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Positioning

Positioning

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Published by: abub4u on Jun 23, 2009
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06/26/2013

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Positioning: the Battle for your mind by Al Riesand Jack Trout
The marketing classic: How to be seen and heard in theovercrowded market 
Foreword to marketing classic
For years, all of us in marketing taught to build a marketing plan aroundthe “4Ps”- Product, Price, Place, and Promotion
But important steps needed to be preceded the 4Ps and that is R,Research all good marketing planning must start with research, before anyof the Ps can be set.
Research reveals that, among the other things that customers differgreatly in their needs, preferences, and perception. Therefore customersmust be classified into S, Segments.
Most company cannot serve all the segments. A company must choose thesegment that they can serve at a superior’s level. This is T, Targeting.
Now there is one more step before 4P planning can taken place. That is P,Positioning. This is a revolutionary concept introduce by Al Ries and Jack Trout.
Positioning is a revolutionary idea because it cuts across the other four Ps.It informs each of the Ps and adds consistency to them.
Positioning can affect the product. Volvo’s conscious decision to buildsafety features into its product set up the hugely successful “safety”position for the Volvo brand and Volkswagen position as “small” car.
Positioning can affect the price: More expensive price products: Target,Spencer’s, Virgin Airlines, Jet Airways, British Airways , low cost priceproducts: Wal-Mart, Big Bazaar, Southwest Airlines, Air decan, Indigo.
Positioning can affect the Place the product is sold: Hanes the leadingdepartment store brand of panty hose developed panty hose products forsupermarket distribution. Will Life Style,Peter England, Van Haulsenandsuch kind of many more products restricted to sell only on their respectiveexclusive showroom.
Positioning can affect the promotion of the product: Promotion to beoffered to the product or not. His might dilute the brand equity of theproduct. In Big Bazaar you get offers on daily but the store like Shoppers-Stop offers rarely a discount because Big Bazaar position as discount pricestore or value based store where as Shoppers-Stop position more a highlyfashionable exclusive branded store.
Introduction
What we have here is a failure to communicate.
 Today the communication itself is the problem.
 
Positioning defined:
- Positioning is not what you do to a product. Positioning iswhat you do to the mind of the prospect consumers. That is, you position theproduct in the mind of the prospect.
What positioning is all about?
 Today’s marketplace is no longer responsive to the strategies that worked in thepast. There are just too many products, too many companies, and too muchmarketing noise.We are in the over communicated society. And the only defence a person has inour over communicated society is an oversimplified mind. Communication itself is the communication problem. The best approach to take in our overcommunicated society is the oversimplified society.
The assault on the mind
 The transmission traffic jam: We are leaving in a overcommunicatedsociety
 The media explosion
 The product explosion
 The advertisement explosion
Getting into the mind
 The easy way to get into a person mind is to be first. The hard way to enter into a person mind is to be second
The product era: -
in early fifties, It was a time when advertising peoplefocused their attention on products features and customer benefits.
The image era: -
Next phase was image, Successful company found thatreputation or image is more important in selling a product than any specificproduct feature.
The positioning era: -
Today advertisement entering into a new era andcreativity no longer the key to success. To succeed in our overcommunicatedsociety , a company must create a position in the prospect mind , a position thattakes into consideration not only a company own strengths and weaknesses , butthose of the competitors as well.
Those little ladders in your mind
 You see what you expect to seeAn inadequate container: Human mind reject information which does not matchits prior knowledge or experience to work with. In our overcommunicated societythe human mind is a totally inadequate container.
The product ladder: -
to cope with product explosion, people have learned torank products ad brands in the mind.
 
The “against” position: -
in today’s marketplace the competitor’s position is just as important as your own.
 You can’t get there from here
 The can do sprit refuses to die:- anything is possible if only you try hard enough.But no matter how hard we tried, no matter how many soldiers and how muchmoney we poured in, the problem could not be solved by and outside force.
Position of a leaderEstablishing leadershipThe failures of leaders:
when are leader in particular category and you moveinto a new category where already an existing category leader or you are thesecond player in that category then failure will be natural. E.g IBM moves intoXerox.
The instability of equality:
It’s true that in sum categories the two leadingbrands run neck and neck. What equally true is that these categories areinherently unstable? Sooner and later, you can expect one brand to get theupper hand and open a lead which eventually will reach a stable 5 to 3 or 2 to 1ratio.
Strategy to maintaining leadership:
leaders can do anything they want to.Leaders should use their short-tem flexibility to assure themselves of a stablelong-term future.What not to do: there is no point advertise that is obvious “we are no 1”.What to do:”The real thing”, the essential ingredient in keeping that position isreinforcing the original concept.“Covering all bets”: -Leaders should do the opposite. They should cover all bets.
Power from the product:
 This is classical mistake made by the leader. Theillusion is that the power of the product is derived from the power of theorganisation. It’s just the reverse. The power of the organisation derived from thepower of the product.
Covering with multiband:
Most leaders should cover competitive moves byintroducing another brand. P&R is a classical company. Each brand shoulduniquely position to occupy certain location in the mind of the prospect. Whentimes changes, when the new products comes and go, no effort is made tochange the position. Rather a new product introduced to reflect changingtechnology and changing tastes.
Positioning of a follower
Why products fail:
it’s is not enough to be better than competitor. Youmust introduce your product before someone else has a chance toestablished leadership.

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