Product Positioning and Product Repositioning
This refers to a place a product offering occupies in consumers’ minds on important attributes, relative to competing offerings.
How new and current items in the product mix are perceived, in the minds of the consumer, therefore reemphasizing the importance of perception!!
New Product–need to communicate benefits
Established Products–need to reinforce benefits
Need to introduce products that possess characteristics that the target market most desires, ideal. Product positioning is crucial.
Consumers desires refer to the attributes consumers would like the products to possess–IDEAL POINTS.
Whenever a group of consumers has a distinctive “ideal” for a product category, they represent a potential target market segment.
A firm does well if its attributes (of the product) are perceived by consumers as being close to their ideal. The objective is to be “more ideal” than the competitors.
Each product must provide some unique combination of new features desired by the target market.
Instead of allowing the customer to position products independently, marketers try to influence and shape consumers concepts and perceptions.
Marketers can use perception maps.
Sun Tan Lotion Example:
^ | | Old Position | New Position | | |Glamour————————————————–Health | | | | | | |
Traditional sun tan lotion positioned as aiding in getting a very glamorous deep tan etc.
Dermatologist reports…skin cancer etc.
Lifestyle needs change, move to more health conscious society
Need to reposition sun tan lotion as a healthy way to be exposed to the sun.
Target market has shifted from the left quartile to the right quartile as far as needs are concerned.
Sun tan marketers need to do same as far as changing consumers perception for the product.
- Change Promotion: “Tan don’t Burn” The St. Tropez Tan vs. Ultra Sweat Proof Serious tan for…Be Sun Smart
- Change Product: Sunscreen and sunless tanning agent.
BMW positions on affordability
^ Very Safe | Lexus/infiniti | Mercedes | BMW | | |Cheap————————————————–Expensive | | | | | | | Very Unsafe
BMW, to reposition up to the left
Due to the exchange rate, Lexus moves to the right
Why did they reposition?
Competitors include Infiniti, Lexus, Mercedes Benz and Aurora
If you already have a brand in the market, must be sure to avoid cannibalization. Attributes and brand image should give a product distinct appeal.
New Product Positioning
When developing a new product, a company should identify all the features that are offered by all its major competitors.
Second, identify important features/benefits used in making purchase decisions.
Determine the overall ranking of features by importance and relate the importance of each feature to its “uniqueness”: what are the unique selling points (USPs).
For example, you wouldn’t buy a spreadsheet program that if it didn’t perform basic math, so basic math is very important.
However since every spreadsheet has that it’s an “important fundamental feature”, instead of an “important differentiating feature”.
The other side would be a spreadsheet that displays all numbers in binary (0-1) instead of “normal” numbers (0-9). This is unique but not important.
The evaluation becomes a 2 x 2 matrix with uniqueness on the X-axis and importance on the Y-axis.
^X Important to TM (Stockbroker) XMath functions | Import Data | | | | |———————————————————-Unique | | | | | | | X Binary Data
If the feature is in the upper right hand corner then you probably have a winning feature (USP).
This is known as feature positioning, as opposed to product positioning. One can then see what type of customer needs the important (and perhaps unique) features.
If your spreadsheet accepts continuous data in real-time (such as stock market data) while Excel doesn’t, you’d position your spreadsheet as a “real-time spreadsheet with all calculations needed by Wall Street.”
Its a claim that tells something unique about your product, who it’s for, and by implication, that Excel can’t do it.