MGT-519 STRATEGIC MARKETING AAMER SIDDIQI

LECTURE 14

R E - CAP Targeting Target Marketing Positioning Positioning Effectively Main Elements Of Positioning

POSITIONING AND PERCEPTION The concept of positioning has two dimensions: What the organisation wishes to achieve How it wants its products to be viewed by consumers. This will involve deciding where the organization wants to compete and how it sets about competing. What consumers actually believe about a particular product or service A company or products’ competitive advantage may exist not only in relation to the features, attributes and benefits of the product itself, but also relate to its perceived image 4

Most successful positioning results often stem from products that possess favourable connotations or perceived positive value Indeed Ries and Trout (1981) suggest that it is the perceived image and attributes of an organization or product/ service which is important in the battle for the minds of target customers Summarising Ries and Trout state that positioning can be achieved within three major concepts POSITIONING AND PERCEPTION 5

This encompasses the fact that What customers actually believe or perceive will directly influence the purchase decision If positioning is successful then The position which an organisation seeks to achieve and What customers perceive should be the same, Or at least so close that there is no significant disparity THREE CONCEPTS OF POSITIONING

4C POSITIONING FRAMEWORK Before an organisation establishes a successful position in the marketplace, four key considerations are important: - clarity consistency credibility competitiveness Clarity - the positioning idea must be clear with regard to both the target market and the basis of competitive advantage

Consistency - In order to break through the 'noise' level of competing messages, a consistent message and image is necessary Credibility - the position chosen must be credible in the minds of the target groups Competitiveness - Any successful market position is dependent on having a distinctive value proposition which is not being offered by the competition 4C POSITIONING FRAMEWORK

PERCEPTUAL MAPPING A Positioning Strategy results in the image you want to draw in the mind of your customers, the picture you want him/her to visualize of you what you offer, in relation to the market situation, and any competition you may have In product positioning, it is important to remember that what is being positioned Not simply the product itself The total product offering A firm must understand its own situation in terms of the 4C framework in order to formulate a positioning strategy

An organisation must identify the features of products (including its own) being offered in the target market It must also, through marketing research, establish features considered to be important by consumers This provides the basic information for a positioning strategy Variety of attributes to consider Many relate to image as much as to physical characteristics PERCEPTUAL MAPPING (CONT’D)

Variety of attributes to consider Relate to image and physical characteristics Identified the attributes of products/services that consumers consider to be important further survey work to identify which attributes are present in the available products Includeds both the organization's own products and those of the competition PERCEPTUAL MAPPING (CONT’D)

This is frequently represented on a product positioning map or perceptual map The map visually depicts consumer perceptions and then prioritises brands in relation to those perceptions PERCEPTUAL MAPPING (CONT’D)

Using Quality and Price to plot the UK chocolate market we can identify distinct served market areas; Belgium chocolates are plotted as high quality and price, whereas Twix is plotted one low quality low price brand. The completed the perceptual map helps identify potential unserved areas; the medium price and quality range shows little competition within that particular area

RATIONALE BEHIND PERCEPTUAL MAPPING Perceptual maps are plotted on the basis of consumer’s perception A quality product to one person, may not be perceived as quality to another Perceptions are not static. The act of – product re-launch – re-branding – introduction of a new product brand or competitor alters the perceptions of the customers in the market

Perceptual mapping plots the dimensions of the total product offering which are significant to the customer The closer the positioning of two brands on the map, the more likely they are to compete The closer the brand is to the ideal position the more likely it is to be preferred. Gaps in the market can be identified that represent potential market niches RATIONALE BEHIND PERCEPTUAL MAPPING (CONT’D)

Technique employed to identify consumers ideal brand profile By comparing actual position with the customer's ideal position, gain some indication of – how new products should be positioned or – how existing products should be re-positioned By plotting average scores for each product in relation to each attribute a profile of – what the customer seeks and – what the organisation offers can be compiled RATIONALE BEHIND PERCEPTUAL MAPPING (CONT’D)

Perceptual mapping Also used to investigate the relative positions of products and companies in the case of corporate branding/positioning RATIONALE BEHIND PERCEPTUAL MAPPING (CONT’D)

Targeting Target Marketing Positioning Positioning Effectively Main Elements Of Positioning Positioning And Perception Three Concepts Of Positioning 4 C Positioning Framework Perceptual Mapping Positioning And Perception SUMMARY

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