Positioning in Marketing: Importance and Strategies
Added on 2023-01-05
9 Pages2873 Words75 Views
Chapter 5- Positioning
What is Positioning?
Basically, it is about your Brand Identity that
answers “Who your brand or company is in the
market” and by market meaning in contrary to
your competitors (Vis-a-vis competition) and to
the perception of your customer (In the eyes of
the consumer).
Positioning comprises much of a marketer's
responsibilities (involves 4Ps of Marketing)
Designing a product that target
segment will Value (How do you want
your customers to think about your
brand?)
Pricing your product so it's profitable,
yet seen as valuable (How high a price
can you command for your brand?)
Building distributor relationship (Where
do customers go to find your brand?)
Communicating all of these to the
customer thru ad & promo
Positioning via Perceptual Maps
Marketers and senior managers like to see
graphical depictions of where their brands are
and where their competitors are, in the minds of
their customers.
Perceptual maps provide pictures that
help us envision how customers think
about our brand (in terms of the brands
strengths, weakness, and competitors)
Steps in positing
1. In positioning Identify the audience
2. Spot out the unique features
3. Identify your competitors
4. Identify best promoting Techniques
Perceptual Map: (examples: Yoga Studio)
1 First identify your audience (yogis) 2 then
identify your strengths (accommodating staff)
then analyze:
Yoga studio is not very conveniently located, but
people don't seem to care about that attribute
(so we won't get hurt too much for that). The
staff is seen as a strength, but here, too, people
don't seem to care (so we won't get bonus points
for that). More problematic is that the number
and variety of morning classes isn't huge (time
and space are constrained of course), and that's
rather important to the yogis. Hence, the
considered strengths of the business is not
appealing to the customers.
3 Then identify your competitors in order to
know your position in the minds of your target
market
4 then now as a marketer you need to identify
best promoting techniques or service/product
alteration or enhancement (you can use
positioning matrix)
What is Positioning?
Basically, it is about your Brand Identity that
answers “Who your brand or company is in the
market” and by market meaning in contrary to
your competitors (Vis-a-vis competition) and to
the perception of your customer (In the eyes of
the consumer).
Positioning comprises much of a marketer's
responsibilities (involves 4Ps of Marketing)
Designing a product that target
segment will Value (How do you want
your customers to think about your
brand?)
Pricing your product so it's profitable,
yet seen as valuable (How high a price
can you command for your brand?)
Building distributor relationship (Where
do customers go to find your brand?)
Communicating all of these to the
customer thru ad & promo
Positioning via Perceptual Maps
Marketers and senior managers like to see
graphical depictions of where their brands are
and where their competitors are, in the minds of
their customers.
Perceptual maps provide pictures that
help us envision how customers think
about our brand (in terms of the brands
strengths, weakness, and competitors)
Steps in positing
1. In positioning Identify the audience
2. Spot out the unique features
3. Identify your competitors
4. Identify best promoting Techniques
Perceptual Map: (examples: Yoga Studio)
1 First identify your audience (yogis) 2 then
identify your strengths (accommodating staff)
then analyze:
Yoga studio is not very conveniently located, but
people don't seem to care about that attribute
(so we won't get hurt too much for that). The
staff is seen as a strength, but here, too, people
don't seem to care (so we won't get bonus points
for that). More problematic is that the number
and variety of morning classes isn't huge (time
and space are constrained of course), and that's
rather important to the yogis. Hence, the
considered strengths of the business is not
appealing to the customers.
3 Then identify your competitors in order to
know your position in the minds of your target
market
4 then now as a marketer you need to identify
best promoting techniques or service/product
alteration or enhancement (you can use
positioning matrix)
AFCT
11/11/2022, 7:19:32 am
AFCT
The Positioning Matrix
If a company promotes broadly and heavily,
they're probably looking to move a lot of
merchandise, and so it would be smart to make
the goods widely available. It would seem
counterproductive if they made their goods
available only through selective channels.
Similarly, if a brand has a relatively exclusive
image and distribution chain, it would make
better sense not to overly promote it as if it were
common, available to the masses. So, the heavy
promotions and wide distribution pairing and
the lighter promotions and exclusive
distribution pairing make more sense than the
other options.
Some other combinations are more or
less sensible.
If low price, a large need volume of sales to be
profitable, thus eliminating “low price and
exclusive distribution- kasi pag exclusive ontil
lng bebentahan mo.
Bawal ka magovercharge ng customers if low
quality lng din kasi high possibility na di siya
bebenta
we eliminate the heavy-promotions and
exclusive-distribution combinations kasi if you
heavily advertise isang bagay “Go buy our stuff”
tas di naman siya available lagi or anywhere
exclusive lng edi ma frufrustrate lng mga
customers mo kasi di din nila mahahanap yang
prinopromote mo.
If a company promotes broadly and heavily,
they're probably looking to move a lot of
merchandise, and so it would be smart to make
the goods widely available. It would seem
counterproductive if they made their goods
available only through selective channels.
Similarly, if a brand has a relatively exclusive
image and distribution chain, it would make
better sense not to overly promote it as if it were
common, available to the masses. So, the heavy
promotions and wide distribution pairing and
the lighter promotions and exclusive
distribution pairing make more sense than the
other options.
Some other combinations are more or
less sensible.
If low price, a large need volume of sales to be
profitable, thus eliminating “low price and
exclusive distribution- kasi pag exclusive ontil
lng bebentahan mo.
Bawal ka magovercharge ng customers if low
quality lng din kasi high possibility na di siya
bebenta
we eliminate the heavy-promotions and
exclusive-distribution combinations kasi if you
heavily advertise isang bagay “Go buy our stuff”
tas di naman siya available lagi or anywhere
exclusive lng edi ma frufrustrate lng mga
customers mo kasi di din nila mahahanap yang
prinopromote mo.
Hard to sustain
Inactive strategy- kasi the brand is available, but,
with light promotion, baka di mapansin yung
product (the company is paying the brand little
attention) This strategy can be characteristic of
mature brands that customers buy habitually
we've simplified this positioning matrix to
essentially the two strategies:
• Low price, low quality, widely available, heavy
promotions (Mass/pang masa)
• And high price, high quality, exclusive
availability, light promotion (high end)
The advantage of these simplifying assumptions
is that these two extremes give us very clear
goals to work toward. If we have reason to
modify one of the Ps in the given strategies it
not be wise, but we can try it
three basic corporate strategies to creating
value and achieving market stature:
1. Operational excellence: These companies are
good at production, delivery, price, and
convenience, such as FedEx, McDonald's,
Southwest Airlines.
2. Product leadership: These companies pride
themselves on quality and innovation, such as
Apple, BMW, Mont Blanc.
3. Customer intimacy: These companies are
willing to tailor their products to their particular
customer needs, which can be expensive but is
expected to pay off in long-term loyalty and
enhanced customer lifetime value, such as
Amazon, IBM, Verizon.
POSITIONING STATEMENT:
Once a company has decided on its
positioning, either for the corporation as a whole
or for one of its brands, it must be able to
communicate succinctly the parameters of that
position to a number of different audiences (to
customers, employees, shareholders, general
public, etc.). A positioning statement is that
communication, and it takes a pretty standard
form.
1. Who are you trying to persuade?
2.Who are you competing with?
3.What is your major product category? What
frame of reference will customers use in making
choices?
4. How are you better? What is your USP?
5.What are the reasons for your customer to
believe?
Inactive strategy- kasi the brand is available, but,
with light promotion, baka di mapansin yung
product (the company is paying the brand little
attention) This strategy can be characteristic of
mature brands that customers buy habitually
we've simplified this positioning matrix to
essentially the two strategies:
• Low price, low quality, widely available, heavy
promotions (Mass/pang masa)
• And high price, high quality, exclusive
availability, light promotion (high end)
The advantage of these simplifying assumptions
is that these two extremes give us very clear
goals to work toward. If we have reason to
modify one of the Ps in the given strategies it
not be wise, but we can try it
three basic corporate strategies to creating
value and achieving market stature:
1. Operational excellence: These companies are
good at production, delivery, price, and
convenience, such as FedEx, McDonald's,
Southwest Airlines.
2. Product leadership: These companies pride
themselves on quality and innovation, such as
Apple, BMW, Mont Blanc.
3. Customer intimacy: These companies are
willing to tailor their products to their particular
customer needs, which can be expensive but is
expected to pay off in long-term loyalty and
enhanced customer lifetime value, such as
Amazon, IBM, Verizon.
POSITIONING STATEMENT:
Once a company has decided on its
positioning, either for the corporation as a whole
or for one of its brands, it must be able to
communicate succinctly the parameters of that
position to a number of different audiences (to
customers, employees, shareholders, general
public, etc.). A positioning statement is that
communication, and it takes a pretty standard
form.
1. Who are you trying to persuade?
2.Who are you competing with?
3.What is your major product category? What
frame of reference will customers use in making
choices?
4. How are you better? What is your USP?
5.What are the reasons for your customer to
believe?
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