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Marketing Module 10

The document outlines the importance of positioning in marketing, detailing the differences between physical and perceptual product positioning. It describes the steps involved in the positioning process and emphasizes the need for a clear positioning statement and value proposition. Additionally, it highlights the use of perceptual maps to visualize product positioning in relation to competitors.

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5 views14 pages

Marketing Module 10

The document outlines the importance of positioning in marketing, detailing the differences between physical and perceptual product positioning. It describes the steps involved in the positioning process and emphasizes the need for a clear positioning statement and value proposition. Additionally, it highlights the use of perceptual maps to visualize product positioning in relation to competitors.

Uploaded by

yaserkhafaga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Module 10

Positioning Decisions

By: Dr Shahinaz Abdellatif


Objectives of the Session
To understand:

1. positioning and why it is important

2. the differences between physical and


perceptual product positioning

3. the steps involved in the positioning


process

4. market positioning strategies


What do we mean by positioning?
• Creating distinct and valued physical and
perceptual differences between one’s
product and its competitors, as perceived
by the target customer.
• Positioning (or repositioning) refers to
both the place a product or brand occupies
in customers’ minds relative to their needs
and competing products or brands and to
the marketer’s decision making intended
to create such a position.
• Positioning notion comprises both
competitive and customer need
considerations.
Positioning

Positioning is the choice of:


• Where we want to compete (Target Market)
• How we wish to compete (Differential
Advantage)

Objective of Positioning:
• To create & maintain a distinctive place
in the market for a company & its
products.
Generic competitive Strategies
• Differentiation lies at the heart of
marketing (i.e. products that are superior
on some important dimensions) represent
distinctly different ways in which companies
can compete for the minds and wallets of
customers in their target markets.
Dimensions on which Consumers Perceive
Competitive Offerings
• Simple physically based attributes
e.g. price/quality/size/power

• Complex physically based attributes


(subjective)

• Essentially abstract attributes


e.g. mystery of a perfume or prestige
of a car
Comparisons of Physical and
Perceptual Positioning Analysis
Perceptual positioning
Physical positioning Another way is to assess the percieved
One way to assess the current position benefits of the product what it does
of a product offering relative to than what it is. Here evaluation of
competitors is on the basis of how the many products is subjective because
various offerings compare on some set it is influenced by factors other than
of objective physical characteristics physical properties, including the
(ex: package, brand name, price, and way products are presented, our
ancillary services) past experiences , opinions of others.
• Consumer orientation
• Technical orientation • Perceptual attributes
• Physical characteristics • Perceptual measures
• Objective measures • Need for marketing research
• Data readily available • Perceptual brand positions and
• Physical brand properties positioning intensities
• Large number of dimensions • Limited number of dimensions
• Represents impact of product specs and • Represents impact of product specs
price and communication
• Direct R&D implications • R&D implications need to be
interpreted
Positioning Process
1. Identify relevant set of competitive products.

2. Identify set of determinant attributes that define


‘product space’ in which positions of current offering
are located.
3. Collect information from a sample of customers about
perceptions of each product on determinant
attributes.
4. Analyse intensity of a products’ current position in
customers’ minds.

5. Determine products’ current location in product space


(product positioning).

6. Determine customers’ most preferred combination of


determinant attributes.

7. Examine fit between preferences of market


segmentations and current position of product (market
positioning).
8. Select positioning or repositioning strategy.
The Positioning Statement

A Positioning Statement for Volvo in


North America
• For upscale American families, Volvo
is the family automobile that offers
maximum safety
• Generic format for positioning
statements: For (target market),
(brand) is the (product category)
that (benefit offered).
Perceptual Map
• A useful tool for doing so is the positioning
grid, also called a perceptual map. The
positioning grid provides a visual
representation of the positions of various
products or brand in the competitive set in
terms of (typically) two determinant
attributes.
• Where more than two attributes are to be
considered in a positioning analysis,
multidimensional grids, or multiple grids, are
produced.
Perceptual Map
Value Proposition
• A value proposition is similarly explicit about what the
product does for the customer (and sometimes, what it
does not do) and typically also includes information about
pricing relative to competitors.
• It is important that the positioning statement or value
proposition states benefits that the user of the product
will obtain, rather than features or attributes of the
product itself,
• Both positioning statements and value propositions should
reflect a unique selling proposition that the product
embodies.
• In this sense, they reflect the basis on which the marketer
intends to win sustainable competitive advantage by
differentiating the product from others in its competitive
space. In its shortest form, a value proposition typically
include:
• Target market
• Benefits offered (and not offered)
• Price range (relative to competitors)
..or a Value Proposition
Value Proposition for Volvo in North America
• Target market: Upscale American families
• Benefits offered: Safety
• Relative price: 20% premium to domestic family
cars
• Generic format for value propositions:
• Target market
• Benefits offered (and sometimes not offered)
• Relative price
Some Key Questions
Concerning Positioning Decisions

• For whom are they written?


• In what sort of language?
• Should they focus on features or
benefits?
• How many differentiating
attributes should anchor them?

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