3 Strategic Positioning Strategic positioning is about differentiating your company from competitors, in order to attract and maintain a specific customer segmentIdentifying the salient (basic / central) features of the product or serviceFinding the ideal value of the salient features for the targeted consumer segmentInvestigating consumers’ perceptions of the values of the salient features of competitors products
4 Positioning Act of designing the company’s offering and image to occupya distinctive place in the mind ofthe target market.Positioning maps show consumerperceptions of their brandsversus competing productson important buying dimensions
5 Positioning Positioning Strategies Positioning by attribute: associate the product with specific attribute(s) (e.g. energy, reliability, safety, performance)Positioning by price and quality (e.g. Lidl)Positioning with respect to use or application (e.g. cereals as a breakfast meal)Positioning with respect to a competitor / product class (e.g. Avis car rental)
6 Writing a Positioning Statement Mountain Dew: To young, activesoft-drink consumers who havelittle time for sleep, Mountain Dewis the soft drink that gives youmore energy than any other brandbecause it has thehighest level of caffeine.
7 Defining Associations Points-of-difference (PODs)Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brande.g. Fed Ex – overnight delivery Nike - performancePoints-of-parity (POPs)Associations that are not necessarily unique to the brand but may be shared with other brands
8 Examples of Negatively Correlated Attributes and Benefits Low-price vs. High qualityTaste vs. Low caloriesNutritious vs. Good tastingEfficacious vs. MildPowerful vs. SafeStrong vs. RefinedUbiquitous vs. ExclusiveVaried vs. Simple
9 Differentiation Strategies ProductPersonnelChannel – Design the channels of distribution to achieve coverage, expertise, performanceImage
11 Personnel Better trained people exhibit six characteristics: Competence: posses the required skills & knowledgeCredibility: trustworthyReliability: perform the service consistently & accuratelyResponsiveness: respond quicklyCommunicate effectively
12 Identity and Image Identity: The way a Image: company aims to identify orposition itself(The intended messageMust be conveyed throughEvery availableCommunication channel)Image:The way thepublic perceivesthe company or itsProducts(e.g. Marlboro)
13 Differentiation and Positioning Identifying Possible Value Differences andCompetitive AdvantageCompetitive Advantage is the advantage over competitors gained by offering greater value either through lower prices or by providing more benefits that justify higher prices
14 Product Life CycleIntroductionGrowthMaturityDecline
15 Facts about Life Cycles Products have a limited life.Product sales pass through distinct stages.Profits rise and fall at different stages.Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage.
16 Marketing Program Modifications PricesDistributionAdvertisingSales promotionServices