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Positioning

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

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  1. Hi Quality Papa John Select Target & Position Pizza Hut Fast Slow Dominos Caesars Low Quality Positioning

  2. Define & Demonstrate Positioning Strategy • Outline the Positioning Research Process • Delineate logic & techniques of Positioning Strategies: • Innovate • Relocate • Procreate • Denigrate

  3. 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

  4. Consumers Conditions Company Competitors What We’ve done… Situation Analysis SWOT Analysis

  5. 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

  6. 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

  7. 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

  8. Key to Successful Marketing Strategy Convincing the right person(s) that you offer the best product, available at best place, at the best price…

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

  10. 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

  11. Positioning is not what you do to product… • Positioning is what you do to the Consumers Mind…

  12. 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

  13. 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

  14. The Product Ladder • Every product field has a pecking order • The top brands & the also available

  15. To find Your Product’s Position … …You Need to get into consumer’s head & Map the product field from the consumers point of view

  16. 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

  17. 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

  18. Hi Calorie Heavy Light Low Calorie Paired Comparisons 1---------100

  19. Full Body Premium Popular Priced Low Calorie Paired Comparisons 1---------100

  20. Semantic Differentials SA----------SD

  21. *Becks *Budweiser *Heineken *Old Milwaukee. *Miller *Meister Brau *Coors *Strohs *Michelob *Miller Lite *Old Milw. Light *Coors Light Multi-Dimensional Scaling

  22. 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

  23. 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

  24. W/ Position Map In Hand… • Every Marketing strategist has 4 options: • Innovate • Relocate • Procreate • Denigrate

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

  26. Cherchez Le Creneau! Find a new or unoccupiedposition that is important to consumers

  27. 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

  28. Corona Find Un- Occupied Beer Space 1 • BUD 4 5 2 • Miller Cheap 3 7 6

  29. Its Good to Be the 1st • 1st Light Beer • 1st Cheap Pen • 1st Women’s Cigarette

  30. People remember who is 1st • Who was 1st person to walk on moon? • …The 2nd? • Who was your 1st “Big-Nooky”? • Your 2nd?

  31. 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

  32. --Finding an Open & Lucrative Position is Difficult-- • Product Space already very competitive • Mind-Space is very limited & already occupied

  33. PRODUCT POSITIONING Evoked & Consideration Sets-occupied The mind will hold only a few alternatives in memory & disregards all others

  34. What’s in Your Evoked Set?

  35. Positioning Strategy Option #2: Relocate Redesign & Re-introduce an Existing product… …in a New Position

  36. 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

  37. I The UnCola Larger Seg

  38. Juxtaposition Old Style Market Rollout “TASTES As Good As Budweiser…” But Costs a Whole Lot Less!

  39. 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

  40. 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”

  41. The Classic Juxtaposition The Originals Avoids contradicting what’s really in consumer’s mind

  42. 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

  43. Positioning Strategy Option #3: Procreate Develop & Introduce a number ofNew products… …in multiple Positions

  44. 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

  45. 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

  46. Michelob Light, Michelob Dry.

  47. 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”

  48. A note of Caution about Multi-Branding • Be Careful when introducing/ positioning a new product-- especially if you're using the family brand-name

  49. 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

  50. Arm & Hammer Products…A Success- Established perceptions readily transfers product classes utubes

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