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LESSON 37:
BENEFITS, METHODS, ROLE OF POSITIONING, IMPOR TANCE
Objective
Students by the end of this lesson you will be clear with
different aspects of positioning. You will be clear with perceptual mapping and positioning by Ries and Trout.
POSTION process
Positioning is undoubtedly one of the simplest and most
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When we are discussing about STP it is a process of segmenting markets in terms of dividing the market and then targeting
an attractive segment and finally you are positioning the product
with potential customers in the target group.
In general, we can say that a segment is a relatively a homogenous group that has got high potential customers who make
their purchases based on similar criteria and motivations, act in a
substantially similar way (e.g. decision processes, shopping
patterns), and can be communicated to using the same focused
media (e.g. watch the same TV shows or read the same
magazines).
More specifically, segmentation is the definitional process of
disaggregating a mass market into compartmentalized subsets
based on criteria such as demographics (e.g. age, sex, location,
income), psychographics (e.g. attitudes, interests, lifestyles),
usage (e.g. heavy or light users), and benefits sought (e.g.
convenience, safety, power).
Strategically, the most effective segmentation is typically based
on a creative slicing of the market (like benefit segmentation),
rather than the application of traditional demographic variables
(like age or income).
The next step, after defining alternative segmentation schemes,
is the analytically based decision process of targeting, i.e.
selecting segments that are inherently attractive and that closely
match the companys strengths.
Without looking at the further discussion can you guess the
most attractive segment that can be targeted?
In general, we can say the most attractive segments to target are
those that are:
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Positioning Strategies
Basically this positioning strategy can provide a focus in the
development of an advertising campaign. The strategy can be
conceived and developed in a variety of ways. It can be derive
from the object attributes, competition, specific, application, the
types of consumers involved, or the characteristics of the
product class. All these attributes represent a different approach
in developing a positioning strategy, even though all of them
have the common objective of projecting a favorable image in
the minds of the consumers or audience. There are seven
approaches to postponing strategy:
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7. Positioning by Competitors
In this type of positioning strategies, an implicit or explicit
frame of reference is one or more competitors. In some
cases, reference competitor (s) can be the dominant aspect of
the positioning strategy, the firm either uses the same of
similar positioning strategies as used by the competitors or
the advertiser uses a new strategy taking the competitors
strategy as the base. A good example of this would be
Colgate and Pepsodent. Colgate when entered into the
market focused on to family protection but when Pepsodent
entered into the market with focus on 24 hour protection
and basically for kids, Colgate changed its focus from family
protection to kids teeth protection that is basically done
because of competition. This strategy may be preferred for
two simple reasons: i. Competitors may have a well-crystallized image developed
over a number of years. The advertiser may use that
image as a bridge to help communicate another image
referenced to it.
ii. Sometimes, you know what happens, it is not important
to know where you are or what your position is in the
market or how good consumers think you are. It is just
important that they believe that you are better or as good
as a given competitor.
When we are discussing positioning with respect to a
competitor it can be an excellent way to create a position with
respect to product characteristics, especially price quality. But
lets not forget that this cannot be done in certain cases where
it is difficult to evaluate, like liquor products will often use an
established competitor to help the positioning task.
Positioning with respect to a competitor can be accomplished
by comparative advertising i.e., advertising in which the name
of competitor is explicitly named and compared on one or
more product characteristics, on factual information. It
makes that communication task easier.
Procedure for Determining Positioning Strategy
In the previous topic, we have discussed different positioning
strategies, then what should be our positioning strategy. All of
us know that it is a complex and difficult task to identify and
select a positioning strategy. Lets us discuss the steps involved
in positioning strategy, there are basically six-step that are
adopted
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market segmented? (ii) What role does the product class pay
in the customers life style? What really motivates the
customers? And what habits and behavior patterns are
relevant?
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Ries and Trout have distilled the essence of positioning into the
following four principles:
1.
2.
3.
4.
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1.
Under
positioningSometimes a
brand is as
just another
Lowest price
and acceptable
quality
3.
Common core
strategies
Highest
quality or
most
differentiated
product
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each other Any gaps could be regarded as possible areas for new
products.
The marketer would draw out the map and decide upon a label
for each axis. They could be price (variable one) and quality
(variable two), or Comfort (variable one) and price (variable
two). The individual products are then mapped out next to
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Here are some very serious questions that Ive been asked about
search engine positioning. How much traffic can search engine
positioning generate? Is search engine optimization worth my
time to pursue? Is it cost-effective? These are legitimate
questions that our subscribers have asked about this popular
marketing practice.
Back in 1996, I discovered how important top rankings were in
the major search engines. As a business owner who admittedly
started his company from his home and on a shoe string
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sleek style, easy start, easy pick up, fuel economy, and maintenance services.
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