Marketing343 - University of Alaska system

Marketing343 - University of Alaska system

Positioning Hi Quality Papa John Select Target & Position Pizza Hut Slow Dominos Caesars Low Quality Fast te a r t

s y n o m ra t e g e D t & S g e n g n i i n f i o ni n e o i t

D i s s P os i t o P s e e h t c o e r s n e i P l u t

q h u i c O n r esea ch es: e t R & i g c i e t g S t ra o l

e t e a g t e n a i v n i l ition Inno te e D f Po s ca o l e o

R create ro e P t a r ig n e D Corporate CorporateLevel Level Where were at: The 3rd Level of Strategy Business

Businessunit unitLevel Level Functional Strategy Information systems Research & development Finance Manufacturing Marketing Human resources What Weve done Situation Analysis Company

Consumers Competitors Conditions SWOT Analysis What We Know Company Mission, resources, Strengths & Weaknesses, growth & competitive strategies How the market is segmented & relevant factors that influence consumers purchasing decisions Competitors

The nature & magnitude of competition for the consumers time & $ Conditions Existing & emerging Macro-E Trends that can impact on strategic decisions Consumers Situation Analysis Company Consumers Competitors Strategic Strategic

Planning Planning Marketing Strategy Ps The Marketing Mix: Growth & Competitive Product Place Target Market Strategies G G NN Conditions

C C Service PEST Price Promotion TGT TGT Positioning Strategy D D E E WM WM

F F What We do Now Targeting Targeting Select Target & Position The The process process of of evaluating evaluating segments segments && selecting selecting those those that that are

are most most attractive attractive to to pursue pursue Positioning Positioning Determining Determining how how aa brand brand should should be be perceived perceived & & fit fit into into lives lives of of target

target consumers consumers Key to Successful Marketing Strategy Convincing the right person(s) that you offer the best product, available at best place, at the best price Marketing Strategy Success Contingent on Formulating right Marketing Mix around the most profitable target & competitive position Price Product Target Customer & Needs

Position Promotion Distribution Marketing Strategy Success contingent on formulating your Marketing Mix so that it Specifies - the way you want consumers to think & feel about your product/service Defines - how you will be differentiated & thus compete in marketplace Product Price Target & Position Place

Promo Positioning is the Centerpiece (literally & figuratively) of Marketing Strategy Positioning is not what you do to product Positioning is what you do to the Consumers Mind Positioning isthe place the product occupies in consumers mind-Relative to other competing products

Hi Quality Papa John Pizza Hut Fast Slow Dominos Caesars Low Quality The Consumer Mind - Set Consumers organize the product field according to communicated conventions Mercedes=Best Armani=Best Pentium=Best Bud=Most Pop.

Wal-Mart= Low Price, High Variety The Product Ladder Every product field has a pecking order The top brands & the also available To find Your Products Position You Need to get into consumers head & Map the product field from the consumers point

of view Mapping Product Positions Gives you a visual representation of where consumers place competing brands along key dimensions G G Prices NN C C Service TGT

TGT D D E E WM WM F F Steps in Creating Product Position Maps 1) Identify relevant set of competitive brands Evoked Set 2) Identify key attributes consumers use to evaluate brands Consideration

Set of each brand -on each attribute 3) Determine consumers perceptions 4) Plot products position across attributes 5) Plot customer ideal points (market segments) Paired Comparisons 1---------100 Hi Calorie Heavy Light Low Calorie Full Body

Paired Comparisons 1---------100 Premium Popular Priced Low Calorie Semantic Differentials SA----------SD Multi-Dimensional Scaling *Becks *Budweiser *Heineken *Old Milwaukee. *Meister Brau *Miller *Coors

*Strohs *Michelob *Miller Lite *Old Milw. Light *Coors Light Position Map Automotive market Figure 5-6 Luxury Lexus Mercedes Cadillac Porsche BMW Lincoln Traditional

Chrysler Oldsmobile Buick Mercury Ford Dodge Pontiac Sporty Chevrolet Nissan Toyota Plymouth Functional Saturn VW

Position Map - Bar Soap High moisturizing 7 Tone 4 Zest Lever 2000 Dove 2 5 Lux Nondeodorant 8 Deodorant

3 With Relative Size of Consumer Segments 1 Lava 6 Low moisturizing Dial Lifebuoy W/ Position Map In Hand Every Marketing strategist has 4 options: 1. Innovate

2. Relocate 3. Procreate 4. Denigrate Positioning Strategy Option #1: Innovate Develop & Introduce a New product in a New Position Cherchez Le Creneau! Find a new or unoccupied position that is important to consumers Find Un-Occupied Soap Space High moisturizing 7

Tone 4 Zest Lever 2000 Dove 2 5 Lux Nondeodorant 8 3 Safeguard Deodorant 1

Lava 6 Low moisturizing Dial Lifebuoy Find Un- Occupied Beer Space BUD 1 4 Corona 5 2 Cheap Miller

3 7 6 1st Light Beer 1st Cheap Pen 1st Womens Cigarette Who was 1st person to walk on moon? The 2nd?

Who was your 1st Big-Nooky? Your 2nd? Staking out a Position w/ a Proposition The first person to claim a benefit is the one who becomes associated with it in the minds of consumers. Thick & Juicy/ Where's the Beef You Deserve a Break Today

Have it Your Way --Finding an Open & Lucrative Position is Difficult-Product Space already very competitive Mind-Space is very limited & already occupied PRODUCT POSITIONING Evoked & Consideration Sets-occupied The mind will hold only a few alternatives in

memory & disregards all others Whats in Your Evoked Set? Rental Cars? Tissue? Soft Drinks? Fast Food? Potato Chips? Computer Chips? Positioning Strategy Option #2: Relocate Redesign & Re-introduce an Existing product in a New Position Re-Position Nearer to Ideal of most/more

profitableExpensive target group Anacin Tylenol Nuprin Advil Motrin Reformulate,Bayer RepackageMedipren &/or more directly Promote: Tylenol for effective Headache Relief Ideal St. Josephs Inexpensive For

Body Aches For Headaches Ideal Excedrin Tylenol Bufferin I Larger Seg Juxtaposition Old Style Market Rollout TASTES As Good As Budweiser

But Costs a Whole Lot Less! Positioning requires Consumer Partipulation You have to get the consumer to participate in their own manipulation Manipulate what is already in the mind of the consumer Do not challenge existing perceptions If you cant be 1st at least be Real is # 1 Avis is only #2 in rental cars So why go with us?

We try harder The Classic Juxtaposition The Originals Avoids Avoids contradicting contradicting whats whats really really in in consumers consumers mind mind Positioning involves Comparatives not Superlatives

Not the BEST Thing Coca Cola The Real Thing Infer all others are imitators Lite Beer from Miller. Everything you always wanted in a beer. And less. Positioning Strategy Option #3: Procreate Develop & Introduce a number of New products

in multiple Positions Expensive Procreating calls for developing & Excedrin positioning multiple products Anacin Nuprin Bufferin Advil Tylenol Motrin Medipren Bayer Medipren Plus

St. Josephs Medipren Cold &Flu Inexpensive I For Body Aches For Headaches I The Master of Multi- Branding Procter & Gamble: Every Brand w/ its own Position Tide:

Tide: for for family family market market Cheer Cheer for for clothes clothes -conscious -conscious w/ w/ color colorguard guard Bold: Bold: for for value-conscious value-conscious w/ w/ fabric fabricsoftener softener Gain: Gain: for

for scent-conscious scent-conscious w/ w/ aromatics aromatics Era: Era: for for dirt-conscious dirt-conscious w/ w/ stain stainremovers removers Dash: Dash: for for price-conscious price-conscious Dreft: Dreft: for for new new mothers mothers Ariel:

Ariel: for for eco-conscious eco-conscious Michelob Light, Michelob Dry. Michelob Diluted its Position A position of power Michelob was the first high-priced Premium-domestic beer--Then they launched into Michelob Light, Michelob Dry Honey Lager HefeWeizen They started to become everything to everybody and they became nothing

A note of Caution about Multi-Branding Be Careful when introducing/ positioning a new product-- especially if you're using the family brand-name Be careful w/ Brand Extensions (using existing brand name in new product category) Kodak Crayons Exxon Office Furniture Gerber Life Insurance Established perceptions not Life Savers Gum compatible across Xerox Computersproduct classes Kleenex Towels

Arm Arm & & Hammer Hammer Products Products A A SuccessSuccessEstablished Established perceptions perceptions readily readily transfers transfers product product classes classes utubes Positioning Strategy Option # 4: Denigrate Place Competitor's product in a less

Favorable Position Repositioning the Competition Royal Doulton, the china of Stratford-on-Avon Vs. Lenox, the china of Pomona, New Jersey Repositioning Repositioning the the Competition Competition uTube Nuprin uTube vs. Tylenol vs. Aspirin

Tylenol campaign pointed out the negative affects of aspirin (stomach upset) Scope vs. Listerine Minty Breath Not Medicine Breath NNo o w & &w wLLiist w//C steer Ciinn rm nnaa miinntt m moon n

uTube Repositioning the Competition Visa: They wont take American express NOT Developing & Implementing Positioning Strategy Differentiation The World On Time Communication Choosing & Implementing a Differentiation Strategy 1. Stakeout optimum position Based on your most salient competitive advantage

2. Focus on Single-Competitive Advantage often bestHelps to gain positioning intensity 3. Position strengthened by noting your strengths in conjunction with your competitors weaknesses best quality lowest price best value most reliable Developing Differentiating Statements For (target customers) Who are dissatisfied w/

(current market alternatives) Our product is (a new product category) That provides (key capability) Unlike (competing alternatives) We provide (the desired alternative). Nordstroms Differentiating Statement NN

G G Prices C C Service TGT TGT D D E E WM WM For discriminating shoppers

Who are dissatisfied w/ long-lines and substandard customer service Our product is offering only the highest quality and service, That provides the premiere prestige retailer Unlike other retailers who take your business for granted, We are committed to making you our most important customer.

F F NN Targets Differentiating Statement G G Prices C C Service TGT TGT D D E

E WM WM For F F who appreciate value and service Who are impersonal big box retailers who sell inferior dissatisfied w/ products Our product is Target is the premiere value retailer That provides offering a unique mix of quality products, low prices and a friendly shopping environment Unlike

other discount retailers who offer low quality products and stores, We are committed to offering the most enjoyable and valuable shopping experience Wal-Marts Differentiating Statement G G Prices NN C C Service

TGT TGT D D E E WM WM F F For shoppers seeking the lowest price every time Who are dissatisfied w/ clipping coupons and waiting for salepromotions

Our product is Wal-Mart is the premiere discount retailer That provides offering every day low prices, Unlike other discount retailers who make you shop (for sales) when they want you to We provide are committed to offering you the lowest prices everyday. In our Hyper-Competitive-Global market The need to differentiation grows greater everyday

Differentiate or Die: Survival in Our Age of Killer Competition From the early 1970s to late 1990s, the number of automobile models grew from 140 to 260; the number of over-the-counter pain relievers went from 17 to 141. That makes positioning the marketing tactic of differentiating a product or company in the mind of a prospectmore important than ever Jack Trout A position of power

The ultimate success of any positioning strategy comes down to 2 Key Decisions 1. 1. Choosing Choosing most most salient salient variable variable w/ w/which whichto to distinguish distinguish your your product product from from competitors

competitors 2. 2. Selecting Selecting best best communication communication platform platform to to convey convey your your products products unique unique position position Your 1st Decision: On What Dimension or Variable

do you want to compete? Differentiation Strategy Putting your Best Foot Forward Criteria for Selecting the Right Competitive Advantage Must be relevant to a consumer need that motivates purchase/usage Determinant Determinant Affordable Affordable Profitable Profitable

Criteria Criteria for for Determining Determining which which Differences Differences to to Promote Promote Preemptive Preemptive Distinctive Distinctive Superior Superior

Differentiation Variable Options Product Actual Augmented Consumer Benefits Uses Users Product Levels Augmented Augmented Product Product Service Distribution Delivery Price Quality

Brand Name Features Actual Actual Product Product Packaging Warranty Payment planCredit Design AfterSale Support Installation Product

Differentiation Variables Actual Augmented Product Attributes features performance durability reliability repair-ability style design Differentiation Price/Quality -Attributes Product Differentiation variables: Actual Augmented

Customer-Service Customer-Service Attributes Attributes delivery delivery installation installation customer customer support support Product Differentiation variables Actual Augmented

Employees/ Employees/ Personnel Personnel competence competence courtesy courtesy credibility credibility reliability reliability responsiveness responsiveness

communication communication Product Differentiation variables Actual Augmented Channel Channel Coverage Coverage Expertise Expertise Performance Performance Differentiation Variable Options

Product Actual Augmented Consumer Benefits Uses Users Consumers Buy Benefits not Products Consumer Benefits Uses Users People People

buy Holes, not drills! buy Hope, not cosmetics! Toothpaste Market Differentiated by Benefit Segments Sensory Segment Principal benefit Sought.. Brands disproportionately favored Flavor and product appearance

Colgate Sociable Segment Worrier Segment Figure 5-3 Independent Segment Brightest of teeth Decay Price Macleans, Ultra Brite

Crest Cheapest brand prevention Procter & Gamble: Each Brand offers a Unique Benefit Consumer Benefits Uses Users Positioning by use or application Differentiation Differentiation based based on: on:

How How aa product product is is used used The The number number // variety variety of of uses uses New New // Changing Changing patterns patterns of of use use Differentiation

thru Product use - REPOSITIONING-Revitalize REPOSITIONINGsales w/ New uses (mature product) From old-Fashioned Dessertto-Childrens &/or adult fun product Arm & Hammer Baking Soda Expensive Excedrin Anacin Nuprin Bufferin Advil Tylenol

Emerging IdealDaily Heart Med. I Bayer Motrin Medipren I St. Josephs Inexpensive For Body Aches For Headaches I Consumer

Benefits Uses Users Product Positioning = Consumer Positioning Consumers Buy Products to define & differentiate themselves Designer Label- clothes, cosmetics, perfume Top-Shelf Liquor Automobiles Image Congruence between Products Qualities / Connotations & Consumers Personality / Persona Differentiation by user: Revolt Jeans

The Marlboro Man uTube uTube Finally you must effectively communicate your competitive Advantage 1. Choosing the most salient variable w/ which to distinguish your product from the competitors 2. Selecting the best communication platform to convey your products unique position Communication Strategies CognitiveLogical focuses on problems, solutions or benefits

sought by customers how product features help solve problems or achieve benefits Got emotional product positioning? AffectiveEmotional appeals to the heart focuses on emotions, feelings, or drives associated with product / service A position of power When

When aa company company doesn't doesn't present present aa clear clear message message that that its its product product isis unique unique in in aa way way that that isis relevant relevant to to customers, customers,

those those customers customers have have no no reason reason to to buy buy it it Four Major Positioning Errors 1. Under-positioning - consumers have only vague idea of the brand. 2. Over-positioning - consumers have too narrow a view of the brand. 3. Doubtful Positioning - consumers dont believe the brands claims

4. Confused Positioning - consumers confused about the brand due to frequent changes or too many claims. Burger Kings search for Position 76 76 77-78 77-78 78-80 78-80 80-82 80-82 82 82 Have Haveitityour yourway. way. America Americaloves lovesburgers

burgersand and were Americas Burger were Americas Burger King. King. Whos Whosgot gotthe thebest bestdarn darn burger? burger? Make Makeititspecial. special.Make Makeitit Burger BurgerKing. King.

Arent Arentyou youhungry hungryfor for Burger King now? Burger King now? Battle Battleof ofthe theburgers. burgers. 86-87 86-87 87 87 This Thisis isaaBurger

BurgerKing Kingtown. town. The Thebest bestfood foodfor forfast fasttimes. times. 87-89 87-89 89-91 89-91 We Wedo doititlike likeyoud youddo doit. it.

Sometimes Sometimesyou yougotta gottabreak break the rules. the rules. 91-92 91-92 Your Yourway. way.Right Rightaway. away. 92-94 92-94 BK BKTee TeeVee: Vee:I Ilove lovethis this place! place!

94 Back 94 Backto tobasics basics 82-83 82-83 83 Arent 83 Arentyou youhungry? hungry? 83-85 83-85 The Thebig bigswitch. switch. 94-96 94-96

96-98 96-98 Get Getyour yourburgers burgersworth. worth. ItItjust justtastes tastesbetter. better. 99 99 85-86 85-86 Search Searchfor forHerb. Herb. 86-87 86-87This

Thisis isaaBurger BurgerKing Kingtown town 2000 2000 Go Gothe thedistance distance Got Gotthe theUrge Urge 01-02 01-02 02-03 02-03

The TheWhopper WhopperSays Says At AtBurger BurgerKing KingYou YouGot GotItIt Hi Quality Papa Johns Variety Pizza Hut Fast Slow

Dominos Caesars Low Quality

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