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If there is no competition. Positioning Strategy is not needed. The more competitive, the greater the need for Positioning Strategy in the market served. POSITIONING. Definition :. Is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the

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If there is no competition

Positioning Strategy is not needed

The more competitive, the greater the need

for Positioning Strategy in the market served


Definition :

Is the act of designing the company’s offer and image

so that it occupies a distinct and valued place in the

target customers’ mind

(P. Kotler)

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 01

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is “key issue” for New-Product Development and managing

existing products being marketed.

Product Positioning,

  • is “marketing tools” for answering questions :

  • How to position a product, relatively against other products ?

  • How different a product compare to others ?

Mkt. Strat/Positioning/C.Merle Crawford pp.243-253/RP - 02

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Buyers’ Perspective

Marketer’s Perspective

Showing or Explaining

differences against other products

Have “perceived product position”

in their mind

If the marketer’s effort is succeed, both perspectives are the same

Mkt. Strat/Positioning/C.Merle Crawford pp.243-253/RP - 03

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Marketing Manager

must “take action” first !

Prospect customer,

do not have “positioning”

of New-Product in their mind !

Mkt. Strat/Positioning/C.Merle Crawford pp.243-253/RP - 04

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Recognizing :

Buyers have different / varied needs

(Levitt cs)

Every products/services can be differentiated

(Dermot Dunphy, CEO of Sealed Air Corp.)

Will attracted toward different offers

But keep in mind, that :

  • Not all Brand differences, are meaningful or worthwhile

  • Not every difference is a “differentiator”

  • Each difference has the potential to create company costs

  • Each difference has the potential to create customer benefits

Company must carefully select the ways in which it will distinguish

itself from competitors

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 05

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Differentiation Criteria :

  • Important

    Delivers a highly valued benefit to a sufficient number of buyers

  • Distinctive

    Offered in a more distinctive way by the company

  • Superior

    Is superior to other ways to obtain the same benefit

  • Communicable

    The difference is communicable and visible to buyers

  • Preemptive

    Cannot be easily copied by competitors

  • Affordable

    Buyers can afford to pay for the difference

  • Profitable

    The company will find it profitable to introduce the difference

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 06

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3Positioning Purposes :

7Positioning Strategy :

  • Defining the product for its customers

  • Helping the customers to remember the product

  • Communicating the relevant attribute to its customers

1. Attribute Positioning

2. Benefit Positioning

3. Use/Application Positioning

4. User Positioning

5. Competitor Positioning

6. Product Category Positioning

7. Quality/Price Positioning

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 07

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New Typology for Product Positioning

Surogate Category

Surogate = Substitute

Where something substitutes for something else

Marketer do not using “features/benefits”, instead expressing

“something” about the product which make the readers or

the audience to draw their own individual conclusion

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 08

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Single-Benefit Positioning

Double-Benefit Positioning

If there are two or more firms claiming the same feature or

benefits, then the other firm may use additional feature to its


Triple-Benefit Positioning

Tooth Paste : white teeth - fresh breath - anti cavity

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 9

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4 Major Positioning Errors

1. Under Positioning

Didn’t put enough stress/efforts in communicating product/

brand benefits. Buyers have only a vague idea, and don’t

really sense anything special about it.

2. Over Positioning

Company puts its product/brand too “high” and/or too

narrow. Buyers don’t know that there are products/brands

they can afford.

3. Confused Positioning

Company making too many claims and/or changing the

brand’s positioning too frequent.

4. Doubtful Positioning

Buyers may find it hard to believe the brand, in view of the

product’s features, price etc.

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 10

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Differences to be Promoted in Positioning !

  • “Strengths & uniqueness” of the products/services

  • Features which can be developed quick enough

Requirement ?

Comparison Analysis of competitors’ products

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 11

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It’s needed when :

To change existing product/brand positioning

  • Product/brand positioning is unclear

  • The old positioning is not valid any more

MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 12