Types of Postioning

The impression or perception a consumer holds about a product is directly influenced by the impact of the marketing strategy Tangible factors such as price, quality, where a product is available, and the style of advertising influence consumers’ perceptions positively or negatively In the implementation stage, there are several common strategies used to position a product Positioning Review

In head on positioning, one brand is presented as an alternative “equal to” or “better than” another brand This strategy is usually initiated by a brand challenger, typically the number two brand Compete directly with leading brand for the same target consumers Usually this is because the products are similar in attributes and benefits, and most people want essentially the same things Financially draining as it requires large ad campaign and is usually counteracted by the other brand Example: Pepsi Challenge Pepsi challenged people who “prefer coke” to try both colas without label as they felt most people would pick Pepsi Head-On Positioning

Steps Involved In Segmentation and Positioning Identify Segments (Target) Based On Demographics Psychographics Geographics Behavior Response Selected Targets with Greatest Potential Devise Positioning Strategy Devise Marketing Strategy Product Price Marketing Communication Distribution Steps Involved In Segmentation and Positioning

Brand Leadership Positioning Brands that are market leaders can use their large market share to help position themselves in the minds of the customer Their marketing communications are designed clearly to state that the product is successful, a market leader, and highly acceptable to most consumers Examples: Coke “Cant beat the real thing” “Always Coca-Cola” Visa “All You Need” Brand Leadership Positioning

Product Differentiation Positioning Product differentiation is the incorporation of attributes, such as quality or price, into a product to encourage the intended customers to perceive it as different and desirable For example If your company sells seat belts to automotive manufacturers, perhaps your unique value is never-fail, on-time delivery with no rejected belts If other seat belt manufacturers are not meeting these desired goals, you will have a unique advantage against your competition, and will have differentiated your seat belts from those of your competitors. Product Differentiation Positioning

Technical Innovation Positioning Technology is often important to an entire company rather than just a single product It is a huge advantage to the company to be leading technology innovation Technology leading companies often have a reputation that sticks in a customers mind Example: The new Galaxy always introduces new tech, customers wait for them to show “the future of phones” Furthermore, big leaps in technology can change an industry completely Example: Hockey sticks predominately being made from wood now being heavily replaced by composite Technical Innovation Positioning

Lifestyle Positioning In crowded markets, companies must find new ways to attract customers By using psychographics marketers have been able to create products and advertisements to “match the lifestyle” of their customers Example: Redbull Redbull uses the feelings of excitement from extreme supports to attract customers Example: Mountain Dew “Do the Dew” Using excitement and video games to attract customers Lifestyle Positioning

Repositioning refers to the major change in positioning for the brand/product To successfully reposition a product, the firm has to change the target market’s understanding of the product. This is sometimes a challenge, particularly for well- established or strongly branded products. Firms may consider repositioning a product due to declining performance or due to major shifts in the environment. Many firms choose to launch a new product (or brand) instead of repositioning because of the effort and cost required to successfully implement the change. Repostioning