MKM706 – MARKETING

FUNDAMENTALS
Week 4B – Positioning Statements
Today’s Agenda:
• In the News
• Review of Week 4A
• Positioning Continued
• Positioning Statements
• Perceptual Maps
 Review
Steps to Segment, Target and
Positioning
1) Needs-Based Segmentation
Segmenting
2) Segment Identification
3) Segment Attractiveness
Targeting
4) Segment Profitability
5) Segment Positioning
Positioning
6) Segment Strategy Test
7) Marketing Mix Strategy
 Review

Measuring Profitability
• We can calculate 3 variables:
– Net Marketing Contribution
• (# of Customers x Penetration/Demand rate x (Price x
Margin)) - Expenses

– Marketing return on sales

• Contribution/Sales

– Return on Investment
• Contribution/Investment
 Review

Segment Strategies
 Review

Segment Positioning
– A business needs to develop a customized value
proposition for each strategy that deliver value to
target customers in each segment.
– A value proposition includes all the key elements of
the situation and the benefits the target customer is
seeking
– It should answer “why” you are in business and how
your product/service will be of more value than a
competitor
– Answer the question: If I was your ideal customer,
why should I buy from you? Why should they care?
– Brand Positioning
 Positioning

Positioning your Product

• Positioning is a strategy for defining and
portraying brands or products in ways that
cause the ideal customers to perceive them
as the best solution for their needs.

Positioning in a Nut Shell

 Positioning

What are these brand positions?

 Positioning Statement

Positioning Statement
– Your marketing strategy and tactics require
a well-constructed, succinct, and defined
positioning statement.
– Your decisions and strategy should reflect
your positioning statement.
– “Does this decision reflect my positioning
statement?” is a question you should ask
when deciding any strategy
 Positioning Statement

Positioning Statement
• A positioning statement is not advertising tagline
or slogan
• Positioning statements will probably never be seen
by a customer
• Good positioning statements are short and
succinct
 Positioning Statement

Positioning Statement
• Products that are positioned well occupy a niche
uniquely, and the positioning statement therefore
must identify what makes a product different or
unique
• Positioning statements that are effective are
realistic; they are not filled with hyperbole
• The best positioning statements are more specific
than general; they identify that one, unique
attribute that appeals to the identified market
 Positioning Statement

4 Basic Elements
• Target Audience – the description of the core
prospect. The customers who represent the brand’s
most avid users.
• Frame of Reference (FOR) – the category in which
the brand competes. Context gives the brand
relevance to the customer.
• Benefit/Point of Difference (POD) – the most
compelling and motivating benefit that the brand can
own.
• Reason to Believe – the most convincing proof that
the brand delivers what it promises.
 Positioning Statement

Template of Positioning Statement

For (target audience), (brand name)

is the (frame of reference) that
delivers (benefit/point of difference)
because only (brand name) is the
(reason to believe)
 Positioning Statement

Example Positioning Statements

For individuals looking for high-quality beverages,

Coca-Cola offers a wide range of the most refreshing
options -- each creates a positive experience for
customers when they enjoy a Coca-Cola brand drink.
Unlike other beverage options, Coca-Cola products
inspire happiness and make a positive difference in
customers' lives, and the brand is intensely focused on
the needs of consumers and customers
 Positioning Statement

Example Positioning Statements

• For athletes in need of high-quality, fashionable
athletic wear, Nike provides customers with top-
performing sports apparel and shoes made of the
highest quality materials. Its products are the
most advanced in the athletic apparel industry
because of Nike’s commitment to innovation and
investment in the latest technologies
 Positioning Statement

Example Positioning Statements

• For consumers who want to purchase a wide
range of products online with quick delivery,
Amazon provides a one-stop online shopping site.
Amazon sets itself apart from other online
retailers with its customer obsession, passion for
innovation, and commitment to operational
excellence
 Positioning Statement

Example Positioning Statements

• Disney provides unique entertainment for
consumers seeking magical experiences and
memories. Disney leads the competition by
providing every aspect of related products and
services to the world and appealing to people of
all ages
 Positioning Statement

Example Positioning Statements

• For consumers who want the attributes,
applications and technology of a high end mobile
devices, DG iPhones provides an economical
solution. DG iPhones sets itself apart from other
brands with a commitment to highest production
quality and customer service.
 Perceptual Maps

Creating Perceptual Maps

• When developing positioning for a product, it’s
useful
to create a positioning matrix to visualize how the
product
is positioned relative to its competitors
• Used to see a hole or a need
• Justifies current positioning
• Typically use two attributes to measure
customer’s perception of the brand
 Perceptual Maps

Example Perceptual Maps

Perceptual Maps
Perceptual Maps
Perceptual Maps
Perceptual Maps
 Perceptual Maps

Repositioning
• Repositioning is when a company changes its
“perception” in the market place
• This occurs by changing some/one element(s) of
product, place, promotion and/or price
• Repositioning is done in response to changing
customer needs and/or external environmental
changes
• Cambell’s Soup  more transparent ingredients
• Apple  to lifestyle brand
• Chocolate Milk  ???
Perceptual Maps
 Perceptual Maps

Summary
• Positioning is all about understanding your business,
product and service in the market
• It determines the way you need to differentiate your
products and how to market to your target audience
• A positioning statement indicates 4 basic elements that
indicates where you add value and the reason to
believe for your target audience.
• Perceptual maps help determine the competitive
landscape in the eyes of consumers. This will allow
marketers to determine best messaging to reach
customer.