1. Positioning products to acquire a desired business image 4.05

2. What is Product Positioning 0 This is the image that your product projects or how your product stands out in regard to your competition 0 Positioning is how your products are perceived in the minds of customers

3. Types of Positioning Strategies 0 Price and Quality 0 Features and Benefits 0 In relation to competition 0 By product user

4. Positioning by Price and Quality 0 Often the price of the product is high owing to its high quality and the product is positioned in a way that the super quality of the product justifies its high price. 0 Often higher priced items offer more services, features or better performance 0 On the other hand, other brands are appealing on the basis of their low price although they may appear to be less quality 0 The price/quality product positioning is so useful and pervasive that it is appropriate to consider it separately 0 Examples of positioning by high price: designer clothes, watches, shoes, luxury cars 0 Examples of positioning by low price: Sears, Wal-mart, JC Penny

5. Positioning by Features and Benefits 0 The most frequently used strategy for positioning 0 “Features” are physical characteristics about the product-size, color, style, etc. 0 “Benefits” are what those features do for 0 Examples within the auto industry: 0 Honda and Toyota emphasize economy and reliability 0 Volvo stresses its safety and durability 0 Imported automobiles like Mercedes and Porsche stress their excellent performance in handling and engineering 0 Other cars for their shape, color, style 0 Examples in the toothpaste industry: 0 Crest positioned itself as a cavity fighter 0 Aim is good-tasting 0 Aqua-Fresh offers both cavity-fighting and breath-freshening

6. Positioning by Product User 0 Another positioning approach is to associate a product with a user or a class of users 0 Examples: 0 Cosmetic companies have used models or movie stars to position their products 0 Nike has used professional athletes, like Michael Jordan, to position their products 0 The “For Dummies” series of instruction books attract people who want to learn about a topic that they do not know little about 0 Johnson and Johnson positions their shampoos for those with babies or small children

7. Positioning in relation to competition 0 This strategy is important when trying to secure an advantage over another business 0 A business can either position themselves against a competitor or away from a competition 0 Against a competitor-positioning your product directly against a competitor; using a superiority claim 0 Away from a competitor-positioning your products as the opposite from your competitor to help you get attention in a market dominated by some other product; Example: 7Up calling itself the Uncola