OBSERVATIONS

Positioning is a good diagnostic procedure – a “snapshot.” Positioning
strategy involves several snapshots (changes in taste, preferences,
number of competitors).

Product market boundaries are constantly changing

The multi-product company must simultaneously develop several
positioning strategies (or develop a corporate positioning).

There exists a synergy between position and dropp/add decisions within a
product line and between lines.

In a situation of corporate mergers the end result might be too many items
on one line and a gap in other lines.

Essentially, consumer goods are commodities. Positioning can assist in
changing a commodity into a brand. Note—A brand can lose its identity
and become a commodity.

All marketing mix variables should be incorporated into a positioning
strategy.
Product Positioning Using Perceptual Maps
A key to positioning is the perceptions of consumers. Companies can obtain 3
types of data from consumers/target market(s):
1.
2.
3.
Evaluations of the important attributes for a product class.
Judgments of existing brands with the important attributes.
Ratings of an “ideal” brand’s attributes.
From these data, it is possible to develop a perceptual map, a means of
displaying or graphing in two dimensions the location of brands in the minds of
consumers.
_________________
1.
MDS positioning based on similarity of brands
e.g. rank/rate all brands according to their similarity to an
anchor brand and rotate the brands until all brands have
served as an anchor.
2.
3.
MDS positioning based on the brand’s position on the relevant
dimensions or various product attributes
i.e. identify the position of each brand on the major
dimensions (frame of reference along which brands are
compared perceptually)
MDS positioning based on both perceptions and preferences
i.e. the ideal point approach to product positioning
Approaches to Product Positioning
I.
General Approaches:
1.
2.
II.
head-to-head
differentiation
Ways to Position a Product:
1.
2.
3.
4.
5.
6.
7.
Positioning by attribute/benefits
e.g. Volvo – “durability”
Positioning by price/quality
e.g. Mobile vs. “no name” gas station
Positioning by use/application
Positioning by product user
e.g. The Pepsi Generation
Positioning by product class
Parkay Margarine is advertised as tasting just like butter.
Positioning by the competition
7-Up the Uncola
Positioning by combination of ways (hybrid positioning)
Product Optimization
Using magnitude estimation consumer senory reactions and
experimental/brand product liking are estimated and evaluated.
Sensory reaction (perception =
Level of input
Or incredient
F F
e.g. dark coffee or
yellow lemon-lime
soft drink
The model is linear.
Sensory reaction (preference) = f(level of input)
The function is curvilinear
liking
sugar
coffee + sugar
liking
sugar
milk
coffee + sugar + milk
Children
Adult
liking
liking
input
input
Adult
liking
Children
Compromise Solution
liking
input
Cost constraints (or an ingredient substitute)
liking
sugar
coffee + sugar
liking
sugar
milk
coffee + sugar + milk