Product Positioning

1. Product Positioning

2. Product Positioning Think of positioning as the perception the target audience has of a product/service • Planning of a product’s position must involve issues such as: • The competition and how their products are perceived • The needs and desires of the target audience • Element of mystique/drama that the product/service naturally has about it

3. Product Positioning • In crowded markets, it is very important to position the product appropriately • In order to stand out, the product has to have a clear position in the audience’s mind • The idea is to “create an image” of the brand that is appealing to the consumer • Positioning is the attempt to obtain a ‘share of mind’ • Without positioning a company would be forced to offer price cuts and costly advertising strategy to push its products

4. Types of Positioning-Benefit Customers want every product they they buy to benefit them in some way • Competition is enhanced as companies try to “out benefit” one another and take the position away from the original brand (e.g. Coke Zero) • This is good for the consumer but may create stress for the marketer • May also increase production costs as each additional benefit is added to product/service

5. Types of Positioning-Target Focusing all of the brand’s marketing toward a specific target market • Example: Target market for your cereal • This strategy should cause the target consumers to think that the company owns the target market • Problem with this method is target markets are constantly changing so frequent re-evaluation or re-positioning may be necessary Nike 1

6. Types of Positioning-Price Two options here that marketers can offer: • Most expensive product in a category: • a luxury good that offers status over quality (diamonds, caviar, Bentley, Rolls Royce) • best quality in a category (Mercedes, Lexus) • an exclusive product that deters unwanted customers (hotels, fashion stores) • Least expensive product in a category: • value for the dollar (IKEA, Winners, Wal-Mart) • cheap for the very budget conscious (dollar stores) • Wal Mart

7. Types of Positioning-Service Involves using a unique service aspect in the delivery of your product/service • Examples: Walmart - return policy and greeters Mr. Lube - free newspaper, hours of operation Apple Store – sales staff quality of service Metro – 24 hr grocery store Shoppers Drug Mart – 24 hr outlets FEDEX

8. Types of Positioning-Distribution Involves a unique method of distribution • Examples: Avon - direct sales MEC - co op Amazon – online

9. Positioning tips • Marketers must also ensure the positioning is clearly understood by the target market • Example: MEC is not primarily profit-driven = lower prices, good quality, environmentally friendly • Making consumers understand exactly what they can expect from your product/service will ensure they do not go to the competition • Example: Tim Horton’s  clearly Canadian versus Country Style  unclear • Being known for a particular “thing” can make a difference between success and failure Examples: • Volvo safety • Honda  reliability

10. Extra reading Product Positioning in Five Easy Steps www.otmmarketing.com/portals/42226/docs/product_positioning.pdf