Name: Rocel I.

Navaja MBA 607A- Marketing Management

Reaction Paper for the Topic Brand Positioning and Differentiation

Reporter: Ma. Antoniette Miras

The report is all about brand positioning and differentiation. Positioning is defined as strategy
used to create a specific image of the brand/ product in the minds of the consumers. Differentiation is
defined as strategy used to identify the features of the products that are distinct from other competing
products in the market. The objective of positioning is to determine how people think about your
brand/products and engage with it. The objective of differentiation is to attract customers to choose
your products over other competing products. Positioning is specific to the customers and to influence
their perceptions. Differentiation is specific to the product or service. Positioning is based on
promotional aspects of the product. Differentiation is based on features, quality, benefits or uniqueness
of the product.

You can create a positioning statement by knowing who are the customers, what benefits does
the product or service offer to its user and who are competitors. Perceptual mapping is a diagrammatic
technique used by marketers to visually display the perceptions of customers or potential customers.

Differentiation includes Price, Performance and Reliability and Location and Service. There are
three types of differentiation. Vertical Differentiation is when customers rank products based on a
measurable factor, such as price or quality, and then choose the most highly ranked item. Horizontal
Differentiation is when customers choose between products based on personal preference rather than
an objective measurement. Mixed Differentiation is more complex purchases tend to consider a mix of
vertical and horizontal differentiation. Each consumer will place a different weight of importance on
each of the criteria. Benefits of a differentiated product are increase brand loyalty and survive a higher
price point.

From the report, I learned the key difference between positioning and differentiation.
Positioning refers to acquiring a space in the mind of the customer whereas differentiation is
a marketing strategy companies use to make their product unique to stand out from competitors. The
relationship between positioning and differentiation is that differentiation can be used as a positioning
technique by companies. Both these are important aspects of marketing and assist companies in
generating higher market share, good reputation and long-term success.

In marketing, positioning is referred to as acquiring a space in the mind of the customer, which

is very important due to many substitutes available in the market. How successfully the company can
position itself directly affects profitability and long-term survival of the business. Positioning is mainly
done product wise and brand wise. Product positioning is the process used to determine how to best
communicate product attributes to the target customers based on customer needs, competitor products
and how the company wants its products to be perceived by the customers. Product positioning
strategies are ways in which the company’s product can be differentiated from the competition. Brand
positioning refers to the rank in customers’ mind the company’s brand possess in relation to the
competition. The main purpose of brand positioning is to create a unique impression of the brand in the
customer’s mind that makes them desirable to identify, prefer it over competition and consume the
brand. Following are a few ways that brand positions strategies can be conducted based on respective
attributes. Positioning is of utmost importance with regard to what the company stands for. Thus, the
way the company positions the brand and communicate it to the customer should be precise and not
confusing. How successfully the company can position itself directly affects profitability and long-term
survival of the business.

Differentiation is a marketing strategy companies use to make their product unique to stand out
from competitors. According to Michael Porter, industry is less attractive when there are multiple
substitutes. Thus, companies continuously attempt to differentiate themselves from the competitors. In
order to practice differentiation, the company should have a competitive advantage over similar
competitors. A product or brand can be differentiated based on a number of attributes such as features,
performance, timing, distribution, experience and price. Companies should be rich with resources that
are unique and imperfectly imitable in order to be successful in differentiation. These resources are
often a combination of strong brand name, processes and human capital. Further, it takes a significant
time for a company to be successful in terms of differentiation due to the commitment it requires.

The difference between positioning and differentiation mainly depends on whether the
company focuses on managing and promoting the company’s products and brand with the intention of
acquiring a space in the mind of the customer (positioning) or offering a unique product that has very
limited substitutes (differentiation). In the process of this, the company should ensure that the intended
positioning and differentiation strategies are communicated to the customers effectively in order to
obtain intended results.

The reporter has a comprehensive report. She was focused in her topic. I appreciate the effort of
the reporter in researching about her topic. The reporter shows a good understanding of the parts of
the topic based on her power point presentation. The slide used are readable and contains images for
emphasis. The slides consist of information that very useful in understanding the topic. The reporter is
completely prepared on the power point presentation. The slides are well arranged and presentable.
The reporter uses a good format of slides in her report. The reporter did not have a voice clip on her
report. There were slides that shows items bulleted that needs to be explained. The reporter should put
the voice clip so it can be explained well and for better understanding of the topic. The slides are well
arranged and presentable. I learned a lot about Brand Positioning and Differentiation. I also learned its
difference and its importance. The overall report was good. The report shows that the reporter puts
time and effort in making her report. My grade for the reporter is 2.