Positioning Hi Quality Dominos Slow Fast Low Quality Pizza Hut Papa John Caesars Select Target...

PositioningHi QualityHi Quality

DominosSlowSlow FastFast

Low QualityLow Quality

Pizza Hut

Papa John

Caesars

Select Select TargetTarget

&&PositionPosition


&&PositionPosition

Define & Demonstrate

Positioning Strategy

Outline the Positioning

Research Process

Delineate logic & techniques

of Positioning Strategies:

• Innovate

• Relocate

• Procreate

• Denigrate

Where we’re at:

The 3rd Level of Strategy

Business unit Level

Business unit Level

Corporate Level

Corporate Level

Research &development

Informationsystems

Finance Marketing

Manufacturing

Human resources

Functional Strategy

Consumers

Company

Competitors

Conditions

What We’ve done…

SWOT Analysis

Situation Analysis

What We Know…

Mission, resources, Strengths & Weaknesses, growth & competitive strategies

How the market is segmented & relevant factors that influence consumers’ purchasing decisions

The nature & magnitude of competition for the consumers’ time & $

Existing & emerging Macro-E Trends that can impact on strategic decisions

Consumers

Company

Competitors

Conditions

TargetTargetMarketMarket

Product Place

PromotionPrice


Product Place

PromotionPrice


Product Place

PromotionPrice

Situation AnalysisSituation Analysis Strategic Strategic PlanningPlanningStrategic Strategic PlanningPlanning

•CCompanyompany

•CConsumersonsumers

•CCompetitorsompetitors

•CConditionsonditions• PESTPEST

The Marketing Mix:The Marketing Mix:

Marketing StrategyMarketing Strategy

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Growth & Growth & CompetitiveCompetitive StrategiesStrategies

P’s

Positioning Positioning StrategyStrategy

What We do Now…

TargetingThe process of evaluating

segments & selecting those that are most attractive to pursue

TargetingThe process of evaluating

segments & selecting those that are most attractive to pursue

PositioningDetermining how a brand should be perceived & fit into lives of target consumers

PositioningDetermining how a brand should be perceived & fit into lives of target consumers


&&PositionPosition


&&PositionPosition

Key to Successful Marketing StrategyKey to Successful Marketing Strategy

Convincing the right person(s) that you offer the best product, available at best place, at the best price…

CustomerCustomerNeedsNeeds

PricePrice

Marketing Strategy Success Contingent on Formulating right Marketing Mix around the most profitable target &

competitive position

DistributionDistributionPromotionPromotion

Product

TargetTarget&&

PositionPosition

TargetTarget&&

PositionPosition

Marketing Strategy Success contingent on formulating your Marketing Mix… so that itso that it

SpecifiesSpecifies - the way you want consumers to think & feelthink & feel about your product/service

DefinesDefines - how you will be

differentiated & thus differentiated & thus competecompete in marketplace

TargetTarget&&

PositionPosition

TargetTarget&&

PositionPosition

ProductProduct

PlacePlace PromoPromo

PricePrice

Positioning is the Centerpiece (literally &

figuratively) of Marketing Strategy

Positioning is not what you do to product…

Positioning is what you do to the Consumers Consumers MindMind……

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

Hi QualityHi Quality

DominosSlowSlow FastFast


Pizza Hut

Papa John

Caesars

The Consumer MindThe Consumer Mind - - SetSet

Consumers Consumers organize the organize the product field product field according to according to communicated communicated conventionsconventions

Mercedes=Mercedes=BestBest

Armani=Armani=BestBest

Pentium=Pentium=BestBest

Bud=Bud=MostMost Pop.Pop.

Wal-Mart= Wal-Mart= Low Low Price, High Price, High VarietyVariety

The Product Ladder

Every product field has a pecking order

The top brands

& the also available

To find To find YourYour Product’s Position Product’s Position …

…You Need to get into

consumer’s head &

Map the product field from the

consumers point of view

Mapping Product Mapping Product PositionsPositions

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

dimensions

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 product’s position across attributes

5) Plot customer ideal points (market segments)

Evoked Set

Consideration Set

Paired Paired ComparisonsComparisons1---------1001---------100

Hi Calorie

Low Calorie

Light

Heavy

Paired Paired ComparisonsComparisons1---------1001---------100Full Body

Low CaloriePopular Priced

Premium

Semantic Differentials SA----------SDSemantic Differentials SA----------SD

*Old Milwaukee.

*Meister Brau

*Becks

*Strohs

*Miller

*Heineken

*Old Milw. Light

*Coors

*Michelob

*Coors Light

*Budweiser

*Miller Lite

Multi-Dimensional Scaling

•Chevrolet •Nissan

•Toyota

•Saturn

•VW

Position Map – Automotive market

Traditional Sporty

Luxury

Functional

Cadillac •

• Mercedes

Lincoln •

Oldsmobile • •Chrysler

• Buick

Ford •

Plymouth •

Dodge •

Mercury •

•Pontiac

•BMW •Porsche

•Lexus

Figure 5-6

“With Relative Size of

Consumer Segments”

NondeodorantNondeodorant DeodorantDeodorant

High moisturizing

Low moisturizing

1

24

5

7

8

6

3

• ZestZest

• Lever 2000Lever 2000

• DialDial• LifebuoyLifebuoy

• LavaLava

• LuxLux

• DoveDove

• ToneTone

Position Map - Bar SoapPosition Map - Bar Soap

W/ Position Map In Hand…

Every Marketing strategist has 4 options:

1. Innovate2. Relocate3. Procreate4. Denigrate

Positioning Strategy Option #1: Innovate

Develop & Introduce a New product… …in a New Position

Find a new or unoccupied position that is important to consumers

Cherchez Le Creneau!

NondeodorantNondeodorant DeodorantDeodorant

High moisturizing

Low moisturizing

1

24

5

7

8

6

3

• ZestZest

• Lever 2000Lever 2000

• DialDial• LifebuoyLifebuoy

• LavaLava

• LuxLux

• DoveDove

• ToneTone

Find Un-Occupied Soap SpaceFind Un-Occupied Soap Space

• SafeguardSafeguard

CheapCheap

1

2

4

5

7

6

3•

MillerMiller

• BUDBUD

Find Un- Occupied Beer Space

• CoronaCorona

1st Light Beer

1st Cheap Pen

1st Women’s Cigarette

Who was 1st person to walk on moon? – …The 2nd?

Who was your 1st “Big-Nooky”? – Your 2nd?

Staking out a Position w/ a Proposition The first person to claim

a benefit is the one who becomes associated with it in the minds of consumers.

Have it Your WayThick & Juicy/ Where's the Beef

You Deserve a Break Today…

--Finding an Open & Lucrative Position is Difficult--

Product Space already very competitive

Mind-Space is very limited & already occupied

PRODUCT POSITIONINGPRODUCT POSITIONING

Evoked & Consideration Sets-occupied

The mind will hold only a few alternatives in memory & disregards all others

What’s in Your Evoked Set?

Rental Cars?

Tissue?

Soft Drinks?

Fast Food?

Potato Chips?

Computer Chips?

Positioning Strategy Option #2: Relocate

Redesign & Re-introduce an Existing product… …in a New Position

Expensive

Inexpensive

For

Hea

dach

es For

Body A

ches

Excedrin

Bufferin

Anacin Tylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

Ideal

Ideal

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

Reformulate, Repackage &/or more directly Promote: Tylenol for effective

Headache Relief

Tylenol

LargerSeg

I

““TASTES As Good TASTES As Good As Budweiser…”As Budweiser…”

But CostsBut Costsa Whole Lota Whole LotLess! Less!

““TASTES As Good TASTES As Good As Budweiser…”As Budweiser…”

But CostsBut Costsa Whole Lota Whole LotLess! Less!

JuxtapositionJuxtaposition Old Style Old Style Market RolloutMarket Rollout

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

is # 1is # 1Avis is only #2 in rental cars –So why go with us?

–““We try harder”We try harder”

If you can’t be 1st … at least be Real

The Classic Juxtaposition

Avoids contradicting what’s really in

consumer’s mind

Avoids contradicting what’s really in

consumer’s mind

The Originals

Positioning involves… Comparatives not Superlatives

“Lite Beer from Miller. – “Everything you always wanted in a beer.

And less.”

Coca Cola – “The Real Thing” – Infer all others are imitators

Not the BEST ThingNot the BEST Thing

Positioning Strategy Option #3: Procreate

Develop & Introduce a number of New products…

…in multiple Positions

Expensive

Inexpensive

For

Hea

dac

hes F

orB

ody A

ches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Medipren Plus

MediprenCold &Flu

Procreating calls for developing & positioning multiple products …

The Master of Multi- Branding Procter & Gamble: Every Brand w/ its own Position

Tide: for family marketCheer for clothes -conscious

w/ color guard Bold: for value-conscious –

w/ fabric softenerGain: for scent-conscious –

w/ aromaticsEra: for dirt-conscious –

w/ stain removers

Dash: for price-conscious

Dreft: for new mothers

Ariel: for eco-conscious

Tide: for family marketCheer for clothes -conscious

w/ color guard Bold: for value-conscious –

w/ fabric softenerGain: for scent-conscious –

w/ aromaticsEra: for dirt-conscious –

w/ stain removers

Dash: for price-conscious

Dreft: for new mothers

Ariel: for eco-conscious

Michelob Light, Michelob Dry.

Michelob Diluted its Position

“Michelob was the first high-priced Premium-domestic beer---

Then they launched into Michelob Light, Michelob Dry … Honey Lager … HefeWeizen…

A position of power

“They started to become everything to everybody… and they became nothing”

A note of Caution about Multi-Branding

Be Careful when introducing/ positioning a new product-- especially if you're using the family brand-name

Be careful w/ Brand ExtensionsBe careful w/ Brand Extensions (using existing brand name in new product category)(using existing brand name in new product category)

Kodak CrayonsExxon Office FurnitureGerber Life InsuranceLife Savers GumXerox ComputersKleenex Towels

Established perceptions not

compatible across product classes

Arm & Hammer Products…A Success-

Established perceptions readily transfers product classes

Arm & Hammer Products…A Success-

Established perceptions readily transfers product classes

utubes

Positioning Strategy Option # 4: Denigrate

Place Competitor's product…

…in a less Favorable Position

Repositioning the Competition

Royal DoultonRoyal Doulton, the china of , the china of Stratford-on-Avon Stratford-on-Avon

Vs. Vs.

LenoxLenox, the china of , the china of Pomona, New JerseyPomona, New Jersey



Nuprin vs. Tylenol vs. Aspirin– Tylenol campaign pointed out the

negative affects of aspirin (stomach upset)

Scope vs. Listerine

Minty Breath Not

Medicine Breath

Now Listermint

& w/ Cinnamon

Now Listermint

& w/ Cinnamon

uTube

uTube

uTube

Visa: They won’t take American express


NOT

Developing & Implementing Positioning Strategy

Differentiation

CommunicationThe World On Time

1. Stakeout optimum position Based on your most salient competitive advantage

2. Focus on Single-Competitive Advantage often best…Helps to gain “positioning intensity”

3. Position strengthened by noting your strengths in conjunction with your competitors weaknesses—

Choosing & Implementing a Differentiation Strategy

best qualitylowest pricebest valuemost reliable

Developing Differentiating Statements

For (target customers)

Who are dissatisfied w/

(current market alternatives)

Our product is (a new product category)

That provides (key capability)

Unlike (competing alternatives)

We provide (the desired alternative).

Nordstrom’s Differentiating Statement

For discriminating shoppers


long-lines and substandard customer service…

Our product is offering only the highest quality and service,

That provides the premiere prestige retailer

Unlike other retailers who take your business for granted,

We … are committed to making you our most important customer.”

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Target’s Differentiating Statement

For who appreciate value and service


impersonal big box retailers who sell inferior products…

Our product is Target is the premiere value retailer…

That provides offering a unique mix of quality products, low prices and a friendly shopping environment

Unlike other discount retailers who offer low quality products and stores,

We are committed to offering the most enjoyable and valuable shopping experience

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TGTTGT

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CCNNGG

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Prices

Service

Wal-Mart’s Differentiating

Statement

For shoppers seeking the lowest price every time


clipping coupons and waiting for sale- promotions

Our product is Wal-Mart is the premiere discount retailer

That provides offering every day low prices,

Unlike other discount retailers who make you shop (for sales) when they want you to

We provide are committed to offering you the lowest prices everyday.”

WMWM

TGTTGT

EEDD

CCNNGG

FF

Prices

Service

From the early 1970s to late 1990s, the number of automobile models grew from 140 to 260;

the number of over-the-counter pain relievers went from 17 to 141.

“That makes positioning - the marketing tactic of differentiating a

product or company in the mind of a prospect-

more important than ever”Jack Trout

A position of power

Differentiate or Die: Survival in Our Age of Killer Competition

In our Hyper-Competitive-Global market The need to differentiation grows greater everyday …

The ultimate success of any positioning strategy comes down to

2 Key Decisions

1. Choosing most salient variable w/ which to distinguish your product from competitors

2. Selecting best communication platform to convey your product’s unique position

1. Choosing most salient variable w/ which to distinguish your product from competitors

2. Selecting best communication platform to convey your product’s unique position

On What Dimension or On What Dimension or Variable…Variable…

– do you want to compete?

• Differentiation Strategy

Your 1st Decision:

“Putting your Best Foot Forward”

Criteria for Selecting the Right Competitive Advantage

Criteriafor

Determiningwhich

Differencesto

Promote

Criteriafor

Determiningwhich

Differencesto

Promote

AffordableAffordable

SuperiorSuperiorProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

DeterminantDeterminant

Must be relevant to a consumer need that motivates purchase/usage

Differentiation Variable Options

•Benefits•Uses•Users

ConsumerProduct

•Actual

•Augmented

BrandNamePrice

Quality

PackagingDesign

FeaturesDistributionDelivery

InstallationWarranty

After-Sale

SupportActual ProductActual Product

Augmented ProductAugmented Product

Product LevelsProduct Levels

Payment plan-Credit

Service

Differentiation Variables

Product Attributesfeatures performance durabilityreliabilityrepair-abilitystyledesign

Product

•Actual•Augmented

Differentiation Price/Quality -Attributes

Differentiation variables:

Customer-Service Attributes

deliveryinstallationcustomer support

Customer-Service Attributes

deliveryinstallationcustomer support

Product


Differentiation variables

Employees/ Personnel

competencecourtesycredibilityreliabilityresponsivenesscommunication

Employees/ Personnel

competencecourtesycredibilityreliabilityresponsivenesscommunication

Product


Differentiation variables

ChannelCoverageExpertisePerformance

ChannelCoverageExpertisePerformance

Product


Differentiation Variable Options

Product Consumer

•Actual

•Augmented


People buy Holes, not drills!•Benefits

•Uses•Users

Consumer“Consumers Buy

Benefits not Products”

People buy Hope, not cosmetics!

Toothpaste Market Differentiated by Benefit Segments

Sensory

Segment

Sociable

Segment

Worrier

SegmentIndependent

Segment

Flavor and product appearance

Principal benefit

Sought……..Brightest of teeth

PriceDecay prevention

Figure 5-3

ColgateColgateBrands………

disproportionately

favored

Macleans, Macleans, Ultra BriteUltra Brite

CheapestCheapest brand

CrestCrest

Procter & Gamble: Each Brand offers a Unique Benefit

Positioning by use or application

Differentiation based on:How a product is usedThe number / variety of

usesNew / Changing

patterns of use

Differentiation based on:How a product is usedThe number / variety of

usesNew / Changing

patterns of use


Consumer

Differentiation thru Product use -

REPOSITIONING-REPOSITIONING-Revitalize sales w/ New uses (mature product)

From old-Fashioned Dessert—to--

Children’s &/or adult fun product

Arm & Hammer Baking Soda

Expensive

Inexpensive

For

Hea

dac

hes F

orB

ody A

ches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Emerging Ideal-Daily Heart Med.

I

Image Congruence between Product’s Qualities / Connotations

&

Consumer’s Personality / Persona

Product Positioning = Consumer Positioning


Consumer

Consumers Buy Products to define & differentiate

themselves Designer Label- clothes, cosmetics, perfume“Top-Shelf” Liquor Automobiles

Differentiation by user: Revolt Jeans

The Marlboro Man

uTube

Finally you must effectively communicate your competitive Advantage

1. Choosing the most salient variable w/ which to distinguish your product from the competitors

2. Selecting the best communication platform to convey your product’s unique position

Communication Strategies

Cognitive-Logical

Affective-

Emotional focuses on problems, solutions or benefits sought by customers

how product features help solve problems or achieve benefits

appeals to the heart focuses on emotions, feelings, or drives associated with product / service

Got emotional product positioning?

“When a company doesn't present a clear message

that its product is unique in a way that is relevant to

customers, those customers have no reason

to buy it”

“When a company doesn't present a clear message

that its product is unique in a way that is relevant to

customers, those customers have no reason

to buy it”

A position of power

Four Major Positioning Errors

1. Under-positioning - consumers have only vague idea of the brand.

2. Over-positioning - consumers have too narrow a view of the brand.

3. Doubtful Positioning - consumers don’t believe the brand’s claims

4. Confused Positioning - consumers confused about the brand due to frequent changes or too many claims.

Burger King’s search for Position

76 Have it your way.

77-78 America loves burgers and we’re America’s Burger King.

78-80 Who’s got the best darn burger?

80-82 Make it special. Make it Burger King.

82 Aren’t you hungry for Burger King now?

82-83 Battle of the burgers.

83 Aren’t you hungry?

83-85 The big switch.

85-86 Search for Herb.

86-87 This is a Burger King town

76 Have it your way.

77-78 America loves burgers and we’re America’s Burger King.

78-80 Who’s got the best darn burger?

80-82 Make it special. Make it Burger King.

82 Aren’t you hungry for Burger King now?

82-83 Battle of the burgers.

83 Aren’t you hungry?

83-85 The big switch.

85-86 Search for Herb.

86-87 This is a Burger King town

86-87 This is a Burger King town.

87 The best food for fast times.

87-89 We do it like you’d do it.

89-91 Sometimes you gotta break the rules.

91-92 Your way. Right away.

92-94 BK Tee Vee: I love this place!

94 Back to basics

94-96 Get your burger’s worth.

96-98 It just tastes better.

99 Go the distance

2000 Got the Urge

01-02 The Whopper Says

02-03 At Burger King You Got It

86-87 This is a Burger King town.

87 The best food for fast times.

87-89 We do it like you’d do it.

89-91 Sometimes you gotta break the rules.

91-92 Your way. Right away.

92-94 BK Tee Vee: I love this place!

94 Back to basics

94-96 Get your burger’s worth.

96-98 It just tastes better.

99 Go the distance

2000 Got the Urge

01-02 The Whopper Says

02-03 At Burger King You Got It


Hi Hi QualityQuality

Dominos

Papa Johns

Caesars

Pizza Hut

SlowSlow FastFast

Variety

Positioning Hi Quality Dominos Slow Fast Low Quality Pizza Hut Papa John Caesars Select Target...

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