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Positioning. Positioning in the market place . At the end of this module the learning outcomes are What is positioning? What are the pitfalls in positioning? What are the different positioning strategies that are available? . Positioning in the market place . Suggesting Readings

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positioning

Positioning

Positioning

positioning in the market place
Positioning in the market place

At the end of this module the learning outcomes are

  • What is positioning?
  • What are the pitfalls in positioning?
  • What are the different positioning strategies that are available?

Positioning

positioning in the market place3
Positioning in the market place

Suggesting Readings

Marketing Management by Philip Kotler, 10th edition chapter 10 .

Positioning

positioning in the market place4
Positioning in the market place

What is Positioning?

  • It is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind.
  • Positioning is not what you do to the product
  • Positioning is what you do to the mind of the prospect
  • Customer does the Positioning
  • A product may have many distinctions. Which are most important to the customers?

Positioning

positioning and differentiation
Positioning and Differentiation
  • Positioning statements:
    • To (target group and need) our (brand) is (concept) that (point-of-difference)
      • Example: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.

Positioning

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Positioning in the market place

Examples

Crest toothpaste

  • Promotes its anti-cavity protection

Mercedes

  • Promotes its great engineering

BMW

  • Ultimate driving machine

Attribute can be single or even multiples

Positioning

perceptual map
Perceptual Map

Positioning

positioning in the market place8
Positioning in the market place

Positioning

  • How do you differentiate your product from competitors
  • Differentiation, which is
    • Important
    • Distinctive
    • Superior
    • Not easily copied or Unique.
    • Affordable
    • Profitable

Positioning

developing and communicating a positioning strategy
Developing and Communicating a Positioning Strategy
  • Positioning: How many ideas to promote?
      • Unique selling proposition vs Unique value proposition

Positioning

developing and communicating a positioning strategy10
Developing and Communicating a Positioning Strategy
  • Four major positioning errors
    • Underpositioning
    • Overpositioning
    • Confused positioning
    • Doubtful positioning

Positioning

positioning in the market place11
Positioning in the market place

What to avoid

  • Under positioning
    • Seen as just another entry in a crowded market
    • Pepsi introduces its clear crystal Pepsi 1993
    • Customer not impressed
    • “Clarity” not seen as an important benefit

Positioning

positioning in the market place12
Positioning in the market place
  • Over positioning
    • Narrow image of the brand
    • Trying to widen
    • Customer do not accept this
    • Maruti Baleno
      • Customers think Maruti can make cars up to 5 lacs
      • Not higher end
      • Image issue
      • Poor sales

Positioning

positioning in the market place13
Positioning in the market place
  • Confused Positioning

Company making too many claims

Milkmaid

Started as Tea Whitener

Did not click

As a topping on pudding

Did not click

Finally clicked as base for dessert

Positioning

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Positioning in the market place
  • Doubtful Positioning

Find it to difficult believe in what company claims

Maruti 1000

    • Launches in ’89
    • Positioned as ‘ultimate in luxury’
    • Only luxury car
    • Launch of Esteem in ’94
    • More luxurious than Maruti 1000
    • Is it now ‘Ultimate in luxury
    • Sales dipped
    • Customer confused
    • Repositioned as ‘Affordable luxury’

Positioning

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Positioning in the market place

Right Positioning is Critical

  • Make or break the organization

Nestle Maggi noodles

    • launched in 1983
    • Noodles a new concept in Indian households
    • Two options for Nestle
      • As a dinner item
      • As a snack item
    • Targeted at children

Positioning

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Positioning in the market place

1. As a Lunch or Dinner

  • Housewives / Mothers take decisions
  • Noodles as lunch or dinner item
  • Replacing current lunch items
  • Housewives want to serve children ‘nutritious’ food
  • Would noodles provide nutrition and replace tradition food?

Positioning

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Positioning in the market place

2. As a ‘Snack Item ‘

  • Between lunch and dinner
  • Children play
  • Spend energy
  • Want to eat something
  • Quick preparation and delicious
  • Variety of flavors
  • Filing
  • Will mothers accept this as a ‘snack Item’

Positioning

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Positioning in the market place

Which Positioning – Maggi

  • Which Positioning platform is acceptable
  • Careful study of mothers and children behavior
  • Nestle found that as a snack item would be more acceptable
  • Sales picked up
  • As a lunch / dinner would have been disaster.

Right positioning was critical for the success of Maggi noodles.

Positioning

developing a positioning strategy
Developing a Positioning Strategy
    • Positioning possibilities:
      • Attribute positioning
      • Benefit positioning
      • Use or application positioning
      • User positioning
      • Competitor positioning
      • Product category positioning
      • Quality or price positioning
  • Which Positioning to Promote?

Positioning

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Positioning in the market place
  • ATTRIBUTE POSITIONING
    • Positioning on attribute
      • Size
      • No of years in existence
      • Culture

Disneyland

Positioned as the largest manmade park in the world

Dove soap

Contains moisturizing cream

Positioning

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Positioning in the market place

2. BENEFIT POSITIONING

  • Positioned as a leader in certain benefit

McDonald’s

  • Positioned as a family restaurant (QSCV)

Honda

  • Economy and reliability

BMW

  • Ultimate driving machine

Volvo

  • Safety and Durability.

Positioning

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Positioning in the market place

3. USE / APPLICATION POSITIONING.

  • Positioning for some use or application

Nestle ‘Maggi Noodles’

      • Positioned as a snack item
      • Between meals
      • Fast to cook, good to eat

Nestle Milkmaid

      • Positioned as a base for dessert preparation.

Positioning

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Positioning in the market place

4. USER POSITIONING

  • Positioning the product as best for some user group.

‘Red and white’ cigarettes

    • Positioned for people who are bold and brave
    • Give ‘bravery’ awards.

Positioning

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Positioning in the market place

5. COMPETITOR POSITIONING

  • Product claims to have better performance than competitors

Brooke Bond Taj Mahal Tea

Endorsed by Zakir Hussain

  • “If you find a better tea than Taj Mahal, then Zakir Hussain will stop playing Tabla.
  • Directly or indirectly refer competitors.

Positioning

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Positioning in the market place

6. PRODUCT CATEGORY POSITIONING

  • Positioning as a leader in certain category.

Maruti 1000

    • Launched in 1990
    • Only luxury car in India
    • Positioned as ‘ultimate in luxury’

Hero Honda

    • Four Stroke, fuel efficiency
    • Claimed as the leader in fuel efficiency
    • Fill it, shut it, forget it

Livon

    • After hair wash oil
    • Smooth and silky hair

Positioning

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Positioning in the market place

7. QUALITY OR PRICE POSITIONING

  • Positioning as offering the best scooters

Bajaj Scooters

      • Lowest prices
      • You just cannot beat a Bajaj
      • Repositioned as ‘Hamara Bajaj’

Positioning

adding further differentiation
Adding Further Differentiation
  • Differentiation: products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

Positioning

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Adding Further Differentiation
  • Differentiation criteria:
    • Important
    • Distinctive
    • Superior
    • Preemptive
    • Affordable
    • Profitable
    • Unique

Positioning

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Positioning and Differentiation

Performance

Conformance

Design

Features

Product Differentiation Tools

Form

Style

Reliability

Durability

Repairability

Positioning

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Positioning and Differentiation

Services Differentiation Tools

Ordering ease

Customer consulting

Maintenance and repair

Customer training

Installation

Delivery

Miscellaneous

Positioning

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Positioning and Differentiation

Personnel Differentiation Tools

Competence

Responsiveness

Credibility

Communication

Courtesy

Reliability

Positioning

positioning and differentiation32
Coverage

Expertise

Performance

Positioning and Differentiation

Channel Differentiation Tools

Image Differentiation Tools

  • Symbols
  • Media
  • Atmosphere
  • Events

Positioning