Positioning..pptVIP

Positioning The Three Major Steps in Target Marketing Product Position The place the product occupies in consumers’ minds relative to competing products. The complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products. E.g. Mercedes and Cadillac on “luxury”; Porsche and BMW on “performance”; Volvo on “safety”; Toyota on “fuel-efficient”. Positioning Maps Positioning According to Ries and Trout Positioning is what you do to the mind of the prospect, NOT what you do to a product. Well-known products generally hold a distinctive position. E.g. Coca-Cola in soft drinks Porsche in sports cars. Positioning According to Ries and Trout Four strategic alternatives Strengthen its own current position in the consumer’s mind, e.g. Avis 7-Up. Grab an unoccupied position, e.g. Pink Dolphin. De-position or re-position the competition in the customer’s mind, e.g. Benz vs. BMW (The ultimate sitting machine verses the ultimate driving machine). The exclusive-club strategy (product ladders), e.g. Toyota – Honda – Nissan. Positioning According to Treacy and Wiersema Value Disciplines Product leader, e.g. Sony. Operationally excellent firm, e.g. McDonald’s. Customer intimate firm, e.g. 3M. A firm can not normally be best in all three ways, or even in two ways. Positioning According to Treacy and Wiersema Four Rules Become best at one of the three value disciplines. Achieve an adequate performance level in the other two disciplines. Keep improving one’s superior position in the chosen discipline so as not to lose out to a competitor. Keep becoming more adequate in the other disciplines, because competitors keep raising customers’ expectation. Choosing a Positioning Strategy Identifying possible competitive advantages Choosing the right competitive advantages Selecting an overall position strategy Differentiation Variables to Gain Competitive Advantage Product Differentiation Style The product’s look and feel to the buyer.