Positioning

Positioning

Presented By:

Richa.S.Kapoor

What is Positioning?

• Positioning is the act of designing company’sofferings and image to occupy a distinctive placein the minds of the target market.

• Simply, positioning is how your target marketdefines you in relation to your competitors.defines you in relation to your competitors.

• A good position is:

1. What makes you unique

2.This is considered a benefit by your targetmarket

Value Proposition

• The result of positioning is the successful creation ofa customer focussed Value Proposition.

• Value Proposition:

– A cogent reason why the target market shouldbuy the product. For eg.buy the product. For eg.

• The value proposition of Dominos Pizza,whose target market is the convenienceminded Pizza lovers, looking for benefits likedelivery, speed and good quality is:

– A good, hot pizza delivered to your doorwithin 30 minutes of ordering

Brand Positioning: Remember This

What seven concepts are critical to positioning?

1. Perception (their’s, not your’s)

2. Differentiation2. Differentiation

3. Competition

4. Specialization

5. Simplicity

6. Leadership

7. Reality

Nobody is waiting for our product/service. Nobody really wants to

listen to us.

Thousands of messages fight every day

Why Is Positioning Important

Thousands of messages fight every day for consumers’ attention.

If you can stand out with a unique benefit, you have a chance of getting

attention.

Positioning

• In order to begin positioning a product,two questions need to be answered:

1.What is our marketing environment?

2.What is our competitive advantage?

Environment

• The marketing environment is theexternal environment. Few things toconsider:

� How is the market now satisfying the� How is the market now satisfying theneed your product satisfies?

� What are the switching costs forpotential users for your market?

� What are the positions of thecompetition?

Competitive Advantage

• The competitive advantage is an internalquestion. What do you have that gives youadvantage over your competitors. Somethings to consider:

� Is your company small and flexibile?

�Do you offer low cost and high quality?

�Does your product offer unique benefits?

�Are you the first on the market with thisproduct (First mover advantage)?, etc.

Differentiation & Positioning

• Process of creating favorable relative position:– (1) Identification of target market

– (2) Determination of needs, wants, preferences and benefits desired

– (3) Examination of competitors’ characteristics and positioning

– (4) Comparison of product offerings with competitors

– (5) Identification of unique position

– (6) Development of a marketing program

– (7) Continual reassessment

Can you think of any companies that Can you think of any companies that

market the same product or service market the same product or service

offering to offering to multiple segmentsmultiple segments using using

different strategies? Are the different different strategies? Are the different

segments being segments being

offered different value offered different value

propositions?propositions?

Differentiation & Positioning

• Differentiation Strategies– Product Descriptors

• Product features• Advantages• Benefits

– Customer Support Services– Customer Support Services– Image

• Positioning Strategies– Strengthen the Current Position– Repositioning– Reposition the Competition

Using Product Descriptorsfor Product Differentiation

Kotler On Marketing

Poor firms ignore their competitors; their competitors; average firms copy their competitors; winning firms lead their competitors.

Porter’s Five Forces : Determining Segment Attractiveness

Example

Brand Building

Brand Equity

Making thePromise

Delivering thePromise

Trust

IIM-A

Brand Equity

• The BT- Nielson survey was carried out to find out the best B-Schools.

• Respondents were asked to rank the top 30 B-Schools.

• The important factors arrived at for Brand Equity of best B-Schools are:of best B-Schools are:

Quality of Placement;

Faculty;

Infrastructure;

Teaching Methodology;

Placement;

Reputation;

Admission Eligibility.

Communication Is Important

– How can we break through this clutter?

• Ensure that your message:

–Differentiates your brand from the competition

– Is Relevant to the Consumer

Developing and Communicating a Positioning Strategy

• Positioning: How many ideas to promote?

• Unique selling proposition (USP)

– Choosing an attribute andpresenting yourself as number onepresenting yourself as number onein benefits such as quality,superiority, price etc. This becomesthe Point of Difference.

Eg. Nike, Sugarfree, Lux, etc.


• Points of Parity:

It refers to the associations that are notnecessarily unique to the brand but mayinfact be shared with other brands.

Category- NecessityCategory- Necessity

Competitive-Negate competitors POD.

Eg. Dettol and Savlon


• There are some popular positioning strategies that can be pursued:

– Product Attributes: What are the specific product attributes?

– Benefits: What are the benefits to the customers?

– Usage Occasions: When / how can the product – Usage Occasions: When / how can the product be used?

– Users: Identify a class of users.

– Against a Competitor: Positioned directly against a competitor.

– Away from a Competitor: Positioned away from competitor.

– Quality/Price Positioning.


• Communicating the Company’s Positioning– Need to have a Positioning Statement– Communicate that positioning through the

Marketing Mix– Marketing integration and alignment to – Marketing integration and alignment to

support positioning

Mountain Dew’s WebMountain Dew’s Website supports itssite supports itspositioningpositioning

Positioning Statement

• The brand positioning statement is the singlemost important item in all of marketing.

• It defines EVERYTHING about what yourbrand is to the consumer.brand is to the consumer.

• Packaging, Pricing, Distribution,Manufacturing, Sales, Marketing….

• All work in unison to the beat of the brandpositioning statement.

Brand PositioningStatement

For homemakers, Dow Bathroom Products

are the easy way to get a great clean shine

for your tub, tile and toilet. That’s because

only Dow Bathroom Products contain

scrubbing bubbles that cut through dirt and

grime clean to the shine!

Brand Positioning Statement

For consumers ages 16-35,

Crest Whitestrips whiten teeth

five times better than the leading

paint-on whitening gel. That’s

because Crest’s gel-coated

strips hold the peroxide on teeth

longer, to whiten stains below

the tooth surface.

Brand Positioning Statement

For women ages 25-

55, Loreal Revitalift

Anti-wrinkle andAnti-wrinkle and

firming cream reduces

facial wrinkles and

firms your skin.

NO REASON

WHY!

Differentiation Strategies

• Product Differentiation

Eg. A lawnmower manufacturer

• Personnel Differentiation

Eg. Singapore Airlines.Eg. Singapore Airlines.

MC.Donalds people are courteous, IBMpeople are professional, etc.

Differentiation Strategies

• Channel Differentiation

Eg. Eureka Forbes, Avlon, etc.

• Image Differentiation

Identity and Image needs to be distinguished.Identity and Image needs to be distinguished.

Identity is the way a company aims to identify orposition itself or its product.

Image is the way the public perceives the companyor its products.

Eg. Hyatt Regency hotels developed a distinctiveimage through its atrium lobbies.

Perceptual mapping

• Perceptual mapping will help you find outhow your brand is positioned as compared toyour competitors.

• Perceptual maps can have any number of• Perceptual maps can have any number ofdimensions but the most common is twodimensions.

Perceptual Map

Perceptual Map

• Perceptual map shows consumerperceptions of various automobiles on thetwo dimensions of sportiness/conservativeand classy/affordable.

• This sample of consumers felt Porsche wasthe sportiest and classiest of the cars in thestudy (top right corner).

Watch the product life cycle; but more important,

watch the market life cycle.

Product Life-Cycle Marketing Strategies

• To say that a product has a life cycleasserts four things

1. Products have a limited life.

2. Product sales pass through distance stages,each posing different challenges,opportunities, and problems to the seller.opportunities, and problems to the seller.

3. Profits rise and fall at different stages of theproduct life cycle.

4. Products require different marketing,financial, manufacturing, purchasing, andhuman resource strategies in each life-cyclestage.

Sales & Profit Life Cycles

Product Life Cycle Marketing Strategies

Product Life-Cycle Alternate Patterns


• Style– Basic & distinctive mode of expression

• Fashion– Accepted/popular style in a given field

• Fad– Fashions that come quickly, are adopted

with great zeal, peak early and decline fast


Style, Fashion, and Fad Life Cycles


Marketing Strategies: Introduction Stage

The Pioneer Advantage

Inventor – first to develop patents

Product pioneer – first to develop working

modelmodel

Market pioneer – first to sell

Long-Range Product

Market Expansion

Strategy

(P = Product;

M = Market)



– Need to build channels of distribution

– Dealers offered promotional assistance tosupport the product – PUSH strategy.

– Develop primary demand/pioneering– Develop primary demand/pioneeringinformation, communications should stressthe benefits of the product to theconsumer, as opposed to the brand nameof the particular product, since there willbe little competition at this stage and youneed to educate consumers of theproduct's benefits.



– Price skimming – set a high price in orderto recover developmental costs as soon aspossible.possible.

– Price penetration – set a low price in orderto avoid encouraging competitors to enterthe market, also helps increase demandand therefore allows the company to takeadvantage of economies of scale.


• Marketing Strategies: Growth Stage– Improve product quality and add new product

features and improved styling

– Add new models and flanker products(i.e.products of diff. sizes, flavors, etc.)

– Enter new market segments

– Increase distribution coverage and enter newdistribution channels

– Shift from product-awareness advertising toproduct-preference advertising

– Start building brand loyalty and differentiation

– Lower prices to attract next layer of price-sensitive buyers


• Marketing Strategies: Maturity Stage– Market Modification

• Expand number of brand users by:1. Converting nonusers(small sachet packaging of

shampoo)

2. Entering new market segments(Pink soap of Pears)

3. Winning competitors’ customers(Surf & Ariel)

• Convince current users to increase usage by:1. Using the product on more occasions(monaco)

2. Using more of the product on each occasion(larger glass of juice)

3. Using the product in new ways(Asprin)

– Product modification• Quality improvement

• Feature/Benefit improvement

• Style improvement

– Marketing-Mix Modification• Prices (lowering/increment)


• Prices (lowering/increment)

• Distribution

• Advertising (focus on differentiating brand)

• Sales Pomotion

• Relationship Marketing/Personal selling

• Enhanced Service

Repositioning/Re-launch of product


• Marketing Strategies: Decline Stage

– Increase firm’s investment (to dominate themarket and strengthen its competitive position)

– Maintain the firm’s investment level until theuncertainties about the industry are resolved.uncertainties about the industry are resolved.

– Decrease the firm’s investment level selectivelyby dropping unprofitable customer groups, whilesimultaneously strengthening the firm’sinvestment in lucrative niches

– Harvesting (“milking”) the firm’s investment torecover cash quickly

– Divesting the business quickly by disposing ofits assets as advantageously as possible.

– Killing a brand

•• ReviewReview thethe ProductProduct LifeLife CycleCycle ofof twotwo productproductofferingsofferings byby indicatingindicating atat whatwhat stagestage theythey are,are,andand developingdeveloping thethe appropriateappropriate MarketingMarketingStrategiesStrategies..

• ☺ TipTip:: ConsiderConsider leveragingleveraging thethe 44 P’sP’s ofofMarketingMarketing –– PricePrice (cost),(cost), PromotionPromotion(communication),(communication), ProductProduct (customer)(customer) andandPlacePlace (convenience)(convenience)

Problems

– Four major positioning errors

• Underpositioning – vague idea of brand

• Overpositioning – too narrow an image

• Confused positioning – company • Confused positioning – company makes too many claims or changes brand positioning frequently

• Doubtful positioning – hard to believe brand claims in view of product qualities

Date post:	17-Nov-2014
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Positioning

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