David Robinsonfaculty.haas.berkeley.edu/robinson/ugba106

Haas School of BusinessHaas School of Business

ugba 106

Marketing

© D. Robinson, 2009

Lecture 4: Problems of Positioning

Lecture 4: Problems of Positioning

1. Examples of positioning2. What positioning means 3. How so “problems”?4. How we achieve it5. How marketers use positioning

- Perceptual Maps

Some examples of positioning

Defining positioning

Definition

Positioning is the (multi-dimensional) place that our product holds in the mind of customers (actual and prospective) as compared to competitors offerings

Four Steps to Marketing Strategy

Define the Market

Segment the Market,

Choose attractivesegments

Design aMarketing Mix

to Appeal to theTarget

Position ouroffering

In the minds of customers

As compared tocompetitors’ offerings

Great Truths about Positioning

1. Ideal position flows from the “attractive market”

If we decide 35 – 54 female married is the attractive market segment,

we better come up with an offering that appeals to Hockey Moms

                                                                                                                                

                

2. Positioning is in the eye of the beholder

• Most products have many ways we could position … choose one: “Tastes great” or “Less filling”“Saves lives” or “the ethical alternative”

• Some positions involve giving up others(glamour and “healthy” are different)

• A good “positioning’ is linked to the value proposition—it has to be “credible”

Copyright 2007, Prentice-Hall, Inc.

A&K Figure 6.4

4. Positioning should match theValue Proposition

Why do I say “Problems of Positioning”?

Problems of Positioning:1. Positioning Paradox

• Positioning is a result of good Marketing Strategy Planning

• But, to achieve desirable positioning, we should begin with an idea of where we want to end up

Problems of Positioning, 2:The position we achieve may not

be the position we sought

• Positioning is what customers think about us—not what we say about ourselves

3. The Position you want may have been pre-empted.

Who owns the position “Safe Car”?

The Position you want may have been pre-empted:

4. The Competitive Position may be different in another (geographic) market:

Honda in Japan• Youthful• Sporty• Hi-tech engineering

Honda in USA• Economical• Good enough for

everyday• “Import”

How we achieve positioning

Positioning is achieved through a harmonious Marketing Mix of all

“four P’s”

We achieve positioning byAttributes and Associations

How does the

Marketing Mix fit here?

Positioning

Attributes Associations

Features

Performance

Price

Channel

Advertising

Other Promotion

Ethics: Beware of False Positioning

“They traversed across 10 deserts. Climbed two volcanoes. Skirted the world's deepest lake. Stood at the edge of the world in Tierra del Fuego. Braved minus-58 degree temperatures in Siberia. And completed the world's longest charitable drive-a-thon from behind the wheel of four Certified Pre-Owned Discovery vehicles—in a global search for a cure for Parkinson's Disease.”

Introduction to Perceptual Mapping

• The result of Marketing Research

• Often expressed as 2-dimensions, but likely multi-dimensional

Product space (positioning) for bar soapsProduct space (positioning) for bar soaps

High moisturizing

Low moisturizing

Nondeodorant Deodorant

1

2

3

4

5

7

6

8

Safeguard

Lever 2000

Zest

CoastLux

Dove

Tone

LavaLifebuoy

Dial

Fig 6.3 Positioning map luxury SUVs

Why would “Expensive”

be better than “Price”

Competitive positioning: 1. Some positions may make no sense

High Service

Economyprice

Low Service

High price

Competitor D

Competitor B

Competitor C

Competitor A

Whowants highprice/lowservice?

Competitive positioning: 2. Usually best to avoid head-to-head

High Service

Economyprice

No one inthis segment

Low Service

High price

Competitor D

Competitor B

Competitor C

Competitor A

Repositioning: You can move, but not leap:

Crunchy

Not

sweet

Where we are

“Ideal cereal for kids”

Soggy

Sweet

Repositioning: You can move, but not leap:

Crunchy

Not

sweet

Where we are

“Ideal cereal for kids”

Soggy

Sweet

Not going to happen!

Repositioning: You can move, but not leap:

Crunchy

Not

sweet

Where we are

“Ideal cereal for kids”

Soggy

Sweet

This might be possible

Example of a bad leap. . .

• Wal-Mart Fashion

What couldthey have

done?

SummaryPositioning is in the eye of the beholder

1. The place our product holds in the minds of prospective customers - Not where we would like to be

2. Most products can be positioned in several different ways—choose one

3. A good “positioning’ is crediblethat is, it is linked to the value proposition

4. Some positions involve giving up others

5. Some positions may have been pre-empted by other firms

6. Good marketers understand what to do to effectively position their products—an array of “Attributes and Associations”

7. You can move (or develop) your position, but you can’t do a magic leap