Positioning involves defining the place a product holds in customers' minds relative to competitors. It is achieved through the marketing mix and by developing associations and attributes. However, positioning is perceived by customers, not defined by the company, and the sought position may not be achieved or may have already been claimed by others. Effective positioning requires understanding these challenges and positioning the product credibly based on its value proposition.

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

2. Lecture 4: Problems of Positioning Examples of positioning What positioning means How so “problems”? How we achieve it How marketers use positioning - Perceptual Maps

3. Some examples of positioning

4. Defining positioning

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

6. 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

7. Great Truths about Positioning

8. 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

9. 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”

10. 4. Positioning should match the Value Proposition Copyright 2007, Prentice-Hall, Inc. A&K Figure 6.4

11. Why do I say “ Problems of Positioning”?

12. 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

13. 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

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

15. The Position you want may have been pre-empted:

16. 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”

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

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

19. 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.”

20. Introduction to Perceptual Mapping The result of Marketing Research Often expressed as 2-dimensions, but likely multi-dimensional

21. 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

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

23. 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?

24. 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

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

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

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

28. Example of a bad leap. . . Wal-Mart Fashion What could they have done?

29. Summary Positioning is in the eye of the beholder The place our product holds in the minds of prospective customers - Not where we would like to be Most products can be positioned in several different ways —choose one A good “positioning’ is credible that is, it is linked to the value proposition Some positions involve giving up others Some positions may have been pre-empted by other firms Good marketers understand what to do to effectively position their products—an array of “Attributes and Associations” You can move (or develop) your position, but you can’t do a magic leap