1. What is Positioning Prepared by Rabie Soubra

2. What is positioning

This is a theory presentation

Intended to familiarize you with the concept and definition of positioning in a theoretical framework

As a basic understanding of the fundamentals of positioning

3. Why is there positioning

Simply because of choice

We choose brands

Before we buy products

When you have chosen a brand, you already bought it in your mind

4. Why is there positioning

Because of the nature of our business

5. Why is there positioning

Marketers have brands and products to sell

People have needs to fulfil

Those two principles converge in the form of a transaction

ADECISIONBY THE TARGET GROUP TO ACTUALLY SPEND MONEY

6. Why is there positioning

This decision is a behaviour

And just like any behaviour

It is based on a stimulus that the brain responds to in a specific manner

This is called conditioning

7. Why is there positioning

POSITIONING IS CONDITIONING.

8. Just give me one good reason to choose you over the competition.What your customer is telling you always 9. What Makes you: Different Better SpecialBrand choice and product purchase fundamentals 10. Economics is based on supply and demand. Strategic marketing is based on different and better. 11. Positioning-The act of seeking, placing and optimizing somethingin relationship to the competition and surrounding environment From a marketers point of view 12. Definition of Positioning Theory: The science of perceptual strategy.It is based on a theory that strategy can onlybe planned in the mind of the consumer Not the marketplace. Laws and principles about how the mindcategorizes, ranks and files concepts in the directorysystem of the mind govern this science.In other words, it is study of how the mind indexes brands. 13. Basically, positioning is a strategy game of capture the concept. 14. Kit Kat, Mercedes, Apple, Lexus, Levis, Prada 15. Relativity Positioning is about relativity and understanding dynamics.A common misconception is viewing positioning as a singularposition.Take for instance a geographic position,43 degree longitude by 36 degree latitude. Is it a good position?It all depends on what surrounds the position.A single position is meaningless until it is put into context of what surrounds it. 16. Dynamics However, the environment is constantly changingWhich constantly changes the perception of the position.You should always be aware of the environment in which you are competing 17. Dynamics product positioning, advertising positioning, image positioning,brand positioning, perceptual positioning, market positioning,competitive positioning, price positioning, channel positioning,retail positioning, corporate positioning, political positioning,real estate positioning, economic development positioning,social positioning Positioning is not singular 18. Product positioning deals with reality.It is straight comparison of product features.New product development usually tries to createproduct differentiationBigger, more improved, new look, same taste, more value, free 200 grams 19. Advertising Positioning is sometime confused with brandmanagement.There are two main differences.First, advertising exist in the mediaand brands exist in the mind.Advertising is only a part of how consumers form brandperception. It is the main highway that people will take tocome to that brand It is through advertising that features are converted to benefits 20. Image positioning is an evolution of advertisinginto total marketing communications.An integrated marketing portrays a consistent imageover all mediumsCreating a complete identity (overall image)The key to integration is contact point analysis IMC, the total is larger than the sum of the parts 21. Brand positioning deals with consistent transferringof the brand image into the consumer's mindcreating brand perception.Transferring a perfect image is very difficult becauseexternalinterference clutters or warps the perception. Why client servicing should also be creative 22. Perceptual positioning is about registeringthe brand perception correctly in the mind's directory.Perceptual mapping focuses on mapping the mind to figure out optimal positioning.It works with what already exists in the consumers mind. Importance of qualitative research 23. Market positioning is about trend analysis. It takes a macro view of the marketplace dealing with the macromarket forces (economic, political, competitive, distribution,technology, geography, infrastructure, publics, culture anddemographics)Winning brands are the ones that can best adapt. 24. Competitive positioning was born out of micro economics. It looks at how companies position themselves againsteach other in the marketplace.Sustainable competitive advantages are developed throughcore competencies, patents and operational efficiencies. Any of the Ps can be an advantage 25. Price positioningis about perceived value.Price also becomes an indicator of value to many consumers.They can easily tell your rank simply from the price. Price strategy can work both ways 26. Channel positioning works by "owning" distributionchannels which creates barriers of entry to competitors.Carefully selecting channels helpscreate a powerful position. The importance of retail audits 27. Retail positioning is about property values. The most important positioning decision in retail is location. Property values depends on the amount of traffic vs.number of competitors. 28. Corporate positioning deals with perceptionof an entire company.In many ways it is similar to productpositioning but the objective is to createand transfer an image for an entire company. Stock value is heavily based on perceived value. 29. Positioning model 30. What is positioning Positioning is a battle of concepts The objective is to find and then attach a brand and productto a concept in the consumers mind.A sample of various positioning concepts for toothpastewould be Cavity fighter (Crest). Tartar, gum disease (Colgate),Fresh breath (Close Up), White teeth (Pearl drop) 31. Companies battle over the best concepts (terrain) on whichto position their products. Ideally, the brand identity becomes its street reputation. Positioning strategy directly affects market share. Basically, positioning is a strategy game of capture the concept 32. What is the hourglass It is a macro vision of how all the processes and stepsare integrated and linked. From both ends To keep track of the concept development Let us see some examples 33. Category segmentation Categories can be clearly shown and compared In the category of bicycles, the various sub-categories Are segmented byproduct use Durable Fast Racing Mountain Normal 34. Attribute ranking The Terrain The battle within a category is based on the attributes Of the product. In the category of toothpaste,cavity fighteris the Number 1 ranking attribute. Followed bygum/tartar, fresh breath, white teeth Fresh Breath White Teeth Cavity Fighter Gum Disease 35. Finding a good Position The number of consumers wanting this position Is illustrated by the size of the triangle above the positioning line In the category of toothpaste, a great number ofpeople want cavity fighting Fresh Breath White Teeth Cavity Fighter Gum Disease Toothpaste 36. Fresh Breath White Teeth Cavity Fighter Gum Disease Toothpaste Start of Positioning: Names and Slogans Names and slogans can be developed using the category name and attributes. The name, Crest Toothpaste, categorizes theproduct and the slogan No cavities 37. Family branding: Family brands are built on one concept or category. Krafthas built both their brand mix and product mixby focusing oncheese. Each product reinforces the main concept of cheese Milk Brick Cheese Yoghurt Dairy Products Liquid Solid Sliced Cottage Kraft Kinds 38. Late Meals Early Meals Market Size Product Mix: Loss of Focus Kelloggsmeans Breakfast Cereals to most people. When they changed it to Makes morning better They unfocused the concept Becausebreakfastexpanded tomornings AndCerealsexpanded toCereals and snacks Breakfast Dinner Lunch Mid Morning Cereals Kelloggs 39. Product Mix: Loss of Focus (Line extensions) 7 UPclearly stood for the Un-Cola concept When they extended their line to Gold, Cherry and Diet They diluted the original conceptUnhealthy Market Size Lemon-Lime Cola Fruit 7 UP Soft Drinks Healthy Diet Cherry Gold Diet 40. Terrain changes New categories emerge. Traditionalphoto processingis beingreplaced bydigital imaging . How does a brand cope? Electronic Market Size 1998 Photo Processing Photo Images Chemical Digital Imaging Market Size 1998 Market Size 2010 Market Size 2010 Kodak Product mix? Brand 41. Change Market Size Original Cola Stability New Coca Cola Coke Classic The real thing NewGeneration Market Size New Coke Repositioning abrand When Coca Cola tried re-positioning itself as New Coke The consumers had already given the new attribute to Pepsi Within 60 days, Coca Cola returned to its original position Classic 42. Flanking The big 3 auto makers were flanked From the left by the Japanese From the right by the Germans They lost 30% of the American market Expensive Market Size Economy Cars Cheap Luxury Japanese The big 3 GM Ford Chrysler Market Size Market Size German Mid Range 43. Expensive Market Size Economy Cars Cheap Luxury Japanese The big 3 GM Ford Chrysler Market Size Market Size German Mid Range MarketSize Ferrari Exotic Guerillas Some marketers find niches that are too small for the big Manufacturers. Ferrari produces exotic cars 44. Market Size Market Size Market Size Market Size Market Size Market Size Market Size Toys R Us Furniture Hardware Electronics Books Toys Clothing Shoes Generalist Department store Chapters Future Shop Focus Theory: Category Killers Some marketers rip out a category from a generalist environment to a more specialized one The strong (sharp) vs the weak (broad) Hard Goods Soft Goods 45. Summary In marketing, positioning is everything. It directly affect market share The hourglass concept is a very powerful tool to arriveat the best positioning strategy If you get the strategy right, everything falls right into place. 46. Next week Marketing planning principles