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Hi Quality. Papa John. Select Target & Position. Pizza Hut. Fast. Slow. Dominos. Caesars. Low Quality. Positioning. Define & Demonstrate Positioning Strategy Outline the Positioning Research Process Delineate logic & techniques of Positioning Strategies: Innovate Relocate

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positioning

Hi Quality

Papa John

Select Target

&

Position

Pizza Hut

Fast

Slow

Dominos

Caesars

Low Quality

Positioning

slide2

Define & Demonstrate

Positioning Strategy

  • Outline the Positioning

Research Process

  • Delineate logic & techniques

of Positioning Strategies:

  • Innovate
  • Relocate
  • Procreate
  • Denigrate
slide3

Where we’re at:

The 3rd Level of Strategy

Corporate Level

Business unit Level

Functional Strategy

Information

systems

Research &

development

Manufacturing

Finance

Marketing

Human resources

slide4

Consumers

Conditions

Company

Competitors

What We’ve done…

Situation Analysis

SWOT Analysis

what we know

Consumers

Conditions

Company

Competitors

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
slide6

G

N

C

Service

TGT

D

E

WM

F

P’s

Strategic Planning

Situation Analysis

Marketing Strategy

The Marketing Mix:

  • Company
  • Consumers
  • Competitors
  • Conditions
    • PEST

Growth & CompetitiveStrategies

Positioning Strategy

what we do now

Select Target

&

Position

What We do Now…

Targeting

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
Key to Successful Marketing Strategy

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

slide9

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

Price

Product

Target

&

Position

Customer

Needs

Promotion

Distribution

marketing strategy success contingent on formulating your marketing mix so that it

Product

Price

Target

&

Position

Place

Promo

Marketing Strategy Success contingent on formulating your Marketing Mix… so that it
  • Specifies- the way you want consumers tothink & feel about your product/service
  • Defines- how you will be differentiated & thus compete in marketplace

Positioning is the Centerpiece (literally & figuratively) of Marketing Strategy

slide11
Positioning is not what you do to product…
  • Positioning is what you do to the Consumers Mind…
slide12

Hi Quality

Papa John

Pizza Hut

Fast

Slow

Dominos

Caesars

Low Quality

Positioning is-the place the product occupies inconsumer’s mind--Relative to other competing products
slide13

The Consumer Mind - Set

Consumers organize the product field according to communicated conventions

Mercedes=Best

Armani=Best

Pentium=Best

Bud=MostPop.

Wal-Mart= Low Price, High Variety

the product ladder
The Product Ladder
  • Every product field has a pecking order
  • The top brands

& the also available

to find your product s position
To find Your Product’s Position …

…You Need to get into consumer’s head &

Map the product field from the consumers point of view

mapping product positions

Prices

G

N

C

Service

TGT

D

E

WM

F

Mapping Product Positions

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

steps in creating product position maps
Steps in Creating “Product Position” Maps
  • Identify relevant set of competitive brands
  • Identify key attributes consumers use to evaluate brands
  • Determine consumers’ perceptions of each brand -on each attribute
  • Plot product’s position across attributes
  • Plot customer ideal points (market segments)

Evoked Set

Consideration Set

slide18

Hi Calorie

Heavy

Light

Low Calorie

Paired Comparisons

1---------100

slide19

Full Body

Premium

Popular Priced

Low Calorie

Paired Comparisons

1---------100

slide21

*Becks

*Budweiser

*Heineken

*Old Milwaukee.

*Miller

*Meister Brau

*Coors

*Strohs

*Michelob

*Miller Lite

*Old Milw. Light

*Coors Light

Multi-Dimensional Scaling

position map automotive market

Luxury

•Lexus

• Mercedes

Cadillac •

•Porsche

•BMW

Lincoln •

•Chrysler

•Pontiac

• Buick

Oldsmobile •

Traditional

Sporty

•Chevrolet

Mercury •

Ford •

•Nissan

•Toyota

Dodge •

•Saturn

Plymouth •

•VW

Functional

Position Map – Automotive market

Figure 5-6

position map bar soap
Position Map - Bar Soap

High

moisturizing

  • Tone
  • Zest

7

4

  • Lever 2000
  • Dove

2

5

  • Lux

8

Nondeodorant

Deodorant

3

1

“With Relative Size of Consumer Segments”

  • Lava
  • Dial
  • Lifebuoy

6

Low

moisturizing

w position map in hand
W/ Position Map In Hand…
  • Every Marketing strategist has 4 options:
  • Innovate
  • Relocate
  • Procreate
  • Denigrate
positioning strategy option 1 innovate
Positioning Strategy Option #1: Innovate

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

cherchez le creneau
Cherchez Le Creneau!

Find a new or unoccupiedposition that is important to consumers

find un occupied soap space

Safeguard

Find Un-Occupied Soap Space

High

moisturizing

  • Tone
  • Zest

7

4

  • Lever 2000
  • Dove

2

5

  • Lux

8

Nondeodorant

Deodorant

3

1

  • Lava
  • Dial
  • Lifebuoy

6

Low

moisturizing

slide29

Its Good to Be the 1st

  • 1st Light Beer
  • 1st Cheap Pen
  • 1st Women’s Cigarette
slide30

People remember who is 1st

  • 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
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 Beef

Have it Your Way

finding an open lucrative position is difficult
--Finding an Open & Lucrative Position is Difficult--
  • Product Space already very competitive
  • Mind-Space is very limited & already occupied
product positioning
PRODUCT POSITIONING

Evoked & Consideration Sets-occupied

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

positioning strategy option 2 relocate
Positioning Strategy Option #2: Relocate

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

slide36

Tylenol

Nuprin

Advil

Tylenol

Bayer

St. Joseph’s

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

Expensive

Excedrin

Ideal

Bufferin

Anacin

For

Body Aches

For

Headaches

Motrin

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

Medipren

Ideal

Inexpensive

slide37

I

The UnCola

Larger

Seg

slide38

Juxtaposition

Old Style Market Rollout

“TASTES As Good As Budweiser…”

But Costs

a Whole Lot

Less!

positioning requires consumer partipulation
Positioning requires “Consumer Partipulation”

You have to get the consumer toparticipatein their ownmanipulation

  • Manipulate what is already in the mind of the consumer…
  • Do not challenge existing perceptions
slide40
is # 1

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

Avis is only #2 in rental cars –

So why go with us?

  • “We try harder”
the classic juxtaposition
The Classic Juxtaposition

The Originals

Avoids contradicting what’s really in consumer’s mind

positioning involves comparatives not superlatives
Positioning involves… Comparatives not Superlatives

Not the BEST Thing

  • “Lite Beer from Miller.
    • “Everything you always wanted in a beer. And less.”
  • Coca Cola – “The Real Thing”
        • Infer all others are imitators
positioning strategy option 3 procreate
Positioning Strategy Option #3: Procreate

Develop & Introduce a number ofNew products…

…in multiple Positions

slide44

Excedrin

I

Nuprin

Bufferin

Advil

Anacin

Tylenol

Motrin

Bayer

Medipren

Medipren

Plus

I

St. Joseph’s

Medipren

Cold &Flu

Expensive

Procreating calls for developing & positioning multiple products …

For

Body Aches

For

Headaches

Inexpensive

the master of multi branding procter gamble every brand w its own position
The Master of Multi- BrandingProcter & Gamble:Every Brand w/ its own Position

Tide: for family market

Cheerfor 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 diluted its position

A position of power

Michelob Diluted its Position

“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
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

Established perceptions not compatible across product classes

Be careful w/ Brand Extensions(using existing brand name in new product category)
  • Kodak Crayons
  • Exxon Office Furniture
  • Gerber Life Insurance
  • Life Savers Gum
  • Xerox Computers
  • Kleenex Towels
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
Positioning Strategy Option # 4: Denigrate

Place Competitor's product…

…in a less Favorable Position

repositioning the competition
Repositioning the Competition

Royal Doulton, the china of Stratford-on-Avon

Vs.

Lenox, the china of Pomona, New Jersey

repositioning the competition1
Repositioning the Competition

uTube

  • Nuprin vs. Tylenol vs. Aspirin
    • Tylenol campaign pointed out the negative affects of aspirin (stomach upset)
  • Scope vs. Listerine

uTube

Now Listermint & w/ Cinnamon

Minty Breath

Not

Medicine Breath

uTube

slide54

Repositioning the Competition

  • Visa: They won’t take American express

NOT

developing implementing positioning strategy

Developing & Implementing Positioning Strategy

Differentiation

The World On Time

Communication

choosing implementing a differentiation strategy
Choosing & Implementing a Differentiation Strategy
  • best quality
  • lowest price
  • best value
  • most reliable

Stakeout optimum positionBased on your most salient competitive advantage

Focus on Single-Competitive Advantageoften best…Helps to gain “positioning intensity”

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

differentiate or die survival in our age of killer competition

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

A position of power

Differentiate or Die: Survival in Our Age of Killer Competition
  • 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

the ultimate success of any positioning strategy comes down to 2 key decisions
The ultimate success of any positioning strategy comes down to 2 Key Decisions
  • Choosing most salient variablew/ which to distinguish your product from competitors
  • Selecting best communication platform to convey your product’s unique position
your 1st decision
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
Criteria for Selecting the Right Competitive Advantage

Determinant

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

Affordable

Distinctive

Criteria

for

Determining

which

Differences

to

Promote

Superior

Profitable

Preemptive

differentiation variable options

Product

Consumer

  • Actual
  • Augmented
  • Benefits
  • Uses
  • Users
Differentiation Variable Options
slide66

Product Levels

Augmented Product

Service

Payment plan-

Credit

Brand

Name

Features

Actual Product

Distribution

Delivery

Price

Quality

After-

Sale

Support

Design

Packaging

Installation

Warranty

differentiation variables

Product

  • Actual
  • Augmented
Differentiation Variables

Product Attributes

  • features
  • performance
  • durability
  • reliability
  • repair-ability
  • style
  • design
differentiation variables1

Product

  • Actual
  • Augmented
Differentiation variables:

Customer-Service Attributes

  • delivery
  • installation
  • customer support
differentiation variables2

Product

  • Actual
  • Augmented
Differentiation variables

Employees/ Personnel

  • competence
  • courtesy
  • credibility
  • reliability
  • responsiveness
  • communication
differentiation variables3

Product

  • Actual
  • Augmented
Differentiation variables

Channel

  • Coverage
  • Expertise
  • Performance
differentiation variable options1

Actual

  • Augmented
  • Benefits
  • Uses
  • Users
Differentiation Variable Options

Product

Consumer

consumers buy benefits not products

Consumer

  • Benefits
  • Uses
  • Users
“Consumers Buy Benefits not Products”
  • People buy Holes, not drills!
  • People buy Hope, not cosmetics!
toothpaste market differentiated by benefit segments

Worrier

Segment

Sociable

Segment

Sensory

Segment

Independent

Segment

Macleans, Ultra Brite

Brightest of teeth

Flavor and product appearance

Price

Colgate

Crest

Cheapest brand

Principal benefit

Sought……..

Brands………

disproportionately

favored

Decay prevention

Toothpaste Market Differentiated by Benefit Segments

Figure 5-3

positioning by use or application

Consumer

  • Benefits
  • Uses
  • Users
Positioning by use or application

Differentiation based on:

  • How a product is used
  • The number / variety of uses
  • New / Changing patterns of use
repositioning revitalize sales w new uses mature product
REPOSITIONING-Revitalize sales w/ New uses(mature product)

Jell-O:

From old-Fashioned Dessert—to--

Children’s &/or adult fun product

Arm & Hammer Baking Soda

slide80

Excedrin

I

Nuprin

Bufferin

Advil

Anacin

Motrin

Bayer

Emerging Ideal-Daily Heart Med.

I

St. Joseph’s

Expensive

Tylenol

For

Body Aches

For

Headaches

Medipren

I

Inexpensive

product positioning consumer positioning

Consumer

  • Benefits
  • Uses
  • Users
Product Positioning = Consumer Positioning

Consumers Buy Products to define & differentiate themselves

Image Congruence between Product’s Qualities / Connotations

&

Consumer’s Personality / Persona

  • Designer Label- clothes, cosmetics, perfume
  • “Top-Shelf” Liquor
  • Automobiles
finally you must effectively communicate your competitive advantage
Finally you must effectivelycommunicate your competitive Advantage
  • Choosing the most salient variable w/ which to distinguish your product from the competitors
  • Selecting the best communication platform to convey your product’s unique position
slide90

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”
slide91

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

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.

Go the distance

Got the Urge

01-02 The Whopper Says

02-03 At Burger King You Got It

Burger King’s search for Position
slide93

Papa Johns

Hi Quality

Variety

Pizza Hut

Fast

Slow

Dominos

Caesars

Low Quality