Lecture Notes Series: Part Four (16/7/2015)

Perception
Consumer Imagery
Products and brands have symbolic value for consumers who evaluate them on the basis of their
consistency (or congruence) with their personal picture of themselves.
1. Product positioning: Creating an intentional and purposeful image of the product in the mind
of the consumer is positioning. Effective positioning creates strong points of differentiation and
distinctive brand identities.
1.1Model of strategic Positioning: all meaningful positioning creates distinctive image of the
product in the mind of consumers.
Positioning
Aims

Positionin
g
Objective

Positioning
Strategy

Communic
ation

Consumer
Perception

(Blackson and Kalafatis 2008)

As the complexity of product increase and as the marketplace becomes more crowded;
consumers rely more on products image and claimed benefits than on actual attributes in making
purchase decisions (Schiffman; Kanuk and Kumar 2010).

1.2 Typology of Positioning Strategies: Marketers can choose from among many strategic
approaches :
Strategy 1: Top of the range positioning (exclusive; up-market image Omega watches)
Strategy 2: Service (excellence in service image Toyota service; Airlines)
Strategy 3: value for money (affordable image Big Bazaar Fashion)
Strategy 4: Reliability (safe and dependable image most Tata brands)
Strategy 5: Attractive (style and elegance appeal Hi-design handbags)
Strategy 6: Country of origin (patriotic image Amul the taste of India)
Strategy 7: The brand name (market leader Amul)
Strategy 8: Selectivity (selective in the choice of customers Vertu phones)

1.3 Packaging as a positioning element:

Packaging conveys the image that a brand wishes to communicate to its target market. Please
review the attached empirical paper on the theme.
2. Product Repositioning:
Even the most well positioned products are required to reposition themselves owing to:
a)
b)
c)
d)

Competition
Customer boredom/inertia
Or new market offerings
Of desired change in the target market

Repositioning is a deliberate act on the part of a brand to change its image in the mind of either
the current or prospective consumers/users. Successful repositioning can rejuvenate a brand.
3. Perceptual maps
These maps are generated after extensive consumer research sing more than one parameter for
evaluation of a brand. These can be used for identifying the current positioning of a brand in the
mind of a consumer; as well as to understand the desired dimensions for repositioning the
product with respect to competition.

(Source: Google images)

4. Positioning of Services:
The nature of services (intangible, inseparable, inconsistent and Perishable) makes their
positioning a challenge. The following three approaches of positioning exist:
a) Perceived Price: the price chosen by the service providers is usually perceived by the
target market as high; moderate or low. Consumers have an internal reference point to
measure prices as well. Good pricing strategy bears in mind how the price tag on a
service will be perceived by the consumer and also how does he/she relate with the price
point with reference to his/her past experience, knowledge etc. Example: dont we often
say something is too expensive? It is too expensive in terms of our perception and
previous internal reference point.
b) Perceived Quality: consumer attach a variety of informational cues to products and
services they encounter on a daily basis. There are intrinsic product level cues; and there
are extrinsic associated cues. Example; attributes are internal cues; Packaging can be an
external cue in case of products. Please review the attached empirical paper for clarity.
c) Price-quality relationship: the perceived value of a product is a tradeoff between
perceived benefits received from the product and perceived associated costs/sacrifices.