MARKET NEEDS /
ATTRACTIVENESS
1. Strategic Investment
2. Defining the Target
Segment(s)
COMPETITORS
STRENGTHS /
WEAKNESSES
ORGANISATIONAL
STRENGTHS /
WEAKNESSES
3. Crafting the Value
Proposition
4. Creating the Mix to
Deliver the Value
Proposition
5. Communicating the
Value Proposition
Positioning
TGT. SEGMENT
SCA
INT. EVAL
COMP. EVAL
SEGMENT KSFs
SHORLIST ATTRACTIVE SEGMENTS
ANALYSE COMP / MKT / ENV
SEGMENT THE MARKET
Product Positioning Process
• Defining the market in which the product or brand will compete (who
the relevant buyers are)
• Identifying the attributes (also called dimensions) that define the
product 'space'
• Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes
• Determine each product's current location in the product space
• Determine the target market's preferred combination of attributes
(referred to as an ideal point)
• Examine the fit between:
– The position of your product
– The position of your competition
– The position of the ideal point
• Position
Perceptual Mapping
•
•
•
•
•
•
STEP 1: Sample from Target Market
STEP 2: List of Relevant Attributes
STEP 3: Ranking of Attributes (Top 2)
STEP 4: Rate Existing Brands
STEP 5: Consumer Ideal Point
STEP 6: Overlay Brands & Ideal Point
Perceptual Mapping of
Motorcycles
Step 1: TG Sampling
• 18-24 Male, College Student, MHI > 50,000,
Living in a City, High peer pressure
• Random Sampling
STEP 2: List of Relevant Attributes
•
•
•
•
•
Power
Price
Style
Fuel Efficiency
Cost of Maintenance
STEP 3: Ranking of Attributes (Top 2)
• Price
• Style
STEP 4: Rate Existing Brands
HIGH PRICE
E
Y
B
LOW
HIGH
STYLE
STYLE
HH
T
LOW PRICE
STEP 5: Consumer Ideal Point
HIGH PRICE
LOW
HIGH
STYLE
STYLE
IP
LOW PRICE
STEP 6: Overlay Brands & Ideal Point
HIGH PRICE
R
Y
B
LOW
HIGH
STYLE
STYLE
HH
IP
T
LOW PRICE
POPs
• Points-of-parity (POPs) – Associations that
are not necessarily unique to the brand but
may be shared by other brands
• Considered to be hygiene factors in any
product by the consumer
• Absence could drive rejection
POD
• Point of difference (POD) is a term used to
describe the individual factors which make a
product different from its competitive set
• The key point of difference of a company is
synonymous with its unique selling proposition
(USP)
• Critical in defining its competitive advantage
• Must be attributes or benefits that consumers
strongly, uniquely, and positively associate with
the company's brand
Types of Positioning
• Functional positions
– Solve problems
– Provide benefits to customers
– Tide Surprisingly White
• Symbolic positions
–
–
–
–
Self-image enhancement
Ego identification
Belongingness and social meaningfulness
Pepsi on Youth
• Experiential positions
– Provide sensory stimulation
– Provide cognitive stimulation
– Red Bull Energy in a Bottle
Checks for a Good Positioning
• Have we established a frame of
reference?
• Are we delivering on the points of parity?
• Are the points of difference compelling?
Defining the Positioning
• BPS: Statement on how the marketer
wants the consumer to perceive the brand
• 4 Elements:
– Target Audience
– Frame of Reference
– POD
– RTB
BPS Format
• "For (target audience), (company name)
offers (competitive frame of reference) that
provides (greatest competitive advantage).”
• "For low income housewives, Wheel offers
the wash of an expensive-like powder within
her budget."