Consumer Perception: Product Positioning

Prepared by: Stanley Lee

Sam Weng Cham

Chloe Li 30th August 2010

Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world How we see the world around us Perception through Positioning in advertising

Marketing Strategy

Segmentation

Targeting

*Positioning*

Positioning
Establishing a specific image for a brand in the consumers mind Product is positioned in relation to competing brands Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need Result of successful positioning is a distinctive, positive brand image

Why Develop Product Positioning Strategies?

Marketing concept: holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. Sustainable competitive advantages (SCAs) -- aka differential advantages

Developing and Communicating a Positioning Strategy

Positioning: The act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. Value proposition: a cogent reason why the target market should buy the product.

Writing a Positioning Statement

Positioning statement format: To (target market and need) our (brand) is (concept) that (point of difference)

BMWs Website

Other examples of Positioning Statements

Technical Excellence: BMW The Ultimate Driving Machine & Joy Safety & Excitement: Volvo Volvo for Life Prestige: Mercedes Benz Unlike any other Performance: Jaguar Drive to Perform Economy: Kia The car that cares Futuristic: Infiniti Accelerating the future

Quotes
Positioning is not what you do to the product, but what you do to the mind
Jack Trout, Positioning: The Battle for your Mind, 2000

Can a product be successfully positioned in customers minds as being more desirable than the competition given the level playing field?
Coke vs Pepsi BMW vs Mercedes Amazon vs Barnes & Noble

Is the battle for the customers mind in positioning strategy really only about information?

Product - BMW
Wide selection of models Different styles to meet the customers needs BMW Universal Bluetooth iPod with BMW BMW accessories

Six Approaches to Positioning

Product user
C A B

Attributes or benefits

Competitor

Price and quality

Use or application

Product class

Six Approaches to Positioning

By Attribute or Benefit Associating the brand with a desirable attribute to target audience Most frequently used positioning strategy BMW- uses continuous innovation. As an example we have an innovation of a completely redesign the 3-series model with even better power than ever before, a stiffer suspension, taillight lenses.

Consumer Perception: Product Positioning

Six Approaches to Positioning

By Usage Occasions or Application A kind of positioning stresses when or how your product is used by target audience BMW- Young urban professionals usually drive these luxury cars. It is a question of a status and is associated with it.

Consumer Perception: Product Positioning

Six Approaches to Positioning

By Product User Focusing on the unique characteristics of specific users can be effective Establishing the brand as the choice of professional BMW- has maintained its leadership brand positioning for many years. Its success is the result of a consistent strategy and is oriented towards meeting the needs of customers.

Consumer Perception: Product Positioning

Six Approaches to Positioning

By Product or Service Class Comparing your product to a product in a different category can be an effective way to differentiate yourself BMW cars communicate valued differences and distinguish it from other competitors by image (described as a premium brand), quality (uses cutting edge technology) and design (very sleek and unique)

Consumer Perception: Product Positioning

Six Approaches to Positioning

By Competitor Against a Competitor
Positioning your product directly against a competitors typically requires a specific product superiority claim

Away from a Competitor

Positioning yourself as the opposite of your competitor help you get attention in a market dominated by other product.

BMW- There is a sign of a little comparison between BMW and her competitors but the ads dont usually show it. It is only in minds of customers who tend to compare these two cars quite often.
Consumer Perception: Product Positioning

Six Approaches to Positioning

By Price or Quality A product to be priced at the right level to reflect the quality offered BMW- In this case searching for the best possible value is a little complicated because cars like BMW has ranked on a high-end price level and are relatively expensive and therefore their customers are usually well off people.

Consumer Perception: Product Positioning

Referencing
http://www.otmmarketing.com/Portals/42226/docs/product_positionin g.pdf http://tutor2u.net/business/presentations/marketing/productpositionin g/default.html http://ezinearticles.com/?Product-Positioning-Strategies&id=474245 Jack Trout, Positioning: The Battle of your Mind, McGraw-Hill, 2000
http://www.bmw.com/com/en/insights/technology/joy/bmw_joy.html

Consumer Perception: Product Positioning