1. Positioning Positioning concept Perceptual mapping Preference mapping
Positioning the Infiniti G20 car

2. Some Key Concepts
Differentiation: Creation of tangible or intangible differences on one or two key dimensions between a focal product and its main competitors.
Positioning: Strategies conceived by firms to ensure that the main differences between the focal product and its competitors occupy a distinct and important position in the minds of current and potential customers.
Mapping: Techniques (using customer-data) that enable managers to develop differentiation and positioning strategies by helping them to visualize the competitive structure of their markets as perceived by their customers. Example data include customer perceptions of existing products (and new concepts) along various attributes, perceptions of similarities between brands, preferences for the products, or measures of behavioral response of customers toward the products.

3. Positioning Bases Life style (self-concept) positioning
Attribute positioning
Benefit positioning
Competitive positioning
Time-based (e.g., usage occasion) positioning

4. Marketing Opportunities Associated with Positioning
Find unmet (or inadequately met) customer needs and wants.
Identify product strengths that are unique and important.
Determine how best to overcome product weaknesses.
Identify market segments for which a particular product or new concept would be appealing.

5. Maps: The Power of Visual Representation

6. An organic chemist reads diagrams such as the one here
An Electrical Engineer reads diagrams such as the one here
Positioning 6

7. Can You See Patterns in This Data?
Ratings of nine brands of notebook computers on several attributes
B1 B2 B3 B3 B4 B5 B6 B7 B8 New
Attractive Light Unreliable Plain Battery life Screen Keyboard Roomy Easy service Expandability Setup Common Value Preference

8. Marketers Need to Learn to Read Perceptual Maps!

9. Conventional Mapping Using Snake Charts
Does not Describes it describe completely it at all
| | | | | |
1. Company provides adequate insurance coverage for my car.
2. Company will not cancel policy because of age, accident experience, or health problems.
3. Friendly and considerate.
4. Settles claims fairly.
5. Inefficient, hard to deal with.
6. Provides good advice about types and amounts of coverage to buy.
7. Too big to care about individual customers.
8. Explains things clearly.
9. Premium rates are lower than most companies.
10. Has personnel available for questions all over the country.
11. Will raise premiums because of age.
12. Takes a long time to settle a claim.
13. Very professional/modern.
14. Specialists in serving my local area.
15. Quick, reliable service, easily accessible.
16. A “good citizen” in community.
17. Has complete line of insurance products available.
18. Is widely known “name company”.
19. Is very aggressive, rapidly growing company.
20. Provides advice on how to avoid accidents.

10. Uses of Mapping Techniques
Understand the underlying market structure of product categories as perceived by customers. This can help in identifying opportunities through “gaps” in the resulting maps.
Identify perceptual dimensions (e.g., product attributes) that are most important for customers.
Represent customers’ perceptions and preferences in a manner that aids communication and discussion within the product management team.
Evaluate a product (new concept) in the context of existing products in the market.
Explore strategic and tactical options to position new concepts.
Develop a (new) name for a product.

11. Uses of Mapping Techniques
Check how customer perceptions of your products compare to those of your competitors.
Identify product strengths and weaknesses.
Select competitors to compete against.
Determine exactly how much change is need on key product attributes to move your products to more favorable positions.
Visually determine whether your communications programs are having the desired impact on market perceptions.
Compare perceptions from different demographic, geographic, or psychographic subgroups in your market.

12. Mapping Techniques Mapping perceptions Mapping preferences
Attribute-ratings methods (particularly useful for functional products)
Overall-similarity methods (particularly useful for image-oriented products)
Mapping preferences
Include an overall preference vector in a perceptual map
“External” analysis to fit preferences of individuals on a common perceptual map

13. Mapping Methods in Marketing
Joint Space Maps (includes both perception & preference)
Perceptual Maps
Preference Maps
Similarity-based methods
Attribute-based methods
Ideal-point model (unfolding model)
Vector model
External analysis using PREFMAP-3
Simple “joint space maps” using modified perceptual mapping methods
Positioning 13

14. Perceptual Maps Using Attribute Ratings
Example: Positioning of a new PDA concept
Select a set of PDA’s which are of interest to the target group of customers (including the new concept of interest).
Identify a set of key attributes on which these pda’s are evaluated by the target group (e.g., through focus groups).
Ensure that customers are familiar with the products of interest (e.g., through video presentation).
Have customers evaluate the products on the chosen set of attributes.
Light … Heavy (A1)
Unreliable … Reliable (A2)
Small … Large (A3)
Poor Connectivity …………………... Good connectivity (A4)
Poor value … … Good value (A5) . ..
Definitely would
not buy …..... Definitely would buy (Preference)

15. Perceptual Maps Using Attribute Ratings
Generate a matrix of inputs for the analysis consisting of each customer’s (C1, C2,...) ratings of each brand on each of the attributes (A1, A2, A3,....)
Compute average ratings of each brand on each attribute. Submit data to a suitable perceptual mapping technique (e.g., Factor Analysis).
Interpret the underlying key dimensions of the map using the directions of the individual attributes.
Articulate the implications of how customers’ view the competing products and concepts.
A1 A2 A3 A A15
Sharp
Pilot
New PDA ..
Sharp 5800
Pilot 5000
New PDA C1 C2

16. Example Plot of Attributes of PDAs on a 2-D Perceptual Map
(Poor Communication
capabilities)
(Difficult to use)
Newton 130 ·
Screen quality
· Sony PIC 2000
Image ?
Common
Large
Successful
Easy to use
Good Communication
capabilities
Connectivity?

17. Interpreting Perceptual Maps

18. Guidelines for Interpreting Perceptual Maps
The arrow indicates the direction in which that attribute is increasing (The attribute is decreasing in the direction opposite to the arrow). Thus, PDAs positioned farther and farther in the South-West direction are considered to offer “good value,” and those positioned in the North-East direction offer poor value.
The length of the line from the origin to the arrow is an indicator of the variance of that attribute explained by the 2D map. The longer this line, the greater is the importance of that attribute in helping you to interpret the map. Thus, “screen quality” and “expandability” are relatively more important than “economical” and “communication capabilities” in explaining how this group of customers discriminates between the PDAs.

19. Guidelines for Interpreting Perceptual Maps (contd.)
Attributes that are both relatively important and close to the horizontal (vertical) axis help you in articulating the meaning of the axis. Here, the two dimensions along which these customers seem to discriminate between the computers appear to be “Image” for the horizontal axis and “Connectivity” for the vertical axis. This interpretation can be based on attributes most correlated with the axes (Common, value, perceived success, etc. for the horizontal axis), and communication capabilities and connectivity for the vertical axis).
To position a PDA on each attribute, draw an imaginary perpendicular line from the location of that PDA onto that attribute. (These are shown by dashed lines on the map). Thus, Sony PIC 2000 is perceived to be easier to use than the Sharp 5800.

20. Preference Maps Data Input C1 C2 C3 C4........ Sharp 5800 2 3 9 3
Use a program such as MDPREF on average preference data, or develop an “external joint space” using a program such as PREFMAP-3. MDPREF simply adds another vector to the map called “Preference. A joint space map shows the relationships between brands and preferences for each brand for each customer.
Interpret the preference map. Explore alternative locations for the focal product by moving it to different points on the map.
C1 C2 C3 C
Sharp
Pilot
New PDA …. .
An entry in this matrix is the stated preference of each customer (C1, C2, ...) for each brand. A larger number indicates higher preference for that brand.

21. Preference Map Using MDPREF Vector Model
Low battery life
Keyboard
Expandability
Toshiba
Elegant
Distinct
Unsuccessful
Avant-Garde
Heavy
IBM
Compaq
Fast operation
Reliable
Sanyo TI
Good design
AST Exec
Difficult to use
Dell
NEC
New Concept
Value
Graphics
Poor setup
Samsung
Screen quality
Preference

22. A Joint-Space Map (Shows only Preferences and Brands)

23. Evaluating Perceptual and Preference Maps
Technical adequacy
What percentage of the total information (variance) in the raw data is captured in the map?
What percentage of the information of each attribute (variance) is captured in the map?
Managerial interpretation (example questions)
What underlying dimensions seem to characterize how customers view the products?
What is the competitive set associated with the target product or new concept?
How well is a target product positioned with respect to the existing products?
Which attributes are related to each other?
Which attributes influence customer preferences positively? negatively?
What improvements will enhance the value of a product or new concept?
Which customer segments have positive perceptions and high preference for the product?

24. An Example Positioning Statement
For [target segment], the [concept] is [most important claim] because [single most important support].
Example:
For PC Users, the IOMEGA Zip drive is the best portable storage device because it is most cost-effective system.

25. Implementing Positioning
Leverage strategically advantaged resources:
Product characteristics
features, performance, durability, conformance, reliability, style, etc.
Service attributes
delivery, installation, consultation, customer training, repair, etc.
Personnel
competency, credibility, courtesy, responsiveness, etc.
Brand image
symbols, emotion, media used, etc.

26. Initiating Positioning Studies in Companies
Four Questions to Get Positioning Studies Started
Who do we need to target?
What do they think now?
What do we want them to think, now and from now on?
How do we do that?

27. Limitations
Provides a static model - ignores dynamics of customer perceptions.
Interpretation is sometimes difficult.
Does not incorporate cost or likelihood of being able to achieve a desired positioning.
Does not incorporate a “probability model” to indicate goodness of a map.
Generally, need about 6 to 8 products to make the technique useful.

28. Other Software for Perceptual Mapping
Standard statistical packages, such as SPSS, have routines for perceptual mapping (
Market Visioner:
BrandMap:
HierMaps: This is based on Correspondence Analysis