Positioning - a Ries and Trout Perspective

Topics: Marketing, Positioning, Strategic management Pages: 9 (1746 words) Published: March 2, 2013
Brand Positioning

Brand Positioning
Positioning is owning a piece of consumer’s mind, Positioning is not what you do to a product It’s what you do to the mind of the prospect You position the product in the prospect’s mind ‘It’s incorrect to call it Product Positioning’ – Ries & Trout Brand Positioning is owning a piece of customer’s mind. It's not what a marketer does to its brand but how it is perceived in the mind of the customer. For this, a brand has to be distinctive, relevant and appealing to its target audience.

Examples of brand positioning:
A brand-positioning task is to give the answers to the four questions: a) “a brand for what”; b) “a brand for whom”; c) “a brand for when”; and d) “a brand against whom”.

In order to position a brand, a marketer you must decide – - Who the target customer is?

- Who your main competitors are?

- Points-of-Parity (PoPs) and Points-of-Difference (PoDs) with respect to the competitors

The purpose of brand positioning is to explain how the brand will create a sustainable competitive advantage in the minds of prospects & customers in order to win loyal customers and ensure revenue and profits.

Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibility Once a firm has identified an appropriate segment of the market to target, the next task is to position the brand so that it meets the needs and wants of the target customers. One way to do this is to use a “market map” (popularly known as the “perceptual map”). The market map illustrates the range of “positions” that a product can take in a market based on two dimensions that are important to customers. Examples of those dimensions might be:

✓ High price v low price
✓ Basic quality v High quality
✓ Low volume v high volume
✓ Necessity v luxury
✓ Light v heavy
✓ Simple v complex
✓ Lo-tech v high-tech
✓ Young v Old
Example of a market map: The map below shows one possible way in which the chocolate bar market could be mapped against two dimensions – quality and price: [pic]

How might a market map be used?
One way is to identify where there are “gaps in the market” – where there are customer needs that are not being met.  For example, in the chocolate bar market,
✓ Divine Chocolate (a social enterprise) successfully spotted that some consumers were prepared to pay a premium price for very high quality chocolate made from Fairtrade cocoa. ✓ Green & Black’s exploited the opportunity to sell premium chocolate made from organic ingredients. Both these brands successfully moved into the high quality / high price quadrant (as above) before too many competitors beat them to it. The trick with a market map is to ensure that market research confirms whether or not there is actually any demand for a possible “gap in the market”.  There may be very good reasons why consumers do not want to buy a product that might, potentially, fill a gap. Finding the GAP in the market:

Is your product/service a luxury item, or is it more of a commodity (value). Also is a traditional product or a more cutting edge innovative product/service.

Identifying and Establishing Brand Positioning
Basic Concepts:
According to the CBBE model, it is necessary to decide:-
✓ 1. Who the target consumer is
✓ 2. Who the main competitors are
✓ 3. How the brand is similar to these competitors, and ✓ 4. How the brand is different from these competitors

Target Market:
➢ Segmentation Bases:
• Behavioral: The needs they seek to fulfill, the level of knowledge, information sources, attitude, use or response to a product of your customers;

• Demographic: The age, gender, income, family composition and size, occupation, and education of your customers;

• Psychographic: The general personality, behavior, life-style, rate of use, repetition of need, benefits sought, and loyalty...
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