Principles of Marketing

Quarter 1 – Module 9:
Positioning
 What I Need to Know

This module presents market positioning. It covers types of positioning

strategies and positioning map. This will help learners to understand on how to

effectively communicate a strong, clear and succinct message for a particular

product.

At the end of the lesson, the learners will be able to:

1. Select the appropriate target market and its positioning. ABM-PM11-le-i-15.

2. Craft a positioning map

What I Know

Directions: Read and analyze the conceptual information about market positioning. Express

your thoughts by writing AGREE or DISAGREE on the space provided before

each number.

____________1. The objective of market positioning is to establish the image or identity of a

brand or product.

____________2. An effective market positioning strategy is identifying current market

position.
____________3. A product position is a space that a product owns in the minds of the

consumers.

____________4. Market positioning is non-essential part of marketing strategy.

____________5. It is important to remember that the market position is defined by businesses.

____________6. A useful framework for analyzing market positioning is a location map.

____________7. Market positioning must be maintained over the life of the brand or product.

____________8. A car maker may position itself as a luxury status symbol is an example of

effective market positioning.

____________9. Repositioning a brand or product means altering its place it the minds of the

consumer.

____________10. Consumers expect more from a basic product.

____________11. Positioning map encourages use of market research.

____________12. Customers choose products based on their perception of a product’s value

proposition.

____________13. Just because there is a “gap” doesn’t mean there is demand.

____________14. There’s no need to compare and contrast differences between your company

and competitors to identify opportunities.

____________15. Low price and low volume can be a possible dimensions for the axes of

positioning map.
 Lesson
Positioning
9
What is Market Positioning?

Market Positioning refers to the ability to

influence consumer perception regarding a brand or

product relative to competitors. The objective of market

positioning is to establish the image or identity of

a brand or product so that consumers perceive it in a certain way.

For example:

• A TV maker may position its TV as the most innovative and cutting-

edge

• A fast-food restaurant chain may position itself as the provider of cheap

meals

There are two broad categories of market position: cost leadership and

differentiation. Cost leadership and differentiation market positioning strategies are

applicable to any business and any industry. A business can choose to position itself

using a cost leader strategy or a differentiation business strategy.

Cost Leader Strategy

A company using a cost leader strategy attempts to position itself in the minds

of the consumers as a company that provides products the consumers want at a

price that is lower than competing products available in the marketplace. Consumers

expect basic products with no bells and whistles from a company using a
cost leader strategy. Instead, consumers just expect the products to meet

their needs and nothing more or less.

Differentiation Business Strategy

A company using a differentiation business strategy attempts to position itself

in the minds of the consumers as a company that provides unique products that
consumers will pay more for because they cannot find comparable products or
product features anywhere else in the marketplace. Consumers expect more from a
differentiated product and therefore are willing to pay a premium for a
differentiated product. This is true as long as the unique features of the product add
some value to the product that makes it more valuable to the consumer, whether a
functional feature or an aspect of image or prestige that enhances the perception of
the product.

A Perceptual Map in Market Positioning

A perceptual map is used to show consumer perception of certain brands. The

map allows you to identify how competitors are positioned relative to you and to
identify opportunities in the marketplace.

Some possible dimensions for the axes of a perceptual map includes:

LOW PRICE HIGH PRICE

BASIC QUALITY HIGH QUALITY

LOW VOLUME HIGH VOLUME

NECESSITY LUXURY

LIGHT HEAVY

SIMPLE COMPLEX

UNHEALTHY HEALTHY

LOW-TECH HI-TECH
An example of consumers’ perception of price and quality of brands in the automobile
industry are mapped below:

This map is for illustrative educational purposes only.

What’s In

Directions: Several dimensions were given inside the word pool, identify appropriate
dimensions in crafting your own perceptual map of chocolate. (Use the
market positioning template as guide.)

Low price
high quality
Necessity
healthy
High price
unhealthy
Luxury low
quality
“TO STAY IN THE MARKET IS TO STAY IN THE CUSTOMER’S
MIND”
(Dizon C. 2020)

What’s New
PERFORMANCE
AREAS 20 points 15 points 10 points

Map demonstrates Map demonstrates Map fails to

strong conceptual adequate demonstrate
understanding of conceptual adequate
CONCEPTUAL key ideas understanding of conceptual

UNDERSTANDING key ideas understanding of

key ideas

All primary Most primary Several primary

concepts are concepts are concepts are
included on the included in the missing and many
map and depict map and most of those included
CONTENT accurate depict accurate depicted by
COVERAGE associations. associations. inaccurate
associations.

Cross links are Cross links are Cross links are not
frequent and show used and usually often used and fail
logical inter used logical inter to show logical
relationships relationships inter relationships
CROSS LINKING
among the among the among the
concepts concepts. concepts
 What is It

Market positioning is a critically important part of marketing strategy since it

determines to a large extent what customers perceive is being offered to them.

Businesses use marketing to create value for customers by making two key decisions:

Decision 1: Choose which customers to serve

This involves:

Market segmentation (analyzing the different parts of a market)

Targeting (deciding with market segments to enter)

Decision 2: Choose how to serve those customers

This also involves two important parts of marketing strategy:

Product differentiation (what makes it difference from the competition)

Market positioning (how customers perceive the product)

Having chosen which segments to target – a business needs to decide how to compete
in those segments. Marketing people call this choice the value proposition. What
position will be taken?

It is important to remember that the market position (or value proposition) is defined
by customers – the place a product occupies in customer minds relative to competing
products.
Directions: Presented in column A are conceptual information about marketing,
find the best match provided in column B.

COLUMN A
1. analyzing the different parts of a
market.
2. how customer perceived the
product.
3. low volume
4. heavy
5. deciding which market segments to
enter
6. offering products with price lower
than competing products
7. unique products
8. altering its place in cosnsumer's
mind
9. use to show consumer's perception
10. unhealthy

Marketing

COLUMN B
a. light
b. market positioning
c. cost leadership
d. perceptual map
e. repositioning
f. market
g. healthy
h. targeting
i. high volume
j. differentiation
 What’s More

Directions : Rearrange the letters inside the box to form a meaningful word. (hint:
words pertains to market positioning)

1. NNIIIOOPSTG

2. NIOTAITRENEFFDI

3. GESNEMATIONT
4. SSEENNUUQI

5. ERPPCEULAT

6. YGETARTS 7. SUBISSEN

8. ERGNOPINISOIT

9. DNARB

10. SUCOTREM
 What I Have Learned

Having learned the fundamentals of market positioning, fill in the appropriate word/s

in each blank to complete the expressions.

1. _________________ refers to the ability to influence consumer perception regarding

a brand or product relative to competitors. The objective of market positioning is to

establish the 2. _________________ of a brand or product so that consumers perceive

it in a certain way.

A company using a3. _________________ strategy attempts to position itself in the

minds of the consumers as a company that provides products the consumers want

at a price that is 4. _________________ than competing products available in the

marketplace. Consumers expect 5. _________________ products with no bells and

whistles from a company using a cost leader strategy. Instead, consumers just

expect the products to meet their needs and nothing more or less.

On the other hand, a company using a 6. _________________ business strategy

attempts to position itself in the minds of the consumers as a company that

provides 7. _________________products that consumers will pay more for because they

cannot find comparable products or product features anywhere else in the

marketplace. Consumers expect more from a 8. _________________ product and

therefore are willing to pay a premium for a differentiated product. This is true as

long as the unique features of the product add some9. _________________ to the

product that makes it more valuable to the consumer, whether a functional feature

or an aspect of image or prestige that enhances the 10. _________________ of the

product.
 What I Can Do

Directions: The following sets of products belong to the same positioning category,
identify the product that does not belong to the same dimensions.

5. papaya
1. choc nut 3. safe guard soap
2. yogurt 4. toyota
flatops dove skinwhite
yakult suzuki soap
m&m green cross
soda asahi nivea

6. tide
7. fruit juice
ariel
milk tea
palmolive
fruit shake

8. anchor
ensure
bearbrand

9. baygon
lysol
alcohol

10. colgate
close up
head and shoulder
 Assessment

Directions:

Acrostic Poem
Follow these steps to write an eleven-line acrostic poem
explaining positioning .
Write the term POSITIONING vertically along the left side
of a notebook page. Begin each line with a word that starts with
the appropriate letter.
Each line must help answer questions concerning market
positioning .

Include the following terms somewhere in your acrostic:

cost leader, differentiation, targeting, segmentation.
consider the rubrics below in crafting your poem.
 ACROSTIC POEM 10 POINTS 15 POINTS 20 POINTS

STRUCTURE/FOCUS The poem does The poem has The poem has a
not have a clear message but 1-2 clear message.
message . lines do not relate Each line relates
More than 2 lines to the topic to the topic of the
do not relate to poem.
the topic.

CREATIVITY The poem does The poem uses The poem

not contain poetic one poetic contains more
elements (lines, element. than one poetic
rhyme, imagery). element.
Alliteration)

MECHANICS The poem The poem The poem does

contains 3 or contains 1-2 not contain any
more incorrect spelling incorrect
incorrect , grammatical spelling,
spelling, errors. grammatical
grammatical errors.
errors.
 Additional Activities

Match the following definitions to the correct market positioning terms provided
inside the word pool.

market positioning repositioning

targeting perceptual map

differentiation