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

2. Positioning
Chapter 4

3. 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

4. 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

5. 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?

6. 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?

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

8. 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?

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

10. 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

11. 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

12. 4-P Combinations
Any combination in the matrix is possible but some are more optimal than others

13. 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?

14. 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

15. 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

16. Example of Brands

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

18. 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”

19. 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

20. 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

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

22. 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

23. 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

24. 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

25. 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

26. 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

27. Video C