Product Positioning
Product Positioning
Differentiation vs. Positioning
Positioning of Different Bar Soaps
“Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap
Nondeodorant
Deodorant
High
moisturizing
Low
moisturizing
1
2
4
5
7
8
6
3
Zest
Lever 2000
Safeguard
Dial
Lifebuoy
Lava
Lux
Dove
Tone
Exhibit 3-13
3-14
The "Perceptual Map" is a valuable tool for visualizing brand positioning
Perceptual Map
based on MDS Study
Key
Perceptual positioning
of Brands
Segment ideal Point
Ot
Need 2
Need 1
+20
+20
-20
-20
SELF
Pr
Hi
Bu
Si
Ot
SEMI
SONO
SOLD
SULI
SAMA
SUSI
SALT
SIBI
SIRO
Positioning with advertising requires setting "Perceptual Objectives"
-20
Perceived
Economy
Si
10
0
20
-10
-20
-10
0
10
20
5
5
9
11
Perceived
Performance
Product Positioning
Differentiation variables
Product
features
performance
durability
reliability
repairability
style
design
Product Positioning
Differentiation variables:
Service
delivery
installation
customer support
Product Positioning
Differentiation variables:
Personnel
competence
courtesy
credibility
reliability
responsiveness
communication
Product Positioning
Focus on “determinant attributes”
Product Positioning
How many differences to promote?
Product Positioning
Single-benefit positioning is usually best
best quality
lowest price
best value
most reliable
Helps to gain “positioning intensity”
Product Positioning
People tend to remember # 1. But, what if you are # 2 or # 3?
Product Positioning
If you are not # 1
strengthen current position
grab an unoccupied position
deposition or reposition the competition
achieve the largest size within a segment
exclusive club strategy
Product Positioning
Positioning errors
under positioning
over positioning
confused positioning
doubtful positioning
Perceptual Product Positioning Maps
Sales potential within a market segment is directly related to the brand’s proximity to the segment’s preferences on important dimensions
Market dynamics to consider
From Boyd, Walker & Larreche, 1998, p. 206
Growth of market segments
Evolution of segments’ ideal points
Changes in positioning intensity
Evolution of existing brands’ positions
Introduction of new brands
Market positioning strategies
From Boyd, Walker & Larreche, 1998, p. 207
Monosegment positioning
Multisegment positioning
Standby positioning
Imitative (head-on) positioning
Anticipatory positioning
Adaptive positioning
Defensive positioning
Differentiation = positioning on physical characteristics; pertains to the objective aspects of the product
Positioning = positioning on perceptual aspects of the product. Influenced by “the way the products are presented,” “our past experiences,” and “the opinions of others.” (Boyd, Walker & Larreche (1998), pp 194, 195).
Multidimensional scaling of brands similarities and preferences
One basis for analysing the positioning of each competitive brand is the perceptual mapping of similarities and preferences based on the Multidimensional scaling study. The data are obtained through interviews with a sample of 200 individuals.
This is a two-dimensional map whose axes are arbitrarily scaled from -20 to +20 and represent composite dimensions. Axis one represents the first most important need of the consumers and axis 2 the second most important need for that product category. The study will provide the best interpretation of the composite dimensions for each axis.
The circles 'Bu', 'Si', 'Pr', 'Hi', and 'Ot' on the graph represent the ideal points of each of the five segments. Each circle only represents the 'center of gravity' of the whole segment. Each consumer has a different preference, however, the preferences within a segment are sufficiently similar so that the ideal point represents well the overall global preference of the segment.
The various geometric shapes (square, triangle, star...) correspond to the positioning of the brands as they are perceived by the market at the time of the study. Each brand name is clearly labeled. One specific color and shape is attached to each firm (for example, all brands marketed by firm A are represented by red stars).
This study differs from the semantic scales study in that the respondent is not provided with criteria to evaluate the brands. Instead, these criteria are deduced by the approach which is based on global assessment of similarities of pairs of brands. This is a complex task which necessitates a number of brands to be able to derive a solution. This study is therefore not available for the Vodite market until sufficient competing brands are marketed.
Positioning through advertising
Advertising in Markstrat is primarily used as a communication tool to get consumers to know about the brand name and about the characteristics of the brand. Advertising strategy should be consistent with the marketing strategy of the firm. It is used to increase brand awareness and to position and reposition brands so that consumers are convinced that the product offerings correspond to their needs and wants. Using advertising to reposition a product requires four types of decisions:
1. Selecting the target segment(s)
2. Specifying perceptual objectives for the brand. For example, to reposition SUSI closer to the 'Singles' segment, you would check the actual coordinates of the ideal point of that segment, try to anticipate its moves by looking at the trends, and enter the coordinates of the point that you want to reach on the map. You can choose to set perceptual objectives either on semantic scales or on MDS dimensions. A maximum of two dimensions can be used to keep the message simple and effective.
3. Allocating an advertising media budget for the brand.
4. Allocating an advertising research budget. The higher the advertising research budget, the more accurate one may expect the repositioning to be in terms of reaching the perceptual objectives, although there will naturally remain a limit to how far and how fast one can move perceptions.
Simply indicating the targeted segment (100% of budget on the 'Singles') is insufficient to reposition a brand. Target selection only affects the media vehicle selected to communicate the message, but does not impact the message itself.
The appropriate advertising program must also be designed in order to let consumers know of the change in the physical characteristics of a brand in case of brand modification through the implementation of a new R&D project.
SUSI
Most of these attributes are “composite attributes” or “summary indicators” as defined by Boyd, Walker & Larreche (1998), p. 196.
determinant attributes – play a major role in helping customers differentiate among the alternatives and to arrive at a decision to purchase a specific product/brand (Boyd, Walker & Larreche, 1998, p. 198).
“Competing head-on against the leaders on the basis of attributes appropriated by larger competitors is not likely to be effective.” (Boyd, Walker & Larreche, 1998, p. 200).
Monosegment positioning – targeting entire marketing mix at only one segment
Multisegment positioning – placing the marketing mix between segments to try to attract customers from both segments.
Advantage – economies of scale
Disadvantage – vulnerable to competitors who practiced monosegment positioning
Standby positioning – multisegment positioning with a standby plan in case of threats from monosegment competitors
Imitative (head-on) positioning – attacking existing brand with a similar positioning strategy but a distinctive competitive advantage (lower cost structure, increased efficiency, etc.)
Anticipatory positioning – position brand in anticipation of the segment’s needs
Adaptive positioning – repositioning to follow a segment’s evolving preferences
Defensive positioning – introduce multiple brands with similar positions
Advantage – preempts competitors
Disadvantage – cannibalizes your own market; increases costs and reduces profitability in the short run
