Positioning Decisions Chapter 9 Positioning Decisions 1

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.

Exhibit 9.4 Steps in the Positioning Process (1 of 2) 1. Identify relevant set of competitive products. 2. Identify the set of determinant attributes that define the “product space” in which positions of current offerings are located. 3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes. 4. Analyze intensity of a product’s current position in customers’ minds. 3

Exhibit 9.4 Steps in the Positioning Process (2 of 2) 5. Determine product’s current location the product space (product positioning). 6. Determine customers’ most preferred combination of determinant attributes. 7. Examine the fit between preferences of market segments and current position of product (market positioning). 8. Select positioning or repositioning strategy. 4

Exhibit 9.5 Product Category and Brand Positioning (1 of 2) A. Product category positions (breakfast foods market) Expensive Bacon and eggs Cold cereal Time- consuming Quick Pancakes Hot cereal Instant- breakfast drinks Inexpensive Source: Adapted from P.S. Busch and M.J. Houston, Marketing Strategic Foundations (Burr Ridge, IL: Richard D. Irwin, 1985), p. 430. 5

Perceptual Map Live shows Easy to reach Little waiting Good food 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 1.0 0.8 0.6 0.4 0.2 -0.2 -0.4 -0.6 -0.8 Economical Fun rides Exercise Fantasy Good food Easy to reach Educational, animals Little waiting Live shows Magic Mountain Japanese Deer Park Busch Gardens Knott’s Berry Farm Lion Country Safari Marineland of the Pacific Disneyland

Positioning Map: Automobiles For Generation Yers More “Edgy” Kia Sorrento Scion Cube Inexpensive Expensive $13k $20K Civic Less “Edgy” 6

What is Scion’s Mission Statement? "To satisfy a trend setting youthful buyer through distinctive products and an innovative, consumer-driven process."

Washington 1990 Women’s fashion market Exhibit 9.6 Perceptual Map of Women’s Clothing Retailers in Washington, D.C. Washington 1990 Women’s fashion market The Limited Neiman-Marcus Saks Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn Garfinkels TJ Maxx Sassafras The Gap Casual Corner Loehmann’s Britches L&T Marshalls Hecht’s Kmart Woodward & Lothrop Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990, as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205. 7

Washington 1990 Women’s fashion market Exhibit 9.7 Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers Washington 1990 Women’s fashion market The Limited Neiman-Marcus Saks Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn Garfinkels TJ Maxx Sassafras The Gap Casual Corner Loehmann’s Britches L&T Marshalls Hecht’s Kmart Woodward & Lothrop Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990. 8

Washington 1990 Women’s fashion market Exhibit 9.8 Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points Washington 1990 Women’s fashion market The Limited Neiman-Marcus 3 2 Saks 4 Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn Garfinkels TJ Maxx Sassafras The Gap Casual Corner 1 Loehmann’s Britches L&T Marshalls Hecht’s Kmart 5 Woodward & Lothrop Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990. 9

                                                                                                                                                                                                                                                                                                                                                                                    

Technical orientation Physical characteristics Objective measures Exhibit 9.3 Comparisons of Physical and Perceptual Positioning Analysis Physical positioning Technical orientation Physical characteristics Objective measures Data readily available Physical brand properties Large number of dimensions Represents impact of product specs and price Direct R&D implications Perceptual positioning Consumer orientation Perceptual attributes Perceptual measures Need for marketing research Perceptual brand positions and positioning intensities Limited number of dimensions Represents impact of product specs and communication R&D implications need to be interpreted 2