Positioning Bases
By using customer research and perceptual mapping, a marketer can create a positioning statement using one of the three main bases.
LEARNING OBJECTIVES
Examine positioning and the strategy behind it relative to competitive perceptual positioning
KEY TAKEAWAYS
Key Points
- Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from investors, stockholders and consumers.
- Symbolic Positions deal with self- image enhancement, ego identification, belongingness, social meaningfulness and affective fulfillment.
- Experiential Positions deal with providing sensory or cognitive stimulation.
- By using customer research and perceptual mapping, a marketer can create a positioning statement using one of the three main bases.
Key Terms
- Experiential: Of, related to, encountered in, or derived from experience
- positioning: The act of positioning; placement.
- perceptual mapping: Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers.
Introduction
When a company presents a product or service in a way that is differentiating from the competition, they are said to be “positioning” it. Positioning relates to a process used by marketers to create an image in the minds of a target market. While positioning used to focus on consumer positioning, it now focuses more on competitive positioning.
The Positioning Concepts
There are three basic concepts for positioning:
- Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from investors, stockholders and consumers.
- Symbolic Positions deal with self-image enhancement, ego identification, belongingness, social meaningfulness and affective fulfillment.
- Experiential Positions deal with providing sensory or cognitive stimulation.
Positioning is facilitated by perceptual mapping to determine the ideal points of consumers.This helps to determine if positioning should be functional, symbolic, or experiential. Strong positioning will enable a single product to appeal to different customers for different reasons. For example, two people are interested in buying a new car; one wants a car that is powerful and stylish while the other buyer is looking for a car that is reliable and safe and yet they buy the same exact car. One purchase solved a problem and exemplifies functional positioning while the other purchase is an example of symbolic and/or experiential positioning.
The Positioning Statement and Strategy
By using customer research and perceptual mapping, a marketer can create a positioning statement using one of the three main bases.
A positioning statement explains the target market for the product, the benefit of the product, and how the product is different than the competitors.
When creating a positioning statement, it is important to determine a pain point of the customer. Customers often buy on a want, rather than a need, impulse. By talking to a customer’s pain point, it is often possible to address the need impulse and the want impulse at the same time. If both of these issues can be addressed then it is easier to overcome objections regarding a product.
Wants versus Needs: What consumers want may not be what they need, but it is important to understand both.
A company can create brand positioning strategies or product positioning strategies. It is important to understand the strengths and weaknesses of both the organization and the competition when creating a positioning strategy.
Repositioning
Repositioning involves changing the identity of a product relative to competing products.
LEARNING OBJECTIVES
Indicate the characteristics and application of a re-positioning as it applies to competitive perceptual positioning
KEY TAKEAWAYS
Key Points
- When a company initiates a re-positioning strategy, it needs to change the expectations of stakeholders, including employees, stockholders, and financial backers.
- A company may need to consider a re-positioning strategy if they have a weak brand, if they have not remained competitive in the market, or if there is a change in the economy.
- A company may re-position a specific product line, a brand, or the entire organization.
Key Terms
- repositioning: Changing the identity of a product or a company in the minds of stakeholders and competitors.
Repositioning involves changing the identity of a product relative to competing products. Many famous companies have saved failing products by repositioning them in the market. When a company initiates a repositioning strategy, it needs to change the expectations of stakeholders, including employees, stockholders, and financial backers.
Apple Inc.: Apple Inc. is an example of a company that achieved re-positioning
Brand Identity
Brand identity is often involved with the success or failure of a product. A company that has achieved brand recognition can often survive the challenge of new entrants in a market. The problem with being at the top of the market, however, is that someone is always trying to knock you off. Companies that have become complacent with brand strategies sometimes find themselves knocked off their pedestal by a competitor.
Lack of a Strong Brand
Some companies lack a strong product or brand. They perform well in the market, but not exceptionally. Any changes in the market can force these companies from maintaining business to failing.
Economic Volatility
A severe change in the economy can affect a company or a brand. The hospitality industry saw this when the United States went through a recent financial crisis. Many upscale hotels and restaurants suffered because people couldn’t afford the prices.
There are Different Levels of Repositioning
An organization can reposition a product line, a brand, or an entire company. Determining which type of repositioning is needed isn’t always easy; it is important to understand the changes in the current market and how competitors will react to the change. If a change is volatile and is unprecedented, there may not be enough information available to use to make a decision. Understanding the strengths and weaknesses of a company can help determine when repositioning may be necessary and how the change should occur. When Apple switched their focus to iPod and its successors, for example, the company was able to change its financial situation and achieve success. The complete dedication of stakeholders and the creation of a product that is in demand can help companies survive a repositioning strategy.