1. Positioning Hi Quality Dominos Slow Fast Low Quality Pizza Hut Papa John Caesars Select Target &Position

2. Define & Demonstrate Positioning Strategy Outline the Positioning Research Process Delineate logic & techniques of Positioning Strategies: Innovate Relocate Procreate Denigrate

3. Where we’re at: The 3 rd Level of Strategy Business unit Level Business unit Level Corporate Level Corporate Level Research & development Information systems Finance Marketing Manufacturing Human resources Functional Strategy

4. C onsumers C ompany C ompetitors C onditions What We’ve done… SWOT Analysis Situation Analysis

5. What We Know…  Mission, resources, Strengths & Weaknesses, growth & competitive strategies  How the market is segmented & relevant factors that influence consumers’ purchasing decisions  The nature & magnitude of competition for the consumers’ time & $  Existing & emerging Macro-E Trends that can impact on strategic decisions C onsumers C ompany C ompetitors C onditions

6. Situation Analysis Strategic Planning C ompanyC ompany C onsumersC onsumers C ompetitorsC ompetitors C onditionsC onditions PEST PEST The Marketing Mix: Marketing Strategy WM TGT E E D D C C N N G G F F Service Growth & Competitive Strategies P’s Positioning Strategy

7. What We do Now… Targeting The process of evaluating segments & selecting those that are most attractive to pursue Targeting The process of evaluating segments & selecting those that are most attractive to pursue Positioning Determining how a brand should be perceived & fit into lives of target consumers Positioning Determining how a brand should be perceived & fit into lives of target consumers Select Target &Position

8. Key to Successful Marketing Strategy Convincing the right person(s) that you offer the best product, available at best place, at the best price…

9. CustomerNeeds Price Marketing Strategy Success Contingent on Formulating right Marketing Mix around the most profitable target & competitive position DistributionPromotion Product Target&Position

10. so that it Marketing Strategy Success contingent on formulating your Marketing Mix… so that it Specifies think & feel Specifies - the way you want consumers to think & feel about your product/service Defines differentiated & thus compete Defines - how you will be differentiated & thus compete in marketplace Target&Position P roduct P lace P romo P rice Positioning is the Centerpiece (literally & figuratively) of Marketing Strategy

11. Positioning is not what you do to product… Consumers Mind … Positioning is what you do to the Consumers Mind …

12. Positioning is- Positioning is- the place the product occupies in consumer’s mind-- Relative to other competing products Hi Quality Dominos Slow Fast Low Quality Pizza Hut Papa John Caesars

13. The Consumer Mind - Set Consumers organize the product field according to communicated conventions Mercedes=Best Armani=Best Pentium=Best Bud=Most Pop. Wal-Mart= Low Price, High Variety

14. The Product Ladder Every product field has a pecking order The top brands & the also available

15. To find Your Product’s Position To find Your Product’s Position … …You Need to get into consumer’s head & Map the product field from the consumers point of view

16. Mapping Product Positions WM TGT E E D D C C N N G G F F Prices Service Gives you a visual representation of where consumers place competing brands along key dimensions

17. Steps in Creating “Product Position” Maps 1) Identify relevant set of competitive brands 2) Identify key attributes consumers use to evaluate brands 3) Determine consumers’ perceptions of each brand -on each attribute 4) Plot product’s position across attributes 5) Plot customer ideal points (market segments) Evoked Set Consideration Set

18. Paired Comparisons 1---------100 Hi Calorie Low Calorie Light Heavy

19. Paired Comparisons 1---------100 Full Body Low Calorie Popular Priced Premium

20. Semantic Differentials SA----------SD

21. *Old Milwaukee. *Meister Brau *Becks *Strohs *Miller *Heineken *Old Milw. Light *Coors *Michelob *Coors Light *Budweiser *Miller Lite Multi-Dimensional Scaling

22. Chevrolet Nissan Toyota Saturn VW Position Map – Automotive market Traditional Sporty Luxury Functional Cadillac Mercedes Lincoln Oldsmobile Chrysler Buick Ford Plymouth Dodge Mercury Pontiac BMW Porsche Lexus Figure 5-6

23. “ With Relative Size of Consumer Segments” NondeodorantDeodorant High moisturizing Low moisturizing 1 2 4 5 7 8 6 3 Zest Lever 2000 Dial Dial Lifebuoy Lifebuoy Lava Lux Dove Dove Tone Tone Position Map - Bar Soap

24. W/ Position Map In Hand… Every Marketing strategist has 4 options: 1.Innovate 2.Relocate 3.Procreate 4.Denigrate

25. Positioning Strategy Option #1: Innovate Develop & Introduce a New product… …in a New Position

26. Find a new or unoccupied position that is important to consumers Cherchez Le Creneau!

27. NondeodorantDeodorant High moisturizing Low moisturizing 1 2 4 5 7 8 6 3 Zest Lever 2000 Dial Dial Lifebuoy Lifebuoy Lava Lux Dove Dove Tone Tone Find Un-Occupied Soap Space Safeguard Safeguard

28. Cheap 1 2 4 5 7 6 3 Miller BUD BUD Find Un- Occupied Beer Space Corona

29. 1st Light Beer 1 st Cheap Pen 1 st Women’s Cigarette

30. Who was 1 st person to walk on moon? – …The 2 nd ? Who was your 1 st “Big-Nooky”? – Your 2 nd ?

31. Staking out a Position w/ a Proposition The first person to claim a benefit is the one who becomes associated with it in the minds of consumers. Have it Your Way Thick & Juicy/ Where's the Beef You Deserve a Break Today …

32. --Finding an Open & Lucrative Position is Difficult-- Product Space already very competitive Mind-Space is very limited & already occupied

33. PRODUCT POSITIONING Evoked & Consideration Sets-occupied The mind will hold only a few alternatives in memory & disregards all others

34. What’s in Your Evoked Set? Rental Cars? Tissue? Soft Drinks? Fast Food? Potato Chips? Computer Chips?

35. Positioning Strategy Option #2: Relocate Redesign & Re-introduce an Existing product… …in a New Position

36. Expensive Inexpensive For Headaches For Body Aches Excedrin Bufferin Anacin Tylenol Nuprin Advil Bayer St. Joseph’s Motrin Medipren Ideal Re-Position Nearer to Ideal of most/more profitable target group Reformulate, Repackage &/or more directly Promote: Tylenol for effective Headache Relief Tylenol

37. Larger Seg I

38. “TASTES As Good As Budweiser…” But Costs a Whole Lot Less! “TASTES As Good As Budweiser…” But Costs a Whole Lot Less!Juxtaposition Old Style Market Rollout

39. Positioning requires “Consumer Partipulation” You have to get the consumer to participate in their own manipulation Manipulate what is already in the mind of the consumer… Do not challenge existing perceptions

40. is # 1 Avis is only #2 in rental cars – So why go with us? – “We try harder” If you can’t be 1 st … at least be Real

41. The Classic Juxtaposition Avoids contradicting what’s really in consumer’s mind The Originals

42. Positioning involves… Comparatives not Superlatives “ Lite Beer from Miller. – “Everything you always wanted in a beer. And less.” Coca Cola – “The Real Thing” – Infer all others are imitators Not the BEST Thing

43. Positioning Strategy Option #3: Procreate Develop & Introduce a number of New products… …in multiple Positions

44. Expensive Inexpensive For Headaches For Body Aches Excedrin Bufferin Anacin Tylenol Nuprin Advil Bayer St. Joseph’s Motrin Medipren I I Plus Medipren Cold &Flu Procreating calls for developing & positioning multiple products …

45. The Master of Multi- Branding Procter & Gamble: Every Brand w/ its own Position TideTide: for family marketfor family market CheerCheer for clothes -conscious w/ color guard BoldBold: for value-conscious – w/ fabric softener GainGain: for scent-conscious – w/ aromatics EraEra: for dirt-conscious – w/ stain removers DashDash: for price-conscious DreftDreft: for new mothers ArielAriel: for eco-conscious TideTide: for family marketfor family market CheerCheer for clothes -conscious w/ color guard BoldBold: for value-conscious – w/ fabric softener GainGain: for scent-conscious – w/ aromatics EraEra: for dirt-conscious – w/ stain removers DashDash: for price-conscious DreftDreft: for new mothers ArielAriel: for eco-conscious

46. Michelob Light, Michelob Dry.

47. Michelob Diluted its Position “ Michelob was the first high-priced Premium-domestic beer- -- Then they launched into Michelob Light, Michelob Dry … Honey Lager … HefeWeizen… A position of power “They started to become everything to everybody… and they became nothing”

48. A note of Caution about Multi-Branding Be Careful when introducing/ positioning a new product-- especially if you're using the family brand-name

49. Be careful w/ Brand Extensions (using existing brand name in new product category) Kodak Crayons Exxon Office Furniture Gerber Life Insurance Life Savers Gum Xerox Computers Kleenex Towels Established perceptions not compatible across product classes

50. Arm & Hammer Products… A Success- Established perceptions readily transfers product classes utubes

51. Positioning Strategy Option # 4: Denigrate Place Competitor's product… …in a less Favorable Position

52. Repositioning the Competition Royal Doulton, the china of Stratford-on-Avon Vs. Lenox, the china of Pomona, New Jersey

53. Repositioning the Competition Nuprin vs. Tylenol vs. Aspirin – Tylenol campaign pointed out the negative affects of aspirin (stomach upset) Scope vs. Listerine Minty Breath Not Medicine Breath Now Listermint & w/ Cinnamon uTube

54. Visa: They won’t take American express Repositioning the Competition NOT

55. Developing & Implementing Positioning Strategy Differentiation Communication The World On Time

56. 1.Stakeout optimum position Based on your most salient competitive advantage 2.Focus on Single-Competitive Advantage often best…Helps to gain “positioning intensity ” 3.Position strengthened by noting your strengths in conjunction with your competitors weaknesses — Choosing & Implementing a Differentiation Strategy best quality lowest price best value most reliable

57. Developing Differentiating Statements For(target customers) Who are dissatisfied w/ (current market alternatives) Our product is(a new product category) That provides(key capability) Unlike(competing alternatives) We provide(the desired alternative).

58. Nordstrom’s Differentiating Statement Fordiscriminating shoppers Who are dissatisfied w/ long-lines and substandard customer service… Our product isoffering only the highest quality and service, That providesthe premiere prestige retailer Unlikeother retailers who take your business for granted, We …are committed to making you our most important customer.” WM TGT E E D D C C N N G G F F Prices Service

59. Target’s Differentiating Statement Forwho appreciate value and service Who are dissatisfied w/ impersonal big box retailers who sell inferior products… Our product isTarget is the premiere value retailer… That providesoffering a unique mix of quality products, low prices and a friendly shopping environment Unlikeother discount retailers who offer low quality products and stores, We arecommitted to offering the most enjoyable and valuable shopping experience WM TGT E E D D C C N N G G F F Prices Service

60. Wal-Mart’s Differentiating Statement Forshoppers seeking the lowest price every time Who are dissatisfied w/ clipping coupons and waiting for sale- promotions Our product isWal-Mart is the premiere discount retailer That providesoffering every day low prices, Unlikeother discount retailers who make you shop (for sales) when they want you to We provideare committed to offering you the lowest prices everyday.” WM TGT E E D D C C N N G G F F Prices Service

61. From the early 1970s to late 1990s, the number of automobile models grew from 140 to 260; the number of over-the-counter pain relievers went from 17 to 141. “That makes positioning - the marketing tactic of differentiating a product or company in the mind of a prospect- more important than ever” Jack Trout A position of power Differentiate or Die: Survival in Our Age of Killer Competition In our Hyper-Competitive-Global market The need to differentiation grows greater everyday …

62. The ultimate success of any positioning strategy comes down to 2 Key Decisions 1. Choosing most salient variable w/ which to distinguish your product from competitors 2. Selecting best communication platform to convey your product’s unique position 1. Choosing most salient variable w/ which to distinguish your product from competitors 2. Selecting best communication platform to convey your product’s unique position

63. On What Dimension or Variable… On What Dimension or Variable… – do you want to compete? Differentiation Strategy Your 1st Decision: “Putting your Best Foot Forward”

64. Criteria for Selecting the Right Competitive Advantage Criteria for Determining which Differences to Promote Criteria for Determining which Differences to Promote Affordable Superior Profitable Preemptive Distinctive Determinant Must be relevant to a consumer need that motivates purchase/usage

65. Differentiation Variable Options Benefits Uses Users Consumer Product Actual Augmented

66. Brand Name Price Quality Packaging Design Features Distribution Delivery Installation Warranty After- Sale Support Actual Product Augmented Product Product Levels Payment plan- Credit Service

67. Differentiation Variables Product Attributes features performance durability reliability repair-ability style design Product Actual Augmented

68. Differentiation Price/Quality -Attributes

70. Differentiation variables: Customer-Service Attributes delivery installation customer support Customer-Service Attributes delivery installation customer support Product Actual Augmented

71. Differentiation variables Employees/ Personnel competence courtesy credibility reliability responsiveness communication Employees/ Personnel competence courtesy credibility reliability responsiveness communication Product Actual Augmented

72. Differentiation variables Channel Coverage Expertise Performance Channel Coverage Expertise Performance Product Actual Augmented

73. Differentiation Variable Options Product Consumer Actual Augmented Benefits Uses Users

74. People buy Holes, not drills! Benefits Uses Users Consumer “Consumers Buy Benefits not Products” People buy Hope, not cosmetics!

75. Toothpaste Market Differentiated by Benefit Segments Sensory Segment Sociable Segment Worrier Segment Independent Segment Flavor and product appearance Principal benefit Sought…….. Brightest of teeth Price Decay prevention Figure 5-3 Colgate Brands……… disproportionately favored Macleans, Ultra Brite Cheapest Cheapest brandCrest

76. Procter & Gamble: Each Brand offers a Unique Benefit

77. Positioning by use or application Differentiation based on: How a product is used The number / variety of uses New / Changing patterns of use Differentiation based on: How a product is used The number / variety of uses New / Changing patterns of use Benefits Uses Users Consumer

78. Differentiation thru Product use -

79. REPOSITIONING- REPOSITIONING-Revitalize sales w/ New uses (mature product) From old- Fashioned Dessert—to-- Children’s &/or adult fun product Arm & Hammer Baking Soda

80. Expensive Inexpensive For Headaches For Body Aches Excedrin Bufferin Anacin Tylenol Nuprin Advil Bayer St. Joseph’s Motrin Medipren I I Emerging Ideal- Daily Heart Med. I

81. Image Congruence between Product’s Qualities / Connotations & Consumer’s Personality / Persona Product Positioning = Consumer Positioning Benefits Uses Users Consumer Consumers Buy Products to define & differentiate themselves  Designer Label- clothes, cosmetics, perfume  “Top-Shelf” Liquor  Automobiles

83. Differentiation by user: Revolt Jeans

84. The Marlboro Man uTube

88. Finally you must effectively communicate your competitive Advantage 1.Choosing the most salient variable w/ which to distinguish your product from the competitors 2.Selecting the best communication platform to convey your product’s unique position

89. Communication Strategies Cognitive- Logical Affective- Emotional focuses on problems, solutions or benefits sought by customers how product features help solve problems or achieve benefits appeals to the heart focuses on emotions, feelings, or drives associated with product / service Got emotional product positioning?

90.  “When a company doesn't present a clear message  that its product is unique  in a way that is relevant to customers,  those customers have no reason to buy it”  “When a company doesn't present a clear message  that its product is unique  in a way that is relevant to customers,  those customers have no reason to buy it” A position of power

91. Four Major Positioning Errors 1. Under-positioning - consumers have only vague idea of the brand. 2. Over-positioning - consumers have too narrow a view of the brand. 3. Doubtful Positioning - consumers don’t believe the brand’s claims 4. Confused Positioning - consumers confused about the brand due to frequent changes or too many claims.

92. Burger King’s search for Position 76Have it your way. 77-78America loves burgers and we’re America’s Burger King. 78-80Who’s got the best darn burger? 80-82Make it special. Make it Burger King. 82Aren’t you hungry for Burger King now? 82-83Battle of the burgers. 83Aren’t you hungry? 83-85The big switch. 85-86Search for Herb. 86-87 This is a Burger King town 76Have it your way. 77-78America loves burgers and we’re America’s Burger King. 78-80Who’s got the best darn burger? 80-82Make it special. Make it Burger King. 82Aren’t you hungry for Burger King now? 82-83Battle of the burgers. 83Aren’t you hungry? 83-85The big switch. 85-86Search for Herb. 86-87 This is a Burger King town 86-87This is a Burger King town. 87The best food for fast times. 87-89We do it like you’d do it. 89-91Sometimes you gotta break the rules. 91-92Your way. Right away. 92-94BK Tee Vee: I love this place! 94Back to basics 94-96Get your burger’s worth. 96-98It just tastes better. 99 Go the distance 2000 Got the Urge 01-02The Whopper Says 02-03At Burger King You Got It 86-87This is a Burger King town. 87The best food for fast times. 87-89We do it like you’d do it. 89-91Sometimes you gotta break the rules. 91-92Your way. Right away. 92-94BK Tee Vee: I love this place! 94Back to basics 94-96Get your burger’s worth. 96-98It just tastes better. 99 Go the distance 2000 Got the Urge 01-02The Whopper Says 02-03At Burger King You Got It

93. Low Quality Hi Quality Dominos Papa Johns Caesars Pizza Hut Slow Fast Variety