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P Ositioning

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P Ositioning

  1. 1. POSITIONING The art of reaching consumers’ mind, remaining there successfully!
  2. 2. <ul><li>Brand Name </li></ul><ul><ul><li>Any word, “device” (design, sound, shape, </li></ul></ul><ul><ul><li>or color), or combination of these </li></ul></ul><ul><ul><li>used to identify an offering </li></ul></ul><ul><ul><li>and set it apart from competing offerings. </li></ul></ul><ul><li>Brand Equity </li></ul><ul><ul><li>The added value a brand name bestows on a </li></ul></ul><ul><ul><li>product or service beyond the functional </li></ul></ul><ul><ul><li>benefits provided. </li></ul></ul>
  3. 3. Positioning <ul><li>The art of firmly fixing the brand in the minds of the consumers using a relevant benefit as the binder </li></ul><ul><li>What comes to mind when you say “ATM”? </li></ul><ul><ul><li>Automated Teller Machine </li></ul></ul><ul><li>What does “ATM” mean to the customer </li></ul><ul><ul><li>“Any Time Money” </li></ul></ul><ul><li>Thus the product is ATM and </li></ul><ul><li>“ Any Time Money” is its positioning! </li></ul>
  4. 4. Positioning Offerings Positioning Strategies <ul><li>By attribute or benefit </li></ul><ul><li>By price and quality </li></ul><ul><li>By use or application </li></ul><ul><li>By user </li></ul><ul><li>By product or service class </li></ul><ul><li>Against competition </li></ul>
  5. 5. Positioning Offerings <ul><li>What position do we want to own? </li></ul><ul><li>What competitors must be outperformed if we are to establish the position? </li></ul><ul><li>Do we have the marketing resources to occupy and hold the position? </li></ul>Making the Positioning Strategy Decision
  6. 6. Positioning Task <ul><li>Three stages </li></ul><ul><ul><li>identifying a set of possible competitive advantages upon which to build a position </li></ul></ul><ul><ul><li>choosing the right competitive advantages </li></ul></ul><ul><ul><li>selecting an overall positioning strategy. </li></ul></ul><ul><li>Then, effective communication for delivery of the chosen position to the market </li></ul>
  7. 7. Choosing a Positioning strategy <ul><li>For some firms, positioning strategy is easily found </li></ul><ul><ul><li>firm well-known for quality in certain segments will go for this quality-position in new segments, </li></ul></ul><ul><ul><li>if enough buyers seeking quality. </li></ul></ul><ul><li>Two or more firms may go after the same position in the same segment </li></ul><ul><ul><li>Each will have to find other ways to differentiate itself from the other(s) </li></ul></ul><ul><ul><li>Each will have to create a unique bundle of benefits to a substantial group of buyers within the same segment </li></ul></ul>
  8. 8. Our Motorcycle situations <ul><li>First determine the specific place of the product in relation to a particular situation </li></ul><ul><ul><li>Five situations </li></ul></ul><ul><ul><ul><li>Youngster’s bike </li></ul></ul></ul><ul><ul><ul><li>Power rider’s bike </li></ul></ul></ul><ul><ul><ul><li>Royal bike </li></ul></ul></ul><ul><ul><ul><li>Family man’s bike </li></ul></ul></ul><ul><ul><ul><li>Woman’s bike </li></ul></ul></ul>
  9. 9. Differentiation variables <ul><ul><li>Product </li></ul></ul><ul><ul><ul><li>features </li></ul></ul></ul><ul><ul><ul><li>performance </li></ul></ul></ul><ul><ul><ul><li>durability </li></ul></ul></ul><ul><ul><ul><li>reliability </li></ul></ul></ul><ul><ul><ul><li>repairability </li></ul></ul></ul><ul><ul><ul><li>style </li></ul></ul></ul><ul><ul><ul><li>design </li></ul></ul></ul>
  10. 10. Differentiation variables <ul><ul><li>Service </li></ul></ul><ul><ul><ul><li>delivery </li></ul></ul></ul><ul><ul><ul><li>installation </li></ul></ul></ul><ul><ul><ul><li>customer support </li></ul></ul></ul>
  11. 11. Differentiation variables <ul><ul><li>Personnel </li></ul></ul><ul><ul><ul><li>competence </li></ul></ul></ul><ul><ul><ul><li>courtesy </li></ul></ul></ul><ul><ul><ul><li>credibility </li></ul></ul></ul><ul><ul><ul><li>reliability </li></ul></ul></ul><ul><ul><ul><li>responsiveness </li></ul></ul></ul><ul><ul><ul><li>communication </li></ul></ul></ul>
  12. 12. How many differences to promote? <ul><li>Single-benefit positioning is usually best </li></ul><ul><ul><li>best quality </li></ul></ul><ul><ul><li>lowest price </li></ul></ul><ul><ul><li>best value </li></ul></ul><ul><ul><li>most reliable </li></ul></ul>Helps to gain “positioning intensity”
  13. 13. Reaching consumer’s mind <ul><li>People tend to remember # 1, because this is age of information overload! </li></ul><ul><li>Pick an attribute and tout yourself as number one on that attribute </li></ul><ul><li>But, what if you are # 2 or # 3? </li></ul><ul><li>If you are not # 1 </li></ul><ul><ul><li>strengthen current position </li></ul></ul><ul><ul><li>grab an unoccupied position </li></ul></ul><ul><ul><li>deposition or reposition the competition </li></ul></ul><ul><ul><li>achieve the largest size within a segment </li></ul></ul><ul><ul><li>exclusive club strategy </li></ul></ul>
  14. 14. Positioning errors <ul><li>under positioning - </li></ul><ul><ul><li>buyers don’t think anything special about the brand - crystal pepsi </li></ul></ul><ul><li>over positioning - </li></ul><ul><ul><li>exclusive image makes volumes suffer </li></ul></ul><ul><li>confused positioning </li></ul><ul><ul><li>too many claims and positioning changes </li></ul></ul><ul><li>doubtful positioning </li></ul><ul><ul><li>unbelievable positioning stance </li></ul></ul>
  15. 15. Perceptual Mapping Exercise Opportunity? Chocolate Crunch Hershey’s w/ Almonds Hershey’s Milk Chocolate Nestlé Crunch KitKat
  16. 16. Positioning by attribute <ul><ul><li>Associate a product with an attribute, a product feature, or a customer feature </li></ul></ul><ul><ul><li>A new product can be positioned with respect to an attribute ignored by competitors </li></ul></ul><ul><ul><li>Sometimes a product can be positioned in terms of two or more attributes simultaneously </li></ul></ul><ul><ul><li>The price/quality attribute dimension is commonly used for positioning products as well as stores </li></ul></ul>
  17. 17. Example of Positioning by Attributes Topol, Rembrandt Colgate, Crest Ultra Brite, McCleans Aim, Stripe Principal Brands  Stain prevention  Plaque prevention  Price  Decay prevention  Fresh breath  Whiteness of teeth  Color  Flavor Adults Family Teens, Young Adults Children Toothpaste Attributes Market Segments
  18. 18. Product Positioning <ul><li>Positioning by use or application </li></ul><ul><ul><li>Products can have multiple positioning strategies, although increasing the number involves difficulties and risks </li></ul></ul><ul><li>Positioning by product user </li></ul><ul><li>Positioning by product class </li></ul><ul><li>Positioning by competitors </li></ul><ul><ul><li>The major purpose is to convince consumers that a brand is better than the market leader on important attributes </li></ul></ul>
  19. 19. Positioning maps <ul><li>A visual depiction of consumers’ perceptions of competitive products, brands, or models </li></ul><ul><li>Constructed by surveying consumers about various product attributes and developing dimension and a graph indicating the relative position of competitors </li></ul><ul><li>Can give marketers a sense of how their brands are perceived by consumers relative to competitors and suggest positioning strategies </li></ul>
  20. 20. Positioning of Different Bar Soaps “ Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap Nondeodorant Deodorant High moisturizing Low moisturizing 1 2 4 5 7 8 6 3 <ul><li>Zest </li></ul><ul><li>Lever 2000 </li></ul><ul><li>Safeguard </li></ul><ul><li>Dial </li></ul><ul><li>Lifebuoy </li></ul><ul><li>Lava </li></ul><ul><li>Lux </li></ul><ul><li>Dove </li></ul><ul><li>Tone </li></ul>
  21. 21. Positioning with advertising requires setting &quot;Perceptual Objectives&quot; -20 Perceived Economy Si 10 0 20 -10 -20 -10 0 10 20 5 5 9 11 Perceived Performance
  22. 22. Positioning Maps
  23. 25. Repositioning <ul><li>Old products </li></ul><ul><li>Emergence of new usage </li></ul><ul><li>New competitor </li></ul><ul><li>New regulations </li></ul><ul><li>New forms </li></ul><ul><li>New price structure </li></ul><ul><li>Line extension </li></ul><ul><li>Clashing product </li></ul><ul><li>Arrival of a new boss </li></ul>
  24. 26. Repositioning <ul><li>Increasing relevance to the consumer - McDonald’s </li></ul><ul><li>Increasing occasions for use - Brush twice </li></ul><ul><li>Search for a viable position - Complan </li></ul><ul><li>Making the brand serious - Cadbury’s / Saffola </li></ul><ul><li>Falling sales - Ambassador / Red Label </li></ul><ul><li>Bring in new users - Red Eveready / J & J Baby Oil </li></ul><ul><li>Make the brand contemporary - Chyawanprash </li></ul><ul><li>Differentiate form other brands - Minto </li></ul><ul><li>Changed market conditions - Milkmaid </li></ul>
  25. 27. <ul><li>“Everything has been thought of before…, but the problem is to think of it again!” </li></ul><ul><ul><li>Johann Von Goethe </li></ul></ul><ul><ul><ul><li>German poet </li></ul></ul></ul>

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