Chapter 4 Flashcards
define positioning
results when an organization follows deliberate strategies to design products with characteristics distinct from those of its competitors and then communicates these differences to the targeted customers. - position strategy finds a superior position
why do firms need a more well-conceived positioning and branding strategies
due to limited-attention economy
why do firms seek a focused marketing strategy
ensure customer remember the brand, associate a compelling benefit with it and have favourable experiences with the product or service that reinforce the brand name and its benefits
what does positioning require an understanding of
product category
customer segment
relevant purchase or usage occasion
what’s the appeal of a central position strategy to a firm
appeals in a monopolistic/dominant position within their target segments
how can a new copycat brand employ a variation on central position by inhabiting a clone position
delivers the same benefits as the market leader
makes the benefits easy for the customer to determine objectively
offers a product at a significantly lower price than the leader
when might a firm choose a differentiation or edge strategy
if central positioning is not available
it’s a difficult strategy as it seeks to create a new product category
what questions do managers ask to understand the competitive structure of their markets
how do our customers (current/potential) view our brand
which brands do these customers perceive to be our closest competitors
what product and company attributes are most responsible for these perceived differences
what are the characteristics of perceptual maps
- distances between products indicate similarities in the minds of customers, such that the shorter the distance the more similarly the products are perceived by consumers
- a vector on the map (line w/arrow) indicates both magnitude and direction, usually to denote product attributes
- the map axes, a special set of vectors, suggest the broad underlying dimensions that best characterize how customers differentiate among alternatives
what’s a weakness of perceptual maps
says nothing about the brand locations that are most attractive to customers -
what are attribute-based methods
used to derive perceptual maps from customer evaluations of competing products along pre-specified attributes
where evaluations are obtained from customers within a selected target segment of interest
what’s the process of attribute based perceptual maps
- identify products and product attributes for evaluation
- obtain perception data from questionnaires given to defined target segments - can be organized into a matrix with customer ranking - assumption that customers in a target segments share similar perceptions about the competing alternatives
- select a perceptual mapping method
4, plot the resulting map
pros and cons of attribute methods
pros: useful when customers understand clearly how various attributes differentiate the product alternatives, translates numerical data into a visual form
cons: cannot indicate which area of the map are most desirable to the target segments of customers - don’t have info on customer preferences.
what maps can mao preferences
preference mapping 0 has mapping preferences, joint space mapping - has both perceptions and preferences
what are some characteristics of the preference maps
preferences don’t necessarily change according to the magnitude of an attitude
ideal point is closest to origin
cannot indicate which attributes should be changed to make a focal product more appealing to the target segment
what are characteristics of joint-space maps
have both perceptions and preferences into the same map - averaged ideal point models and averaged vector models.
requires a data matric that consists of preference ratings for a certain number of brands and respondents
how to generate a average ideal-point model
required hypothetical ideal brand that appears among the set of alternatives customers can rate - averaged perceptions of the ideal brand
how to generate averaged vector model
the associated vector on the map indicates the direction of increasing preference
longer vector = more preferred
what’s the external analysis mapping method
assumes respondents who have common perceptions about a set of product alternatives also have differing preferences for those alternatives
model overlays the preference of each respondent onto a common perceptual map - normally derives from the same respondent and employs attribute-based approaches
external analysis creates a preference vector for each customer
what’s the first choice rule
customers always choose the product they prefer the most, even if one or more other alternatives are available
where does the first choice rule apply well in
product categories that are infrequently purchased, expensive, visible during use, require high-involvement decision making on the part of customers
define share of preference rule
customers distribute their purchases across different product offerings proportional to their relative preferences for each
where does first choice rule useful in product categories
frequently purchase, relatively inexpensive, not visible during use, doesn’t require careful decision making, customers seek variety from time to time
what’s a reverse map
reposition the focal brand directly on map then assess the changes in perceptions that the firm would need to bring to achieve a new position + calculate forecasted market share at the new position
