Positioning Definition: Positioning is the process of arranging for a product to occupy a cle ar, distinctive & desirable place

in the minds of the target market relative to the competition. Strategic Positioning Initiatives: Positioning may focus on an entire company, a mix of products, a specific line of products, or a particular brand, although p ositioning is often centered on the brand. Positioning initiatives are closely l inked to business strategy because strategic positioning comprises the efforts o f business to deliver superior value to its customers. The major initiatives nec essary in strategic positioning are described here:

Figure: Strategic positioning initiatives

Positioning concept: The positioning concept indicates managements desired positi oning of the brand in the minds of the targeted buyers. It is a statement of wha t the product means guided by the value requirements of the buyers in the market target. Positioning strategy: The Positioning strategy is the combination of marketing p rogram (mix) strategies used to portray the positioning desired by management to the targeted buyers. This strategy includes the product, supporting services, d istribution channels, price, & pro9motion actions taken by the organizations. Positioning effectiveness: Positioning effectiveness considers how well manageme nts positioning objectives are being achieved in the market target. This includes determining the metrics to be used in assessing effectiveness. Selecting the positioning concept: Choosing the positioning concept is an import ant first step in designing the positioning strategy. The positioning concept sh ould be linked to buyers value requirements. The focus of the concept may be func tional, symbolic, or experiential. A functional concept applies to products that solve consumption related problems for externally generated consumption needs. For example, Crest toothpaste (cavi ty prevention), Clorox liquid cleaner (effective cleaning). Symbolic positioning relates to the buyers internally generated need for self-en hancement, role position, group membership, or ego-identification. Example of Sy mbolic positioning is Rolex watch; ESSO petrol..put a tiger in your tank. The experiential concept is used to position products that provide sensory pleas ure, variety, and/or cognitive simulation. BMWs automobile brands are positioned using experiential concept that emphasizes the driving experience. Developing & communicating a positioning strategy: Positioning is the act of des igning the companys offering & image to occupy a distinctive place in the mind of 6the target market. Positioning According to Ries and Trout:

Strengthen own current position Grab an unoccupied position De-position or Re-position the competition in the customers mind

Positioning According to Treacy & Wiersema:

Michael Treacy & Fred Wiersema proposed a positioning framework called value dis ciplines. Value disciplines consist of- Product leadership - Operational excellence - Customer intimacy Treacy & Wiersema propose that a business should follow four rules for success: 1. Become best at one of the three value disciplines. 2. Achieve an adequate performance level in the other two disciplines 3. Keep improving ones superior position in the chosen discipline. 4. Keep becoming more adequate in the other two disciplines because competi tors keep raising customers expectations. Positioning: how many ideas to promote? A company must decide how many ideas to convey in its positioning to its target customers. The company can use i) Unique Selling Proposition (Single benefit positioning) e.g., Crest toothpast e promotes its anti-cavity protection. ii) Double-benefit positioning e.g., Volvo double-positions its automobiles as sa fest & most durable, or iii) Triple-benefit positioning e.g., Aquafresh toothpaste positions three benef its: anti-cavity protection, better breath, & whiter teeth.

The brand should tout itself as number one on the benefit it selects. Number-one p ositioning include best quality, best performance, best service, best styling, bes , lowest price, safest, fastest, most customized, most convenient, most technol liable, most prestigious. Four major positioning errors: 1. Underpositioning: Buyers have only a vague idea of the brand. 2. Overpositioning: Buyers may have too narrow image of the brand. 3. Confused positioning: When frequent changes & contradictory messages con fuse customers regarding the positioning of the brand. 4. Doubtful positioning: Buyers may find it hard to believe the brand claim s in view of the products features, price, or manufacturer.

Positioning Possibilities:

Attribute Positioning: A company positions itself on an attribute, such as size or number of years in existence. Benefit Positioning: The product is positioned as the leader in a certain benefi

t. Use or Application Positioning: Positioning the product as best for some use or application. User positioning: Positioning the product as best for some user group. Competitor positioning: The product claims to be better in some way than a named competitor. Product Category Positioning: The product is positioned as the leader in a certa in product category. Quality or Price positioning: The product is positioned as offering the best val ue. Which positioning to promote? Suppose a company has identified four alternative positioning platforms: Technol ogy, cost, quality, & service. It has one major competitor. Both companies stand at 8 on technology (1= low score, 10= high score), which means they both have g ood technology. The competitor has a better standing on cost (8 instead of 6). T he company offers higher quality than its competitor (8 compared to 6). Finally, both companies provide below-average service. Table: Method for Competitive-Advantage Selection (1) (2) (3) (4) (5) (6) (7) Competitive Advantage Company Standing Competitor Standing ce of improving standing (H-M-L) Affordability & Speed (H-M-L) Competitors Ability to improve standing (H-M-L) Recommended Action Technology Cost Quality Service 8 6 8 4 8 8 6 3 L H L H L M L H M M H L Hold Monitor Monitor Invest H= High, M= Medium, L=Low Importan

It would seem that the company should go after cost or service to improve its ma rket appeal. However, other considerations arise. The first is how target custom

ers feel about improvements in each of these attributes. Column 4 indicates that improvements in cost & service would be of high importance to customers, but ca n the company affords to make the improvements & how fast can it provide them? C olumn 5 shows that improving service would have high affordability & speed, but would the competitor be able to match the improved service? Column 6 shows that the competitors ability to improve service is low. Based on this information, col umn 7 shows the appropriate actions to take. The one that makes the most sense i s for the company to improve its service & promote this improvement. Communicating the companys positioning: To communicate a company or brand positioning, a marketing plan should include a positioning statement. The statement should follow the form: To (Target group & need) our (Brand) is (concept) that (point-of-difference). For example: To busy professionals who need to stay organized, Palm Pilot is an e lectronic organizer that allows you to back up files on your PC more easily and reliably than competitive products. Determining Positioning Effectiveness: Estimating how the market target will res pond to a proposed marketing program, and after implementation, determining posi tioning program effectiveness is essential in selecting & managing positioning s trategies. Positioning evaluation should include customer analysis, competitor a nalysis, & internal analysis. Several methods & metrics are available for analyzing positioning alternatives & determining positioning effectiveness. These include customer & competitor rese arch, market testing of proposed strategies, & the use of analytical techniques. Adding further differentiation: Differentiation is the process of adding a set of meaningful & valued difference s to distinguish the companys offering from the competitors offerings. Differentiation criteria: A difference will be stronger to the extent that it satisfies the following crit eria: Important: The difference delivers a highly valued benefit to a sufficient numbe r of buyers. Distinctive: The difference is delivered in a distinctive way. Superior: The difference is superior to other ways of obtaining the benefit. Preemptive: The difference cannot be easily copied by competitors. Affordable: The buyer can afford to pay for the difference Profitable: The Company will find it profitable to introduce the difference. Differentiation Tools: Product Differentiation Form Features Performance Quality Conformance Quality Durability Reliability Reparability Style Design: The Integrating Force

Services Differentiation

Ordering Ease Delivery Quick response system Installation Customer Training Customer Consulting Maintenance and Repair Miscellaneous Services Personnel Differentiation Competence Courtesy Creditability Reliability Responsiveness Communication Channel Differentiation Coverage Expertise Performance Image Differentiation Symbols, Colors, Slogans, Special Attributes Physical plant Events and Sponsorship Using Multiple Image-Building Techniques