CHAPTER 5: BUSINESS LEVEL STRATEGY AND COMPETITVE POSITIONING

PRESENTED BY JULIE ANNE ISLA

COMPETITIVE POSITIONING

Competitive positioning is about defining how you’ll “differentiate” your offering

and create value for your market. It’s about carving out a spot in the competitive
landscape, putting your stake in the ground, and winning mindshare in the
marketplace – being known for a certain “something.”

What is Positioning?

 refers to the place that a brand occupies in the minds of the customers and how

it is distinguished from the products of the competitors and different from the
concept of brand awareness

A Good Positioning Strategy

 A good positioning makes a product unique and makes the users consider using
it as a distinct benefit to them.
 A good position gives the product a USP (Unique selling proposition).
 A good positioning makes a brand or product stand out from the rest, confers it
the ability to charge a higher price and stave off competition from the others.
 A good position in the market also allows a product and its company to ride out
bad times more easily.
 A good position is also one which allows flexibility to the brand or product in
extensions, changes, distribution and advertising.

A successful positioning strategy relies on a deep understanding of the marketplace you

want to compete in. It identifies how your company is different from the competitors and
the conditions and opportunities in the marketplace. 
Types of Positioning Strategies

There are several types of positioning strategies. A few examples are positioning by:

Product attributes and benefits: Associating your brand/product with certain

characteristics or with certain beneficial value

Product price: Associating your brand/product with competitive pricing

Product quality: Associating your brand/product with high quality

Product use and application: Associating your brand/product with a specific use

Competitors: Making consumers think that your brand/product is better than that of

your competitors

A Perceptual Map in Market Positioning

 A perceptual map is used to show consumer perception of certain brands. The

map allows you to identify how competitors are positioned relative to you and to
identify opportunities in the marketplace.

An example of consumer perception of price and quality of brands in the automobile

industry are mapped below:
 Competitive Positioning Key Concepts & Steps
Before you begin

 Your competitive positioning strategy is the foundation of your entire business –

it’s the first thing you should pin down if you’re launching a new company or product. It’s
also important when you’re expanding or looking for a new edge.

Profile your market

 Document the size of your market, and identify your major competitors and how
they’re positioned.

 Your competitive positioning strategy is the foundation of your entire business –

it’s the first thing you should pin down if you’re launching a new company or product. It’s
also important when you’re expanding or looking for a new edge.

 Determine whether your market is in the introductory, growth, mature, or

declining stage of its life. This “lifecycle stage” affects your entire marketing strategy.

Segment your market

 Understand the problems that your market faces. Talk with prospects and
customers, or conduct market research if you have the time, budget and opportunity.
Uncover their true wants and needs – you’ll learn a great deal about what you can
deliver to solve their problems and beat your competitors..

Define how you deliver value

 At the highest level, there are three core types of value that a company can
deliver: operational efficiency (the lowest price), product leadership (the best product),
or customer intimacy (the best solution & service). Determine which one you’re best
equipped to deliver; your decision is your method for delivering value.
 Evaluate your competition

 List your competitors. Include any that can solve your customers’ problems, even
if the competitors’ solutions are much different from yours – they’re still your
competition.

 Rate yourself and your direct competitors based on operational efficiency (price),
product leadership and customer intimacy. It’s easy to think you’re the best, so be as
impartial as you can be.

Stake a position

 Identify areas where your competition is vulnerable.

 Determine whether you can focus on those vulnerable areas – they’re major
opportunities.

 Make a decision on how to position your offering or company.

Select the mindshare you want to own, and record your strategy

 Review the components of your market and evaluate what you want to be known
for in the future. Condense all your research and analysis into the “one thing” that you
want to be known for, and design your long-term strategy to achieve it.