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Chapter one Presented by Fareeha, Tajdar, Tazeen, Tughral

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Summary and Learnings

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Today positioning has become the buzzword of advertising and marketing, all over the world. Positioning starts with a product .A piece of merchandise ,a service ,a company ,an institution or a person. Perhaps yourself. But it is not what you do to a product. Positioning is what you do to the mind of the prospect. that is ,you position the product in the mind of 8/7/2012 the prospect.

Summary and Learnings

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Positioning is the only way to score big An average American consumer is exposed to $376 worth of advertising per day over 365 days. Its about how you position a product in the mind of your prospect.

The best approach in our supersaturated society is the over simplified message.
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Definition.
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Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. Positioning is ,how you differentiate yourself in the mind of your prospect. e.g. The IKEA market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money."
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How these companies positioned themselves

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Mercedes-Benz Google Neutrogena FedEx Volvo Rolex BMW Starbucks

prestige Search Dermatologist Recommended overnight (delivery) Safety high-end watches driving high-end coffee

FedEx
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FedEx , the American courier has positioned itself as a fastest and most accurate (overnight) courier giant ,which is impossible to be stopped!

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Why positioning?
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There are two kinds of products commodities and brands. A commodity is a product that is same as those made by every other company. As a result the only way to sell a commodity is by selling it cheaper than your competitor. A brand on the other hand, is (at least perceived in that way!) a product that is unique and different. A customer can buy Tata Indica for a lot less money than a Mercedes Benz, but most Mercedes customer wont buying tata or any other vehicle simply because its not a MercedesBenz.

so, you need unique brands to make money. 8/7/2012

Why positioning?
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The mind rejects much of the information offered to it due to over-communication (Per capita consumption of advertising in America today is about $200 a year) from each side. In general , the mind accepts only that which matches with its prior knowledge or experience. In todays communication jungle out there, the only hope to score big is to be selective, to concentrate on narrow targets, to practice segmentation. In a word positioning
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Why positioning?
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You narrow the focus

Starbucks narrowed its focus to high-end coffee and became the world's largest coffee chain. Dell Computer narrowed its focus to personal computers "sold direct" and became the world's largest PC manufacturer.

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Why positioning?
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You narrow the focus

BMW narrowed its focus to "driving" and became the largest-selling European luxury car in the U.S. Neutrogena narrowed its focus to dermatologist recommended and became the highly recommended skin care product Focus is the key to successful brand building in today's ultra-competitive marketplace
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The Oversimplified Message

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Today the best approach to take, in our over communicated society is to simplified message. you simplified the message, then simplified it some more if you want to make a long last impression. -Al Ries and Trout

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You differentiate or die

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Advertising has entered a new era where creativity is no longer the key to success ,today a company must create a position in the prospects mind. A position which is unique and based on companys strengths and on realities. You dont lie you only exaggerate. Camlin (marker)-Permanent.

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So is positioning always beneficial?

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Xerox first made photo copy machine & sold them world wide, as the time passed Xerox become synonymous to photocopy. When it launched its Xerox data system", fax machine and PC, they all were disastrous and Xerox lost billions of dollar since it could not change or reconstruct mind of prospects.

Same happened with IBM & Dalda8/7/2012

Repositioning :Reconstruction of perceptions.

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Companies like IBM, Bajaj and Xerox did it.

Company IBM Xerox Bajaj

Traditional image Computer hardware Copier Scooters

Repositioned image Services & hardware Hardware & software Motorcycles

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Positioning makes brands and brands give value to companies

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BRAND VALUE $ Billions

1 Coca-Cola

BRAND
6 Toyota 7 Intel 8 McDonalds 9 Disney 10 Mercedes-Benz

VALUE $ Billions
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30.9 29.3 29.2 23.5
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65.3
55.8 57 51.5 33.6

2 Microsoft
3 IBM 4 GE 5 Nokia

Top brands of the world

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