What is positioning <ul><li>This is a theory presentation </li></ul><ul><li>Intended to familiarize you with the concept and definition of positioning in a theoretical framework </li></ul><ul><li>As a basic understanding of the fundamentals of positioning </li></ul>
Why is there positioning <ul><li>Simply because of choice </li></ul><ul><li>We choose brands </li></ul><ul><li>Before we buy products </li></ul><ul><li>When you have chosen a brand, you already bought it in your mind </li></ul>
Why is there positioning <ul><li>Because of the nature of our business </li></ul>
Why is there positioning <ul><li>Marketers have brands and products to sell </li></ul><ul><li>People have needs to fulfil </li></ul><ul><li>Those two principles converge in the form of a transaction </li></ul><ul><li>A DECISION BY THE TARGET GROUP TO ACTUALLY SPEND MONEY </li></ul>
Why is there positioning <ul><li>This decision is a behaviour </li></ul><ul><li>And just like any behaviour </li></ul><ul><li>It is based on a stimulus that the brain responds to in a specific manner </li></ul><ul><li>This is called conditioning </li></ul>
Why is there positioning <ul><li>POSITIONING IS CONDITIONING. </li></ul>
“ Just give me one good reason to choose you over the competition.” What your customer is telling you always
What Makes you: Different Better Special Brand choice and product purchase fundamentals
Economics is based on supply and demand. Strategic marketing is based on different and better.
Positioning - The act of seeking, placing and optimizing something in relationship to the competition and surrounding environment From a marketers point of view
Definition of Positioning Theory: The science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer Not the marketplace. Laws and principles about how the mind categorizes, ranks and files concepts in the directory system of the mind govern this science. In other words, it is study of how the mind indexes brands.
Basically, positioning is a strategy game of “capture the concept.
Relativity Positioning is about relativity and understanding dynamics. A common misconception is viewing positioning as a singular position. Take for instance a geographic position, 43 degree longitude by 36 degree latitude. Is it a good position? It all depends on what surrounds the position. A single position is meaningless until it is put into context of what surrounds it.
Dynamics However, the environment is constantly changing Which constantly changes the perception of the position. You should always be aware of the environment in which you are competing
Dynamics product positioning, advertising positioning, image positioning, brand positioning, perceptual positioning, market positioning, competitive positioning, price positioning, channel positioning, retail positioning, corporate positioning, political positioning, real estate positioning, economic development positioning, social positioning Positioning is not singular
Product positioning deals with reality. It is straight comparison of product features. New product development usually tries to create product differentiation Bigger, more improved, new look, same taste, more value, free 200 grams
Advertising Positioning is sometime confused with brand management. There are two main differences. First, advertising exist in the media and brands exist in the mind. Advertising is only a part of how consumers form brand perception. It is the main highway that people will take to come to that brand It is through advertising that features are converted to benefits
Image positioning is an evolution of advertising into total marketing communications. An integrated marketing portrays a consistent image over all mediums Creating a complete identity (overall image) The key to integration is contact point analysis IMC, the total is larger than the sum of the parts
Brand positioning deals with consistent transferring of the brand image into the consumer's mind creating brand perception. Transferring a perfect image is very difficult because external interference clutters or warps the perception. Why client servicing should also be creative
Perceptual positioning is about registering the brand perception correctly in the mind's directory. Perceptual mapping focuses on mapping the mind to figure out optimal positioning. It works with what already exists in the consumers mind. Importance of qualitative research
Market positioning is about trend analysis. It takes a macro view of the marketplace dealing with the macro market forces (economic, political, competitive, distribution, technology, geography, infrastructure, publics, culture and demographics) Winning brands are the ones that can best adapt.
Competitive positioning was born out of micro economics. It looks at how companies position themselves against each other in the marketplace. Sustainable competitive advantages are developed through core competencies, patents and operational efficiencies. Any of the P’s can be an advantage
Price positioning is about perceived value. Price also becomes an indicator of value to many consumers. They can easily tell your rank simply from the price. Price strategy can work both ways
Channel positioning works by "owning" distribution channels which creates barriers of entry to competitors. Carefully selecting channels helps create a powerful position. The importance of retail audits
Retail positioning is about property values. The most important positioning decision in retail is location. Property values depends on the amount of traffic vs. number of competitors.
Corporate positioning deals with perception of an entire company. In many ways it is similar to product positioning but the objective is to create and transfer an image for an entire company. Stock value is heavily based on perceived value.
What is positioning Positioning is a battle of concepts The objective is to find and then attach a brand and product to a concept in the consumer’s mind. A sample of various positioning concepts for toothpaste would be Cavity fighter (Crest). Tartar, gum disease (Colgate), Fresh breath (Close Up), White teeth (Pearl drop)
Companies battle over the best concepts (terrain) on which to position their products. Ideally, the brand identity becomes its street reputation. Positioning strategy directly affects market share. Basically, positioning is a strategy game of “capture the concept”
What is the hourglass It is a macro vision of how all the processes and steps are integrated and linked. From both ends To keep track of the concept development Let us see some examples
Category segmentation Categories can be clearly shown and compared In the category of bicycles, the various sub-categories Are segmented by product use Durable Fast Racing Mountain Normal
Attribute ranking “The Terrain” The battle within a category is based on the attributes Of the product. In the category of toothpaste, cavity fighter is the Number 1 ranking attribute. Followed by gum/tartar, fresh breath, white teeth Fresh Breath White Teeth Cavity Fighter Gum Disease
Finding a good Position The number of consumers wanting this position Is illustrated by the size of the triangle above the positioning line In the category of toothpaste, a great number of people want cavity fighting Fresh Breath White Teeth Cavity Fighter Gum Disease Toothpaste
Fresh Breath White Teeth Cavity Fighter Gum Disease Toothpaste Start of Positioning: Names and Slogans Names and slogans can be developed using the category name and attributes. The name, Crest Toothpaste, categorizes the product and the slogan No cavities
Family branding: Family brands are built on one concept or category. Kraft has built both their brand mix and product mix by focusing on cheese. Each product reinforces the main concept of cheese Milk Brick Cheese Yoghurt Dairy Products Liquid Solid Sliced Cottage Kraft Kinds
Late Meals Early Meals Market Size Product Mix: Loss of Focus Kelloggs means “Breakfast Cereals” to most people. When they changed it to “Makes morning better” They unfocused the concept Because “breakfast” expanded to “mornings” And “Cereals” expanded to “Cereals and snacks” Breakfast Dinner Lunch Mid Morning Cereals Kelloggs
Product Mix: Loss of Focus (Line extensions) 7 UP clearly stood for the Un-Cola concept When they extended their line to Gold, Cherry and Diet They diluted the original concept Unhealthy Market Size Lemon-Lime Cola Fruit 7 UP Soft Drinks Healthy Diet Cherry Gold Diet
Terrain changes New categories emerge. Traditional photo processing is being replaced by digital imaging . How does a brand cope? Electronic Market Size 1998 Photo Processing Photo Images Chemical Digital Imaging Market Size 1998 Market Size 2010 Market Size 2010 Kodak Product mix? Brand
Change Market Size Original Cola Stability New Coca Cola Coke Classic The real thing New Generation Market Size New Coke Repositioning a brand When Coca Cola tried re-positioning itself as “New Coke” The consumers had already given the “new” attribute to Pepsi Within 60 days, Coca Cola returned to its original position “ Classic”
Flanking The big 3 auto makers were flanked From the left by the Japanese From the right by the Germans They lost 30% of the American market Expensive Market Size Economy Cars Cheap Luxury Japanese The big 3 GM Ford Chrysler Market Size Market Size German Mid Range
Expensive Market Size Economy Cars Cheap Luxury Japanese The big 3 GM Ford Chrysler Market Size Market Size German Mid Range Market Size Ferrari Exotic Guerillas Some marketers find niches that are too small for the big Manufacturers. Ferrari produces exotic cars
Market Size Market Size Market Size Market Size Market Size Market Size Market Size Toys R Us Furniture Hardware Electronics Books Toys Clothing Shoes Generalist Department store Chapters Future Shop Focus Theory: Category Killers Some marketers rip out a category from a generalist environment to a more specialized one The strong (sharp) vs the weak (broad) Hard Goods Soft Goods
Summary In marketing, positioning is everything. It directly affect market share The hourglass concept is a very powerful tool to arrive at the best positioning strategy If you get the strategy right, everything falls right into place.