© 2013 Cengage Learning. All Rights Reserved © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

5 Positioning © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

Marketing Framework

What is Positioning? STP = Segment, Target and Position Positioning is determined by the marketing mix

Positioning Via Perceptual Maps Perceptual maps show graphical depictions of where brands are, and where their competitors are in the minds of their customers Utilize a bar chart to show more than two dimensions

Perceptual Maps

The Positioning Matrix Companies usually can’t be great at everything due to limited resources Marketers need to determine the “best” position for the firm

All 4 Ps Matrix All 4P combinations are possible However, some are more optimal than others

Quality and Price Align Optimal matches: High-End & Value Suboptimal matches: Overpriced: customers stop buying; firms drop price, increase quality or leave market Good value: firms increase price or lower quality

Promotion & Distribution Align Optimal matches Mass and Niche Suboptimal matches Hard to get: Why promote heavily if consumers can’t find the product? Under-advertised: If a brand has an exclusive image, why distribute it everywhere?

Optimal Matches 16 combinations can be reduced to two

Optimal Matches Aligned with Gurus The two extremes in the matrix are consistent with management gurus Treacy and Wiersema Michael Porter

Writing a Positioning Statement Succinctly communicates parameters of a position Answer the following questions: Who are you trying to persuade? Who are you competing with? How are you better?

Managerial Recap Positioning is important Positioning is seen through the eyes of the customer Perceptual maps help facilitate an understanding of position Positioning is achieved via the marketing mix

Managerial Recap The positioning matrix demonstrates that certain marketing mix combinations are more optimal than others Positioning statements guide marketing strategies and tactical actions They should indicate the target, a competitive frame of reference, and a unique selling proposition