This document discusses positioning and marketing strategy. It defines positioning as the perceptual location of a product or service in the marketplace. Effective positioning puts a product first in the minds of customers within a targeted market segment. The document outlines an 8-step process for determining a company's position, which includes defining the target customer, their requirements, how the company measures up to competitors, and drafting a positioning statement. It stresses that positioning is about how a product or service is perceived by potential customers and should be based on providing the benefits most important to the target segment.

1. PositioningAnd the Marketing StrategySharon Hesssharon@aprilbc.com www.aprilbc.com

2. AgendaAgendaThe Marketing Strategy

3. What is positioning

4. Segmentation

5. Customers

6. How to find your position in 8 steps

7. What to do nextWhat is a Marketing StrategyWhat is a Marketing Strategy?The process that moves an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. How do we create a Marketing Strategy?Define the market segment we are addressing

8. Understand the customer needs

9. Develop the positioning

10. Create a positioning statement

11. Use the positioning as the guideline to complete the marketing strategyWhat is Positioning?Positioning is a perceptual location. It's where your product or service fits into the marketplace. Effective positioning puts you first in line in the minds of potential customers.

12. To achieve effective Positioning, you need to first define the different Segments and then Target the ones that are most attractive.

13. Within the targeted segment, you must know as much as you can about the market, the customer, and the competition.

14. Positioning = Market Segmentation + Competitive Differentiation What is Positioning?In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.The Best Positioning, EverThe Avis Story

15. What will Positioning Create?The UVP - Unique Value Proposition

16. The USP - Unique Selling Proposition

17. The Differentiator

18. And we will be able to stand out from the competitionWhat is a Market Segment?A group of customers sharing common desires, needs, and buying patterns. William Davidow, Marketing HighTechnology

19. Criteria for SegmentationPsychographic homogeneity

20. Identity

21. Accessibility

22. Significant potentialWhy Segment?Identify manageable group(s) of target customers

23. Determine attractive entry point into industry

24. Focus market strategy

25. Define appropriate channel, sales tactics and promotion

26. Match/drive product development effortsWho is the Customers?End user

27. Sales channels

28. Direct (sales force)

29. Distributors

30. Agents

31. Reps

32. Retail outlets

33. OEMs

34. Internal organization – TI

35. Etc.

36. Each group will need different/unique positioningPositioning Among OurselvesAs individuals, we continually position ourselves

37. The responsible older sibling

38. The class clown

39. The math wizard

40. A bean counter

41. A computer nerd

42. The group leader

43. These identifiers help us define ourselves and distinguish our abilities as unique and different from other peoplePositioning ExamplesVariety

44. Social responsibility

45. Flexibility

46. Safety

47. Prestige

48. Cool bargain provider

49. Make people happy

50. Be active, energized, a winner

51. A computer on every desktop

52. Looking good (not fashionable)

53. Connecting people

54. The experience

55. Convenience

56. Baskin-Robbins

57. Ben & Jerry’s

58. Burger King

59. Volvo

60. Mont Blanc

61. Southwest Airlines

62. Disney

63. Nike

64. Microsoft

65. Ralph Lauren

66. Nokia

67. Apple

68. AM:PMThe Positioning StatementA formal statement depicting how you want your target segment to perceive you. In essence, it is a promise to the target segment that you will provide them with the benefits they care about the most.

69. The positioning statement is less an external marketing tactic and more an internal document that helps the firm direct its marketing efforts.Positioning Statement: ExampleThe way people really think about the AM:PM on the corner is "Convenient, but more expensive.“

70. So you might position them with a slogan that says, "Worth the convenience." You could even build a campaign around that idea, "Worth the convenience.”

71. Simple Positioning StatementUse your customers' most desired benefits as the basis of the positioning statement One way is to write this four part sentence:

72. FOR - the name/definition of the segment

73. WHO – need the most important customer benefits to that segment

74. THE – the offering

75. UNLIKE - the key reason why you can provide the customer benefits better than the competitionPositioning is in Your MindPositioning is not what you do to a product

76. It is what you do to the mind of the prospect

77. That is, you position the product in the mind of the prospect Positioning StatementDescribes real benefits that exist

78. Indicates preference for brand

79. Part of marketing strategy

80. Executed through marketing roadmap

81. = Creates bible for marketing communications effortsPositioning Exercise

82. How Do You Find Your Position?Step 1What are you positioning?Step 1What are you positioning?Step 2 & 3Who are your customers?Step 4What are their requirements?Step 5How do you measure up?Step 6State your positionStep 7Test your positionStep 7aExplore the less obviousStep 8 Finalize your positioning statement

83. Step 1 - What are we Positioning?We can position anything

84. A company

85. A visionary

86. A product

87. Positioning is based on context, so when you state what you are positioning, also state what you are positioning it against What are we positioning it against/visa vie

88. Café Hillel vs. other coffee shops

89. Lady Gaga vs. other music industry divas

90. iPod vs. other MP3 players

91. Wharton MBA vs. other MBA programs

92. Multimedia messaging (MMS) vs. other types of messaging

93. A product line

94. A conceptStep 2 – Who is the Target Customer?Pick the target customer (from the most attractive segments)

95. There is a big difference between end user, channel, internal, etc. customers

96. Choose the ONE most important target customer!

97. Each target customer segment will need its own positioningStep 3 - Who is the Customer?By geography – where

98. By psycho-graphics – lifestyles, beliefs

99. By social-cultural factors – class, education,

100. By demographics – age, sex,

101. By profession

102. By purchasing behaviorExamples: Mid-west, church goer, engineering background, technically sophisticated, <$150K income, golf enthusiast, married with children, decision maker, early adopter, frequent switching behavior

103. My customers are MIS directors at Fortune 100 companies

104. My customers are young doctors at major urban hospitals

105. My customers are unmarried men with college degrees who purchase two large pizzas a weekStep 4 - What are the Customers Requirements?List at least 10 from the product and from the companyProductPrice

106. Ease of use

107. Compatible

108. Easy installation

109. Speed

110. Rack by importance

111. Rack by importance in 2-3 or 3-5 years (vision) – what has changed? (Positioning needs a long term view)CompanyLocal representation

112. Know brand

113. Case studies

114. Customer support

115. WarrantyStep 5 - How Do You Measure to the Competition?Create a grid listing customer requirements in order of importance

116. Rack by who fulfills the need best

117. Create leaders and contenders

118. Where do you fit in and rank? Customer RequirementMazda 6Toyota CamryFord MondeoHonda AccordQuality Ethical company Global reach High resale value PriceL C C LC L C CC C C C C LStep 5 - Competitive GridSummary: Hondas have the highest quality and resale value among mid-priced cars.

119. Digital Camera

120. Step 6 - State Your PositionDefine the customer

121. Define the technology and product category

122. Compelling claim to leadership position

123. Attributes of product leadershipStep 6 - Example

124. Step 7 – Test Your PositionIs it compelling?

125. Is it sustainable?

126. My company’s position is compelling to customers

127. My company’s position is sustainable

128. There are no changes on the horizon that will make my company’s position irrelevant or undesirable to customers

129. Competitors are not well prepared to challenge my company’s position Alternative Approach Example Create a new requirement for the product category Blackberry: PDA with anywhere email Target a new segment The Osbornes: Reality TV Explain the benefits offered by a non-leader 7Up: the Un-ColaExplain that while you may not be the leader on any one requirement, you are the best at meeting multiple requirements. Samsung: feature rich phones Position yourself as a future leader. HP: future market share leader Step 7a – Explore the Less Obvious

130. Step 8 - Finalize Positioning StatementDraft your statement. Revise and polish itGo to Market PlanAs soon as you know your target customers and what is the UVP to sell to them, you are ready to start to build your ‘go to market’ or implementation plan

131. Selling Volvos in Golfer magazine

132. Targeting Playstation Portable to 18-35 year olds at CES tradeshow

133. User meeting to introduce new product to customer base

134. Training sales agents to highlight specific benefits

135. Rally company around the position statement

136. Live up to the statement in every wayBuzz Words or Not

137. The Marketing StrategyDefines most attractive markets and the firm’s positioning in them

138. Defines the market segment being addressing

139. Builds itself around the customer needs

140. Has a positioning statement or UVP/USP

141. Uses the positioning statement to build the strategy correctlythank youSharon Hess sharon@aprilbc.com054-4848828