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POSITIONING
Positioning is the act of designing the
company’s offering and image to occupy
a distinctive place in the target market’s
mind.
Firms can position brands, the company, the CEO,
or individual products.
Positioning is a concept first popularized by Al
Ries and Jack Trout in their best seller book
“Positioning – A Battle for your Mind”

ANU DAMODARAN

2
POSITIONING
Positioning is what the customer believes
based on his/her experiences and
evidence, rather than just the awareness
created by advertising or promotion.
Pricing,
promotion,
channels
of
distribution, and advertising are all
geared by marketers to maximize the
chosen positioning strategy.

ANU DAMODARAN

3
POSITIONING SHOULD BE

Simple
Creative
Unique

ANU DAMODARAN

4
POSITIONING CONCEPTS
Functional concepts
- Solve problems
- Provide benefits to customers
Symbolic concepts
- Self image enhancement
- Ego identification

- Belongingness and social meaningfulness
- Affective fulfillment

ANU DAMODARAN

5
POSITIONING CONCEPTS

Experiential concepts
- Provide sensory stimulation
- Provide cognitive stimulation

ANU DAMODARAN

6
BASES AND STRATEGIES FOR POSITIONING
Product or service attribute
Technology positioning
Benefit positioning
User category
Competitor positioning
Integrator positioning
Positioning of leader
Positioning of follower
Re positioning
De positioning

ANU DAMODARAN

7
BASES AND STRATEGIES FOR POSITIONING
Product or Service Attribute - May include features
such as size, color, ingredients, speed, etc. Ex:
Computer, financial planning services
Technology Positioning - Positioning on the basis of
technology shows that a firm is on the cutting edge.
Ex: Oracle as database software, Microsoft for PC
market
Benefit Positioning - Benefit positioning is generally a
stronger basis for positioning because it answers
the
consumer
question:
What
will
this
product/service do for me? Ex: Volvo for safety

ANU DAMODARAN

8
BASES AND STRATEGIES FOR POSITIONING
User Category - User category positioning
relies on customer segments. Ex: The
Pepsi
Generation,
Wheaties
the
Breakfast of Champions
Competitor Positioning - Many firms
position by benefits that provide
advantages over their competitors. Ex:
Software company claiming to be
superior, TOI

ANU DAMODARAN

9
BASES AND STRATEGIES FOR POSITIONING
Integrator positioning - Integrators provide
everything a consumer needs in a
particular product category, industry, or
even in general.
Ex: Martha Stewart’s Web site brings
together business units in one place.

ANU DAMODARAN

10
BASES AND STRATEGIES FOR POSITIONING
Positioning of leader – largest percentage
of sales in terms of revenue. Ex – Coca
Cola, McDonald’s
Positioning of follower – claiming to be
only second to the best. Ex: Lowenbrau
and Beck’s beer, Avis Car Rentals – We
are No:2, We Try Harder

ANU DAMODARAN

11
BASES AND STRATEGIES FOR POSITIONING
Repositioning Strategies - Repositioning is the
process of creating a new or modified brand,
company, or product position. Ex: Cadbury,
Dabur (pharma to FMCG)
A company may enhance or modify a position,
based on market feedback.
 Yahoo! repositioned from online guide to Web
portal.
 Amazon repositioned from world’s largest
bookstore to “Earth’s biggest selection.”

ANU DAMODARAN

12
BASES AND STRATEGIES FOR POSITIONING

De positioning – changing the
identity of competing products,
relative to identity of own products.
Ex: Bingo to Lay’s, Fair and Lovely
to Emami

ANU DAMODARAN

13
MEASURING THE POSITIONING

Graphical
technique
Perceptual mapping
Statistical techniques
Survey techniques

–

ANU DAMODARAN

14
“Finest
sky”

in

the

“India’s first airline to offer great value for moneyA M O D A R Aefficient
A N U D and N
15
“For upscale American families, Volvo
automobile that offers maximum safety”

is

the

family

“For drivers who value auto performance, BMW provides
luxury vehicle that deliver joy through German engineering”

ANU DAMODARAN

16
“To be the family friendly low cost restaurant in the fast
food business”

“To cultured millennials , Starbucks is a premium coffee
house that adds an intimate and valuable experience to a
consumer’s lifestyle by integrating caffeine with a
comfortable environment”

ANU DAMODARAN

17
“IPhone is for high end of the market”

ANU DAMODARAN

18
Thank you

ANU DAMODARAN

19

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Positioning strategies in marketing

  • 1.
  • 2. POSITIONING Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Firms can position brands, the company, the CEO, or individual products. Positioning is a concept first popularized by Al Ries and Jack Trout in their best seller book “Positioning – A Battle for your Mind” ANU DAMODARAN 2
  • 3. POSITIONING Positioning is what the customer believes based on his/her experiences and evidence, rather than just the awareness created by advertising or promotion. Pricing, promotion, channels of distribution, and advertising are all geared by marketers to maximize the chosen positioning strategy. ANU DAMODARAN 3
  • 5. POSITIONING CONCEPTS Functional concepts - Solve problems - Provide benefits to customers Symbolic concepts - Self image enhancement - Ego identification - Belongingness and social meaningfulness - Affective fulfillment ANU DAMODARAN 5
  • 6. POSITIONING CONCEPTS Experiential concepts - Provide sensory stimulation - Provide cognitive stimulation ANU DAMODARAN 6
  • 7. BASES AND STRATEGIES FOR POSITIONING Product or service attribute Technology positioning Benefit positioning User category Competitor positioning Integrator positioning Positioning of leader Positioning of follower Re positioning De positioning ANU DAMODARAN 7
  • 8. BASES AND STRATEGIES FOR POSITIONING Product or Service Attribute - May include features such as size, color, ingredients, speed, etc. Ex: Computer, financial planning services Technology Positioning - Positioning on the basis of technology shows that a firm is on the cutting edge. Ex: Oracle as database software, Microsoft for PC market Benefit Positioning - Benefit positioning is generally a stronger basis for positioning because it answers the consumer question: What will this product/service do for me? Ex: Volvo for safety ANU DAMODARAN 8
  • 9. BASES AND STRATEGIES FOR POSITIONING User Category - User category positioning relies on customer segments. Ex: The Pepsi Generation, Wheaties the Breakfast of Champions Competitor Positioning - Many firms position by benefits that provide advantages over their competitors. Ex: Software company claiming to be superior, TOI ANU DAMODARAN 9
  • 10. BASES AND STRATEGIES FOR POSITIONING Integrator positioning - Integrators provide everything a consumer needs in a particular product category, industry, or even in general. Ex: Martha Stewart’s Web site brings together business units in one place. ANU DAMODARAN 10
  • 11. BASES AND STRATEGIES FOR POSITIONING Positioning of leader – largest percentage of sales in terms of revenue. Ex – Coca Cola, McDonald’s Positioning of follower – claiming to be only second to the best. Ex: Lowenbrau and Beck’s beer, Avis Car Rentals – We are No:2, We Try Harder ANU DAMODARAN 11
  • 12. BASES AND STRATEGIES FOR POSITIONING Repositioning Strategies - Repositioning is the process of creating a new or modified brand, company, or product position. Ex: Cadbury, Dabur (pharma to FMCG) A company may enhance or modify a position, based on market feedback.  Yahoo! repositioned from online guide to Web portal.  Amazon repositioned from world’s largest bookstore to “Earth’s biggest selection.” ANU DAMODARAN 12
  • 13. BASES AND STRATEGIES FOR POSITIONING De positioning – changing the identity of competing products, relative to identity of own products. Ex: Bingo to Lay’s, Fair and Lovely to Emami ANU DAMODARAN 13
  • 14. MEASURING THE POSITIONING Graphical technique Perceptual mapping Statistical techniques Survey techniques – ANU DAMODARAN 14
  • 15. “Finest sky” in the “India’s first airline to offer great value for moneyA M O D A R Aefficient A N U D and N 15
  • 16. “For upscale American families, Volvo automobile that offers maximum safety” is the family “For drivers who value auto performance, BMW provides luxury vehicle that deliver joy through German engineering” ANU DAMODARAN 16
  • 17. “To be the family friendly low cost restaurant in the fast food business” “To cultured millennials , Starbucks is a premium coffee house that adds an intimate and valuable experience to a consumer’s lifestyle by integrating caffeine with a comfortable environment” ANU DAMODARAN 17
  • 18. “IPhone is for high end of the market” ANU DAMODARAN 18