LECTURE NOTES:

The first stage in developing a positioning strategy (or repositioning strategy) is to analyze the positions held by competitors. This is important, because if a competitive brand is already strongly associated with a particular benefit or advantage, it will be difficult to convince consumers to perceive your brand as being superior with respect to the same benefit or advantage, unless you have compelling proof.

In addition to analyze how direct competitors are positioned, it is also important to analyze the positions of indirect competitors. Indirect competitors provide similar benefits but often compete in different product categories. For example, if marketers of a soft drink beverage are considering positioning the product on the basis of its ability to quench thirst, they would analyze not only other soft drinks, but other beverages in general including bottled water, sports drinks, teas, lemonade products, etc.

The second step requires that the marketer define and select a specific competitive advantage to use in the positioning strategy. Competitive advantages are desired because they demonstrate the brand’s superiority over the competition and give consumers a reason to buy the brand. However, to be effective as a positioning strategy, the particular competitive advantage chosen must be important to consumers, and ideally relate to the primary benefits of the product. A more prestigious image, better quality product, superior warranty, or better customer service are just some of the competitive advantages which may be valued by consumers for many types of products. Competitive advantages based on price (lower price) are generally not sustainable, unless lower prices stem from truly lower costs which are realized due to efficiencies in the production process or cheaper access to raw materials which the competition cannot match.

Once a competitive advantage has been identified and selected as the basis of the positioning strategy, the marketing mix is adapted as necessary. The brand’s positioning strategy should come through clearly in all marketing communications, and the product itself must provide the benefits promised at a price the consumer is willing to pay. Finally, the product must be made available in locations where consumers shop.

After implementation of the positioning strategy, it is important that marketers conduct or commission market research to ascertain whether or not consumers are actually perceiving the product in the same way that marketers intended. If not, the marketing mix needs to be adapted or the positioning strategy needs to be changed. Over time, even successfully positioned products may need to change their positioning strategy.

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A “PERSONA” CUSTOMER PROFILE