Positioning Strategies in South Africa A content Analysis

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An Exploratory Study of Positioning Strategies
Employed by Firms in South Africa: A Content
Analysis of Print and Radio Advertisements
Charles Blankson, Ph.D.
Introduction and Literature Review
• This paper assesses the employment of
positioning strategies by South African firms.
• In particular, given the criticisms of existing
positioning typologies (Kalafatis et al., 2000),
the study attempts to validate a newly
developed consumer/customer-derived generic
positioning typology in the South African
market environment.
Introduction and Literature Review contd.
• While the study of marketing practices
and market orientation in Africa has
received attention by marketing scholars,
positioning, which is considered to be one
of the cornerstones of modern marketing
management seems to have eluded the
interest of marketing researchers
interested in African marketing/business
operation.
Introduction and Literature Review contd.
• Despite the importance of positioning in
international marketing (Alden et. al.,
1999), positioning research appears to be
prevalent in Western Europe, North
America and Asia, to the exclusion of
African markets.
• Relatively weak economies, businesses,
management, and negative perceptions
about governance in Africa.
Introduction and Literature Review contd.
• Notwithstanding, following trade liberalization
and democratic governance by some countries
(e.g. Ghana) and the dismantling of apartheid
system of government by South Africa, there
has been effort on the parts of some African
governments to embark upon development
projects, creation of investment/business
climate and image building, i.e., positioning.
• Such a climate paves the way for positioning activities
by firms.
Introduction and Literature Review contd.
• While majority of African countries,
south of the Sahara are underdeveloped,
South Africa is recognized as an
open/competitive market and a developed
country.
• Consequently, it is believed that
positioning activities will be a priority
amongst South African Firms, in search
of competitive advantage.
Introduction and Literature Review contd.
• Moreover, due to criticisms raised about
extant positioning typologies (Kalafatis
et. al., 2000), it was decided to adopt a
newly developed consumer/customerderived positioning typology (Blankson
and Kalafatis, 2000) and then validate it
in the South African market
environment.
Research Aim and Objectives
• To assess the validity of a newly developed
positioning typology using the South African
market as an illustration.
• The objectives are to:
• Identify South African firms’ positioning
strategies, and
• Determine the validity of a newly developed
positioning typology.
Research Methodology
• Two main channels of communicating
positioning strategies (i.e., advertisements - ads
in (a) newspapers and (b) radio) of offerings
were considered.
• In the case of newspapers, a convenient sample
of data (based on availability) were collected
between September 1997 through September
1998.
• The data for radio were collected between July
to August 1998.
Analytical Approach
• Content analysis (Holsti, 1969; Morris, 1994) was employed in
analyzing positioning deliberation (i.e., the use of positioning
strategies) in newspapers and radio.
• Analysis involved (a) the character (overall meaning), (b) nature of
the ad in a photo, (c) the character of the language in terms of
rhetorical focus, (d) written jargons, (e) the social situations and
behaviors displayed in the ad.
• Coding procedure: Blankson and Kalafatis (2000) positioning
typology.
• Reliability: Inter-judge reliability test (between researcher and a
student checker) revealed 80% agreement in all cases (Kassarjian,
1977).
Results (Positioning Strategies from Newspapers)
Positioning
Frequency
Strategies
The Brand
105
Name
Attractiveness 75
Percentage
Rank
Residual
70
1
58.0
50
2
28.0
Value for
money
Top of the
range
Services
47
32
3
.0
38
26
4
-9.0
33
22
5
-14.0
Reliability
Social class
33
27
22
18
5
6
-14.0
-20.0
Country of
origin
18
12
7
-29.0
Results (Positioning Strategies from Radio)
Positioning
Strategies
The Brand
Name
Services
Frequency
Percentage
Rank
Residual
43
52
1
26.1
23
28
2
6.1
Reliability
22
27
3
5.1
Value for
16
money
Attractiveness 13
20
4
.9
16
5
-3.9
Top of the
range
Country of
origin
Social class
7
9
6
-9.9
6
7
7
-10.9
5
6
8
-11.9
Discussion
• Out of the eight positioning strategies
investigated in newspapers:
• (1) The Brand Name and (2) Attractiveness (
= 124.723; df = 7; sig. = 0.000) are the most
preferred by firms.
• As for radio, only one strategy (The Brand
Name:  = 66.304; df = 7; sig. = 0.000) is
revealed as the most employed.
Discussion contd.
• To a degree, it can be inferred that firms
are not proactive and perhaps, lack
clarity in their positioning activities.
• Moreover, despite the increasing
competition in many African markets
(Dadzie et al., 1988), positioning activities
in South Africa appear not to be
aggressively pursued.
Discussion contd.
• It appears that firms in South Africa use two
pronged approaches in their positioning:
• (1) attract a large target market(s) and (2)
pursue strategies aimed at attracting the top
purchasing clientele.
• It may be worth noting that the
use/employment of specific positioning
strategies may be linked with firms’ level of
market orientation (Hooley et al., 1998).
Discussion contd.
• This research has made an attempt to validate
a newly developed positioning typology.
• The study has provided an insight into the
employment of positioning strategies by South
African firms.
• In line with our expectations, this study lends tentative
support to the relevance of the concept of positioning in
the South African market.
•
The study is exploratory and as such the results should be interpreted
carefully.
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