12. positioning

8/2/2019 12. Positioning

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Positioning Strategies


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What is Positioning?

Positioning is the act of designing

the companys offering and image

to occupy a distinctive place in

the mind of the target market.


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Developing a Positioning Strategy

Positioning is the result of differentiation decisions. It is the act ofdesigning the company's offering and identity (that will create a

planned image) so that they occupy a meaningful and distinct

competitive position in the target customer's minds.

While positioning a Brand ,the firm has to reckon competitors

Especially the leaders positioning .Example

XEROX with photocopying ,COLGATE with toothpaste ,CADBURY

with chocolates ..these have created a dominant position in market

and any new competitor has to relate themselves in some way with

the market leader .

While a company can create many differences, each difference created has a cost

as well as consumer benefit. A difference is worth establishing when the benefit

exceeds the cost. More generally, a difference is worth establishing to the extent

that it satisfies the following criteria.


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Positioning

of CafCoffee Day


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CCD VS BARISTA

CCD

CCD Differentiated

the brand bycrafting a unique

position in the

young consumersmind.

BARISTA

BARISTA is

positioned as apremium coffee

retail outlet for

the upwardlymobile executives.


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Value Propositions

BRAND, PRODUCT, &

COMPANYTARGET CUSTOMERS BENEFITS

CUSTOMER FOCUSED -

VALUE PROPOSITION

Scorpio, SUV, Mahindra

& Mahindra

Lifestyle-Oriented

Consumersluxury & comfort

A vehicle that providesthe luxury and comfort

of a car, and the

adventure and thrills of

an SUV (sport utility

vehicle-light trucks).

Domino's, PizzaConvenience-minded

pizza lovers

Delivery, Speed, & good

quality

A good hot pizza,

delivered to your door

within 30 minutes of

ordering, at a moderate

price.


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Defining Associations

Points-of-difference

(PODs)

Attributes or benefitsconsumers stronglyassociate with a brand,positively evaluate, andbelieve they could not findto the same extent with acompetitive brand.

The brand mustdemonstrate clearsuperiority.

Points-of-parity(POPs)

Associations thatare not necessarilyunique to thebrand but may beshared with otherbrands.

There is a zone orrange of toleranceor acceptance.


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EXAMPLES

POD

APPLE (DESIGN)

NIKE(PERFORMANCE)

LEXUS (QUALITY)

POP VS POD

VISA (MOST

WIDELY AVAILABLECARD) VERSUS

AMERICAN

EXPRESS(PRESTIGE)


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CHOOSING POPs AND PODs

POPs:-

Category Points Of Parity

Competitive Points Of Parity

PODs:-

Desirability

Delivery Capability


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POPs

CATEGORY POINT OF PARITY

They represent

necessary but not

sufficient-conditions

for brand choice.

Example - Travel

Agency

COMPETITIVE POINTS OF PARITY

These are the

associationsdesigned to negate

competitors POD.

Example Dettol &Savlon


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Conveying Category Membership

Announcing category benefits

Comparing to exemplars

Relying on the productdescriptor


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Consumer Desirability Criteria for PODs

Relevance

Distinctiveness

Believability


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Deliverability Criteria for PODs

Feasibility

Communicability

Sustainability


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How many differences to promote?Many marketers advocate promoting only one benefit in the market

(Your market offering may have many differentiators, actually should

have many differentiators in product, service, personnel, channel, and

image).

Kotler mentions that double benefit promotion may be necessary, if

some more firms claim to be best on the same attribute. Kotler gives the

example of Volvo, which says and "safest" and "durable".

.Four major positioning errors

1. Under positioning :Market only has a vague idea of the product. FLYING CARS

2. Over positioning :Only a narrow group of customers identify withthe product. APPLES I-PAD

3. Confused positioning : Buyers have a confused image of the product as it claims too

many benefits or it changes the claim too often.

CHINESE PRODUCTS

4. Doubtful positioning : Buyers find it difficult to believe the brands claims in view of

the products features, price, or manufacturer.KARBONN MOBILES OR LAVA.


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Different positioning strategies or themes

1. Attribute positioning: The message highlights one or two of theattributes of the product.

2. Benefit positioning: The message highlights one or two of the

benefits to the customer.

3. Use/application positioning: Claim the product as best for some

application.

4. User positioning: Claim the product as best for a group of users. -

Children, women, working women etc.

5. Competitor positioning: Claim that the product is better than a

competitor.6. Product category positioning: Claim as the best in a product

category Ex: Mutual fund ranks Lipper.

7. Quality/Price positioning: Claim best value for price


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Communicating the Companys PositioningIn consumer markets positioning strategy is mainly communicated through

ADVERTISING.

In industrial markets the communication of positioning strategy can be done

through personal selling ,sales promotion and advertising .

The implementation of the total quality management is important for a company

so that all the activities like submission of quotations, sales presentations,

negotiations, packing, dispatch, installations and after sales service display a

superior quality in comparison to that of the competitors.

The industrial marketer should find out customers perceptions through an

independent marketing research agency before deciding on the positioningstrategy

12. positioning

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