This document discusses product positioning, value propositions, and differentiation. It defines positioning as occupying a meaningful space in consumers' minds relative to competition. There are three positioning alternatives: strengthening a current position, finding a new unoccupied position, or repositioning competitors. Differentiation makes a product more interesting by designing unique valued qualities. Value propositions answer why a product is better than others by highlighting points of parity and difference. Positioning errors can occur if a position is understated, too narrow, or implausible to consumers.

1. PRODUCT
POSITIONING,
VALUE PROPOSITION
&
DIFFERENTIATION
V I J YATA
A S S I S TA N T P R O F E S S O R ( D E P T. O F M B A )
R A N C H I W O M E N ’ S C O L L E G E , R A N C H I U N I V E R S I T Y

2. POSITIONING
Positioning is the process of occupying a meaningful and
distinctive space in the mind of your target consumers,
relative to competition.
According to Al Ries and Jack Trout.
Positioning starts with a product, a piece of merchandise, a
service, a company, an institution or even a person ... But
positioning is not about what you do to a product.
Positioning is what you do to the mind of the prospect.
That is, you position products in the mind of the prospect.

3. POSITIONING ALTERNATIVES
According to Ries and Trout, there are three
positioning alternatives;
1. to strengthen a brand's current position in the
mind of consumers
2. to search for a new unoccupied position that is
valued by enough consumers and grab it
3. to deposition or reposition the competition.

4. POSITIONING STRATEGY
STEP 1.The
identification of a
group of customers
for whom the firm has
a differential
advantage
STEP 2.Positioning
itself in the customer's
mind

5. PERCEPTUAL MAP
Perceptual maps use
multidimensional
scaling of perceptions
and preferences that
portray psychological
distance between
products and
segments, using many
dimensions.
X-axis
Y-
axis

6. Premiu
m
Budget
High performance
Low performance
PERCEPTUAL MAP : COSMETICS BRAND IN INDIA

7. DIFFERENTIATION
Being different makes you more interesting
Positioning begins with differentiating the company's
marketing offer, so that it will give consumers more value than
competitors' offers do.
Differentiation is designing your product offering so that it
one or more unique qualities that are:
 Valued by your customer
 Consistent with your chosen positioning

8. TOOLS FOR DIFFERENTIATION
•Product differentiation ( performance, style and
design , consistency, durability, reliability or
repairability)
•Service Differentiation (speedy, reliable or
careful delivery )
•Image ( branding, sponsorships, alliances ,CSR)
•Personnel ( hiring and training better people)

9. CURATING THE VALUE PREPOSITION
Value proposition simply answers a question “Why you instead
of others”
A product's position is the complex set of perceptions,
impressions and feelings that consumers hold for the product
compared with competing products while choosing or rejecting
that product.
• Point of Parity (POP) : That attribute which approximately
matches with competitors offerings
• Point of Difference (POD) : The key attribute that gives your
product a competitive advantage over the competition.

10. WHICH DIFFERENCE TO PROMOTE
• Important -The difference delivers a highly valued benefit to target
buyers.
• Distinctive - Competitors do not offer the difference, or the
company can offer it in a more distinctive way.
• Superior -The difference is superior to other ways that customers
might obtain the same benefit.
• Communicable - The difference is communicable and visible to
buyers.
• Pre-emptive - Competitors cannot easily copy the difference.
• Affordable - Buyers can afford to pay for the difference.
• Profitable - The company can introduce the difference profitably.

11. UNIQUE PROPOSITION
Products/brand’s attributes in superlative degree

12. UNIQUE SELLING
PROPOSITION(USP)
• The unique product benefit
that a firm aggressively
promotes in a consistent
manner to its target
market. The benefit usually
reflects functional
superiority: best quality,
best services, lowest price,
most advanced
technology.
UNIQUE EMOTIONAL
SELLING PROPOSITION(ESP)
• A non-functional
attribute that has
unique associations for
consumers.

13. POSITIONING ERRORS
• Underpositioning : A positioning error referring to failure
to position a company, its product or brand.
• Overpositioning : A positioning error referring to too
narrow a picture of the company, its product or a brand
being communicated to target customers.
• Confused positioning : A positioning error that leaves
consumers with a confused image of the company, its
product or a brand.
• Doubtful/Implausible positioning : Making claims that
stretch the perception of the buyers too far to be
believed.

14. THANK YOU
F O R F E E D B A C K / Q U E R Y / S U G G E S T I O N
C O M M E N T I N C O M M E N T S S E C T I O N O R
M A I L AT V I J YATA . R W C @ G M A I L . C O M