Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning

Positioning Chapter 4

What is Positioning? Positioning: who you are in the marketplace compared to the competition Then decide who you want to be Positioning is important It involves all of the marketing mix variables

Perceptual Maps Graphical depictions of where a brand is and where the competitors are in the minds of customers Helps Marketers envision the brand’s strengths the competitors’ strengths the closest substitutes for a brand

Discussion Questions What hotels do consumers perceive as being similar? Different? What hotel would segment 1 likely choose? Why might there not be a hotel currently positioned for consumer segment 2?

Perceptual Maps Use maps to answer the questions… Is my brand optimally positioned? Is my intended position the one that customers perceive? How well served are the markets?

Perceptual Maps (continued) Repositioning Changing the position a firm holds in customers’ minds Advertising campaigns

Discussion Question A Nassau hotel chain recently ran an ad campaign describing the many cultural offerings in Nassau. Was the campaign successful in repositioning Nassau?

Perceptual Maps Use maps to determine which attributes are important to customers Descriptors are rated on importance and the firm’s strength/weakness

Perceptual Maps Use maps for competitive analysis However, only 2 attributes can be viewed at a time Thus, other perceptual images may be more beneficial for comparing strengths and weaknesses

Positioning Matrix Companies cannot be the best at everything Marketers need to determine the best position for the firm The "coolest" brand The best value Either of these goals is achievable, but both together are probably not

4-P Combinations Any combination in the matrix is possible but some are more optimal than others

Optimal 4-P Combinations At any given point in time, many brands will occupy the more natural combinations However, there are always some brands that appear in the seemingly sub-optimal combinations Ask yourself Is this what your customers want? Can you make money there?

Optimal 4-P Combinations Two extremes, Mass and Hi-End, clarify goals of position and help marketers align the decisions that need to be made

Quality x Price Realignment Natural Matches Basics and Hi-End Less typical Good value: Overtime, firms tend to increase price or lower quality Overpriced: Overtime, firms tend to lower price, increase quality or leave the market

Example of Brands

Positioning Statement Succinctly communicates the parameters of firm’s position to different audiences customers employees shareholders general public, etc.

Writing a Positioning Statement Communicate the positioning statement to a target audience Who are you trying to persuade? “Alphatronics is the gym for the serious body builder”

Surprising Positioning Statements Volvo is known for safety but its positioning statement is “We offer transport solutions to demanding customers around the world” Safety may already be so ingrained in customers’ minds that it does not need to be stated

Surprising Positioning Statements Dell has issues with customer service but its positioning statement is “Dell Inc. listens to customers and delivers innovative technology and services they trust and value” Customer service is a goal the company is seeking to attain

Surprising Positioning Statements Volkswagen's positioning statement explicitly states the target but not the USP; it is implied in the statement “Drivers Wanted”

Study Question 1 Shannon is struggling to communicate who Company ABC is compared to the competition. Shannon wants to communicate that Company ABC’s brand has the benefits that the target market will value. Shannon is engaged in what marketing activity? a. segmenting b. positioning c. targeting d. advertising B

Positioning involves which of the marketing mix variables? Study Question 2 Positioning involves which of the marketing mix variables? a. Price, Promotion, Product, Place b. Price, Place c. Price, Promotion, Product d. Promotion, Product, Place A

Study Question 3 Jim is reviewing a perceptual map that compares a number of jeans brands based on customer survey data. Five of the eight brands are depicted as points close together on the map. A logical conclusion Jim can draw from this perceptual map is a. three brands are well positioned as being diverse from all other brands. b. the five brands are viewed as most interchangeable by consumers. c. the five brands identify a “hole” in the perceptual map. d. consumers will most likely purchase more of the three brands not clustered together. B

Study Question 4 Which of the following positioning combinations makes the most sense? a. low price, low quality, exclusive availability, heavy promotions b. high price, low quality, exclusive availability, heavy promotions c. low price, high quality, exclusive availability, light promotions d. low price, low quality, widely available, heavy promotions D

Study Question 5 Product leadership refers to companies that a. are good at production and delivery, and price and convenience. b. are expensive but is expected to pay off in long-term loyalty and enhanced customer lifetime value. c. pride themselves on quality and innovation. d. are willing to tailor their products to particular customer needs. C

Video http://www.cengage.com/marketing/book_content/0324784430_iacobucci/videos/ch04.html C