MARKETING: POSITIONINGMARKETING: POSITIONING

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When C.P. Allen fans cheer for their When C.P. Allen fans cheer for their Cheetahs, they are taking a Cheetahs, they are taking a positionposition——a stance, perception, attitude or point a stance, perception, attitude or point of view. of view.

We show our support by wearing We show our support by wearing Cheetah jerseys, uniforms, school Cheetah jerseys, uniforms, school colours, etc. colours, etc.

Once fans position themselves as Once fans position themselves as supporting a team, they are usually supporting a team, they are usually not fans of other teams playing the not fans of other teams playing the same sport.same sport.

Positioning allows us . . .Positioning allows us . . .

To create an To create an imageimage—the outward —the outward representation of the person we want representation of the person we want to beto be

To be motivated to develop the skills To be motivated to develop the skills and qualities that are necessary to and qualities that are necessary to maintain our positionmaintain our position

Examples: web designer studies art; Examples: web designer studies art; athletes practice and attend campsathletes practice and attend camps

Marketers . . .Marketers . . .

Make Make choiceschoices about how to about how to position their product or service position their product or service in order to create an image of in order to create an image of the brand they want the the brand they want the consumer to accept.consumer to accept.

These choices mean the brand These choices mean the brand will appeal to some people and will appeal to some people and not to others.not to others.

What is positioning?What is positioning?The attempt by a business to obtain The attempt by a business to obtain a a share of mindshare of mind—to achieve top-of-—to achieve top-of-the-mind awareness among target the-mind awareness among target customers.customers.

Positioning has come to mean Positioning has come to mean the the process by which marketers try to process by which marketers try to create an image or identity in the create an image or identity in the minds of their target market for its minds of their target market for its product, brand, or organizationproduct, brand, or organization. .

ExamplesExamplesJones SodaJones Soda projects an image of the projects an image of the hip, young, urban, soft-drink hip, young, urban, soft-drink company.company.

Mark’s Work WearhouseMark’s Work Wearhouse positions positions itself as a retailer of solid, durable, itself as a retailer of solid, durable, reasonably priced casual clothing. A reasonably priced casual clothing. A consumer who wants to buy long-consumer who wants to buy long-lasting casual pants will think of lasting casual pants will think of Mark’s first. If the customer is Mark’s first. If the customer is looking for high fashion, he/she may looking for high fashion, he/she may think of other stores first.think of other stores first.

Positioning is a businesses’ Positioning is a businesses’ competitive strategy. competitive strategy.

What's the one thing you do best?What's the one thing you do best?

What's unique about your product What's unique about your product or service?or service?Identify your strongest strength Identify your strongest strength and use it to position your product. and use it to position your product.

See example

The product Nyquil was conceived as a The product Nyquil was conceived as a superior superior daytimedaytime cough suppressant. cough suppressant. Unfortunately, it made people drowsy. Unfortunately, it made people drowsy. Determined to recover product Determined to recover product development costs, the side affect of development costs, the side affect of drowsiness was then transformed into a drowsiness was then transformed into a powerful positioning strategy. Nyquil powerful positioning strategy. Nyquil became "the night time, coughing, became "the night time, coughing, sniffling, sneezing so you can rest" sniffling, sneezing so you can rest" medicine. Nyquil created and owned the medicine. Nyquil created and owned the nighttimenighttime cold remedy market. cold remedy market.

Types of PositioningTypes of Positioning

1.1. BenefitBenefit

2.2. TargetTarget

3.3. PricePrice

4.4. DistributionDistribution

5.5. ServiceService

1. Benefit Positioning1. Benefit PositioningConsumers expect every product they Consumers expect every product they purchase to purchase to benefitbenefit them in some way them in some way

Products may offer features that other Products may offer features that other products do not:products do not:

A clock radio may use ocean sounds as an A clock radio may use ocean sounds as an alarm rather than a buzzeralarm rather than a buzzer

A coffeemaker may grind the beans as well as A coffeemaker may grind the beans as well as brew the coffeebrew the coffee

A DVD player may also play video gamesA DVD player may also play video games

A cell phone may also take picturesA cell phone may also take pictures

Benefit PositioningBenefit Positioning

ProblemsProblems::

Competitors often add benefits to Competitors often add benefits to their own products which takes away their own products which takes away from the original brandfrom the original brand

Example: Labatt’s developed the metal Example: Labatt’s developed the metal twist-off bottle cap and took a position as the twist-off bottle cap and took a position as the only company that offered such a benefit. only company that offered such a benefit. The millions of dollars spent on developing The millions of dollars spent on developing this unique position were lost as soon as the this unique position were lost as soon as the competition developed its own metal twist-off competition developed its own metal twist-off bottle caps a few months later.bottle caps a few months later.

2. Target Positioning2. Target PositioningQuestionQuestion::

In what major product category do the following In what major product category do the following brands compete: DC, Adio, Osiris, Emerica, brands compete: DC, Adio, Osiris, Emerica, Duffs, Globe, Genetic, Ipath, 81, and Gallaz?Duffs, Globe, Genetic, Ipath, 81, and Gallaz?

AnswerAnswer: : These are (were) the 10 best-selling brands of These are (were) the 10 best-selling brands of skateboard shoes, but many people may not be skateboard shoes, but many people may not be able to identify them.able to identify them.

Marketers of skateboard shoes don’t care whether Marketers of skateboard shoes don’t care whether people who don’t skateboard can identify their people who don’t skateboard can identify their brand. They only care if people who brand. They only care if people who dodo skateboard are familiar with their product.skateboard are familiar with their product.

Target PositioningTarget Positioning

To gain an effective target-market To gain an effective target-market position, all of a brand’s marketing position, all of a brand’s marketing must be focused on a must be focused on a specific specific consumer segmentconsumer segment. .

A target position should cause the A target position should cause the people in the target market to think people in the target market to think that they own the brand.that they own the brand.

Target PositioningTarget PositioningProblemsProblems::

Target markets are unpredictable: Target markets are unpredictable: what is popular today may be what is popular today may be unpopular within weeks or become unpopular within weeks or become popular with a different consumer popular with a different consumer marketmarket

If outsiders start buying the product, If outsiders start buying the product, the insiders, who were the original the insiders, who were the original target, may stop buying ittarget, may stop buying it

3. Price Positioning3. Price Positioning

Options:Options:

Offer the Offer the mostmost expensive product expensive product

OROR

Offer the Offer the leastleast expensive product expensive product

Price PositioningPrice PositioningLuxury goods offer Luxury goods offer statusstatus more than quality. more than quality. Consumers Consumers want want the product to be the product to be expensive.expensive.

Examples of luxury price positioning:Examples of luxury price positioning:caviar, diamond watches, expensive ties, caviar, diamond watches, expensive ties, luxury carsluxury cars

Many consumers are willing to pay high Many consumers are willing to pay high prices for high quality—if using price prices for high quality—if using price positioning with a promise of quality, a positioning with a promise of quality, a business must be sure to provide it.business must be sure to provide it.

Price PositioningPrice Positioning

Price positioning can be used by Price positioning can be used by a business to a business to discouragediscourage customers it doesn’t wantcustomers it doesn’t want

Examples: requiring appointments Examples: requiring appointments to shop in exclusive fashion stores, to shop in exclusive fashion stores, charging very high rates in hotels charging very high rates in hotels to attract only wealthy clientsto attract only wealthy clients

Price PositioningPrice Positioning

Products also compete to establish Products also compete to establish the the low-end positionlow-end position

Example: IKEA has positioned itself as a Example: IKEA has positioned itself as a company that can sell its high-quality company that can sell its high-quality furniture for the lowest prices because furniture for the lowest prices because the consumer assembles the furniture at the consumer assembles the furniture at home.home.

Low-price reputations must carry an Low-price reputations must carry an adequate quality reputation as adequate quality reputation as well—well—no one wants to buy junk!no one wants to buy junk!

Price PositioningPrice Positioning

The middle pricing range is too The middle pricing range is too competitive to use for positioningcompetitive to use for positioning

Even if marketers could establish a Even if marketers could establish a brand’s identify using reasonable brand’s identify using reasonable pricing positioning, the position would pricing positioning, the position would be difficult to maintain—competitors be difficult to maintain—competitors would always try to argue that their would always try to argue that their products were much more reasonably products were much more reasonably priced.priced.

4. Distribution Positioning4. Distribution Positioning

Some marketers use a unique sales Some marketers use a unique sales technique and become known for technique and become known for their method of distribution.their method of distribution.

Example: Example: Avon Avon Products Inc. has Products Inc. has millions of local distributors who use millions of local distributors who use catalogues to take orders from friends, catalogues to take orders from friends, co-workers, and neighbours. Avon has co-workers, and neighbours. Avon has positioned itself as the world’s leading positioned itself as the world’s leading direct-sales cosmetic company for 100 direct-sales cosmetic company for 100 years.years.

Distribution PositioningDistribution Positioning

Companies can also position their Companies can also position their product by placing it in a channel product by placing it in a channel not used by competitorsnot used by competitors

Examples: Examples: Jones Soda sells in clothing storesJones Soda sells in clothing stores

Amazon.com was the first major Amazon.com was the first major bookseller to position itself as an bookseller to position itself as an Internet distributor and has maintained Internet distributor and has maintained its unique distribution positionits unique distribution position

5. Service Positioning5. Service Positioning

Providing a service not offered by Providing a service not offered by competitorscompetitors

Examples: Examples: the first convenience store to remain open the first convenience store to remain open 24 hours-a-day year-round24 hours-a-day year-round

providing tea, cookies, soft music, scented providing tea, cookies, soft music, scented candles in a retail clothing storecandles in a retail clothing store

an electronics company’s return policy, an electronics company’s return policy, guarantee, after-sales service and guarantee, after-sales service and installation support creates a feeling of trust installation support creates a feeling of trust and confidenceand confidence

Service PositioningService Positioning

DrawbacksDrawbacks to service positioning: to service positioning: Once a service has been offered and Once a service has been offered and the company’s position has been the company’s position has been established, the service must be established, the service must be maintained. To decrease or remove maintained. To decrease or remove the service will cause the brand’s the service will cause the brand’s position to change.position to change.

Re-positioningRe-positioning involves changing involves changing the identity of a product, relative to the identity of a product, relative to the identity of competing products, the identity of competing products, in the minds of the target market.in the minds of the target market.

De-positioningDe-positioning involves attempting involves attempting to change the identity of competing to change the identity of competing productsproducts

Related termsRelated terms

EXERCISE 1EXERCISE 1

1.1. Make a list of 2-3 things that Make a list of 2-3 things that interest you (sport, activity, interest you (sport, activity, hobby). Now write down 3-5 hobby). Now write down 3-5 brands of products associated brands of products associated with each. (Try to stump the with each. (Try to stump the class.)class.)

Example:Example:

EXAMPLEEXAMPLE

What do these brands have in What do these brands have in common?common?

Tachikara, Mizuma and AsicsTachikara, Mizuma and Asics

VOLLEYBALLVOLLEYBALL

EXERCISE 2EXERCISE 22.2. List the List the first brand namefirst brand name that comes into that comes into

your mind when you think of the following your mind when you think of the following categories:categories:

CerealCerealWatchesWatchesAthletic shoesAthletic shoesSoft drinksSoft drinksHamburgersHamburgersChocolate barsChocolate barsJuiceJuiceBottled waterBottled waterSunglassesSunglasses

Explain why you think you named these Explain why you think you named these brands first.brands first.

EXERCISE 3EXERCISE 3

3.3. Write down each of the 5 types Write down each of the 5 types of positioning and beside each of positioning and beside each identify a business or brand identify a business or brand that uses that type of that uses that type of positioning (not already positioning (not already mentioned).mentioned).