University of the Cumberlands Positioning Matrix Discussion This activity/assignment will help students understand concept of positioning and its importanc

University of the Cumberlands Positioning Matrix Discussion This activity/assignment will help students understand concept of positioning and its importanceActivity: Find a company that is struggling. Where is it in the positioning matrix? Could the company be more successful if it changed any of its Ps (e.g., to head to the lo-lo-lo-lo or hi-hi-hi-hi cells)? The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to marketing management. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used. © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 1
5
Positioning
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5. 2
Marketing Framework
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5. 3
What Is Positioning?
• Positioning
• Who your brand or company is in the
marketplace, vis-à-vis the competition, and in
the eyes of the customer
• It has physical and perceptual elements
• STP = Segmentation, Targeting, and
Positioning
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5. 4
Discussion Questions #1
1. Describe the positioning for the
following:
• Stanford
• Your local community college
• A local technical school
• A state university
2. How does a firm obtain its position?
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5. 5
What Determines Positioning?
• Positioning is determined by the
marketing mix
• Product
• Price
• Place
• Promotion
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5. 6
Positioning via Perceptual Maps
• Perceptual maps show graphical
depictions of how the brands and their
competitors are perceived in the minds
of customers
• Brands close together are seen as similar
• Brands farther apart are viewed as different
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5. 7
Positioning Questions #1
1.Which brands are most interchangeable?
2.Which brand competes more with Timex?
3.Which brand(s) is attractive to segment 1?
4.What market opportunity exists?
• Is this opportunity a reasonable offering?
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5. 8
Positioning Questions #2
1.How would you compare Rome/Nassau?
2.The firm implemented a promotional
campaign highlighting how reasonably
priced Maui is. Was it successful?
3.Which segment offers an opportunity?
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5. 9
Positioning Questions #3
• A yoga studio is rated on various
qualities and their importance
1. Which quality is most important?
2. What is the studio doing well/not well?
3. What one thing would you invest in?
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5. 10
Maps for Competitive Analysis
(slide 1 of 2)
• Competitive yoga studios are rated
• However, map is limited to two dimensions
• Price and satisfaction with number of
morning classes
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5. 11
Maps for Competitive Analysis
(slide 2 of 2)
• Use a bar chart to show more than two
dimensions
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5. 12
Discussion Questions #2
• Use previous Figures 5.3 and 5.4 to
answer the following questions
1. What do we (studio 1) do better than our
competitors? Worse?
2. Combining Figures 5.3 and 5.4, what
dimension should we consider improving
first?
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5. 13
The Positioning Matrix
• Companies usually can’t be great at
everything due to limited resources
• Can a firm realistically hold the lowest price,
highest quality position?
• Marketers need to determine the “best”
position for the firm
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5. 14
Product Quality by Price
• Low-low and high-high make sense
• Over-priced and good value products
don’t make sense
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5. 15
Promotion by Distribution
• Heavy-wide and light-exclusive make
sense
• Underadvertised and hard to get
products don’t make sense
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 16
All 4 Ps Matrix
• All 4P combinations are possible
• However, some are more optimal than
others
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5. 17
Suboptimal Matches
(slide 1 of 3)
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5. 18
Suboptimal Matches
(slide 2 of 3)
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5. 19
Suboptimal Matches
(slide 3 of 3)
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5. 20
Hard-to-Sustain Matches
(slide 1 of 2)
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5. 21
Hard-to-Sustain Matches
(slide 2 of 2)
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5. 22
Quality and Price Align
• Optimal matches:
• High-end and value
• Suboptimal matches:
• Over-priced: customers stop buying; firms drop price, increase
quality, or leave market
• Good value: firms increase price or lower quality
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 23
Promotion and Distribution Align
• Optimal matches
• Mass and niche
• Suboptimal matches
• Hard to get: Why promote heavily if consumers
can’t find the product?
• Underadvertised: If a brand has an exclusive
image, why distribute it everywhere?
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5. 24
Optimal Matches
• 16 combinations can be reduced to two
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5. 25
Examples of Brands in 4 Ps Matrix
• In the real world, many brands occupy the natural matches;
however, some brands appear in the suboptimal combinations
• Have good reasons for moving from natural matches
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5. 26
Optimal Matches Aligned with Gurus
• The two extremes in the matrix are
consistent with management gurus
• Treacy and Wiersema
1. Operational excellence (Southwest)
2. Product leadership (Apple)
3. Customer intimacy (Amazon)
• Michael Porter
1. Keeping costs down and prices competitive
2. Leading by differentiation
3. Niche positioning
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 27
Writing a Positioning Statement
(slide 1 of 3)
• Positioning statement
• Succinctly communicates parameters of a
position
• Consider
• Your target market
• Your unique selling proposition (USP)
– If a “real” attribute difference does not exist,
create a “perceived” image difference
• e.g., For customers who want {target}, our
brand is the best at {USP}
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 28
Writing a Positioning Statement
(slide 2 of 3)
• Answer the following questions:
1. Who are you trying to persuade?
2. Who are you competing with?
• Who are your competitors? What is your
major product category?
3. How are you better?
• What makes you unique? What are your
points of difference? Do you have any
benefit that dominates competitors?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 29
Writing a Positioning Statement
(slide 3 of 3)
• Make sure your statement is succinct
• Prioritize your brand benefits and choose
the most important, compelling differentiator
– Think about what benefits the customer
• Examples:
• Walmart: “Save money. Live better.”
• Porsche: “Engineered for magic. Every day.”
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 30
Discussion Question #3
• Write a personal positioning statement to
use when speaking to future employers.
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 31
Managerial Recap
(slide 1 of 2)
• Positioning is important
• Positioning is seen through the eyes of
the customer
• Perceptual maps help facilitate an
understanding of position
• Positioning is achieved via the marketing
mix
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 32
Managerial Recap
(slide 2 of 2)
• The positioning matrix demonstrates that
certain marketing mix combinations are
more optimal than others
• Positioning statements guide marketing
strategies and tactical actions
• They should indicate the target, a
competitive frame of reference, and a
competitive advantage or unique selling
proposition
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. 33

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