – 54 female married is the attractive market segment, we better come up with an offering that appeals to Hockey Moms

2. Positioning is in the eye of the beholder

Most products have many ways we could position … choose one: “Tastes great” or “Less filling” “Saves lives” or “the ethical alternative”

Some positions involve giving up others (glamour and “healthy” are different)

A good “positioning’ is linked to the value proposition —it has to be “credible”

Why do I say “ Problems of Positioning”?

Problems of Positioning: 1. Positioning Paradox

Positioning is a result of good Marketing Strategy Planning

But, to achieve desirable positioning, we should begin with an idea of where we want to end up

Problems of Positioning , 2:The position we achieve may not be the position we sought

Positioning is what customers think about us—not what we say about ourselves

3. The Position you want may have been pre-empted. Who owns the position “Safe Car”?

The Position you want may have been pre-empted:

4. The Competitive Position may be different in another (geographic) market:

Honda in Japan

Youthful

Sporty

Hi-tech engineering

Honda in USA

Economical

Good enough for everyday

“ Import”

How we achieve positioning Positioning is achieved through a harmonious Marketing Mix of all “four P’s”

We achieve positioning by Attributes and Associations How does the Marketing Mix fit here? Positioning Attributes Associations Features Performance Price Channel Advertising Other Promotion

Ethics: Beware of False Positioning

“ They traversed across 10 deserts. Climbed two volcanoes. Skirted the world's deepest lake. Stood at the edge of the world in Tierra del Fuego. Braved minus-58 degree temperatures in Siberia. And completed the world's longest charitable drive-a-thon from behind the wheel of four Certified Pre-Owned Discovery vehicles—in a global search for a cure for Parkinson's Disease.”

Introduction to Perceptual Mapping

The result of Marketing Research

Often expressed as 2-dimensions, but likely multi-dimensional

Product space (positioning) for bar soaps High moisturizing Low moisturizing Nondeodorant Deodorant 1 2 3 4 5 7 6 8 Safeguard Lever 2000 Zest Coast Lux Dove Tone Lava Lifebuoy Dial

Fig 6.3 Positioning map luxury SUVs Why would “Expensive” be better than “Price”

Competitive positioning: 1. Some positions may make no sense High Service Economy price Low Service High price Competitor D Competitor B Competitor C Competitor A Who wants high price/low service?

Competitive positioning: 2. Usually best to avoid head-to-head High Service Economy price No one in this segment Low Service High price Competitor D Competitor B Competitor C Competitor A

Repositioning: You can move, but not leap: Crunchy Not sweet Where we are “ Ideal cereal for kids” Soggy Sweet

Repositioning: You can move, but not leap: Crunchy Not sweet Where we are “ Ideal cereal for kids” Soggy Sweet Not going to happen!

Repositioning: You can move, but not leap: Crunchy Not sweet Where we are “ Ideal cereal for kids” Soggy Sweet This might be possible

Example of a bad leap. . .