Product Positioning Pertemuan 11

2. Product Positioning Pertemuan 11 Matakuliah : J0114/Manajemen Pemasaran Tahun : 2008

3. Learning Outcome Students can show their arguments over conditions forming product positioning

4. Material Outline • Essence of positioning • Role of positioning • Positioning = trust • Segmentation, positioning, emotional branding • 4 conditions to develop positioning

5. Essence of Positioning • …”positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect” (Al Ries & Jact Trout, 2001)

6. Role of Positioning • To design the company’s offering and image to occupy a distinctive place in the target customers, benefits and prices (Kotler,2005) • To lead your customers credibly (Ries-Trout, 2001) • Kijang claims to be family vehicle • Plaza Senayan claims to be the ultimate mall experience

7. Positioning = Trust • Positioning is about how to win customer’s strategy so that they would believe with our product and company’s image implanted in their minds. • By believing so, they intend to acquire our products • They are willing to trust in our brands. Thus, it encourages repeat purchase • The main challenge: how to make this trust come true?

8. Segmentation, Positioning, Emotional Branding • Segmenting = identifying new segments • Positioning = creating valuable image of products and company to induce distinctively certain place in consumer’s mind • Emotional branding = creating emotional bonding with consumers through their senses, hearts and minds.

9. 4 Conditions to Develop Positioning • Consumers must perceive the positioning offered in a positive manner. This can be made as value description offered to consumers is that something they really think as an asset • Vegeta, in its first launching, claimed to be a fiber beverage that helped reduce cholesterol, burn fat, and avoid cardio disorder. • Amazon decided to be the most convenient book retailer with the biggest selection and the lowest price ever. This value offered did reflect the need of book readers who demanded for low price and easy access.

10. 4 Conditions to Develop Positioning • Positioning must be able to communicate/reflect company’s competitive advantage over its competitors. In doing so, do not be over promised. It means, promising something that cannot be delivered. As consumers may get disappointed, they will reject to be exposed to that over-positioning brand.

11. Positioning must be unique, not easily be imitated, differentiating products offered from those of competitors. Nokia with “connecting people” positioning has successfully differentiated this cell phone from its main competitors, sonnyericsson and motorola Inul, who is well known for her “ngebor”. In fact, she first made “goyang ngebor” popular in dangdut genre. Then, Uut came to compete against her. But still, public first recognized Inul as “Ratu Ngebor”. 4 Conditions to Develop Positioning

12. 4 Conditions to Develop Positioning • Positioning must be relevant, adaptable to the changing environment and to cover consumer demand. It means, if there is a change in consumer behavior due to changes in socio-cultural environment, marketer must reposition the current positioning. • Garuda has changed its positioning to cover consumer demand for timeliness. • When A Mild was first launched, it stated its product to be “Taste of The Future”. This statement was a huge failure since consumers did not pay attention to a new type of cigarette. Then, A Mild changed its positioning to be “How Low Can You Go” to reclaim its low nicotine cigarette.

13. Conclusions: • Positioning is planting something different and unique in consumer’s mind • It defines company and product image to gain consumers attention • Positioning must be relevant for it is perceived as a promise in consumer mind and it results in trust building between buyer-seller • Four conditions must be applied to develop positioning.