Positioning

Snapshot
 Positioning

• USP– Product Attribute

• To Positioning– Customer Perceived benefit/ association

Both in a competitive dimension

 Positioning
• The Positioning Statement
• It is typically helpful to formalize the considerations in a
“positioning statement” that specifies the place the firm wishes
to occupy in its target customers’ minds. One commonly used
form is:

• Our is
• (product/brand) (single most important claim)
• among all (competitive frame)
• because (single most important support)
•  
 Positioning
• Directed to potential customers.
• It guides the development of the marketing plan—it is often said that
“solving” the positioning problem enables a company to solve its
marketing-mix problem.
• For example, if a computer company finds that a market segment with
budgetary constraints prefers its products because they are significantly
cheaper than competitive offerings, it could aim for a “no frills” product
line, closely monitor its price advantage, emphasize the low price in its
advertising, and employ a direct-to-consumer channel strategy that limits
the markup on its products.
 Positioning
• Similarly, if a sports apparel firm understands that customers
in its desired market segment buy products that make them
feel like professional athletes, it could seek such
endorsements from top-ranking athletes and use them in its
advertising, emphasize innovative top-of-the-line products,
primarily use a high-end sports retailing channel, and aim for
a higher price point.
Competitive Frame of Reference

CFOR : Which are the relevant brands a brand

competes with and therefore which brands should be
the focus of competitive analysis.

To determine the proper competitive frame of

reference, marketers need to understand consumer
behavior and the consideration sets consumers use in
making brand choices.
 Defining Associations

Points-of-Difference Points-of-Parity
Attributes or benefits consumers Associations that are not
strongly associate with a brand, necessarily unique to the
positively evaluate, and believe brand but may be shared
they could not find to the same with other brands
extent with a competitive brand
Strong Brands might have multiple
PODs

PODs and POPs are chosen from Brand

Benefits. Theses are used to make up the
brand positioning
 POD & POP-
Fast food chain vs Mc Donald

The overall combination of

POD and POP create the overall POD-want to give a reason
positioning For the consumer to shift

Similar menu More

choice, similar menu
Higher flexibility
quality in-store facilities,
ingredi similar prices
POD ents

POP-Want to duplicate
The market leader
 POD & POP-
Small education provider vs large University

Flexible
Similar timetable
education
Smaller quality, similar
classes course and
content
Practical
teaching
focus
 Differentiation
• A good positioning reflects a competitive
differentiation.
• The statement should go beyond clearly articulating
to customers the benefits that the product fulfills—
the product should also be clearly differentiated from
competitive offerings.
• A firm will not want to introduce products targeted at
needs already sufficiently served by competitors, as it
could lead to an intense price competition and leave
no profit to the firm.
 Differentiation
• Two extreme types of differentiation:
• If all buyers agree that product A is better than product B, they are
vertically differentiated. Consequently, if products A and B are sold
at the same price, nobody will buy product B.
• If products A and B differ in ways independent of buyers' overall
judgments about their quality levels, they are horizontally
differentiated. If A and B are sold at the same price, some people
will prefer one, some the other.
 Differentiation
• A positioning strategy based on a horizontal differentiation
uses the fact that consumers differ in their tastes.
• For example, in the category of passenger cars, some
consumers like small cars, others like minivans, while still
others like SUVs. Each of these groups consists of a relatively
homogeneous set of people with similar needs.
• A firm pursuing a horizontal differentiation strategy should
identify the group(s) whose need(s) are not sufficiently served
by a competitor.
 Differentiation
• In the example of passenger cars, quality can be a
combination of speed, comfort, and reliability. In addition, all
customers prefer more quality to less.
• However, they differ in their valuation of quality. Staying with
the example of passenger cars, most consumers prefer a
BMW to a Ford, but only few can—or would be willing to—
pay the price for the BMW.
• A firm pursuing a vertical differentiation strategy should
position products to customers with a specific level of
willingness to pay for quality that is not sufficiently served by
a competitor.
 Any P
• Any element of the marketing mix can be the primary instrument
of differentiation.

• Product attributes or features are often a key differentiator (think

of the importance of packaging for environmentally conscious, or
“green,” consumers, for example).

• Price can be a useful signal of quality and thus a tool for vertical
differentiation. Place can bring critical advantages (examples are
online distribution, where consumers can shop in the privacy of
their own home, or vending machines, where products are
available instantaneously and 24 hours a day)..
 The Role of Brands
• Positioning and branding are inextricably linked. Brands can
be thought of simply as nouns that marketers have
introduced into consumers’ language to make product
differentiation concrete.

• At a minimum, they want to assert that their offering is not

like those of their competitors.

• When marketers call a fruit juice “Snapple,” for instance, they

are asserting that it is worth noting some special distinctions
between Snapple and all other fruit juices.
 Positioning
Segmentation and Targeting are internal strategic process

Positioning is the execution

Positioning is the effort to get the message established in
Customer’s mind

Communication is the key dimension in this stage

 Positioning
Coke– The Real thing ( Original)
Pepsi- For the new generation ( Contra to leader)
Pepsi – Nothing official about it– Irreverent

7 Up– The Uncola

Diet– No sugar
 Positioning
Airline Industry

Kingfisher

Air Deccan

Indigo
 Perceptual Map
Paramount-
Full Service Sector Specific
King Fisher
Jet Airways

Indian Airlines

Low price
Indigo Price
Jet Lite

Air deccan
No frills
King Fisher Red
 Positioning
Beer Industry

Strong

Lite

Draught
 Positioning
Management Education

Sector Based

Function Based

Delivery Based

Duration Based
 Perceptual Map

Main stream
ISB
IIM
TAPMI

Specialisation
Price
XLRI
IFMR

IRMA MICA
PGDM- Telecom

Sector Focused
How would
you like to
position
yourself