Product Positioning

Question 1

Positioning Definition

Answer 1

Positioning refers to developing a product and associated marketing mix that: (1) is ”placed” as close as possible in the minds of target customers to their ideal in terms of important features and attributes; and (2) clearly differentiates the product from that of its competition.

Question 2

Positioning Maps

Answer 2

Positioning maps are a tool used by marketers to represent their products and competing products according to a number of dimensions in a visual representation. For the purposes of this module, you should ensure that you are able to describe the nature and purpose of the positioning map and then draw a positioning map for an identified product and its competitors. Of particular importance when developing the positioning map is to identify the most relevant or determinant dimensions that encapsulate the consumers’ perception of the product.

Question 3

competitive gaps

Answer 3

*

Question 4

determinant variables

Answer 4

*

Question 5

Positioning Process:

Answer 5

Step 1: identify a relevant set of competitive brands
Step 2: identify relevant determinant or differentiation variables
Step 3: determine consumers’ perceptions
Step 4: analyse the intensity of a brand’s current position
Step 5: analyse the brand’s current position
Step 6: determine the customers’ most
Step 7: select the positioning strategy

Question 6

Step 1: identify a relevant set of competitive brands

Answer 6

You need to identify a complete set of competitive brands. Do not define competitors too narrowly because you may exclude a number of significant competitors that have a vital influence in the competitive environment.

Question 7

Step 2: identify relevant determinant or differentiation variables

Answer 7

In this step, you must select the determinant variables. It is necessary to select those variables that play a key role in helping customers differentiate from alternative brands. It is here that it is necessary to distinguish between important variables and determinant variables. In many instances, important variables are assumed to exist across all brands, and therefore do not determine consumer choice.

Question 8

Step 3: determine consumers’ perceptions

Answer 8

This step entails the formal or informal collection of data to ascertain the consumers’ current perception of the competitive brands in terms of the determinant variables identified in the previous step. This is a significant step and should thus be followed with extreme care and diligence.

Question 9

Step 4: analyse the intensity of a brand’s current position

Answer 9

Based on the data collected in the previous step, the marketer can ascertain the levels of awareness of the brand, and how it is perceived in relation to its competitors’ brands.

Question 10

Step 5: analyse the brand’s current position

Answer 10

This step would entail the development of the positioning map.

Question 11

Step 6: determine the customers’ most

Answer 11

preferred combination of attributes
The actions in step 5 simply plot the various competitors on the positioning map and illustrate who the close competitors are and those where rivalry is not as intense. However, in terms of positioning, we need to not only understand who the competitors are, but also where we (Woolworths in this case) stand in terms of the determinant attributes. It is pointless occupying a position on the positioning map that is far removed from other competitors, but equally far removed from the consumers’ most preferred combination of attributes. In order to obtain the ideal or desired position for your product, it is necessary to occupy a position on the positioning map that matches the consumers’ determinant attributes.

Question 12

Step 7: select the positioning strategy

Answer 12

In this final step, the marketer needs to take the information from the previous steps and decide where the brand will be positioned or what needs to be done to reposition it.

Question 13

positioning methods:

Answer 13

• Attribute positioning.
• Benefit positioning.
• Use/application positioning.
• User positioning.
• Competitor positioning.
• Quality/price positioning.