Positioning POSITIONING Positioning Developing a marketing strategy to

Positioning

POSITIONING Positioning ü Developing a marketing strategy to influence how a particular market segment perceives a product in comparison to the competition ü Goal is to create a difference that is: § Meaningful § Valuable § Logically or emotionally powerful § “Ownable” ü Positioning = the unique and valuable space in the customers head and/or heart you want to own

Positioning Strategies Text features two strategies: 1) Head-to-head § Direct competition along similar attributes • E. g. Hertz and Avis • Not used by market leaders 2) Differentiated § Niche: find smaller, less competitive markets • E. g. Edys Low Fat ice cream This is too narrow Labels do not matter – strategy does

Many Different Positioning Strategies By Attributes and Benefits By Price or Quality By Competition By Product Class By Product User

DEVELOPING YOUR POSITIONING 1. Identify attributes of importance to the TM for this category

PERCEPTUAL MAPPING Basis: consumers group products to simplify buying Marketers seek to: ü Identify their place on the map ü Identify customers’ “ideal points” ü Influence this map and/or their place on it in the target’s mind Research-based when possible, intuitive when necessary ü Multi-Dimensional Scaling

PERCEPTUAL MAPPING Identify how you differ from competitors ü Focus on differences that have meaning Identify axes ü Each axis must be a key attribute (buying criteria) Locate your and all key competitors on map ü Based on how target sees things Hints ü Label axes as descriptively as possible § Avoid “price” and “quality” labels – too generic ü Use descriptions your customers would use ü Make more than one map

PERCEPTUAL MAPPING New Product?

POSITIONING STATEMENTS A succinct description of the core target audience to whom a brand is directed AND a compelling picture of how the marketer wants this core target to view the brand. For internal customers Brings clarity/focus to development of strategy and tactics Different than a tag line ü Tag flows from positioning

POSITIONING STATEMENT Key elements that feed the positioning statement: Target Audience – description of the most loyal brand users Frame of Reference - the category in which the brand competes Benefit/Point of Difference - most compelling benefit the brand can own in the hearts and minds of the target relative to the competition. Reason to Believe - the most convincing proof that the brand delivers what it promises.

POSITIONING STATEMENTS Good positioning statements are: ü Meaningful ü Differentiate-able ü Own-able ü Believable ü Memorable ü Actionable ü Grow-able

Possible Positioning Statement Fed. Ex example For businesses big and small, Fed. Ex is the most reliable overnight delivery service on Earth. We use the largest fleet of trucks and airlines in the world to get your critical items into the hands of those who need them – when they need them. And we guarantee it.