Professor Chip Besio
Cox School of Business
Southern Methodist University


The place that the product or service occupies in the customer’s mind relative to competing products

Positioning should be superlative
– Most
–
Best
–
Strongest
– Fastest
Is the positioning believable?

 Differentiate the product
Step 1 - Identify a set of possible advantages relative to competitors
Step 2 - Select the competitive advantage(s) most important to the target market
 Communicate the selected positioning
Step 3 - Effectively communicate and deliver the chosen positioning in the market


Competitive Advantage - An advantage enjoyed by a single product relative to other products in the market

General sources of competitive advantage:
–
Overall cost leadership - can offer best value; lowest prices
–
Product differentiation - unique product characteristics or associations
– Narrow customer focus (niching) - addresses wants and needs of particular customer segment(s)
Adapted from: Michael Porter


Is the competitive advantage difficult for competitors to emulate?
–
Can competitors copy you?
–
How quickly?
–
How much investment is required?
–
Can the company continue to improve on its advantage?

1 Identify the competitors.
2 Assess perceptions of them.
3 Determine their positions.
4 Analyze consumer preferences.
5 Make the positioning decision.

Definition: A spatial representation of how target customers perceive competing brands
– Brands that are perceived to be similar are located close to each other
– Brands that are perceived to dissimilar are further apart
Use the perceptual map to:
– Determine how target customers perceive the product
–
–
Identify competitors
Select a positioning

Using positioning and perceptual maps to increase milk sales to children and adults

Strategies for positioning dairy drinks for kids and repositioning chocolate milk to reach adults

Selection of a positioning depends on:
 Ideal point for target customers
 Current perceptions of the product
 Product’s competitive advantage(s)

There are four general positioning strategies:
 Head-on
 With an Idea
 For Social Accountability
 U.S.P. - Unique Selling Proposition

Value
Away from
Competitors
Against a
Competitor
E
H
G
A
Product
Attribute(s)
Benefit(s)
Offered
C
B
F
D Product
Usage
Product User Cultural Symbols
Adapted from: Prentice
Hall

PRODUCT POSITIONING APPROACHES
APPROACH
BY ATTRIBUTES/BENEFITS
BY USE OR APPLICATION
BY USER
BY PRODUCT CLASS
BY COMPETITOR
EXAMPLE
TOOTHPASTE
SEGMENT: CHILDREN
BENEFIT: FLAVOR & COLOR
–
STRIPE
DECAY PREVENTION – CREST
SEGMENT: TEENS, YOUNG ADULTS
BENEIT: FRESH BREATH & WHITE TEETH – ULTRA BRITE
SEGMENT: SMOKERS
BENEFIT: WHITE TEETH & PLAQUE PREVENTION – TOPOL
ARM & HAMMER BAKING SODA

WATER CLEANER IN POOLS
 “ORDER-EATER” IN REFRIGERATION
 TOOTHPASTE
COLD REMEDIES
 EVENING – NYQUIL
MICHELOB
 WEEKENDS


ALL DAY – CONTACT
EVENINGS
LAXATIVES
 FEMALES – CORRECTOL  MALES – EX LAX
DEODORANTS
 FEMALES – SECRET  MALES – BRUTE
MARGARINE VS. BUTTER
PORK VS. CHICKEN
AVIS AGAINST HERTZ
HUGGIES AGAINST PAMPERS

APPROACH
PRICE-QUALITY
CONTINUUM
Economy
High
Above
Average
Average
Low
Fairfield
Inn
EXAMPLE
MARRIOTT HOTEL GROUP
Quality (Amenities)
Standard Good Superior
Marriott
Marquis
Marriott
Courtyard

CRAFTING A POSITIONING STATEMENT
For ( target market and need ), the ( product, brand name ) is a ( product class or category ) that ( statement of unique attributes or benefits provided )

CRAFTING A POSITIONING STATEMENT
VOLVO EXAMPLE
For upscale American families who desire a carefree driving experience ,
Volvo is a premium-priced automobile that offers the utmost in safety and dependability .

 Based on the positioning or unique selling proposition, develop a marketing mix plan for each targeted segment
Marketing Mix 1
Marketing Mix 2
Marketing Mix 3
Segment 1
Segment 2
Segment 3

1.
Divide market into segments, each of which behaves differently vis-à-vis your product
2.
Select certain segment(s) and focus on them
3.
Tailor a marketing mix for each segment