Explain the Positioning Strategies


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POSTIONING STRATEGIES

 

 

Al  Ries  and  Jack  Trout  first introduced the concept  of positioning, during  the decade 1970-1980. Positioning was introduced with idea of being able to compete in a tougher, more competitive marketplace.

“Positioning  is  a  strategy  of  differentiating  your  product  from  that  of  the competition, in the mind of the prospect.

A  positioning  strategy  may  be  developed  from  the  product’s  attributes,  its specific uses, the type of uses, the product class or category, or the competition. Each   of  these   represents   a   different  approach   to   developing  a   positioning strategy.  However,  all  of  them  have  the  ultimate  objective  of  developing  or reinforcing  an   image  in  the  minds  of  the  audience.  Following  are  steps  of positioning strategies:

 

 

 

1.  Positioning by Product Characteristics/Consumer Benefits

 

a) This is commonly used strategy and consists  in associating an object with a product characteristic or customer benefit.

“Colgate is a cavity fighter.”

The ability to fight cavities is a product attribute that translates into a consumer benefit.

 

b)  Sometimes,  a  new  product  can  be  positioned   with  respect  to  product characteristics that competitors have ignored.

“The toothpaste with clove oil.”

 

c) A product can also be positioned along two or more characteristics at the time. “Double-action pepsodent fights cavities and freshens breath.”

 

d)  While  it  is  tempting  to  include  several  product  characteristics  at  the  same time,  advertising  that  tries  to  communicate  too  many  things  at  the  same  time may not drive home the main message effectively. Beside, the resulting image of the  product  in  the  minds  of  consumers  may  be  a  fuzzy,  confused  one.  E.g. Infocom – too many punch lines.

 

e) A positioning  strategy based on product characteristics,  could  be based  on physical characteristics, pseudo-physical characteristics, or benefits.

Physical  characteristics  are objective  and  can  be  measured  on  some  physical scale.

 

 

Temperature, colour, sweetness, saltiness, thickness, weight.

Pseudo-physical  characteristics,  in  contrast,  are  characteristics  that  cannot  be easily measured.

Spiciness, greasiness, creaminess, shininess (Kiwi shoe polish) Benefits represents to advantages that promote the well being of the consumer.

Quenching  thirst  (Limca),  not  harmful  to  the  skin,  satisfying

hunger, convenience.

 

 

 

2.  Positioning by “Price-Quality”

 

The  price-quality  issue  is  so  important  in  some  product  category  that  it  is  a positioning   strategy   in   itself.   On   the   one   hand,  there   are   certain   product categories  where  high  price  is automatically  associated  with  quality,  or  where low price is often considered to be synonymous with inferior quality.

Perfumes, whisky, leather goods, stereo systems, designer clothing. Manufacturers  of  such  brands  charge  more,  partly  to  cover  higher  cost,  and partly to  communicate  that  they  are  of  higher  quality.  Such  brands  should  be positioned  based  on  the  price-quality  approach,  to  communicate  that  higher price and higher quality goes together.

 

On the other hand, there may be other brands in the same product category that try to appeal on the basis of lower prices. They offer more by way of features and performance and claim to be of quality that is comparable and is another way of positioning based on price-quality.

Videocon’s value-for-money positioning.

Zenith Computers: “MNC quality. Indian price.

 

3.  Positioning by Use or Approach

 

Associating   the    product   with   a   specific   use   is   another   commonly   used positioning strategy.

 

Sometimes, this type of positioning strategy may also be used to expand market for  a  particular  brand.  The  example  of  “Arm  and  Hammer”,  an  international baking soda  brand, mentioned earlier, is an example of this. Arm and Hammer successfully      positioned                their      product         as   an odour-destroying      agent             in refrigerators. E.g. FNL

Vicks: “Use Vicks when cold attacks.”

Dettol: The liquid protection against bacteria.” Clinic All Clear: “The dandruff-control shampoo.”

 

4.  Positioning by Product User

 

This is a strategy of associating the product with a particular type or class  of user. One way of doing this is through celebrity endorsements.

 

E.g.  Lux-earlier  their  positioning  was  ‘Filmi  Sitaroan  Ka  Saboon’,  now  new

Aishwarya’s advertise says that by using Lux you can also become a star.

 

5.  Positioning by Product Class

 

Sometimes  in  order  to  counter  the competition,  some  brands  need  to  associate themselves  with  a  unique  classic  example  of  this  is  “Seven  Up,  the  uncola”, mentioned earlier.

 

Other relevant example is diet beers (Kingfisher) and ice beers (recently launched by united Breweries) that positioning themselves with respect to regular beer.

 

6.  Positioning by Culture Symbol

 

This  type  of  positioning  strategy  consist  in  identifying  something  that  is  very meaningful to people, and  that competitors  are not using, and  then associating the  brand  with  that  symbol.  Advertising  is  full  of  examples  of  this  type  of positioning   strategy.   A   classic   international   example   is   Marlboro   cigarette’ American  cowboy,  which  helped  differentiate  Marlboro  from  other  cigarette brands, and developed the Marlboro Man.

E.g. Onida’s  green  eyed devil also  set Onida apart from  the competition by   positioning   it  as   something   that  is   envied   and   talked  about   by neighbours.

This type of positioning tends to have high recall value because  of the use of

meaningful and relevant symbols.

 

7.  Positioning by Competitor

 

This  type of positioning strategy consists  in making consumers  think that your brand is better than, or as good as the competitors. The competition is used as the point of reference.

 

This positioning strategy can be used to advantage in certain cases.

a)   First, when the competitor has an established image that has been built up over   the  years,  this  image  can  be  used  as  “bridge”  to  communicate another image. For example, if someone wants to know where a particular office is, it would be easier to say it is net to the City Bank building rather than describing the various streets to get there.

b)   Secondly, sometime it is not important how good customers think you are.

It is more important that they think that you are at least as good as the competition.

Positioning with respect to competitors can also be done through comparative advertising.

 


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