Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Chapter 9Chapter 9Positioning Decisions

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

PositioningPositioning is the act of is the act of designingdesigning the company’s the company’s

offering and image to offering and image to occupy a distinctive occupy a distinctive

place in the the target place in the the target market’s mind.market’s mind.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.4

Steps in the Positioning Process (1 of 2)

1. Identify relevant set of competitive products.1. Identify relevant set of competitive products.

2. Identify the set of determinant attributes that define the “product 2. Identify the set of determinant attributes that define the “product space” in which positions of current offerings are located.space” in which positions of current offerings are located.

3. Collect information from a sample of customers and 3. Collect information from a sample of customers and potential customers about perceptions of each product potential customers about perceptions of each product

on the determinant attributes.on the determinant attributes.

4. Analyze intensity of a product’s current position in 4. Analyze intensity of a product’s current position in customers’ minds.customers’ minds.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.4

Steps in the Positioning Process (2 of 2)

5. Determine product’s current location the product space 5. Determine product’s current location the product space (product positioning).(product positioning).

6. Determine customers’ most preferred combination of 6. Determine customers’ most preferred combination of determinant attributes.determinant attributes.

7. Examine the fit between preferences of market segments 7. Examine the fit between preferences of market segments and current position of product (market positioning).and current position of product (market positioning).

8. Select positioning or repositioning strategy.8. Select positioning or repositioning strategy.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.5

Product Category and Brand Positioning (1 of 2)

Source: Adapted from P.S. Busch and M.J. Houston, Marketing Strategic Foundations (Burr Ridge, IL: Richard D. Irwin, 1985), p. 430.

A. Product category positions (breakfast foods market)

Expensive

Inexpensive

QuickTime-consuming

Bacon and eggs Cold cereal

Instant-breakfast drinks

Hot cereal

Pancakes

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Perceptual Map

0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2

1.01.0

0.80.8

0.60.6

0.40.4

0.20.2

-0.2-0.2

-0.4-0.4

-0.6-0.6

-0.8-0.8

MagicMagicMountainMountain

JapaneseDeer Park

BuschBuschGardensGardens

Knott’sKnott’sBerryBerryFarmFarm

LionLionCountryCountrySafariSafari

MarinelandMarinelandof theof thePacificPacific

DisneylandDisneyland

EconomicalEconomical

Fun ridesFun ridesExerciseExercise

FantasyFantasyGood foodGood food

Easy to reachEasy to reach

Educational,Educational,animalsanimals

Little waitingLittle waitingLive showsLive shows

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Positioning Map: Automobiles For Generation Yers

More “Edgy”

Less “Edgy”

ExpensiveInexpensive

Scion

Kia Sorrento

$13k

Cube

Civic$20K

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

What is Scion’s Mission Statement?

"To satisfy a trend setting youthful buyer through distinctive products and an innovative, consumer-driven process."

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.6

Perceptual Map of Women’s Clothing Retailers in Washington, D.C.

Washington 1990 Women’s fashion market

Women’s-wear value for the moneyWorst value Best value

Wom

en’s

-wea

r fas

hion

abili

tyC

onse

rvat

ive

vers

us c

urre

nt

vers

us v

ery

late

st

Neiman-MarcusSaks

Bloomingdale’s

Hit or Miss

The Limited

Macy’sNordstrom

Garfinkels

Casual Corner

KmartBritches

Sears

DressBarn

The GapLoehmann’s

TJ MaxxSassafras

Talbots

Woodward & Lothrop

JC Penney

Hecht’sL&T Marshalls

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990, as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.7

Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers

Washington 1990 Women’s fashion market

Worst value Best value

Wom

en’s

-wea

r fas

hion

abili

tyC

onse

rvat

ive

vers

us c

urre

nt

vers

us v

ery

late

st Neiman-MarcusSaks

Bloomingdale’s

Hit or Miss

The Limited

Macy’sNordstrom

Garfinkels

Casual Corner

KmartBritches

Sears

DressBarn

The GapLoehmann’s

TJ MaxxSassafras

Talbots

Woodward & Lothrop

JC Penney

Hecht’sL&T Marshalls

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

Women’s-wear value for the money

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.8

Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points

Washington 1990 Women’s fashion market

Women’s-wear value for the moneyWorst value Best value

Wom

en’s

-wea

r fas

hion

abili

tyC

onse

rvat

ive

vers

us c

urre

nt

vers

us v

ery

late

st

Neiman-Marcus2Saks

Bloomingdale’s

Hit or Miss

The Limited

Macy’sNordstrom

Garfinkels

Casual Corner

KmartBritches

Sears

DressBarn

The GapLoehmann’s

TJ MaxxSassafras

Talbots

Woodward & Lothrop

JC Penney

Hecht’sL&T Marshalls

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

4

5

1

3

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Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Exhibit 9.3

Comparisons of Physical and Perceptual Positioning Analysis

Physical positioning

• Technical orientation• Physical characteristics• Objective measures• Data readily available• Physical brand properties

• Large number of dimensions• Represents impact of product

specs and price• Direct R&D implications

Perceptual positioning

• Consumer orientation• Perceptual attributes• Perceptual measures• Need for marketing research• Perceptual brand positions

and positioning intensities• Limited number of dimensions• Represents impact of product

specs and communication• R&D implications need to be

interpreted