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Consumer Perception: Product Positioning Prepared by: Stanley Lee Sam Weng Cham Chloe Li 30 th August 2010

BMW Positioning

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Page 1: BMW Positioning

Consumer Perception:Product Positioning

Prepared by:

Stanley Lee

Sam Weng Cham

Chloe Li

30th August 2010

Page 2: BMW Positioning

Perception

• The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world

• How we see the world around us

• Perception through ‘Positioning” in advertising

Page 3: BMW Positioning

Marketing Strategy

TargetingTargeting

*Positioning**Positioning*

SegmentationSegmentation

Page 4: BMW Positioning

Positioning

• Establishing a specific image for a brand in the consumer’s mind

• Product is positioned in relation to competing brands

• Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need

• Result of successful positioning is a distinctive, positive brand image

Page 5: BMW Positioning

Why Develop Product Positioning Strategies?

• Marketing concept: holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

• Sustainable competitive advantages (SCAs) -- aka “differential advantages”

Page 6: BMW Positioning

Developing and Communicating a Positioning Strategy

• Positioning: The act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

• Value proposition: a cogent reason why the target market should buy the product.

Page 7: BMW Positioning

Writing a Positioning Statement

– Positioning statement format: “To (target market and need) our (brand) is (concept) that (point of difference)”

BMW’s WebsiteBMW’s Website

Page 8: BMW Positioning

Other examples of Positioning Statements

• Technical Excellence: BMW – “The Ultimate Driving Machine” & “Joy”

• Safety & Excitement: Volvo – “Volvo for Life”

• Prestige: Mercedes Benz – “Unlike any other”

• Performance: Jaguar – “Drive to Perform”

• Economy: Kia – “The car that cares”

• Futuristic: Infiniti – “Accelerating the future”

Page 9: BMW Positioning

Quotes“ Positioning is not what you do to the product, but

what you do to the mind”Jack Trout,

Positioning: The Battle for your Mind, 2000

• Can a product be successfully positioned in customers’ minds as being more desirable than the competition given the “level playing field”?– Coke vs Pepsi– BMW vs Mercedes– Amazon vs Barnes & Noble

• Is the battle for the customers’ mind in positioning strategy really only about information?

Page 10: BMW Positioning

Product - BMW

• Wide selection of models

• Different styles to meet the customers needs

• BMW Universal Bluetooth

• iPod with BMW• BMW accessories

Page 11: BMW Positioning

CompetitorCompetitor

Product classProduct class

Attributes or benefits

Attributes or benefits

Productuser

Productuser

Price and qualityPrice and quality

Use or applicationUse or application

BB

AA

CC

Six Approaches to Positioning

Page 12: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Attribute or Benefit Associating the brand with a desirable

attribute to target audience Most frequently used positioning strategy BMW- uses continuous innovation. As an

example we have an innovation of a completely redesign the 3-series model with even better power than ever before, a stiffer suspension, taillight lenses.

Page 13: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Usage Occasions or Application A kind of positioning stresses when or how

your product is used by target audience BMW- Young urban professionals usually

drive these luxury cars. It is a question of a status and is associated with it.

Page 14: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Product User Focusing on the unique characteristics of

specific users can be effective Establishing the brand as the choice of

professional BMW- has maintained its leadership brand

positioning for many years. Its success is the result of a consistent strategy and is oriented towards meeting the needs of customers.

Page 15: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Product or Service Class Comparing your product to a product in a

different category can be an effective way to differentiate yourself

BMW – cars communicate valued differences and distinguish it from other competitors by image (described as a premium brand), quality (uses cutting edge technology) and design (very sleek and unique)

Page 16: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Competitor Against a Competitor

Positioning your product directly against a competitor’s typically requires a specific product superiority claim

Away from a Competitor Positioning yourself as the opposite of your competitor

help you get attention in a market dominated by other product.

BMW- There is a sign of a little comparison between BMW and her competitors but the ads don’t usually show it. It is only in minds of customers who tend to compare these two cars quite often.

Page 17: BMW Positioning

Six Approaches to Positioning

Consumer Perception: Product Positioning

• By Price or Quality A product to be priced at the right level to

reflect the quality offered BMW- In this case searching for the best

possible value is a little complicated because cars like BMW has ranked on a high-end price level and are relatively expensive and therefore their customers are usually well off people.

Page 18: BMW Positioning

Referencing

Consumer Perception: Product Positioning

• http://www.otmmarketing.com/Portals/42226/docs/product_positioning.pdf

• http://tutor2u.net/business/presentations/marketing/productpositioning/default.html

• http://ezinearticles.com/?Product-Positioning-Strategies&id=474245• Jack Trout, Positioning: The Battle of your Mind, McGraw-Hill, 2000• http://www.bmw.com/com/en/insights/technology/joy/bmw_joy.html