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LAP Leadership, Attitude, Performance...making learning pay! Product/Service Management LAP 19 Performance Indicator: PM:042 Student Guide Explain the purpose of positioning. Objectives: 1375 King Avenue, P.O. Box 12279, Columbus, Ohio 43212-0279 Ph: (614) 486-6708 Fax: (614) 486-1819 Details: www.MBAResearch.org Copyright ©2014 by MBA Research and Curriculum Center ® Factors Used to Position Products/Services Getting Piece of Mind Find Your Place Describe types of positioning strategies. How Do You Stack Up? Why bother learning about factors used to position products/services? What would you do? Use what you’ve learned— right now! Table of Contents 2 7 2 6 16

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LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 1

LAPLeadership, Attitude, Performance...making learning pay!Product/Service Management LAP 19 Performance Indicator: PM:042 Student Guide

Explain the purpose of positioning.

Objectives:

1375 King Avenue, P.O. Box 12279, Columbus, Ohio 43212-0279 Ph: (614) 486-6708 Fax: (614) 486-1819

Details: www.MBAResearch.org Copyright ©2014 by MBA Research and Curriculum Center®

Factors Used to Position Products/Services

Getting Piece of Mind Find Your Place

Describe types of positioning strategies.

How Do You Stack Up?

Why bother learning about factors used to position products/services?

What would you do?

Use what you’ve learned—right now!

Table of Contents

2

7

2

6

16

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 2

What do you think when you see:

• AproductmadebyApple?

• ABMWoraMercedes speeding by?

• Someoneopeningacold canofMountainDew?

Believeitornot,marketershaveworked very hard to create a certain “position” for each of these productsinyourmind.Theywantyou to perceive the product in a specificwayandtochooseitoverall other options. It’s called posi-tioning—andit’saveryimportantpartofmarketing!

Find Your PlaceTosellsuccessfully,everyproductandbrandmustbeproperlypositioned. Positioningisacrucialmarketingactivityinwhichmarketersdesigna

strategytogiveaproductorbrandadistinctplaceincustomers’minds.

Theultimategoalofpositioningistoshowcustomerswhyaproductis

uniqueanddifferentfromallitscompetitors.Whenit’sdoneright,positioning:

Why do so many people want Beats by Dr. Dre headphones? Because Beats’ marketers have done a great job of po-sitioning their product—making Beats headphones stand out in the crowd.

Demonstrates how a product or brand stands

out in the crowd. Let’s say you need a new pair

of headphones to use with your laptop or iPod.

When you search www.bestbuy.com for options

(and there are nearly 700 pairs of over-the-ear

headphonestochoosefrom),youlearnthatyou

canbuyapairofSonyheadphonesfor$19.99,a

pairofSkullcandyheadphonesfor$59.99,ora

pairofBeatsbyDr.Dreheadphonesfor$299.99.

Clearly,therearesomehugepriceandqual-

ity differences between these different sets of

headphones.Thoughyoumightnothave$300to

spend,there’snotmuchdoubtthatyouwould

lovetobuythoseBeatsheadphonesbecause—

let’sfaceit—they’rereallycool.Thisproduct’s

marketershavepositioneditthisway.

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 3

Listen Up!

In business-to-business sell-ingsituations,itislessimpor-tantformarketerstoappealtoemotionstopositionproductssuccessfully.Businesscustom-erstendtomakebuyingdeci-sions based on cut-and-dried criteriasuchasproductspecifi-cations or features (which we’ll discussmorelateronintheLAP).Althoughbusinesscus-tomersmightnotgetemotion-al over choosing a new color printer or a piece of heavy machinery,it’sstillextremelyimportanttopositionindustrialproducts carefully.

Expresses a product’s uniqueness in a memorable way. Having a unique product is

agreatstart—butit’snotenoughonitsown.Forpositioningtowork,marketersmust

conveythisuniquenessinawaythatcausescustomerstoperceivetheproductor

brand howmarketerswantthemto.Theanswercansometimesbeassimpleasa

well-craftedmarketing slogan.CheckoutmarketingbloggerSuzyKedzierski’s

post“TheBestAdvertisingSlogansEverWritten”(http://marketingcommunica-

tionsink.com/2013/02/10/best-advertising-slogans-ever-written/).Whichslogans

doyouthinkarethemostmemorable?Howdotheyhelptoreinforcetheirproductor

brand’sintendedposition(e.g.,highquality,greatvalue,etc.)?Whatslogansorcatch-

phrases would you add to this list?

Connects to customers’ emotions. Thinkaboutsomeofyourfavoriteproductsand

brands.Whydoyoulovethemsomuch?MaybeeverytimeyoupassbyaTacoBell,

itmakesyousmileandthinkofallthelate-nightmealsyou’vehadtherewithyour

friends.Or,perhapsyoupreferacertainbrandofjeansbecauseyoualwayslookand

feelyourbestwhenyou’rewearingthem.You’veconnectedwiththeseproductsina

waythatinvolvesyourfeelings,notjustyourrationalthoughts.Thisismostlikely

theresultofcarefulpositioning.TacoBell’smarketersdefinitelyknewwhattheywere

doingwhentheystartedpromotingtherestaurantastheperfectplacetopickupyour

“fourthmeal.”

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LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 4

Marketersmustkeeppositioningsimpletoavoidcustomer

confusion.Theyshouldchoosehowtheywanttopositionaproduct

or brand and stick to that choice. Changing a product’s position too

frequentlyorattemptingtoshowcasetoomanyofitsbenefitscan

backfireandcausecustomerstooverlooktheproduct’sunique-

ness. Consider a fast-food restaurant. Does it want to be known

forhavingthebestburgers,forbeingthebestplacetotakekids,

forhavingthelowestprices?Evenifarestaurant’smarketersthink

theirproductoffersallofthesebenefits,theyshouldchooseto

focusonjustoneofthemforpositioningpurposes.Otherwise,

customersmaymissthemessage.WillDylan’sarticle“Even

McDonald’sHasaMarketPosition”—http://www.marketingyours-

mallbusiness.com/MarketPositioning2.htm—explainsmoreabout

thepositioningstrategiesofsomeofthebiggestfast-foodchains.

Hit the target

Have youevervisitedanartmuseum?Youmightlookataparticular

paintingorsculptureandfinditabsolutelybeautiful.But,thenext

personwhocomesalongdoesn’tlikeitatall.Apieceofartwill

never be “all things to all people”—and neither will a product or

brand.That’swhymarketersdetermineaspecifictarget market

tosellto.Everythingmarketersdo,fromproductdesigntopric-

ingtodistributiontopromotion,isdonewiththetargetmarketin

mind.This,ofcourse,includespositioning.Marketersaimtoposi-

tionaproductwithinthemindsoftheirtargetcustomers,notthe

mindsoftheentirepublic—thatwouldbefartoodifficult.

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 5

Beforemarketerscanstartpositioningaproduct,theymustthoroughly

understandtheirtargetcustomers.Whatdotheywant,need,value?Howdo

theyevaluateoptionsandmakebuyingdecisions?Clothingcompaniessuch

asAbercrombie&FitchorHollistertargetthe“young,cool”crowd,andthey

positiontheirbrandsaccordingly.Itwouldn’tmakesensetopositionthese

brandsasbeingvaluebrandsthataremoreaffordablethanotheroptions

becausethetargetmarketisnotprimarilyconcernedwithsavingmoney.

Gain the advantage

Aproduct’s positionismeaninglesswithoutconsideringthecompetition.

Noonecanstandoutinacrowdunlessthere’sacrowdtostandoutin,right?

Everypositioningstrategyshoulddemonstrateaproductorbrand’suniqueness

and appeal in relationtoitscompetitors.Aproductmayhavethelowestprice,

thebestquality,themostfeatures,etc.However,noneofthesepositionswill

makesensewithoutcomparisontocompetingproducts.

Thepositioningstrategythatmarketerscreateforaproductorbrandshould

helpthecompanytogainacompetitiveadvantage.Acompetitive advantage

isany“edge”acompanyhasthatallowsittocreatemoresales,generatemore

revenue,retainmorecustomers,etc.,thanitscompetition.Perhapsacollege

oruniversityhasbeennamedasthetopschoolintheentireregionforpre-med

students.Or,alocalicecreamshopmakesitsreputationbycreatingextraor-

dinaryflavorsthatcan’tbefoundanywhereelse.Marketerscanusethese

unique attributes to create positioning strategies that will help these business-

esbeatoutthecompetition.Formoreinformationoncompetitiveadvantage,

check out http://www.quickmba.com/strategy/competitive-advantage/.

Anicecreamshopmightgainacompetitive advantageinthemarketbyofferingmore—ormoreunusual—flavorsthancustomerscanfindanywhere else in town. Do any of your local ice creamshopshaveacompetitiveadvantage?Whatmakestheshopstandoutinthecrowd?

Blend images/Thinkstock

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 6

1.Whatispositioning?

2.Whatthreethingsdoeseffectivepositioningaccomplish?

3.Whyisitimportanttokeeppositioningsimple?

4. What is the relationship between positioning and the targetmarket?

5.Whatistherelationshipbetweenpositioningand thecompetition?

Every product or brand’s position is created in relation tothecompetition.Incertaincircumstances,it’seffectiveto“callout”thecompetitionwhilepromotingthisposition.Forinstance,atoothpastebrandmightadvertiseitspositionasbeing “preferred over Crest toothpastebyfouroutoffivedentists.”Theadvertisementdoesn’texplain,however,thatthe dentists surveyed were all known to prefer the brand beforebeingasked.Theresultsare skewed in the brand’s favor. Isthisjustanormal,acceptedpartofpositioning,orisitun-ethical? What do you think?

Summary

Positioningisacrucialmarketingactivityinwhichmarketersdesigna

strategytogiveaproductorbrandadistinctplaceincustomers’minds.

Successfulpositioningdemonstrateshowaproductorbrandstandsoutin

thecrowd,expressestheproductorbrand’suniquenessinamemorable

way,andconnectstocustomers’emotions.Marketersmustkeepposi-

tioningsimpletoavoidcustomerconfusion.Positioningshouldbegeared

towardthetargetmarketanddesignedinrelationtothecompetition.

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 7

How Do You Stack Up?Thereareanumberofdifferentstrategiesthatmarketersmightusetoposition aproductorbrand.But,nomatterwhichonetheychoose,itmustbebasedona

determinant factor—somethingthetargetmarketreallycaresabout,something

thatmakesabigdifferencetothem.Forexample,whenyougotofillupyourcar

withgas,howconcernedareyouaboutthequalityofthefuel?Youprobablyassume

thatmostgasstationswillprovidefuelofaboutthesamequality.Mostlikely,price

isthedeterminantfactortoyouandtherestofthetargetmarket(asdemonstrated

bythepopularityofmobileappsandwebsitessuchaswww.gasbuddy.com).

Itwouldbeapoorstrategy,then,foragasstation’smarketerstopositionitsfuel

on quality rather than price.

Positioning strategies

Let’stakealookatsomeofthecommonstrategiesthatmarketersusetoposition

products and brands.

Positioning by product attributes. Marketersoftencreateapositionforaproductby

highlighting the uniqueness of its:

• Physical form and features—Whatdoestheproductlook,feel,smell,sound,ortastelike?Ifoneofthesefacetsofaproductisuniqueandappealing,market- ersmayuseitforpositioning.YankeeCandle,forinstance,hasfoundalotofsuccessbypositioningitsproductsasthebest-smellingcandlesonthemarket.

Careful positioning shows customers why a product is unique and different from all its competitors—and expresses that uniqueness in a memorable way.

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LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 8

Whenitcomestofeatures,customerswanttoknowwhatfunctionaproductperformsandhowitworks.Productfeaturestendtobeespeciallyimportantforbusinesscustomers.Forexample,aplantmanagermaybelookingforspecificfunctionswhenpurchasinganewpieceofhigh-techmanufacturingequipment.Shemaywantittohaveafeaturethatallowsittorunwithorwithoutahumanoperator.

Marketersmustbecareful,however,nottorelytooheavilyon

formandfeaturesforproductpositioning.Whilethephysicaland

functionalaspectsofaproductmaybeunique,customersare

really looking for benefits.Theymakepurchasestofulfilltheir

wants,tomeettheirneeds,andtosolvetheirproblems.Theydon’t

choose a pair of basketball shoes because of the rubber and leather

they’remadewith;theychoosetheshoesbecausethey’recomfort-

able,becausetheylookgood,orbecausetheyprovideexcellent

footstability.Allofthesearebenefits.Formoreinsightonfeatures

v.benefits,readJenniferBourn’sarticle“BaittheHook:Marketwith

Benefits,NotFeatures”athttp://www.bourncreative.com/bait-the-

hook-market-with-benefits-not-features.

• Performance—Marketersmaychoosetopositionaproductbasedon its superior performance(howwellitdoesthejobitwasdesignedtodo).Whirlpoolisakitchen-appliancebrandthathasusedthisstrategysuccessfully.AnotherexampleisUnderArmour.Thisbrand’sathleticgearisintendedtoholdupwell,helpingathletes to excel in all types of weather and conditions.

Under Armour guarantees the performance and durability of its products. If consumers aren’t 100% satisfied with their Under Armour purchases, they can return the gear for a full refund—at any time, and for any reason.

UnderArmour.com

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 9

• Durability—Anotherwaytopositionaproductmaybeitsdurability (how long it lastsbeforeneedingtobereplacedorrepaired).ThisisastrategythathasbeenusedbybothTimexwatchesandCraftsmantools(aninterestingcompanyprofileforCraftsmancanbefoundhere— http://industrytoday.com/article_view.asp?ArticleID=2857).

• Reliability—Someproductslendthemselvestoapositioningstrategybasedonreliability(howconsistentlyaproductperformsovertime).Spottycellphoneservice that frequently drops calls would not be considered reliable. Harley DavidsonmotorcyclesandZippolighters,however,aretwoexamplesofproductsthathavebeenpositionedontheirreliability.Zippolightersevencomewithalifetimeguarantee.

• Repairability—Easeofrepairisanimportantbenefitformanycustomers.Marketersmaychooserepairability(howsimpleorinexpensiveitistofixaproduct)asapositioningstrategy.Certainmakesofautomobiles,forexample,buildreputationsonbeingmorerepairablethanothers.MSNputtogetheraslideshowofthe10cheapestautomobilestomaintain.Youcanseeithere— http://editorial.autos.msn.com/10-cheapest-cars-to-maintain#1.Anyofthecompaniesonthislistmightusethispositivepublicitytosupportapositioningstrategy based on repairability.

• Manufacturing or creation process—Somecustomersareconcernedabouthowaproductismadeorwhatitcontains.TheymaywantplasticproductsthatareBPA-free(BPAisachemicalthatmanypeopleconsiderharmful),ortheymaywantbakedgoodsthataregluten-free.Theymaylookforproductsthathavebeenproducedwithoutbeingtestedonanimalsorwithminimalimpactontheenvironment.Ifaproductisstronginoneoftheseareas,marketersmaychooseto position it accordingly.

One way to create a position for a product is by highlighting what it does (or doesn’t) contain. Gluten-free, sugar-free, low-sodium, and no-fat are all common strategies for positioning foods.

BettyCrocker.com

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 10

• Ease of purchase—Inouronlineworld,competitionisasfierceasever.Manybusinessessellcompetingproductsonline,anditcanbedifficulttostandouttocustomersinsuchacrowdedmarketplace.Onlineretailerscansetthemselvesapartbymakingtheirprocessesforordering,shipping,makingreturns,etc.,assimpleaspossible.Zappos.com,anonlineclothingandshoeretailer,issomewhatfamousforitsgenerous“freereturns”policy.Thecompany’smarketershavecertainlypositionedit on this strong product attribute.

• Quick delivery—Today’scustomerswantwhattheywant—andtheywantit now.Abusinessthatcangetitsproductintocustomers’handsfasterthanthecompetitionmayhavethefoundationforaneffectivepositioningstrategy.Forexample,someproductsfromAmazon.comhavesame-daydelivery.And,JimmyJohn’s,asandwichrestaurant,wantsitstargetmarkettoknowaboutits“freakyfast”delivery.

• Quality—Theideaofqualitycanbedifficulttograsp,sinceitmeansdifferentthingstodifferentpeople.Qualityencompassesmostoftheproductattributesalreadylistedhere,includingperformanceandreliability.Atop-qualityproductissomethingthatcustomersconsider“thebest.”BrandsthathavepositionedthemselvesonqualityincludeApple,WholeFoodsMarket,andProcterandGamble.

Whole Foods Market, which has positioned itself on quality, evaluates its products in terms of nutrition, freshness, appearance, and taste.

WholeFoods.com

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 11

Positioning by people (service). Positioning by a product attribute can be very

effective,butit’snottheonlywaytoriseabovethecompetition.Let’sfaceit—

someproductsarejusttoosimilartostandoutontheirown(e.g.,lightbulbsor

oilchanges).Whenthisisthecase,marketersarewisetopositiontheproductor

brandintermsofthepeopleassociatedwithit.Thinkaboutit.Youcanbuyatank

topanywhere,butyoumightpreferastoreyouknowhaspoliteandhelpfulsales

associates.Youcanhaveyourbrakelightrepairedatanumberofplaces,butyou

areloyaltotheautoshopthathasareputationforbeinghonest.Servicemakes

abigdifference!Herearesomeimportantpersonnelqualitiesthatmarketers

maybeabletouseforpositioningpurposes:

• Competence—Theemployeesknowtheproductorbrandinsideandout.

• Training—Inadditiontoknowingtheproduct,theemployeesunderstand companypoliciesandarereadyandabletoassistcustomerswhenthey need help.

• Courtesy—Theemployeesarepoliteandfriendly.

• Reliability—Theemployeesaredependableandprovideconsistently good service.

• Responsiveness—Theemployeesrespondpromptlyandhelpfullyto customerneeds,concerns,andrequests.

• Communication—Theemployeescommunicatewithcustomersinaway thatenhancestheirpurchasingexperiences(e.g.,followinguponrequests,notifyingthemaboutnewproductsorsales,sendingthank-youcards,etc.).

Where would you rather shop—at a store with rude, uninterested employees or a store with workers who are competent, courteous, and reliable? It’s a no-brainer, isn’t it?

Fuse/Thinkstock

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 12

ClickheretocheckoutMSN’sCustomerServiceHallofFamefor2012—http://mon-

ey.msn.com/investing/2012-customer-service-hall-of-fame-1. Have you noticed any

ofthesecompaniespromotingorpositioningthemselvesonthebasisofcustomer

service?

Positioning by users.Sometimes,marketerschoosetopositionaproductorbrand

byfocusingonthetypeofpersonwhobuysorusesit.Thisisoftenthecasewith

luxuryproductsorbrands,suchasLexus,TAGHeuer(awatchmaker),andChanel

(afashionbrand).Insteadofhighlightingproductattributes,marketersmayshow

thetypeofpersonwhousestheproductorbrand—assumingit’sthetypeofperson

targetcustomersaspiretobe(rich,adventurous,athletic,fashionable,modern,etc.).

Celebrity endorsements can be an effective way of positioning a product or

brandbyuser.Customersoftenwanttoemulatetheathletes,musicians,oractors

theyadmire,soseeingthesepeopleusecertainproductscanelevatethoseprod-

uctsincustomers’minds.ThinkJessicaBielforRevlon,DavidBeckhamforAdidas,

orKatyPerryforProactiv.ReadmoreaboutcelebrityendorsementsatAdWeek.com

(http://www.adweek.com/topic/celebrity-endorsements).

Marketers sometimes position a product or brand by focusing on its users. Do celebrity endorsements, such as Jessica Biel’s endorsement of Revlon, make you more likely to purchase a certain brand or product? Why?

Revlon.com

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 13

Positioning by uses. Howaproductisusedcanalsoprovidemarketers

withapositioningstrategy.Thisapproachisespeciallyeffectivewithprod-

uctsthataredesignedtobeusedatspecifictimes,atspecificlocations,or

onspecificoccasions.Gatorade,forinstance,isaproductyou“need”when

you’reexercisingorplayingsports.AJeepisavehicleyou“need”foroff-

roading.Anewsuitortuxedoisimportantforpromorawedding.Canyou

thinkofanymoreexamplesofpositioningbyproductuse?

Positioning by product class.Attimes,marketersmaychoosetoposition

using“thebigpicture.”Thismeansthatratherthanfocusingonthespecific

productorthebrand,theypositionbyproducttypeorclass.Anexampleof

thisstrategymaybepromotingteaovercoffeeforcustomerswantingahot

drink.Teaandcoffeearetwoentirelydifferentproducts,buttheycertainly

haveoverlappingtargetmarkets.Anotherexampleofthistypeofstrategy

wouldbepositioningapoolagainstanamusementpark.Theyareboth

entertainmentoptionsfortargetcustomers—differentproductclasses,

butstillcompetitors.

Mix it up

EachofthefourP’sofmarketing—product,promotion,place,andprice—

can and should be used to support a product or brand’s positioning

strategy. Let’s explore this concept further: Rise

Abov

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Stati

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LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 14

Amazon.com often calls out the competition, such as Apple’s iPad, in advertisements for its kindle tablets.

Product.Nomatterwhatpositioningstrategymarketerschoose,theprod-

uctsimplymustdeliverthebenefitsthetargetmarketwants.Whetherthat

benefitistheconvenienceofanall-nightpharmacy,thestatusofdesigner

jeans,orthegoodnutritionofanorganicsaladmix,theproductitselfmust

matchupwithhowit’sbeenpositioned.Ifitdoesn’t,eitherthepositionor

the product needs to be altered.

Promotion. Positioningwillbesuccessfulonlyifmarketerscommunicate

themessagetotargetcustomerseffectively.Theproduct’spositionshould

becommunicatedthrougheverypromotionaloutletavailable—advertising,

salespromotion,publicity,personalselling,directmarketing,etc.Allpromo-

tionsshouldbespecificallytailoredtothetargetmarket.Keepinmindthat

aproduct’spositionisrelativetothecompetition.Therefore,it’ssometimes

helpfulforpromotionstoclearlystatethattheproductis“thelowestprice,”

“thebestquality,”“preferredbymoredentiststhanleadingcompetitors,”

etc.(Callingoutthecompetitionissometimescalled“offensivemarketing.”

ReadmoreaboutitinAmieMarse’sarticle“FiveShockingWaystoCallOut

YourCompetitors”—http://socialmediatoday.com/contentmoney/1496256/5-

shocking-ways-call-out-your-competitors).

Place.Ifaproducthasbeenpositionedwiththetargetmarketinmind,

itonlymakessenseformarketerstodistributetheproductinplacesthat

targetcustomersarelikelytoshop.Forinstance,marketerswouldn’tdis-

tribute$150Ray-BansunglassesthroughWalmartorTarget.Norwouldthey

distributecandybarsatahealth-foodstore.The“place”mustlineupwith

the position.

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 15

Price. Justasaproductmustbedistributedwherethetargetmarketwillfindit,it

mustbepricedaccordingtowhatthetargetmarketwillpay.Ifmarketerspositiona

productas“themostaffordableself-propelledlawnmoweronthemarket,”itshouldbe

pricedlowerthanthecompetition.Ifmarketerspositionabrandas“thefinestjewelry

moneycanbuy,”thentheproducts’pricesshouldreflectthatposition.

It’s not forever

Oncemarketerschooseapositionforaproductorbrand,theyshouldstick

withit.Sometimes,however,itbecomesnecessarytorepositionaproduct

or brand because:

• Thecompetitiveenvironmenthaschanged.

• Thecompanyisintroducingtheproducttoaforeignmarket.

• Thecompanyhaschosenanewtargetmarket.

• Theproducthasenteredanewstageofitsproductlifecycle.

Repositioningcanbedifficult,butitispossible.Brandsthathaverepositioned

themselvessuccessfullyincludeOldSpice(froman“oldman’s”producttoafun,

youthfulone)andGeneralElectric(fromanelectricitycompanytoapioneerin

sustainableenergy).

Sure,productsandbrandscanberepositioned,buthowaboutentireworlds?Absolutely, accordingtoauthorandmarket-ingstrategistJackTrout.BeforeChristopherColumbuscamealong,manypeoplebelievedthattheworldwasflat.But,thankstoColumbusandagroupof15thCenturyscientists, thepubliccametoseethat theworldis,indeed,round!

iStock/Thinkstock

LAP-PM-019-SP © 2014, MBA Research and Curriculum Center® Getting Piece of Mind 16

Think of three or four prod-ucts or brands you’ve used within the past week. Can youdetermineeachone’sposition? What positioning strategiesdidthemarketersuse? Do you think the strat-egies have been successful?

1.Whatisadeterminantfactor,andhowdoesitapply to positioning?

2.Whataresomecommonpositioningstrategies?

3.HowcanthefourP’sofmarketingbeusedto assist with positioning?

4. When is it a good idea to reposition a product or brand?

Summary

Everypositioningstrategyshouldbebasedonadeterminantfactor.Someofthe

commonpositioningstrategiesmarketersuseincludepositioningbyproduct

attributes,positioningbypeople(service),positioningbyusers,positioning

byuses,andpositioningbyproductclass.EachofthefourP’sofmarketingcan

beusedtosupportaproductorbrand’spositioningstrategy.Incertaincircum-

stances,itisnecessarytorepositionaproductorbrand.