1. Positioning

2. What is Positioning? What does a GPS tell you? What does a GPS tell you?

3. What is Positioning? Positioning is where you are Positioning is where you are In the mind of the consumer In the mind of the consumer Relative to you competition Relative to you competition Creates an image... a unique identity Creates an image... a unique identity Examples: Examples: Jones Soda is positioned as... Jones Soda is positioned as... Mark's Work Warehouse is positioned as... Mark's Work Warehouse is positioned as... Walmart is positioned as... Walmart is positioned as... Lexus is positioned as... Lexus is positioned as...

4. Types of Positioning Benefit Benefit The value equation is composed of benefits The value equation is composed of benefits Product is positioned as having more benefits than competitors Product is positioned as having more benefits than competitors Problems: Problems:  Adding too many benefits can detract from the core brand  Some benefits are easily duplicated by competition

5. Types of Positioning Target Target Focus on a particular target market (no need to position the brand outside the target market) Focus on a particular target market (no need to position the brand outside the target market) Should be somewhat exclusive (people in the target market feel some sense of identity, uniqueness, not “mainstream”) Should be somewhat exclusive (people in the target market feel some sense of identity, uniqueness, not “mainstream”) Problems: Problems:  Target markets can be unpredictable (changing trends)  If outsiders start buying the product, it may no longer appeal to the target market

6. Types of Positioning Price Price Can only go two ways here: position product as most expensive (high quality, luxury good) or least expensive (good value) Can only go two ways here: position product as most expensive (high quality, luxury good) or least expensive (good value) Luxury goods are more about status than quality Luxury goods are more about status than quality Problems: Problems:  The product must deliver on it's other promises (ex: less expensive offerings from the same brand dilute its status, if top quality is promised it must be delivered)  If a product is too cheap, it might be perceived as lower quality than its competitors even if it's the same

7. Types of Positioning Distribution Distribution Finding a unique way to distribute your products Finding a unique way to distribute your products Ex: Ex:  Avon's direct sales  Jones Soda's unconventional retail locations  Amazon's online sale

8. Types of Positioning Service Service Provide extra service/convenience Provide extra service/convenience Ex: Ex:  24-hour grocery store  Greeters  Tea, music, candles in store/change rooms  After-sales support Problem: Problem:  Can't go back once service is offered and becomes part of the brand's positioning

9. How to Position a Product Positioning Premise Positioning Premise Have to be prepared to alienate some consumers (can't be everything to everyone) Have to be prepared to alienate some consumers (can't be everything to everyone) Positioning defines who the product is for, but also who it is not for Positioning defines who the product is for, but also who it is not for  It is possible to be “inclusive” and position your product as “for everyone” Consider the differing strategies of DC vs. Nike Consider the differing strategies of DC vs. Nike

10. How to Position a Product Long-term positioning Long-term positioning Repositioning is expensive (product development, promotion, distribution, etc.) Repositioning is expensive (product development, promotion, distribution, etc.) Companies want their positioning to be sustainable Companies want their positioning to be sustainable  So avoid basing it on specific technological innovations

11. How to Position a Product Relevant Positioning Relevant Positioning Must be relevant to consumers Must be relevant to consumers Something important to them Something important to them

12. How to Position a Product Clear and Coherent Clear and Coherent Consumers must understand your key messaging Consumers must understand your key messaging

13. How to Position a Product Distinctive Positioning Distinctive Positioning Must stand out from the crowd Must stand out from the crowd Positioning is a better way to do this than just relying on pricing/advertising/etc. To get consumers to buy Positioning is a better way to do this than just relying on pricing/advertising/etc. To get consumers to buy

14. What brands come to mind... Cereal Cereal Hamburgers Hamburgers Watches Watches Chocolate bars sunglasses Chocolate bars sunglasses

15. Positioning What types of positioning does each use? What types of positioning does each use?