Positioning

Hi Quality Papa John

Select Target & Position

Pizza Hut

Slow Caesars

Dominos

Fast

Low Quality

ate str y on teg emtra ing & Dg S io n ne nin s it s efi itio Po es DPos the Proc line ch ut ar O ese ic & R g es: lo eg i atees rat lineiqu ing St De hn ion ovate tec osit Innelocate of P R reate
Proc rate enig D

Where were at:

Corporate Level Corporate Level

The 3rd Level of Strategy

Business unit Level Business unit Level

Functional Strategy
Information systems Finance Research & development Manufacturing Human resources

Marketing

What Weve done

Situation Analysis
Company Consumers Competitors Conditions SWOT Analysis

What We Know
Company Consumers

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

Competitors Conditions

Situation Analysis

Strategic Planning

Marketing StrategyPs
The Marketing Mix:

Company Consumers Competitors Conditions

PEST

Strategie s Service
N N
E E

Growth & Competiti ve

Product Place
Target Market

G G

Price Promotion
C C

TGT TGT

Positionin g Strategy
D D

WM WM

F F

What We do Now
Targeting
Select Target & Position The process of evaluating segments & selecting those that are most attractive to pursue

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

Key to Successful Marketing Strategy

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

Marketing Strategy Success Contingent on Formulating right Marketing Mix around the most profitable target & competitive position
Product
Target Customer & Needs Position

Price

Promotion

Distribution

Success contingent on formulating your Marketing Mix so that it

Specifies - the way

Product Price
Target & Position

you want consumers to think & feel about your product/service

Place

Promo

Defines - how you

will be

differentiated & thus compete in

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 Mind

Positioning isthe

place the product occupies in consumers mind-Relative to other competing products

Hi Quality Papa John
Pizza Hut

Slow Dominos Caesars Low Quality

Fast

The Consumer Mind - Set

Consumers organize the product field according to communicated conventions
Mercedes=Best Armani=Best Pentium=Best Bud=Most Pop. Wal-Mart= Low Price, High Variety

The Product Ladder

Every

product field has a pecking order

The

top brands & the also available

To find Your Products Position

You Need to get into consumers head & Map the product field from the consumers point of view

Mapping Product Positions

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

G G

N N

Service
TGT TGT
D D E E

WM WM

F F

Steps in Creating Product Position Maps

1) Identify relevant set of competitive
brands

2) Identify key attributes consumers use

to evaluate brands

Evoked Set

3) Determine consumers perceptions of

Consideration Set each brand -on each attribute

segments)

4) Plot products position across attributes 5) Plot customer ideal points (market

Paired Comparisons 1---------100

Hi Calorie

Heavy

Light
Low Calorie

Full Body

Paired Comparisons 1---------100

Premium Popular Priced

Low Calorie

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

Multi-Dimensional Scaling
*Becks *Budweiser *Old Milwaukee. *Meister Brau *Miller *Heineken

*Coors *Strohs *Michelob *Miller Lite *Old Milw. Light *Coors Light

Position Map Automotive market

Figure 5-6

Luxury
Lexus Mercedes Cadillac Lincoln Chrysler Oldsmobile Buick Ford Dodge Plymouth BMW Pontiac Chevrolet Nissan Toyota Saturn VW Porsche

Traditional

Sporty

Mercury

Functional

Position Map - Bar Soap

Tone 4 5 Lux Nondeodorant
3 8

High moisturizing 7 Dove 2

Zest Lever 2000

Deodorant

Size of Consumer Segments

With Relative

1 Lava
6

Dial Lifebuoy

Low moisturizing

W/ Position Map In Hand

Every Marketing strategist has 4 options: 1. Innovate 2. Relocate 3. Procreate 4. Denigrate

Positioning Strategy Option #1: Innovate Develop & Introduce a New product in a New Position

Cherchez Le Creneau!

Find a new or unoccupied position that is important to consumers

Find Un-Occupied Soap Space

Tone 4 5 Lux Nondeodorant
3 8

High moisturizing 7 Dove 2

Zest Lever 2000

Safeguard Deodorant

1 Lava
6

Dial Lifebuoy

Low moisturizing

Find Un- Occupied Beer Space

BUD 4 5 2 Miller Cheap
3

1 Corona

7
6

1st 1st 1st

Light Beer

Cheap Pen Womens Cigarette

Who

was 1st person to walk on moon? The 2nd? was your 1st BigNooky? Your 2nd?

Who

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.

You Deserve a Break Today

Thick & Juicy/ Where's the

Have it Your Way

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

Space already very competitive is very limited & already occupied

Mind-Space

PRODUCT POSITIONING Evoked & Consideration Sets-occupied

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

Whats 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

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

Ideal

Excedrin Tylenol Bufferin

Nuprin Advil

For Headaches

Anacin

For Body Aches

Tylenol

directly Promote: Tylenol for effective Headache Relief Ideal

St. Josephs

Motrin Reformulate,Bayer RepackageMedipren &/or more

Inexpensive

Larger Seg

Juxtaposition

Old Style Market Rollout

TASTES As Good As Budweiser

But Costs a Whole Lot Less!

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

If you cant be 1 at least be Real

st

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

We try harder

The Classic Juxtaposition

The Originals

Avoids contradicting whats really in consumers mind

Positioning involves

Comparatives not Superlatives

Not the BEST Thing

Coca

Cola The Real Thing

Infer

all others are imitators

Lite Beer from Miller.

Everything you always wanted in a beer. And less.

Positioning Strategy Option #3: Procreate

Develop & Introduce a number of New products in multiple Positions

Procreating calls for developing & Excedrin positioning multiple products

I
Bufferin Advil Tylenol Bayer Motrin Medipren

Expensive

Nuprin

For Body Aches

For Headaches

Anacin

Medipren Plus
St. Josephs

Medipren Cold &Flu

Inexpensive

The Master of Multi- Branding

Procter & Gamble:

Every Brand w/ its own Position

Tide: for family market Cheer for clothes -conscious w/ color guard Bold: for value-conscious w/ fabric softener Gain: for scent-conscious w/ aromatics Era: 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

A position of power

Michelob was the first high-priced Premium-domestic beer--Then they launched into Michelob Light, Michelob Dry Honey Lager HefeWeizen

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 Extensions

(using existing brand name in new product category)

Kodak

Crayons Exxon Office Furniture Gerber Life Insurance perceptions Established not compatible across Life Savers Gum product classes Xerox Computers Kleenex Towels

Arm & Hammer Products A SuccessEstablished perceptions readily transfers product classes

utubes

Positioning Strategy Option # 4: Denigrate Place Competitor's product in a less Favorable Position

Repositioning the Competition Royal Doulton, the china of Stratford-on-Avon Vs. Lenox, the china of Pomona, New Jersey

Repositioning the Competition

uTube Nuprin

vs. Tylenol vs. Aspirin vs. Listerine

No wL w/ Cin ister nam min on t &
uTube

Tylenol campaign pointed out the negative affects of aspirin (stomach upset)

Scope uTube

Minty Breath Not Medicine Breath

Repositioning the Competition

Visa: They wont take American express

NOT

Developing & Implementing Positioning Strategy

Differentiation
The World On Time

Communication

Choosing & Implementing a Differentiation Strategy

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

best quality lowest price best value most reliable

2. Focus on Single-Competitive Advantage often bestHelps to gain positioning intensity 3. Position strengthened by noting your strengths in conjunction with your competitors weaknesses

Developing Differentiating Statements

For Who are dissatisfied w/ Our product is That provides Unlike We provide

(target customers) (current market alternatives) (a new product category) (key capability) (competing alternatives) (the desired alternative).

Nordstroms Differentiating Statement

E E

G G

Prices
C C

N N

Service
TGT TGT
D D

WM WM

F F

For Who are dissatisfied w/ Our product is That provides Unlike We

discriminating shoppers long-lines and substandard customer service offering only the highest quality and service, the premiere prestige retailer other retailers who take your business for granted, are committed to making you our most important customer.

G G

Prices
C C

Targets Differentiating Statement

E E

N N

Service
TGT TGT
D D

WM WM

F F

For Who are dissatisfied w/ Our product is That provides Unlike We are

who appreciate value and service impersonal big box retailers who sell inferior products Target is the premiere value retailer offering a unique mix of quality products, low prices and a friendly shopping environment other discount retailers who offer low quality products and stores, committed to offering the most enjoyable and valuable shopping experience

Wal-Marts Differentiating Statement

E E

G G

Prices
C C

N N

Service
TGT TGT
D D

WM WM

F F

For Who are dissatisfied w/ Our product is That provides Unlike We provide

shoppers seeking the lowest price every time clipping coupons and waiting for sale- promotions Wal-Mart is the premiere discount retailer offering every day low prices, other discount retailers who make you shop (for sales) when they want you to are committed to offering you the lowest prices everyday.

In our Hyper-Competitive-Global market The

need to differentiation grows greater everyday

From

Differentiate or Die:

Survival in Our Age of Killer Competition

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 prospectmore important than ever
Jack Trout

A position of power

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 products unique position

Your 1st Decision:

On What Dimension or

Variable
do

you want to compete? Differentiation Strategy

Putting your Best Foot Forward

Criteria for Selecting the Right Competitive Advantage

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

Determinant

Affordable

Profitable

Criteria for Determining which Differences to Promote

Preemptive

Distinctive

Superior

Differentiation Variable Options

Product

Consumer Benefits Uses Users

Actual Augmented

Product Levels
Augmented Product Augmented Product

Service Distribution Delivery Price Quality Brand Name

Actual Product Actual Product

Payment planCredit Features AfterSale Support

Packaging Warranty

Design

Installation

Product

Differentiation Variables

Actual Augmented

Product Attributes features performance durability reliability repair-ability style design

Differentiation Price/Quality -Attributes

Product

Differentiation variables:

Actual Augmented

Customer-Service Attributes delivery installation customer support

Product

Differentiation variables

Actual Augmented

Employees/ Personnel
competence courtesy credibility reliability responsiveness communication

Product

Differentiation variables

Actual Augmented

Channel
Coverage Expertise Performance

Differentiation Variable Options

Product

Consumer Benefits Uses Users

Actual Augmented

Consumer

Consumers Buy Benefits not Products

People

Benefits Uses Users

buy Holes, not

drills!

People

buy Hope, not cosmetics!

Toothpaste Market Differentiated by Benefit Segments

Sensory Segment Principal benefit Sought.. Flavor and product appearance Sociable Segment Brightest of teeth Worrier Segment Decay
prevention

Figure 5-3

Independent Segment Price

Brands disproportionately favored

Colgate

Macleans, Ultra Brite

Crest

Cheapest brand

Procter & Gamble: Each Brand offers a Unique Benefit

Consumer

Positioning by use or application Differentiation based on: How a product is used The number / variety of uses New / Changing patterns of use

Benefits Uses Users

 Differentiation

thru Product use -

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

From oldFashioned Dessertto-Childrens &/or adult fun product

Arm & Hammer Baking Soda

Expensive
Excedrin

I
Anacin

Bufferin Advil Tylenol

Nuprin

For Body Aches

For Headaches

Emerging IdealDaily Heart Med.

Bayer

I
Motrin Medipren

I
St. Josephs

Inexpensive

Consumer

Product Positioning = Consumer Positioning Consumers Buy Products to define & differentiate themselves

Benefits Uses Users

Designer Label- clothes, cosmetics, perfume

Top-Shelf Liquor Automobiles

Image Congruence between Products Qualities / Connotations & Consumers Personality / Persona

 Differentiation

by user: Revolt Jeans

The Marlboro Man

uTube

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 products unique position

Communication Strategies

Got emotional product positioning?

CognitiveLogical

AffectiveEmotional

appeals to the heart focuses on problems, solutions or benefits sought focuses on emotions, by customers feelings, or drives associated with product / how product features service help solve problems or achieve benefits

A position of power

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

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

dont believe the brands claims

4. Confused Positioning - consumers

confused about the brand due to frequent changes or too many claims.

Burger Kings search for Position

76 Have it your way. 86-87 This is a Burger King town. 87 The best food for fast times. 87-89 We do it like youd 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 burgers worth. 96-98 It just tastes better.
99 2000

77-78 America loves burgers and were Americas Burger King. 78-80 Whos got the best darn burger? 80-82 Make it special. Make it Burger King. 82 Arent you hungry for Burger King now? Arent you hungry?

82-83 Battle of the burgers. 83 83-85 The big switch. 85-86 Search for Herb. 86-87 This is a Burger King town

Go the distance Got the Urge

01-02 The Whopper Says 02-03 At Burger King You Got It

Papa Johns

Hi Quality
Variety
Pizza Hut

Slow
Caesars

Fast
Dominos

Low Quality