Marketing Positioning Strategies

Positioning

• Positioning creates a product image in consumers' minds.
• Position is a product's stance, perception, attitude, or point of view.
• Marketers choose how to position their products to create a desired brand image.
• Top-of-the-Mind Awareness (TOMA) is crucial; appealing to some, not others.
• Example: Tesla is a TOMA brand for luxury electric vehicles.

Types of Positioning

• Benefit Positioning: Products offer benefits to buyers.
• Target Positioning: Focused marketing to specific consumer segments.
• Price Positioning: Offering the most expensive or cheapest product in a category.
• Distribution Positioning: Distinctive sales and distribution methods.
• Service Positioning: Providing unique and maintained services.

Brand

• A brand encompasses the product's image features: name, visual associations (logo), slogan.
• These create a product's identity and personality, allowing consumer association.
• Commodities are unbranded products (e.g., cocoa, coffee, grains, cattle, cotton).
• A commodity market involves buying/selling/trading raw materials (e.g., oil, gold).

Types of Brand Names

• Corporate Dominant: (National Brand) Product associated with the company's reputation (e.g., Roots, Coke).
• Product Dominant: Product name connected to its attributes (e.g., Play-Doh).
• Private Brand: Retailer-created brand (e.g., Loblaw's "President's Choice").
• Generic Brand: Lowest cost, no name, unbranded.

Logos

• Logos represent brand identity symbolically.
• Monogrammatic: Stylized company initials (e.g., HBO).
• Visual Symbols: Drawings of people, animals, or objects (e.g., Roots).
• Abstract Symbols: Vague product associations (e.g., Nike).

Slogans

• Short, catchy phrases associated with a brand.
• Ideally 7 words or fewer.
• Must be memorable and positive, conveying brand name, product function.

Branding Strategies

• Support: Slight changes to existing products.
• Development: Brand extension for similar products building on existing success.
• Licensing: Allowing other companies to use the brand for a fee.
• Co-branding: Two or more brands collaborate for mutual benefit.
• Acquisition: Purchasing a well-known company.

Pricing

• Gross Profit: Money after raw materials and packaging.
• Break-even Point: Units sold to cover costs.
• Economies of Scale: Lower cost per unit with increased production.

Pricing Strategies

• Market Skimming: Initially high price before competition.
• Penetration Pricing: Initially low price to attract customers quickly.
• Competitive Pricing: Matching competitors' prices.
• Benchmark Pricing: Following the leader's pricing strategy.

Pricing Policies

• Leader/Loss Leader: Popular product at low price to attract customers.
• Price Lining: Products at different price points.
• Everyday Low Prices (EDLP): Guaranteed lowest price.
• Purchase Discounts: Reductions for larger orders.
• Super Sizing: Larger portions at slightly higher prices.
• Premium/Prestige Pricing: High price for unique characteristics.
• Interest-Free Pricing: Financing options without or with little interest.
• Negotiated Pricing: Buyer/seller negotiate prices.
• Combo Pricing/Bundling: Several products as a package.
• Psychological Pricing: Using consumer behavior to set prices (odd/even, promotional).

Distribution

• Distribution selects, manages, and develops channels to reach consumers.
• Logistics handles product movement through these channels.
• Distribution Channels describe product ownership paths from producer to customer.

Distribution Types

• Intensive: Product available everywhere (e.g., gum, chips).
• Selective: Controlled locations (e.g., Nike, Gap).
• Exclusive: One or a few retailers (exclusive selling points).
• Integrated: Company controls all stages (manufacturing, distribution, retail).

Distribution Channels

• Direct Channels: Producer deals directly with buyers (e.g., farmers market, online stores).
• Indirect Channels: Products pass through wholesalers and distributors.
• Intermediaries: Importers, wholesalers, and retailers.

Specialty Channels:

• Channels not involving traditional retail locations (e.g., vending machines, e-commerce, social media, mail-order catalogs).

Transportation Factors

• Transportation method decisions depend on factors like destination, weight, volume, and goods type.

Transportation Methods

• Trucks (door-to-door, relatively fast).
• Trains (large quantities, bulky).
• Planes (fast, expensive).
• Ships (international shipments, inexpensive).
• Pipelines (specialized goods).

Inventory Management

• Inventory management controls goods within a business, covering overstocks, out-of-stocks, shrinkage, and turnover.
• Just-in-Time (JIT) strategy minimizes inventory.