Chapter 6.2--Types of Positioning PDF

What is Positioning? Chapter 6.1 What is Positioning? What is Positioning? Creating an image in the mind of consumers Types of Positioning Chapter 6.2 Types of Positioning The position of a product in the marketplace evolves with each attempt the business make...

What is Positioning? Chapter 6.1 What is Positioning? What is Positioning? Creating an image in the mind of consumers Types of Positioning Chapter 6.2 Types of Positioning The position of a product in the marketplace evolves with each attempt the business makes to define the characteristics of that product There are 5 types of positioning Benefit Target Price Distribution Service Benefit Positioning Consumers expect every product they purchase to benefit them in some way This is why many products offer features that others do not ie—a clock radio may use ocean sounds as an alarm instead of a buzzer ie—a coffeemaker may grind the beans and brew the coffee ie—a video game console may play DVDs Benefit Positioning Often a company will position its product as being the one that offers consumers more benefits then competing products Problem can be copied easily Target Positioning This type of positioning causes the people in the target market to think that they own the brand and that the brand belongs to them To gain an effective target-market position, all of a brand’s marketing must be focused on a specific consumer segment Target Positioning Problem target markets are unpredictable What is popular today may not be popular within a week or may become popular with another consumer segment If outsiders start buying, insiders may stop Price Positioning Two options with price positioning Offer the most expensive product in a category Offer the least expensive product in a category If a marketer opts for the most expensive product, then marketing efforts need to position the product as a luxury good or service, a high-quality item, or as an exclusive item Price Positioning Luxury product—offers status more then quality, consumers want them to be expensive otherwise how would they know it is a luxury item? High-quality item—companies will vie for this position by trying to educate consumers on the quality of the materials or talent of the manufacture Exclusive product—use price to discourage customers they don’t want (fashion store) Price Positioning Some businesses want the customers to think that their products are inexpensive If you want to establish a low-price reputation you must also carry an adequate quality reputation as well The middle ground—the area between high and low prices—is too competitive to use positioning Distribution Positioning Some marketers use a unique sales technique and become known for their method of distribution Avon uses their customers as sales people Companies can also position their product by placing it in a channel that is not used by competitors Jones Soda Service Positioning By providing a service that nobody else has ie—the first convenience store that stayed open for 24hrs ie—a customer electronic company’s return policy, guarantee, after-sales service, and instillation support Problem Once the service has been offered and the company’s position has been established because of it, the service must be maintained