Marketing Management

Dawn Iacobucci

2010 South-Western, a part of Cengage Learning

Positioning

Chapter 4
Marketing Framework
What is Positioning?

Positioning: who you are in the

marketplace vis--vis the competition
Determine who you are in the market
Then decide who you want to be

Positioning is important
It involves all of the marketing mix variables
Perceptual Maps

Graphical depictions of where a brand is

and where the competitors are in the
minds of customers

Helps Marketers envision

the brands strengths
the competitors strengths
the closest substitutes for a brand
Discussion Questions

What hotels do consumers perceive as being

similar? Different?
What hotel would segment 1 likely choose?
Why might there not be a hotel currently
positioned for consumer segment 2?
Perceptual Maps

Use maps to answer the questions

Is my brand optimally positioned?
Is my intended position the one that
customers perceive?
How well served are the markets?

Repositioning
Changing the position a firm holds in
customers minds
Advertising campaigns
Discussion Question

A Nassau hotel chain recently ran an ad

campaign describing the many cultural
offerings in Nassau. Was the campaign
successful in repositioning Nassau?
Perceptual Maps

Use maps to determine which attributes

are important to customers
Descriptors are rated on importance and the
firms strength/weakness
Perceptual Maps

Use maps for

competitive analysis
However, only 2
attributes can be
viewed at a time

Thus, other perceptual

images may be more
beneficial for
comparing strengths
and weaknesses
Positioning Matrix

Companies cannot be the best at

everything
Marketers need to determine the best
position for the firm
The "coolest" brand
The best value
Either of these goals is achievable, but both
together are probably not
4-P Combinations

Any combination in the matrix is possible

but some are more optimal than others
Less Optimal 4-P Combinations
Less Optimal 4-P Combinations
Less Optimal 4-P Combinations
Less Optimal 4-P Combinations
Less Optimal 4-P Combinations
Quality x Price Realignment

Natural Matches
Basics and Hi-End
Less typical
Good value: Overtime, firms tend to increase
price or lower quality
Overpriced: Overtime, firms tend to lower price,
increase quality or leave the market
Promo X Distribution Realignment

More Optimal Matches

Mass and Niche
Less Optimal Matches
Hard to get and Under-advertised
Optimal 4-P Combinations

Two extremes, Mass and Hi-End, clarify goals of position

and help marketers align the decisions that need to be made
Optimal 4-P Combinations

At any given point in time, many brands

will occupy the more natural combinations

However, there are always some brands

that appear in the seemingly sub-optimal
combinations
Ask yourself
Is this what your customers want?
Can you make money there?
Example of Brands
Basic Strategies

Treacy and Wiersemas three basic

corporate strategies to achieve market
stature
1. Operational excellence
Wal-Mart, Dell, etc.
2. Product leadership
Johnson & Johnson, Sony, etc.
3. Customer intimacy
Nordstrom, Saturn, etc.
Basic Strategies

Porters three generic strategies

1. Keeping costs down and prices
competitive
2. Leading by differentiation
3. Niche positioning
Discussion Questions

Do Porters and Treacy & Wiersemas

strategies support the optimal
combinations in the positioning matrix?
Why or why not?
Positioning Statement

Positioning statement
Succinctly communicates the parameters of
firms position to different audiences
customers
employees
shareholders
general public, etc.
Writing a Positioning Statement

Address positioning statements to a

target audience
Who are you trying to persuade?
Alphatronics is the gym for the serious body
builder
Writing a Positioning Statement

Include a USP (unique selling proposition)

by capturing your product category
(SP) and competitive advantage (U)
With whom are you competing?
How are you better?
If you cannot answer these questions
your position is unclear and/or
your product has little differentiation
If a real attribute difference does not exist,
create a perceived image difference
Writing a Positioning Statement

Keep the statement simple

Encapsulate multiple benefits with a single
word OR
Prioritize your benefits and utilize the most
important and compelling in your statement

Be sure to focus on benefits

Ask yourself, why would a customer care?
Surprising Positioning Statements

Volvo is known for safety but its

positioning statement is
We offer transport solutions to demanding
customers around the world
Safety may already be so ingrained in
customers minds that it does not need to be
stated
Surprising Positioning Statements

Dell has issues with customer service

but its positioning statement is
Dell Inc. listens to customers and delivers
innovative technology and services they trust
and value
Customer service is a goal the company is
seeking to attain
Surprising Positioning Statements

Volkswagons positioning statement

explicitly states the target but not the
USP; it is implied in the statement
Drivers Wanted
Discussion Question

Can you utilize the following format to

develop a positioning statement for your
school?
For customers who want(target), our
brand is the best at(USP)