6-1 © 2006 by Nelson, a division of Thomson Canada Limited 12/5/2015 Slides developed by: Peter Yannopoulos Chapter 6 Strategic Positioning

6-2 © 2006 by Nelson, a division of Thomson Canada Limited Strategic Positioning Expresses the long-term strategy of the organization It reflects the core identity and related associations of the brand It is derived from the value proposition It results from occupying a unique position in the minds of customers

6-3 © 2006 by Nelson, a division of Thomson Canada Limited Strategic Positioning It helps engage or avoid a competitor It drives all organizational activities such as R&D, production, and personnel It affects policies, procedures, hiring, training, and personnel decisions It requires the performance of different activities

6-4 © 2006 by Nelson, a division of Thomson Canada Limited Essence of Strategic Positioning Strategic positioning is about being different Strategic positioning requires performing different activities from those performed by competing firms, or performing the same activities differently

6-5 © 2006 by Nelson, a division of Thomson Canada Limited Operational Effectiveness Operational effectiveness entails performing similar activities better than competitors

6-6 © 2006 by Nelson, a division of Thomson Canada Limited Alignment of Strategic Positioning and Organizational Activities Strategic Positioning Strategic Positioning Facilities strategy Facilities strategy Research & development Organizational culture Resources & capabilities Resources & capabilities Marketing mix Marketing mix Production strategy Production strategy Human resources strategy Human resources strategy

6-7 © 2006 by Nelson, a division of Thomson Canada Limited Tangible Attribute Positioning It is based on objective and observable characteristics It is based on objective and observable characteristics

6-8 © 2006 by Nelson, a division of Thomson Canada Limited Intangible Attribute Positioning It is based on emotional attributes such as image, feel, and fun It is based on emotional attributes such as image, feel, and fun

6-9 © 2006 by Nelson, a division of Thomson Canada Limited The Strategic Positioning Process Step 1: Identify direct and indirect competitors Step 2: Identify determinant attributes or benefits Step 3: Determine customer perceptions Step 4: Select a positioning strategy Step 5: Implement the positioning strategy

6-10 © 2006 by Nelson, a division of Thomson Canada Limited Criteria for Choosing Benefits or Attributes The benefit or attribute is unique The benefit or attribute is important to the market The benefit or attribute is important to the market The positioning claims can be supported by resources and capabilities The positioning claims can be supported by resources and capabilities

6-11 © 2006 by Nelson, a division of Thomson Canada Limited A Perceptual Map for Nonprescription Pain Relievers Low Effectiveness Gentleness High Low Bayer Excedrin Tylenol Advil Nuprin Bufferin Anacin Private Label Aspirin

6-12 © 2006 by Nelson, a division of Thomson Canada Limited The Positioning Statement Product benefits Target customers How product performs benefits Product category PositioningStatement

6-13 © 2006 by Nelson, a division of Thomson Canada Limited Positioning Examples Maytag - dependability BMW – superior handling Subway – healthy fast food Dominion stores – fresh obsessed Tim Horton’s – Always fresh coffee and baked goods Lexus – The relentless pursuit of excellence FedEx – Overnight delivery

6-14 © 2006 by Nelson, a division of Thomson Canada Limited Strategic Positioning Approaches 1.Benefit or attribute 2.Price/quality 3.Technical innovator 4.Use or application 5.Product class 6.Hometown favourite 7.Product user 8.Competitor 9.Brand dominance 10.Experience or originality

6-15 © 2006 by Nelson, a division of Thomson Canada Limited Positioning Errors Doubtful Positioning Faulty Positioning Confused Positioning Underpositioning Positioningerrors

6-16 © 2006 by Nelson, a division of Thomson Canada Limited Competitor Repositioning Direct Repositioning Direct Repositioning Indirect Repositioning Indirect Repositioning Competitor Repositioning Competitor Repositioning