1.3 Market Positioning Flashcards
Market positioning
Market positioning is how consumers perceive a product. It simplifies choices by grouping products based on factors like quality, status, and value.
Perception factors: product benefits
Emphasis on safety, quality or value
Eg. In cars
Perception factors: unique selling point (USP)
Unique feature setting the product apart, e.g., dandruff removal in shampoos.
Perception factors: product attributes
Specific qualities highlighted in marketing
Eg. M&Ms slogan
Perception factors: product origin
Place-linked name (Lancashire cheese)
Perception factors: product classification
Names suggesting comparisons
Eg. “I can’t believe its not butter”
Repositioning
Adjusting products’ target market, features, or image due to changing markets, e.g., detergent repurposing after decline in cloth nappy demand.
Market mapping purpose
To understand brand position based on consumer perception, e.g., if perceived as low-quality, sales impact will reflect this, even if the business perceives it as high-quality.
Market mapping uses
. Determine target market attributes
. Gauge acceptable price and necessary promotion
Market mapping uses
. Determine target market attributes
. Gauge acceptable price and necessary promotion
Market mapping limitations
. Limited to two attributes.
. More brand-specific; corporate brands might not benefit as much.
. Requires costly primary market research.
. Intuitive maps lack data precision and may reflect management bias.
Competitive advantage
Unique features giving a product an edge, making it desirable to consumers.
Strategies for competitive advantage: product design
Unique, aesthetic or ergonomic appeal
Strategies for competitive advantage: product quality
High quality allow premium pricing
Eg. Savile Row suits
Strategies for competitive advantage: promotion
Persuasive advertising to enhance consumer perception
Strategies for competitive advantage: customer service
High service quality enhances customer satisfaction
Eg. Enterprise car rentals
Strategies for competitive advantage: delivery speed
Fast delivery as key selling point
Strategies for competitive advantage: economies of scale
Lower production costs enable competitive pricing
Strategies for competitive advantage: flexibility
Customisation options increase appeal
Strategies for competitive advantage: ethical stance
Ethically sourced products attract conscious consumers
Strategies for competitive advantage: focused segments
Target niche segments for tailored competitive edge
Product differentiation purpose
To stand out in competitive markets by making products distinct through physical or perceived uniqueness.
Product differentiation advantages (5)
. Flexible Pricing: Allows premium pricing, especially for perceived differences.
. Market Recognition: Unique packaging or features catch consumer attention.
. Range Extension: Serve multiple market segments, e.g., different cruise options.
. Brand Development: Sustained differentiation builds strong brands, e.g., Coca-Cola.
. Competitive Edge: Perceived or real differences attract new customers, increasing market share and economies of scale.
Adding value
Enhancing product features beyond the standard expectations.
Adding value methods
. Bundling: Package benefits, e.g., inclusive holiday deals.
. Customer Service: Knowledgeable and attentive staff improve experience.
. Response Speed: Fast service reduces wait times, e.g., first-class airline perks.
. Packaging: Attractive wrapping adds perceived value.
. Frequent Buyer Offers: Loyalty programs for repeat purchases.
. Customization: Tailored options make products feel unique.
Adding value benefits
. Enables premium pricing and creates brand loyalty.
. Differentiates products from competitors, attracting consumers.
. Helps the business focus closely on target market segments.
