Chapter 7 MARKET POSITIONING

perceptual map

A competitive analysis tool that creates a visual picture of product locations in consumers' minds.

positioning statement 2

A successful positioning statement should clearly reflect the steps of the positioning process, including the competitive advantages of the product. However, positioning statements should also be short.

positioning statement

A succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product.

3. Application.

Apple has had success with its iPad product, in part, because of the competitive advantage it has when it comes to the application and use of the product.

Step 1: Analyze Competitors' Positions

First, firms must understand the position competitors have taken in the marketplace. Positioning does not occur in isolation, and it is important for marketers to have a realistic view of how customers perceive competitive offerings.

Step 2: Clearly Define Your Competitive Advantage

Great marketers understand competitive advantage and why consumers buy their firm's goods and services. They know that consumers must have a clear answer to the question, "Why should I buy this product?"

Steps in Market Positioning

Marketers should follow three major steps to decide how to best position their product: 1. Analyze competitors' positions. 2. Clearly define your competitive advantage. 3. Evaluate feedback.

2. Attributes.

Often a product will have multiple attributes that create a unique position in the market. Marketers should evaluate those attributes that put its product in a special category of value to the customer.

Repositioning and the Marketing Mix

Repositioning typically involves changing one or more marketing-mix elements, often product or promotion. Domino's Pizza's self-deprecating marketing campaign serves as a great example of how to reposition a brand.

Repositioning the Competition

Sometimes marketers choose to reposition the competition rather than change their own position. This type of repositioning strategy is also common in political marketing: Strategists look to define their opponent negatively without changing their own candidate's positions.

repositioning

The act of reestablishing a product's position in response to changes in the marketplace.

positioning

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market.

Step 3: Evaluate Feedback

The third step in market positioning is constantly evaluating consumer feedback. Just as fashion styles change, consumer tastes for almost everything, including cars, food, and even educational learning formats, change.

Zipcar positioning statement

To urban-dwelling, educated techno-savvy consumers [target market], when you use Zipcar car-sharing service instead of owning a car [picture of how they want consumers to view the service], you save money while reducing your carbon footprint [how they are better].

1. Price/quality relationship.

Customers are often attracted to firms that offer them the same product quality as other stores, but at a more affordable price.