Where We Have Been
Quetzal : Define your business.
 Jones Blair: Market Targeting

MARKSTRAT
Familiarization of
systems/environment
 Basic research needs evaluation
 Initiation of R&D projects
 Marketing projections (Plan)
 Moving from tactical to strategic
planning

Positioning
“Once a mind is made up, it’s
almost impossible to change it.”
- Al Trout & Jack Ries,
the “fathers”
of positioning
Inputs to the positioning
decision?



Target Market
Firm’s SCAs
Competition
THE PROCESS OF
POSITIONING
Mkt Analysis
Segmentation
Internal
Corporate
Analysis
Competitive
Analysis
Differentiation
TM Selection
Implications
for
Mktg Strat
Position
Package of
Benefits
Selection
* Product
* Price
* Channels
* Promo
Quelch, John R. (1982) “Frank Homer LTD - Teaching Note,” in
Cases in Advertising and Promotion Management, 2d ed.,
Business Publications, Inc.
“Positioning Audit,”
Trout & Ries

What is our position?
Important Dimensions?
Performance
BMW
Luxury
“Positioning Audit”
What is our position?
 What position do we want?

BMW
Z3
“Positioning Audit”
What is our position?
 What position do we want?
 Where is our competition relative to
our desired position?

Exotic,
Expensive
& Italian
Porsche
BMW
Japanese
Mercedes
Swedes
Jaguar
Lincoln
Subaru
Yugo
General
Motors
“Positioning Audit”
What is our position?
 What position do we want?
 Where is our competition relative to
our desired position?
 Can we defend our position?

Exotic,
Expensive
& Italian
Porsche
BMW
Japanese
Mercedes
Swedes
Jaguar
Lincoln
Subaru
Yugo
General
Motors
“Positioning Audit”
What is our position?
 What position do we want?
 Where is our competition relative to
our desired position?
 Can we defend our position?
 Is our position long-term?

“Positioning Audit”
What is our position?
 What position do we want?
 Where is our competition relative to
our desired position?
 Can we defend our position?
 Is our position long-term?
 Does our promotion reflect our
position?

Sample Markstrat
Process for Positioning





Step 1: Where are we?
Step 2: Where do we want to be?
Step 3: Where do we expect the market to
be in X time period?
Step 4: How much will our move cost us?
(R&D costs, Push/Pull costs)
Step 5: What attribute changes brings us
to our desired position?
Step 1:
Where are we?

Examine perceptual map
–

Too close = cannibalization
Semantic vs. Perceptual map
–
Matter of cost vs. accuracy
Step 2:
Where do we want to be?

Optimal Brand position

Prediction of ideal points
–
Evolution of ideal points over time
Step 3:
Where is the market?

Forecast Market Share
–
Examine Consumer survey research for
purchase intentions data
•

Brand awareness/brand positioning
Expected Brand Demand
–
ESS X EPI = EBS
•
Analyze Per segment and then total
Step 4:
How much cost?
Must factor in R&D, Advertising, and
sales force expenditures.
 Impact of production on transfer cost

–
–
Experience curve (productivity gains)
Intro new products (experience effect)
•
•
Unit transfer costs decrease as a function of
new product design
See Brand Contribution: Marketing Plan
Step 5:
What attribute changes?
Pull in data from MDS or Semantic
scales indicating desired physical
characteristics.
 Examine actual vs. perceived
attributes (Product Design)

–
–
Estimate brand perceptions
Estimate physical characteristics for
positioning
Repositioning:
What to do after product has
been on the market.
Specify Target Segment(s)
 Specify perceptual objectives for the
brand. (pick 2)

–
Economy, performance, convenience
Allocate advertising budget.
 Allocate ad research budget.
