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If there is no competition

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

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  1. 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 target customers’ mind (P. Kotler) MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 01

  2. Positioning, 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

  3. Product Positioning 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

  4. ? 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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 product Triple-Benefit Positioning Tooth Paste : white teeth - fresh breath - anti cavity MM/Mkt. Mgnt/Positioning/MM-AP-P.Kotler, Ch.12/RP - 9

  10. 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

  11. 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

  12. Repositioning 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

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