Positioning

The final step in target marketing involves market positioning. Once the company has decided on segments to enter, it must decide what position it wants to occupy in those segments. A products position is the way the product is defined by consumers on important attributes-the place the product occupies in consumers minds relative to competing products.

Because consumers cannot reevaluate products every time they make a buying decision, they position products, services, and companies in their minds. 1). Consumers position products with or without the help of marketers. 2). Marketers do not want to leave their products positions to chance. 3). They plan positions that will give their products the greatest advantage in selected target markets, and design marketing mixes to create those planned positions.

Positioning Strategies Marketers can follow several positioning strategies. 1). Product attributes (BMW promotes performance).

2). Benefits (Crest reduces cavities).

3). Usage occasions (Cadbury celebrations) 4). Users (Johnson & J baby shampoo). 5). Against a competitor (VISA against American Express). 6). Away from competitors (7-Up away from the colas). 7). Product classes (margarine against butter). 8). Combinations.

Choosing and Implementing a Positioning Strategy The positioning task consists of three steps: 1). The first step is identifying possible competitive advantages. 2). The second step is selecting the right competitive advantage. 3). The final step is communicating and delivering the chosen position.

1). The first step is identifying possible competitive advantages. a). The key to winning and keeping customers is to understand their needs and buying processes better than competitors do and to deliver more value. b). A competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify competitive advantage.

1). The first step is identifying possible competitive advantages. c). Not every company will find many opportunities for differentiating its product offering and gaining competitive advantage. d). Most companies do not hope to gain a permanent advantage, only a temporary one.

e). Specific ways that a company can differentiate its offer from those of the competition are: 1]. Product differentiation involves differentiating a companys physical product. Methods include a variety of standard or optional features, performance, style and design, or attributes (such as consistency, durability, reliability, or repairability).

2]. Services differentiation is the way the firm differentiates the services that accompany the product. Methods include: a]. Speedy, reliable, or careful delivery. b]. Installation service. c]. Customer training service. 3]. Personnel (people) differentiation involves hiring and training better people than the competitors do.

4]. Image differentiation requires working to establish images that differentiate them from competitors. Symbols, atmosphere, and events are commonly used.

2). The second step is selecting the right competitive advantage. In so doing, the organization must decide on the following: a). How many differences to promote? Many marketers think that companies should aggressively promote only one benefit to the target market. Ad man Rosser Reeves called this benefit Unique Selling Proposition (USP).

b). Others believe that more than one differentiating factor is fine. However, avoid: 1]. Under positioning-failing to ever really position the company at all. 2]. Over positioning--giving buyers too narrow a picture of the company. 3]. Confused positioning--leaving buyers with a confused image of a company.

c). Which differences to promote? Not all differences are meaningful or worthwhile. A difference is worth establishing, if it satisfies the following criteria: 1]. Important. 2]. Distinctive. 3]. Superior. 4]. Communicable. 5]. Preemptive. 6]. Affordable. 7]. Profitable.

3). The final step is communicating and delivering the chosen position. Once a position is chosen, the company must take strong steps to deliver and communicate the desired position to target consumers. a). All the companys marketing mix efforts must support the positioning strategy. b). Positioning calls for concrete action, not just talk.

c). Companies often find it easier to come up with a good Positioning strategy than to implement it. d). The positioning strategy must be monitored and adapted over time to match changes in consumer needs and competitors strategies.

e). Abrupt changes that might confuse consumers need to be avoided. f). A products position should evolve gradually as it adapts to the ever-changing environment.