market Positioning

Product PositioningM.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

Excellent gas mileage

Car A Car B

Product Positioning Maps:two dimensions

Poor gas mileage

Excellent gas mileage

Car A

Car B

High price

Low price

Product Positioning Maps:three dimensions

Poor gas mileage

Excellent gas mileage

Car A

Car B

High price

Low price

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

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. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Common Market Positioning Strategies

1. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Common Market Positioning Strategies

1. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

Anacin

TylenolNuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Common Market Positioning Strategies

1. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

Motrin

I

IMedipren

Best Case: establish a preemptive market position with long-term returns

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

Motrin

I

IMedipren

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

Common Market Positioning Strategies

1. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

II

In adaptive positioning firms first watch a segment’s needs evolve…….

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

I

Then they reposition themselves to be more in line with the ideal point(s)

Medipren

Common Market Positioning Strategies

1. Monosegment positioning2. Multisegment positioning3. Imitative positioning4. Anticipatory positioning5. Adaptive positioning6. Defensive positioning

Expensive

Inexpensive

For

Hea

dach

es ForB

ody Aches

Excedrin

Bufferin

AnacinTylenol

Nuprin

Advil

Bayer

St. Joseph’s

MotrinMedipren

I

IMedipren 2

Medipren 3

Defensive positioning calls for positioning multiple brands together, to make the market segment less attractive.