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Positioning Strategy

Positioning
 The place the product occupies in consumers minds relative to competing products.  Typically defined by consumers on the basis of important attributes.  Involves implanting the brands unique benefits and differentiation in the customers mind.  Positioning maps that plot perceptions of brands are commonly used.

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Positioning is not what you do to product

Positioning is what you do to the Consumers Mind

Positioning isisthe

place the product occupies in consumer s mind-Relative to other competing products


Hi Quality

Papa John
Pizza Hut

Slow Dominos Caesars Low Quality

Fast

The Consumer Mind - Set


Consumers organize the product field according to communicated conventions
Mercedes=Best Mercedes=Best Armani=Best Armani=Best Pentium=Best Pentium=Best Wal-Mart= Wal-Mart= Low Price, High Variety

To find Your Product s Position


You Need to get into consumers head & Map the product field from the consumers point of view

Mapping Product Positions


Gives you a visual representation of where consumers place competing brands along key dimensions
Prices
G

N
C

Service
TGT
D E

WM
F

Steps in Creating Product Position Maps


1) Identify relevant set of competitive
brands

2) Identify key attributes consumers


use to evaluate brands

3) Determine consumers perceptions


of each brand -on each attribute

4) Plot products position across


attributes

5) Plot customer ideal points according


to market segments

Definition
Market Segmentation:
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products.

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Segmenting Consumer Markets


Geographical segmentation Demographic segmentation Psychographic segmentation
Lifestyle, social class, and personality-based segmentation

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Geographic Segmentation Variables


World region or country U.S. region State City Neighborhood City or metro size Density Climate

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Demographic Segmentation Variables


Age Gender Family size Family life cycle Income Occupation Education Religion Race Generation Nationality

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Hi Calorie

Heavy

Light
Low Calorie

Position Map Automotive market


BMW Lexus Porsche Ford Nissan Mercedes Suzuki Dodge Honda Toyota
Figure 5-6

Luxury

Traditional

Sporty

Functional

Position Map Automotive market


Figure 5-6

Luxury
Lexus Mercedes Cadillac Lincoln Chrysler BMW Pontiac Honda Nissan Toyota Saturn VW Porsche

Traditional
Mercury Ford Dodge Plymouth

Sporty

Functional

Position Map - Bar Soap


Tone High moisturizing Dove Zest Lever 2000

Lux Nondeodorant Deodorant

Lava Lifebuoy

Dial

Low moisturizing

Position Map In Hand


Every Marketing strategist has 4 options: 1. Innovate 2. Relocate 3. Procreate 4. Denigrate

Positioning Strategy Option #1: Innovate

Develop & Introduce a New product in a New Position

Cherchez Le Creneau!

Find a new or unoccupied position that is important to consumers

Find Un-Occupied Soap Space Un Tone High moisturizing Dove Zest Lever 2000

Lux Nondeodorant

Safeguard Deodorant

Lava Lifebuoy Low moisturizing

Dial

Positioning Strategy Option #2: Relocate

Redesign & Reintroduce an Existing product in a New Position

Re-Position Nearer to Ideal of most/more profitable target group Expensive


Ideal

Excedrin Tylenol Bufferin Advil

Nuprin

For Body Aches

For Headaches

Anacin

Tylenol
Motrin &/or more Medipren

Bayer Reformulate, Repackage directly Promote: Tylenol for effective Headache Relief Ideal St. Josephs

Inexpensive

Positioning requires Consumer Partipulation


You have to get the consumer to participate in their own manipulation Manipulate what is already in the mind of the consumer Do not challenge existing perceptions

If you cant be at least be Real

st 1

is # 1

Avis is only #2 in rental cars So why go with us?

We try harder

Positioning Strategy Option #3: Procreate Develop & Introduce a number of New products in multiple Positions

Procreating calls for developing & Excedrin positioning multiple products


I
Bufferin Advil Tylenol Motrin Medipren

Expensive

Nuprin

For Body Aches

For Headaches

Anacin

Bayer

Medipren Plus
St. Josephs

Medipren Cold &Flu

Inexpensive

The Master of Multi- Branding

Procter & Gamble:

Every Brand w/ its own Position

Tide: for family market Cheer for clothes -conscious w/


color guard

Bold: for value-conscious


fabric softener

w/ w/ w/

Gain: for scent-conscious


aromatics

Era: for dirt-conscious


stain removers

Dash: for price-conscious Dreft: for new mothers Ariel: for eco-conscious

Positioning Strategy Option # 4: Denigrate

(Criticize, defame)
Place Competitor's product in a less Favorable Position

Repositioning the Competition


Nuprin vs. Tylenol vs. Aspirin
Tylenol campaign pointed out the negative affects of aspirin (stomach upset)

Scope vs. Listerine

Minty Breath Not Medicine Breath