Chapter 9

Positioning Decisions

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The McGraw-Hill Companies, Inc., 1998

designing the companys offering and image to occupy a distinctive place in the the target markets mind.
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Positioning is the act of

Exhibit 9.4

Steps in the Positioning Process (1 of 2)

1. Identify relevant set of competitive products. 2. Identify the set of determinant attributes that define the product space in which positions of current offerings are located. 3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes. 4. Analyze intensity of a products current position in customers minds.

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The McGraw-Hill Companies, Inc., 1998

Exhibit 9.4

Steps in the Positioning Process (2 of 2)

5. Determine products current location the product space (product positioning). 6. Determine customers most preferred combination of determinant attributes. 7. Examine the fit between preferences of market segments and current position of product (market positioning). 8. Select positioning or repositioning strategy.

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Exhibit 9.5

Product Category and Brand Positioning (1 of 2)

A. Product category positions (breakfast foods market)
Expensive

Bacon and eggs

Cold cereal

Timeconsuming
Pancakes Hot cereal Instantbreakfast drinks

Quick

Inexpensive
Source: Adapted from P.S. Busch and M.J. Houston, Marketing Strategic Foundations (Burr Ridge, IL: Richard D. Irwin, 1985), p. 430.

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The McGraw-Hill Companies, Inc., 1998

Perceptual Map
Live shows Easy to reach Good food Fantasy Exercise Fun rides Disneyland Knotts Berry Farm
1.0

Little waiting
0.8

Educational, animals Marineland 0.4 of the Japanese Pacific 0.2 Deer Park
0.6 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 -0.2

Magic Mountain

-0.4 -0.6

Busch Gardens

Lion Country Safari

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-0.8

The McGraw-Hill Companies, Inc., 1998 Economical

Positioning Map: Automobiles For Generation Yers

More Edgy

Kia Sorrento Scion Cube

Inexpensiv e

Expensive
$13k $20K

Civic

Less Edgy
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What is Scions Mission Statement?

"To satisfy a trend setting youthful buyer through distinctive products and an innovative, consumer-driven process."

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The McGraw-Hill Companies, Inc., 1998

Exhibit 9.6

Perceptual Map of Womens Clothing Retailers in Washington, D.C.

Washington 1990 Womens fashion market Womens-wear fashionability Conservative versus current versus very latest
The Limited Neiman-Marcus Saks Bloomingdales

Macys Nordstrom

Hit or Miss Dress Barn The Gap Casual Corner L&T Britches

Garfinkels

Kmart Sears

TJ Maxx Sassafras Marshalls Loehmanns Hechts Woodward & Lothrop

JC Penney Talbots

Worst value
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Womens-wear value for the money

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, Nordstrom: How Good Are They? Babson College Retailing Research Reports , September 1990, as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205.

The McGraw-Hill Companies, Inc., 1998

Exhibit 9.7

Perceptual Map of Womens Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers
Washington 1990 Womens fashion market Womens-wear fashionability Conservative versus current versus very latest
The Limited Neiman-Marcus Saks Bloomingdales Macys Nordstrom Hit or Miss Dress Barn The Gap Casual Corner L&T Britches Garfinkels Kmart Sears TJ Maxx Sassafras Marshalls Loehmanns Hechts Woodward & Lothrop

JC Penney Talbots

Worst value
Irwin/McGraw-Hill

Womens-wear value for the money

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, Nordstrom: How Good Are They? Babson College Retailing Research Reports , September 1990.

The McGraw-Hill Companies, Inc., 1998

Exhibit 9.8

Perceptual Map of Womens Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points
Washington 1990 Womens fashion market Womens-wear fashionability Conservative versus current versus very latest
The Limited Neiman-Marcus 3 2 Saks Bloomingdales Macys

4
Nordstrom

Hit or Miss Dress TJ Maxx Barn Sassafras The Gap Casual Corner Loehmanns Marshalls Britches L&T Hechts Woodward & Lothrop 5 Sears JC Penney Garfinkels Talbots

1
Kmart

Worst value
Irwin/McGraw-Hill

Womens-wear value for the money

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, Nordstrom: How Good Are They? Babson College Retailing Research Reports , September 1990.

The McGraw-Hill Companies, Inc., 1998

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1998

Exhibit 9.3

Comparisons of Physical and Perceptual Positioning Analysis

Physical positioning Technical orientation Physical characteristics Objective measures Data readily available Physical brand properties Perceptual positioning Consumer orientation Perceptual attributes Perceptual measures Need for marketing research Perceptual brand positions and positioning intensities Limited number of dimensions Represents impact of product specs and communication R&D implications need to be interpreted
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Large number of dimensions Represents impact of product specs and price Direct R&D implications

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