Module 10 Positioning Decisions By: Dr Shahinaz Abdellatif Objectives of the Session To understand: 1. positioning and why it is important 2. the differences between physical and perceptual product positioning 3. the steps involved in the positioning process 4. market positioning strategies What do we mean by positioning? Creating distinct and valued physical and perceptual differences between one’s product and its competitors, as perceived by the target customer. Positioning (or repositioning) refers to both the place a product or brand occupies in customers’ minds relative to their needs and competing products or brands and to the marketer’s decision making intended to create such a position. Positioning notion comprises both competitive and customer need considerations. Positioning Positioning is the choice of: Where we want to compete (Target Market) How we wish to compete (Differential Advantage) Objective of Positioning: To create & maintain a distinctive place in the market for a company & its products. Generic competitive Strategies Differentiation lies at the heart of marketing (i.e. products that are superior on some important dimensions) represent distinctly different ways in which companies can compete for the minds and wallets of customers in their target markets. Dimensions on which Consumers Perceive Competitive Offerings Simple physically based attributes e.g. price/quality/size/power Complex physically based attributes (subjective) Essentially abstract attributes e.g. mystery of a perfume or prestige of a car Comparisons of Physical and Perceptual Positioning Analysis Perceptual positioning Another way is to assess the percieved benefits Physical positioning of the product what it does than what it is. One way to assess the current position of a Here evaluation of many products is product offering relative to competitors is on subjective because it is influenced by factors the basis of how the various offerings c