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8/3/2019 Product Positioning and Re Positioning
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PRODUCT POSITIONING AND REPOSITIONING
1. INTRODUCTION:
1.1 Positioning:
All marketing strategy is built on STP—Segmentation, Targeting, and Positioning. A
company discovers different needs and groups in the marketplace, targets those needs and
groups that it can satisfy in a superior way, and then positions its offering so that the target
market recognizes the company's distinctive offering and image. If a company does a poor
job of positioning, the market will be confused.
If a company does an excellent job of positioning, then it can work out the rest of its
marketing planning and differentiation from its positioning strategy. We define positioningas follows: Positioning is the act of designing the company's offering and image to occupy a
distinctive place in the mind of the target market. The goal is to locate the brand in the
minds of consumers to maximize the potential benefit to the firm. A good brand positioning
helps guide marketing strategy by clarifying the brand's essence, what goals it helps the
consumer achieve, and how it does so in a unique way. The result of positioning is the
successful creation of a customer-focused value proposition, a cogent reason why the
target market should buy the product. The word “positioning” was popularized by two
advertising executives, Al Ries and jack Trout. They see positioning as a creative exercise
done with an existing product:
Positioning starts with a product. A piece of merchandise, a service, a company, an
institution, or even a person…..But positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect. That is, you position the product in the mind of
the prospect.
There is a great number of different definitions of positioning in scientific literature of
marketing. The concept of positioning seeks to place a product in a certain position in
minds of perspective buyers. Marketers use a positioning strategy to distinguish their
offerings from those of competitors and to create promotions that communicate the
desired position. Boone and Kurz (2001) Scientists Etzel, Walker and Stanton (1997) referto marketing as a management’s ability to bring attention to a product and to differentiate
(position) it in a favorable way from similar products.
The purpose of positioning is to create a unique and favorable image in the minds of target
customers, Bhat (1998). The author Fill (2006) states, that positioning, therefore, is the
natural conclusion to the sequence of activities that constitute a core part of the marketing
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strategy. Market segmentation and target marketing are prerequisites to successful
positioning. Product positioning refers to the decisions and activities intended to create
and maintain a certain concept of a firm’s product in the customer’s mind.
Positioning is developing a specific marketing mix to influence potential customer’s overall
perception of a brand, product line, or organization in general (Lamb, Hair, McDaniel 2004)
To sum up position of a product is customer’s perceptions of a products attributes relative
to the attributes of competitive products. Buyers make a large number of purchase
decisions every day. To avoid constant reevaluation of numerous products, buyers tend to
group, or position products in their minds to simplify buying decisions. Rather than
allowing customers to position products independently, marketers must try to influence
and shape customer’s perceptions of different products.
1.2 Positioning characteristics
The goal of product positioning is to keep your product on top of your customers’ mind
when they’re considering a purchase. To be successful, product positioning must achieve
three objectives:
• Differentiate your product from the competitors
• Address important customer buying criteria
• Articulate key product (or company) characteristics
1.3 Points-of-Parity and Points-of-Difference:
Once the competitive frame of reference for positioning has been fixed by defining the
customer target market and nature of competition, marketers can define the appropriate
points-of-difference and points-of-parity associations.
Points-Of-Difference:
Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a
brand, positively evaluate, and believe that they could not find to the same extent with a
competitive brand. Strong, favorable, and unique brand associations that make up points-
of-difference may be based on virtually any type of attribute or benefit. Examples are FedEx{guaranteed overnight delivery), Nike {performance), and Lexus {quality).
Creating strong, favorable, and unique associations as points-of-difference is a real
challenge, but essential in terms of competitive brand positioning.
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Points-of-parity (POPs), on the other hand, are associations that are not necessarily
unique to the brand but may in fact be shared with other brands. These types of
associations come in two basic forms: category and competitive.
Category points-of-parity are associations consumers view as essential to be a legitimate
and credible offering within a certain product or service category. In other words, theyrepresent necessary—but not necessarily sufficient —conditions for brand choice.
Consumers might not consider a travel agency truly a travel agency unless it is able to make
air and hotel reservations, provide advice about leisure packages, and offer various ticket
payment and delivery options. Category points-of-parity may change over time due to
technological advances, legal developments, or consumer trends, but they are the "greens
fees" to play the marketing game.
Competitive points-of-parity are associations designed to negate competitors' points-of-
difference. If, in the eyes of consumers, the brand association designed to be the
competitor's point-of-difference is as strong for a brand as for competitors and the brand is
able to establish another association as strong, favorable, and unique as part of its point-of-
difference, then the brand should be in a superior competitive position. In other words, if a
brand can "break even" in those areas where the competitors are trying to find an
advantage and can achieve advantages in other areas, the brand should be in a strong—and
perhaps unbeatable—competitive position. While other luxury-goods makers slumped in
2000, Coach saw its sales zoom ahead by adding style and fashion to its legendary rugged
bags and briefcases.
1.4 Developing a Positioning Strategy:
To create a position for a product or service, Trout and Ries suggest that managers ask
themselves six basic questions:
1. What position, if any, do we already have in the prospect’s mind? (This information must
come from the marketplace, not the managers’ perceptions.)
2. What position do we want to own?
3. What companies must be outgunned if we are to establish that position?
4. Do we have enough marketing money to occupy and hold the position?
5. Do we have the guts to stick with one consistent positioning strategy?
6. Does our creative approach match our positioning strategy?
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1.5 Positioning strategies:
1.5.1 Positioning by Product Attributes and Benefits
A common approach to positioning is setting the brand apart from competitors on the basis
of the specific characteristics or benefits offered. Sometimes a product may be positionedon more than one product benefit. Marketers attempt to identify salient attributes (those
that are important to consumers and are the basis for making a purchase decision). For
example, when Apple first introduced its computers, the key benefit stressed was ease of
use—an effective strategy, given the complexity of computers in the market at that time.
1.5.2 Positioning by Price/Quality
Marketers often use price/quality characteristics to position their brands. One way they do
this is with ads that reflect the image of a high quality brand where cost, while not
irrelevant, is considered secondary to the quality benefits derived from using the brand.
Premium brands positioned at the high end of the market use this approach to positioning.
Another way to use price/quality characteristics for positioning is to focus on the quality or
value offered by the brand at a very competitive price. For example, Big Bazaar
advertisement. Remember that although price is an important consideration, the product
quality must be comparable to, or even better than, competing brands for the positioning
strategy to be effective.
1.5.3 Positioning by Use or Application
Another way to communicate a specific image or position for a brand is to associate it with
a specific use or application. For example, Harpic
1.5.4 Positioning by Product Class
Often the competition for a product comes from outside the product class. For example,
airlines know that while they compete with other airlines, trains and buses are also viable
alternatives. Amtrak has positioned itself as an alternative to airplanes, citing cost savings,
enjoyment, and other advantages. Manufacturers of music CDs must compete with MP3
players; many margarines position themselves against butter. Rather than positioning
against another brand, an alternative strategy is to position oneself against another
product category.
1.5.5 Positioning by Product User
Positioning a product by associating it with a particular user or group of users is yet
another approach. An example would be the Valvoline ad shown in Exhibit 2-18. This
campaign emphasizes identification or association with a specific group, in this case, people
who receive pleasure from working on their cars.
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1.5.6 Positioning by Competitor
Competitors may be as important to positioning strategy as a firm’s own product or
services. As Trout and Ries observe, the old strategy of ignoring one’s competition no
longer works. (Advertisers used to think it was a cardinal sin to mention a competitor in
their advertising.) In today’s market, an effective positioning strategy for a product orbrand may focus on specific competitors. This approach is similar to positioning by product
class, although in this case the competition is within the same product category, for
example, TVC of Amar Clove Gel. When positioning by competitor, a marketer must often
employ another positioning strategy as well to differentiate the brand.
1.5.7 Positioning by Cultural Symbols
Aaker and Myers include an additional positioning strategy in which cultural symbols are
used to differentiate brands. Examples are the Jolly Green Giant, the Keebler elves, Speedy
Alka-Seltzer, the Pillsbury Doughboy, Buster Brown, Ronald McDonald, Chiquita Banana,and Mr. Peanut. Each of these symbols has successfully differentiated the product it
represents from competitors’
1.6 Repositioning
One final positioning strategy involves altering or changing a product’s or brand’s position.
Repositioning a product usually occurs because of declining or stagnant sales or because of
anticipated opportunities in other market positions. Repositioning is often difficult to
accomplish because of entrenched perceptions about and attitudes toward the product or
brand. Many companies’ attempts to change their positions have met with little or nosuccess. For example, Kmart (the store) and Aurora (the Oldsmobile) have both attempted
to reposition themselves to a level of higher quality, appealing to younger and more well-
to-do customers. Both have met with limited success. (Kmart is in bankruptcy and the
Oldsmobile line will be discontinued). Nutri-Grain Bars—originally positioned as a
convenience snack (“Good food to go”)—have been repositioned as a breakfast substitute
(“Respect yourself in the morning”). Buick has repositioned in an attempt to reach a
younger market (using Tiger Woods, in his twenties, as a spokesperson), while La-Z-Boy is
attempting to move away from its blue-collar image and to a more affluent one. Sears has
changed its positioning so often in recent years that consumers may not know exactly what
image the company is trying to convey.
One extremely successful effort at repositioning was employed by Rolling Stone magazine.
In an attempt to change advertisers’ image of the type of person who reads Rolling Stone,
the company embarked on an extensive advertising campaign directed at potential
advertisers.
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2 EXAMPLE: CADBURY DAIRYMILK IN INDIA
2.1 Cadbury in India
Cadbury India began its operations in India in 1948 by importing chocolates. It now has
manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and
Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai.
The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the
development of cocoa cultivation in India. For over two decades, Cadbury has worked with
the Kerala Agricultural University to undertake cocoa research. Cadbury was incorporated
in India on 19 July 1948. Currently, Cadbury India operates in four categories: chocolate
confectionery, milk food drinks, candy and gum category. It has five companies owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and
Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). It
products include Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, and Bournvita.
It is the market leader in Chocolate Confectionery business with a market share of over
70%. The Brand Trust Report, India Study, 2011 published by Trust Research Advisory
ranked Cadbury in the top 100 most trusted brands list.
2.2 Symbol of Cadbury Dairy Milk
Cadbury dairy milk is synonymous with the chocolate. Dairy Milk has always tried to keep a
strong association with milk, with slogans such as "a glass and a half of full cream milk in
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every half pound" and advertisements that feature a glass of milk pouring out and forming
the bar.
2.3 Packaging of Cadbury Dairy Milk
Cadbury use the various attractive colors. It uses three colors in the packaging Purple,
White and Coffee. Purple color is stand for happiness and trustworthiness while white color
is indicates the milk and creaminess and coffee color indicates the chocolate. Dairy Milk has
more milk and chocolate than others brands. Cadbury dairy milk is always positioned in the
mind of consumers as celebrate the happiness with Cadbury dairy milk.
2.4 Design of the Cadbury Dairy Milk
Cadbury Dairy Milk is used the unique
design of the chocolate. Chocolate shape is
rectangle and it is divided in to small
squares so that it is easy to share with
other persons which also position in the
minds of the customers.
2.5 Different positioning and repositioning steps taken by Cadbury in India:
2.5.1 Real Taste of Life
Cadbury came with the many chocolate like Dairy milk, 5star, gems, Perk, Temptation and
one of the snacks is Bytes. In the early 90's, chocolates were seen as meant for kids, usually
a reward or a bribe for children. In the Mid 90's the category was re-defined by the very
popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all
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of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect
expression of 'spontaneity' and shared good feelings.
2.5.2 Khanewalon Ko Khane Ka Bahana Chahiye
In the late 90's, to further expand the category, the focus shifted towards widening
chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana
Chahiye' campaign. This campaign built social acceptance for chocolate consumption
amongst adults, by showcasing collective and shared moments.
2.5.3 'Kuch Meetha Ho Jaaye’ with 'Pappu Pass Ho Gaya
The 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory
occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been
adopted by consumers and today is used extensively to express joy in a moment of
achievement / success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze
Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new
media'. The idea involved a tie-up with Reliance India Mobile service and allowed students
to check their exam results using their mobile service and encouraged those who passed
their examinations to celebrate with Cadbury Dairy Milk.
The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated
Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006
(global benchmark for effective advertising campaigns) awards. Every time they are coming
with the some new advertisement and in every advertisement are giving new reason to buy
dairy milk. About their cost strategy, from so many years their price has not changed only
they are launching new products under the same brand name Cadbury.
Cadbury Dairy Milk has launched its new ad campaign under the broad umbrella of 'Kuch
Meetha Ho Jaye'. The umbrella, initiated six years ago, has rolled out several sub-campaigns
over the years - each with a separate message.
What started off as a message that encouraged people to celebrate the small joys of life ('Dil
Ko Jab Khushi Chhoo Jaye, Kuch Meetha Ho Jaye') and moved on to the celebrating overt
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occasions ('Pappu Pass Ho Gaya') has, for the past four years, been about occasion-led
celebration.
2.5.4 'Aaj Pehli Tareekh Hain'
Never mind the slowdown and the salary cuts; the pay day is always a reason to celebrate.
Cadbury 'pays' a tribute to the salaried employees by giving them another reason to
celebrate the payday.
2.5.5 Meetha Me Kya Hai”.
Cadbury Dairy Milk has found yet another occasion to provide consumers with a reason to
consume their chocolates - dessert time - when the palate craves for something sweet after
a sumptuous dinner. This campaign was known as “ Meetha Me Kya Hai”.
As is tradition, in most Indian households, something 'meetha' or sweet is offered as
dessert after the evening meal. In a commercial for the dairy milk chocolate, Ogilvy India
has used this insight to increase consumption of the chocolate in homes, as opposed to
impulse purchases only, which seems to be the current trend.
2.5.6 Shubh Aarambh
Though the core target group, consumers in the age group of 15-35 years, has been
retained from the previous campaign ('Aaj Pehli Tareekh Hain') that was launched about a
year ago, Shubh Aarambh is driven by an effort to refresh the take on 'Kuch Meetha Ho
Jaye'. Specifically, there is a shift from the notion of celebrating happy occasions with
chocolate to the concept of anticipating the occurrence of something good after consuming
the chocolate.
Maintaining the universal appeal of the brand, the campaign is aimed at consumers across
SECs and is supposed to have a balanced appeal across all tiers.
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3 RELEVANCE OR SIGNIFICANCE FOR MARKETERS:
There is no product in the world that does not have a position. Product positioning is about
visibility and recognition and what product represents for a buyer. In markets where the
intensiveness of rivalry and competition are increasing and buyers have a greater choice,
identification and understanding of a product’s intrinsic values become critical. An offering
with a clear identity and orientation to a particular target segment’s needs will not only be
purchased, but can warrant a larger margin through increased added value. Numerous
organizations are trying to manage their positions occupied by their products and are using
different positioning strategies to move to new positions in consumers’ minds and so
generate an advantage over their competitors. Earlier positioning was very important in
markets that are very competitive and where mobility barriers are relatively low.
Nowadays these market characteristics can be applied almost to every industry or
business, and to any economy. No product, of those which have survived, can be imagined
without clear, distinct and intensive positioning.
3.1 Why is positioning important?
Product positioning is a crucial ingredient in the buying process and should never be left to
chance. It’s your opportunity to influence the market’s perception of your products.
Failure to proactively address product positioning is unlikely to end well. With or without
your input, customers will position your product —probably based on information from
your competitors, which will not flatter you.
Clear, concise, meaningful product positioning also helps you cut through the relentlessadvertising and marketing noise of the marketplace. In your customer’s mind, product
positioning gives your messages some context so they can be better heard and accepted.
Whether you are trying to pick out a name for your company, create designs, develop a
website or define your pricing strategy, the aspiring entrepreneur must always remember
that the foundation of a great brand boils down to one thing; POSITIONING. Positioning is
how the target market defines the brand in relation to its competitors. In other words, it’s
the brands identity! When defining a brand’s positioning, one should consider how the
positioning makes the brand unique and, more importantly, if these unique qualities are
perceived as “added values” by the target audience. So what if you have the only clothingline that uses teal ink imported from Dijibouti! Although this is a point of differentiation,
does anybody in your target audience actually care about this? If so, that’s great! You may
just have found your positioning. If not, you are simply being different for the sake of being
different and this really offers no added benefit to your brand or the customer. Here are a
few helpful tips for those of you who have great ideas and don’t want to end up being just
another generic-named clothing line with a few cool designs. Remember, branding takes
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time and positioning is just the first step on the road to developing a relationship with your
customers.
When contemplating your brand’s positioning, you have to see who everybody else already
is before you can figure out who you want to be. By scanning the competitive landscape
you can see what niches are already being satisfied and also if there are any unmet needs
your brand can take advantage of. So what if you have a fantastic idea for a new skate/surf
apparel line. If there are already a million other people with the same idea that are 10
steps ahead of you, how will you compete? There is a good chance, although not
guaranteed, that your brand will be seen as an imitator rather than a fresh new company.
This isn’t to say that you should back away from ALL niche’s with e stablished competition.
On the contrary! Having some competition allows the customers to know what they can
expect from you. It is up to you, however, to show the customer how you are different from
Company A and Company B if you choose to go ahead with your skate/surf line in a
competitive market. The key here is to decipher what your brand can offer as “added
value” if other people have similar product offerings and knowing when to fold em’ if you
think competition is too high. The purpose of an environmental scan is to help you realize
what you are getting yourself into before you invest your life savings into a brand that Joe
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Shmo down the street started 10 years ago. Once you know what’s out there you can be
that much more prepared to take on the wonderful world of apparel design!
There are a variety of strategies one can utilize when determining positioning. What’s
great about this is if someone has a similar concept as me, let’s say a flavored water
beverage, I can still use my specific positioning as a point of differentiation. For example,Company A is positioned as a diet drink focusing on low calories while my flavored water
leverages the drink’s electrolytes and is positioned as an exercise supplement. These are
basically the same products, more or less, but each focus on very different positioning
giving each a competitive advantage and unique identity.
3.2 The Role of Product Positioning in Consumer Buying Decision Process:
The Consumer buying decision process is characterised by five stages: Problem
recognition, information search, evaluating of alternatives, purchase, and post-purchase
evaluation. Problem recognition is “when a buyer becomes aware of a difference between a
desired state and an actual condition”. Therefore the buyer is l acking a product and they
realize that they need or want this product. Information search is when a buyer has
discovered their problem and needs to search for information to help them solve the
problem. This may be performed internally or externally. Internal search is when the buyer
searches their memory from previous knowledge or experience. External search is when
the buyer finds information from other sources, such as friends or public sources.
Evaluation of alternatives describes the buyer considering the possible products found
from the information search. The buyer evaluates each product based on both objectiveand subjective criteria. Purchase is the stage where the consumer has chosen a particular
product from the evaluation stage, and chooses a brand based upon style, price, reputation,
and etcetera. Post evaluation is when the buyer evaluates the product to ensure it meets
their particular needs. This consists of looking over the criteria used in the evaluation stage
again, plus some others.
Product positioning influences the evaluation of alternatives and purchasing stages. The
nature of product positioning is to distinguish one brand’s product from the others, so we
may assume that product positioning only influences choice between similar products.
Therefore product positioning is not a factor in the information search. Product positioning
has an effect on the buyer’s evaluation of alternatives and purchasing. It is these two stages
where the consumer compares the products offered by different brands, and possibly
chooses one. As the consumer compares products, product positioning will help the
consumer determine the differences between the products, and help them select the
product which best meets their evaluation criteria.
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When a consumer wants to purchase a product, they perform a level of problem solving to
determine which product and brand to purchase. A large factor in the problem solving is
the consumer’s level of involvement with the product. The level of involvement depends on
the consumer’s interest in the product, the cost of the product, how visible the product is to
others, and the importance of the product. Level of involvement therefore affects the
decision making process of the consumer, which is tern should affect brand positioning.
Companies need to know what the consumer involvement levels are for their products so
they understand what problem solving techniques the consumer may be using. There are
three main types of problem solving techniques used: routinised response behavior,
limited problem solving, and extended problem solving. The extended problem solving
occurs for high consumer involvement products, where consumers spend more time
contemplating their decision. For these products, a product with strong positioning and
reputation is likely to stand out over others. Routinised response behavior and limited
problem solving is used for products with less consumer involvement, where price andavailability may be more determining factors then the brand reputation. Understanding
how the consumer purchases a product, a company can develop an appropriate level of
brand positioning through a marketing mix.
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4 LEARNING VALUE:
Positioning plays a key role when reaching the desired place in the mindsets of
potential and existing consumers.
Most scientists of the field of marketing define product positioning as arrangementsfor a product to occupy a clear, distinctive, and desirable place in the minds of target
consumers, relative to competing products in the market. The position of a product
is formed by customers’ perceptions of a products attributes relative to the
attributes of competitive products
Product positioning is an inseparable and most important part of the STP model. If
the first two steps (segmentation and targeting) contain flaws or are inadequately
or incompletely performed, successful product positioning is doomed to fail.
Summarizing the opinion of various scholars, it is obvious that product positioning
is a complex, continuing and chain process. While positioning a product marketers
should at least (there can be more) go through the following steps:
1. Identify and analyze competitive products in the market,
2. Identify the determinant attributes and measure their significance to the user,
3. Select positioning or repositioning strategy,
4. Compose the positioning map,
5. Determine the desired position of the product,
6. Identify the current position of the product and other competing products according
to determinant attributes,
7. Create positioning statement.
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5 BIBLIOGRAPHY:
Books:
Kotler, P. & Keller, K. V. & Koshy, A. & Jha, M. (2009) Marketing management (13th
ed.). Noida: Dorling Kindersley. Belch, G. E. & Belch, M. A. (2003) Advertising and Promation: An Integrated
Marketing Communications Approach (6th ed.). Tata McGraw Hill Publishing
Company Limited: New Delhi
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http://www.icmrindia.org/free%20resources/casestudies/Airtel%20positioning%
20and%20repositioning.htm (30/09/2011, 9:10 pm)
http://www2.nortel.com/go/news_detail.jsp?cat_id=-9252&oid=100200792
(02/10/2011, 10:20 am)
http://www.google.co.in/url?sa=t&source=web&cd=8&sqi=2&ved=0CGMQFjAH&u
rl=http%3A%2F%2Fwww.ktu.lt%2Flt%2Fmokslas%2Fzurnalai%2Finzeko%2F56
%2F1392-2758-2008-1-56-
97.pdf&rct=j&q=significance%20of%20product%20positioning&ei=46ObTs_LN8Xq
rQfg95GTBA&usg=AFQjCNGFGHXo0jePiSxDpvaYYXC_VW0RKQ&cad=rja
(02/10/2011, 11:00 am)