Product Positioning
Consumer behavior is guided by their perception of reality
Positioning is creating and maintaining a certain favorable perception in the consumers mind about a product compared to the competition
Strong positions are created through consistent advertising and PR
Some Positioning Strategies
Product features/benefits
Tylenol - " more powerful but safer " than aspirin
Consumer's reason for buying the product
Yogurt - "more healthful"
Product Price and Quality
( high price sometimes acts as a signal for quality)
Mercedes autos
Grey Goose vodka
Product specific use
WD40
Product User
Celebrity user of product
Competitor
Direct/Indirect/Avoidance
(don't challenge leaders head on)
Steps to Establish a Proper Position
1. SWOT analysis
Market Threats and Opportunities
Organization Strengths and Weaknesses
2. Analyze the target market
characteristics, needs, size, growth, ...
3. Analyze competition ( strengths - weaknesses)
4. Economic trends
5. Develop the marketing mix
6. Develop a Brand (name)
7. Determine how you want to be perceived by
target market
8. Create a positioning message
9. Strong, sustained promotion and PR
"The Battle for Your Mind" Ries & Trout 1981
(a recognized marketing classic)
Positioning now a key aspect of Marketing Communications
Some Key Points from the book
Information Overload
Consumers bombarded with continuous stream of product
advertising
So concept is to position product in mind of consumer
The mind reacts to high ad volume by accepting only what
is consistent with prior knowledge or experience
Advertiser - present simplified message
- focus on perceptions of consumer and not
product reality
Getting into the Consumers Mind
Be First !
e.g. Miller Lite not the first light beer but was first to be
positioned as a light beer ( complete with name)
7-Up #3 behind Coke and Pepsi but established
the drink as the #1 alternative - "The Uncola"
Xerox - the first in the plain paper copier market
Position of a Leader
Brand success not due to marketing acumen of the company !
It is because the company was first in the product category
Xerox - first in plain paper copier market
IBM couldn't compete
Xerox in other markets (not first)
Power of a Name
Brand's name perhaps most important factor affecting
consumer perception and positioning of the product
Use "descriptive" words
e.g. "Die Hard" - batteries "People" - gossip magazine
" Head and Shoulders" - shampoo
" Close Up" - toothpaste
Repositioning
Usually used for improvement of existing products
physically change product
change price
change distribution
change image through promotion
change the target market
Pricing - Does it all start with Positioning ?
Pricing and positioning are inseparable
Don't price until you figure out the position your product will
have in the market
Ask these four questions:
Who are your competitors ?
How is your product different from your competitors ?
Differentiation is critical but using low prices as
the primary differentiator is fatal
How do you want to be known in the market ?
Describe the position you want to have in terms of
how you want your target market to perceive you
What are the prices of your competitor products ?
What price range is consistent with the perception you
want your target market to have of your product
Put yourself in the shoes of your customer. Figure out how
much your product is worth to them
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