MARKET NEEDS /
ATTRACTIVENESS
COMPETITORS
STRENGTHS /
WEAKNESSES
ORGANISATIONAL
STRENGTHS /
WEAKNESSES
1. Strategic Investment
2. Defining the Target Segment(s)
3. Crafting the Value Proposition
4. Creating the Mix to Deliver the Value Proposition
5. Communicating the Value Proposition
Positioning
Product Positioning Process
• Defining the market in which the product or brand will compete (who the relevant buyers are)
• Identifying the attributes (also called dimensions) that define the product 'space'
• Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
• Determine each product's current location in the product space • Determine the target market's preferred combination of attributes
(referred to as an ideal point) • Examine the fit between:
– The position of your product– The position of your competition – The position of the ideal point
• Position
Perceptual Mapping
• STEP 1: Sample from Target Market• STEP 2: List of Relevant Attributes• STEP 3: Ranking of Attributes (Top 2)• STEP 4: Rate Existing Brands• STEP 5: Consumer Ideal Point• STEP 6: Overlay Brands & Ideal Point
Perceptual Mapping of Motorcycles
Step 1: TG Sampling
• 18-24 Male, College Student, MHI > 50,000, Living in a City, High peer pressure
• Random Sampling
STEP 2: List of Relevant Attributes
• Power• Price• Style• Fuel Efficiency• Cost of Maintenance
STEP 3: Ranking of Attributes (Top 2)
• Price• Style
STEP 4: Rate Existing Brands
LOW PRICE
HIGH PRICE
LOW
STYLE
HIGH
STYLE
B
HHT
YE
STEP 5: Consumer Ideal Point
LOW PRICE
HIGH PRICE
LOW
STYLE
HIGH
STYLE
IP
STEP 6: Overlay Brands & Ideal Point
LOW PRICE
HIGH PRICE
LOW
STYLE
HIGH
STYLE
B
HHT
YR
IP
POPs
• Points-of-parity (POPs) – Associations that are not necessarily unique to the brand but may be shared by other brands
• Considered to be hygiene factors in any product by the consumer
• Absence could drive rejection
POD
• Point of difference (POD) is a term used to describe the individual factors which make a product different from its competitive set
• The key point of difference of a company is synonymous with its unique selling proposition (USP)
• Critical in defining its competitive advantage• Must be attributes or benefits that consumers
strongly, uniquely, and positively associate with the company's brand
Types of Positioning• Functional positions
– Solve problems – Provide benefits to customers – Tide Surprisingly White
• Symbolic positions – Self-image enhancement – Ego identification – Belongingness and social meaningfulness – Pepsi on Youth
• Experiential positions – Provide sensory stimulation – Provide cognitive stimulation– Red Bull Energy in a Bottle
Checks for a Good Positioning
• Have we established a frame of reference?
• Are we delivering on the points of parity?
• Are the points of difference compelling?
Defining the Positioning
• BPS: Statement on how the marketer wants the consumer to perceive the brand
• 4 Elements:– Target Audience– Frame of Reference– POD– RTB
BPS Format
• "For (target audience), (company name) offers (competitive frame of reference) that provides (greatest competitive advantage).”
• "For low income housewives, Wheel offers the wash of an expensive-like powder within her budget."
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