POSITIONING

The art of reaching consumers’ mind, remaining there successfully!

Brand Name–Any word, “device” (design, sound, shape, –or color), or combination of these –used to identify an offering –and set it apart from competing offerings.

Brand Name–Any word, “device” (design, sound, shape, –or color), or combination of these –used to identify an offering –and set it apart from competing offerings.

Brand Equity

The added value a brand name bestows on a

product or service beyond the functional

benefits provided.

Brand Equity

The added value a brand name bestows on a

product or service beyond the functional

benefits provided.

Positioning • The art of firmly fixing the brand in the

minds of the consumers using a relevant benefit as the binder

• What comes to mind when you say “ATM”? – Automated Teller Machine

• What does “ATM” mean to the customer – “Any Time Money”

Thus the product is ATM and

“Any Time Money” is its positioning!

Positioning OfferingsPositioning OfferingsPositioning StrategiesPositioning Strategies

• By attribute or benefit

• By price and quality

• By use or application

• By user

• By product or service class

• Against competition

Positioning OfferingsPositioning Offerings

1. What position do we want to own?

2. What competitors must be outperformed if we are to establish the position?

3. Do we have the marketing resources to occupy and hold the position?

Making the Positioning Strategy Decision

Positioning Task

• Three stages– identifying a set of possible competitive

advantages upon which to build a position– choosing the right competitive advantages– selecting an overall positioning strategy.

• Then, effective communication for delivery of the chosen position to the market

Choosing a Positioning strategy

• For some firms, positioning strategy is easily found– firm well-known for quality in certain segments

will go for this quality-position in new segments,

– if enough buyers seeking quality.

• Two or more firms may go after the same position in the same segment– Each will have to find other ways to

differentiate itself from the other(s)

– Each will have to create a unique bundle of benefits to a substantial group of buyers within the same segment

Our Motorcycle situations

• First determine the specific place of the product in relation to a particular situation– Five situations

• Youngster’s bike

• Power rider’s bike

• Royal bike

• Family man’s bike

• Woman’s bike

Differentiation variables

– Product• features

• performance

• durability

• reliability

• repairability

• style

• design

Differentiation variables

– Service• delivery

• installation

• customer support

Differentiation variables

– Personnel• competence

• courtesy

• credibility

• reliability

• responsiveness

• communication

How many differences to promote?

• Single-benefit positioning is usually best– best quality– lowest price– best value– most reliable

Helps to gain “positioning intensity”

Reaching consumer’s mind• People tend to remember # 1, because this is age

of information overload! • Pick an attribute and tout yourself as number one

on that attribute• But, what if you are # 2 or # 3?• If you are not # 1

– strengthen current position

– grab an unoccupied position

– deposition or reposition the competition

– achieve the largest size within a segment

– exclusive club strategy

Positioning errors

• under positioning - – buyers don’t think anything special about the

brand - crystal pepsi

• over positioning - – exclusive image makes volumes suffer

• confused positioning– too many claims and positioning changes

• doubtful positioning– unbelievable positioning stance

Perceptual Mapping Exercise

Chocolate

Cru

nc

h

Hershey’sw/ Almonds

Hershey’sMilk Chocolate

NestléCrunch

KitKatOpportunity?

Positioning by attribute

– Associate a product with an attribute, a product feature, or a customer feature

– A new product can be positioned with respect to an attribute ignored by competitors

– Sometimes a product can be positioned in terms of two or more attributes simultaneously

– The price/quality attribute dimension is commonly used for positioning products as well as stores

Toothpaste Attributes

Market Segments

ChildrenTeens, Young

AdultsFamily Adults

Flavor

Color

Whiteness of teeth

Fresh breath

Decay prevention

Price

Plaque prevention

Stain prevention

Principal Brands Aim, StripeUltra Brite, McCleans

Colgate, Crest

Topol, Rembrandt

Example of Positioning by AttributesExample of Positioning by Attributes

Product Positioning • Positioning by use or application

– Products can have multiple positioning strategies, although increasing the number involves difficulties and risks

• Positioning by product user

• Positioning by product class

• Positioning by competitors– The major purpose is to convince consumers that

a brand is better than the market leader on important attributes

Positioning maps• A visual depiction of consumers’ perceptions

of competitive products, brands, or models

• Constructed by surveying consumers about various product attributes and developing dimension and a graph indicating the relative position of competitors

• Can give marketers a sense of how their brands are perceived by consumers relative to competitors and suggest positioning strategies

“Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap

Nondeodorant Deodorant

High moisturizing

Low moisturizing

1

24

5

7

8

6

3

• Zest

• Lever 2000

• Safeguard

• Dial• Lifebuoy

• Lava

• Lux

• Dove

• Tone

Positioning of Different Bar Soaps

Positioning with advertising requires setting "Perceptual Objectives"

-20

PerceivedEconomy

Si10

0

20

-10

-20 -10 0 10 20

5

5

9

11

PerceivedPerformance

Positioning Maps

Repositioning• Old products• Emergence of new usage• New competitor• New regulations• New forms• New price structure• Line extension• Clashing product• Arrival of a new boss

Repositioning• Increasing relevance to the consumer - McDonald’s• Increasing occasions for use - Brush twice• Search for a viable position - Complan• Making the brand serious - Cadbury’s / Saffola • Falling sales - Ambassador / Red Label• Bring in new users - Red Eveready / J & J Baby Oil• Make the brand contemporary - Chyawanprash• Differentiate form other brands - Minto• Changed market conditions - Milkmaid

“Everything has been thought of before…, but the problem is to think of it again!”

– Johann Von GoetheGerman poet