Market Positioning

Product Positioning M.Ramesh AIMS

Product Positioning The decisions and activities that create and maintain a certain concept of the firm’s products in customers’ minds.

Product Positioning Maps: one dimension

Poor gas mileage

Car A

Car B

Excellent gas mileage

Product Positioning Maps: two dimensions High price Car B Poor gas mileage

Excellent gas mileage Car A Low price

Product Positioning Maps: three dimensions High price Car B Poor gas mileage

Excellent gas mileage Car A Low price

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Four Major Positioning Errors 1. Underpositioning - consumers have only a vague idea of the brand. 2. Overpositioning - consumers have too narrow a view of the brand. 3. Confused Positioning - consumers confused about the brand due to frequent changes or too many claims. 4. Doubtful Positioning - consumers don’t believe the brand’s claims

Steps in creating product positioning maps 1. Identify a relevant set of competitive products. 2. Identify attributes on which to base the positioning. 3. Determine consumers’ perceptions of the relevant set of products on each of the relevant attributes. 4. Plot the product’s current relative position on the most important attributes. 5. Determine consumers most preferred combinations of attributes. 6. Plot customer ideal points (market segments) 7. Evaluate current position and change if needed.

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Expensive

Nuprin Advil

Anacin

Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Excedrin Tylenol Bufferin

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Expensive Excedrin Nuprin

Bufferin Advil

Anacin

Tylenol Motrin

Bayer Medipren

I St. Joseph’s

Best Case: establish a preemptive market position with longterm returns

Inexpensive

For Body Aches

For Headaches

I

Expensive Excedrin

Anacin

Bufferin

Advil Tylenol Bayer

Medipren

Motrin

I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Worst Case: firm is placed in a difficult financial position if Nuprin needs do not evolve

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive In adaptive positioning firms Excedrin first watch a segment’s needs evolve……. Nuprin Bufferin

Advil

Anacin

Tylenol Bayer

Motrin Medipren

I I St. Joseph’s

Inexpensive

For Body Aches

For Headaches

I

Expensive Then they reposition Excedrin themselves to be more in line with the idealNuprin point(s) Bufferin

Advil

Anacin

Tylenol Bayer

I

Medipren St. Joseph’s

Inexpensive

Motrin Medipren

For Body Aches

For Headaches

I

Common Market Positioning Strategies 1. 2. 3. 4. 5. 6.

Monosegment positioning Multisegment positioning Imitative positioning Anticipatory positioning Adaptive positioning Defensive positioning

Expensive Excedrin

Anacin

Nuprin

Bufferin Advil Tylenol Bayer

Motrin Medipren

Defensive positioning calls for positioning multiple Medipren 2 brands together, to make the market segment less St. Joseph’s Medipren 3 attractive. Inexpensive

I

For Body Aches

For Headaches

I