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.

(Blackson and Kalafatis 2008)

As the complexity of product increase and as the marketplace becomes more crowded; consumers rely more on product’s 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)

Positioning Strategy

Positioning Aims Communication

Consumer Perception

Positioning Objectives

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) Competitionb) Customer boredom/inertiac) Or new market offeringsd) 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: don’t 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.