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Positioning strategies in marketing

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Based on few cases

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Positioning strategies in marketing

  1. 1. POSITIONING Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Firms can position brands, the company, the CEO, or individual products. Positioning is a concept first popularized by Al Ries and Jack Trout in their best seller book “Positioning – A Battle for your Mind” ANU DAMODARAN 2
  2. 2. POSITIONING Positioning is what the customer believes based on his/her experiences and evidence, rather than just the awareness created by advertising or promotion. Pricing, promotion, channels of distribution, and advertising are all geared by marketers to maximize the chosen positioning strategy. ANU DAMODARAN 3
  3. 3. POSITIONING SHOULD BE Simple Creative Unique ANU DAMODARAN 4
  4. 4. POSITIONING CONCEPTS Functional concepts - Solve problems - Provide benefits to customers Symbolic concepts - Self image enhancement - Ego identification - Belongingness and social meaningfulness - Affective fulfillment ANU DAMODARAN 5
  5. 5. POSITIONING CONCEPTS Experiential concepts - Provide sensory stimulation - Provide cognitive stimulation ANU DAMODARAN 6
  6. 6. BASES AND STRATEGIES FOR POSITIONING Product or service attribute Technology positioning Benefit positioning User category Competitor positioning Integrator positioning Positioning of leader Positioning of follower Re positioning De positioning ANU DAMODARAN 7
  7. 7. BASES AND STRATEGIES FOR POSITIONING Product or Service Attribute - May include features such as size, color, ingredients, speed, etc. Ex: Computer, financial planning services Technology Positioning - Positioning on the basis of technology shows that a firm is on the cutting edge. Ex: Oracle as database software, Microsoft for PC market Benefit Positioning - Benefit positioning is generally a stronger basis for positioning because it answers the consumer question: What will this product/service do for me? Ex: Volvo for safety ANU DAMODARAN 8
  8. 8. BASES AND STRATEGIES FOR POSITIONING User Category - User category positioning relies on customer segments. Ex: The Pepsi Generation, Wheaties the Breakfast of Champions Competitor Positioning - Many firms position by benefits that provide advantages over their competitors. Ex: Software company claiming to be superior, TOI ANU DAMODARAN 9
  9. 9. BASES AND STRATEGIES FOR POSITIONING Integrator positioning - Integrators provide everything a consumer needs in a particular product category, industry, or even in general. Ex: Martha Stewart’s Web site brings together business units in one place. ANU DAMODARAN 10
  10. 10. BASES AND STRATEGIES FOR POSITIONING Positioning of leader – largest percentage of sales in terms of revenue. Ex – Coca Cola, McDonald’s Positioning of follower – claiming to be only second to the best. Ex: Lowenbrau and Beck’s beer, Avis Car Rentals – We are No:2, We Try Harder ANU DAMODARAN 11
  11. 11. BASES AND STRATEGIES FOR POSITIONING Repositioning Strategies - Repositioning is the process of creating a new or modified brand, company, or product position. Ex: Cadbury, Dabur (pharma to FMCG) A company may enhance or modify a position, based on market feedback.  Yahoo! repositioned from online guide to Web portal.  Amazon repositioned from world’s largest bookstore to “Earth’s biggest selection.” ANU DAMODARAN 12
  12. 12. BASES AND STRATEGIES FOR POSITIONING De positioning – changing the identity of competing products, relative to identity of own products. Ex: Bingo to Lay’s, Fair and Lovely to Emami ANU DAMODARAN 13
  13. 13. MEASURING THE POSITIONING Graphical technique Perceptual mapping Statistical techniques Survey techniques – ANU DAMODARAN 14
  14. 14. “Finest sky” in the “India’s first airline to offer great value for moneyA M O D A R Aefficient A N U D and N 15
  15. 15. “For upscale American families, Volvo automobile that offers maximum safety” is the family “For drivers who value auto performance, BMW provides luxury vehicle that deliver joy through German engineering” ANU DAMODARAN 16
  16. 16. “To be the family friendly low cost restaurant in the fast food business” “To cultured millennials , Starbucks is a premium coffee house that adds an intimate and valuable experience to a consumer’s lifestyle by integrating caffeine with a comfortable environment” ANU DAMODARAN 17
  17. 17. “IPhone is for high end of the market” ANU DAMODARAN 18
  18. 18. Thank you ANU DAMODARAN 19

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