1. 1

2. 7-2 Customer's perception of a brand or a product relative to their needs Comprises both competitive and customer need considerations

3. 7-3 Preference of one product, good or service, over another Reasons why consumers choose what they buy What they choose is better or cheaper Important in business strategies and marketing

4. 7-4 Assessing product offering based on a set of objective physical characteristics Limitations Does not provide a complete picture of relative positions Customers may perceive some of the brand characteristics differently from how the marketers intended

5. 7-5

6. 7-6 o Physical - Directly related to a single physical dimension o Complex physical - Used by consumers to evaluate competitive offerings o Abstract - Influenced by physical characteristics o Not related in any direct way o Price - Implies high or low quality

7. 7-7

8. 7-8

9. 7-9 Features Benefits Parentage Manufacturing process Ingredients Endorsements Comparison Proenvironment Price/quality

10. 7-10 Positioning grid: Visual representation of the positions of various products or brands in the competitive set in terms of two determinant attributes Also called perceptual maps Value curve: Comprises more than just two dimensions that can be generated

11. 7-11 Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They? ” Babson College Retailing Research Reports, September 1990, as shown in Micheal Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin. 1992), p. 205.

12. 7-12 Shift in the market environment cause customers to reduce the importance they attach to an attribute Difficulty in repositioning a brand with an intensely perceived position on that attribute

13. 7-13

14. 7-14 Measuring customers’ preferences and locating them in the product space along with their perceptions of the positions of existing brands

15. 7-15 Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

16. 7-16 Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

17. 7-17 Common approaches Positioning statement Identifies the target market States unique benefits of the product Value proposition Similar to positioning statement Includes information about pricing relative to competitors Both approaches reflect the unique selling proposition (USP) of the product

18. 7-18