1. Positioning Guest Lecturer – Ray Kaupp Class 27 Thursday 11/29/11

2. What is Positioning? Starts with a product Its what you do to the mind of the prospect The place you own in the mind of the prospect

3. Origins of Positioning 1972 Ad Age series Al Ries and Jack Trout Designed as a response to the overcommunicated society Too many product, too many companies, too much noise

4. The Overcommunicated Society Per-capita consumption of advertising = $376.72 6% of population, 57% of advertising 94 lbs. of newsprint/person/yer 8 oz. Box of Total = 1268 words $1 million/yr = $0.005/viewer

5. Phases of Advertising Product era: Unique selling proposition Image era: Reputation Positioning era: create a position in the prospect ’ s mind

6. Beer Schlitz: real gusto in a great light beer Miller Lite: everything you wanted in a beer. And less. Becks: You ’ ve tasted the German meer most popular in America. Now taste the German beer most popular in Germany. Lowenbrau: now a domestic brand

7. The “ Against ” Position Avis: We try harder 7-up: The uncola Burger King, Pepsi

8. The Leadership Position We ’ re #1??? “ The real thing ” Cover the bet –Kodak & 3M passed on the xerography patents –“ Why pay.05 for plain paper when coated is.015? ” –Xerox 914 = most profitable product ever made in the U.S.

9. The Follower Position Cherchez le creneau. –Size (VW: Think small.) –High price: BMW, Mercedes First, valid story, receptive category –Low price: Old Milwaukee –Sex: Marlboro –Distribution: L ’ eggs –Time: Nyquil, FedEx

10. Reposition the Competition For the millions who should not take aspirin… Tylenol… Motrin Listerine “ the taste you hate, twice a day ” ; Scope “ eliminate medicine breath ” Lexus: Dieter from the BMW factory

11. Name Positioning Head and Shoulders, DieHard, Spray ‘ n Wash Right-to-life, free trade, Clean Air Act Abreviations: phonetic shorthand –L.A. vs. New York –GM vs. Ford –S.F. vs. Frisco –N.J. vs. Jersey

12. Segmentation Positioning implemented Dimensions –Geography –Demographics –Psychographics –Emerging cuts Soccer moms (minivans) DINKs (Urban Outfitters) Boomers