PositioningandCompetitionPositioningToeffectivelycreateandimplementthebestbrandpositioningstrategies,onemustpaycloseattentiontothecompetition.PositioningPositioning,adefinition:Theactofdesigningaproductanditsimagetooccupyadistinctplaceinthemindofthetargetcustomer(s).Agoodbrandpositioningclarifiestheessenceofthebrand,whatgoalsthatitwillhelptheconsumerachieve,andhowithelpsachievetheminitsownuniqueway.Theresultofagoodpositioningisthecreationofa“customerfocusedvalueproposition”.PositioningPositioningrequiresproductcategorymembership,brand/productdifferences,andbrand/productsimilaritiestobedefined.PositioningDefinitions:Category:agroupofproductsagainstwhichaproductcompetesandeachproductinthegroupcanactasaclosesubstitutefortheothers.CategoryMembership:aproduct’sinclusioninacategory.Whodefinescategoriesanddeterminesaproduct’smembership?Answer:thecustomers.PositioningDefinitions:Points-of-difference(PODs):attributesorbenefitsconsumersstronglyassociatewithabrand/productandbelievethattheseattributesandbenefitscannotbefoundincompetitors.Points-of-parity(POPs):attributesorbenefitsconsumersbelievethatabrand/productshareswithotherbrands/products.PositioningAlthoughconsumersultimatelydecideabrand/product’scategorymembership,marketerscanandshoulddomuchtoinfluenceconsumersinregardstothechoicemade.Threewaystoinfluencemembershipchoice:1.Announcecategorybenefits2.Comparetoexemplars3.RelyontheproductdescriptorPositioningMethodstoinfluencecategorymembership(details):•Announcethecategorybenefits:inadvertisingandpromotion,explainwhattheusagebenefitsare.•Comparingtoexemplars:comparethebrand/producttoexistingcategorymemberswhichtendtobeviewedasthebest.•Relyontheproductdescriptors:usetheproductdescription(s)toimplyorexplicitlystatecategorymembership.PositioningOneoftheproblemswithpositioningisthatmanybenefitsarenegativelycorrelated,meaningyougetbadwithyourgood.Forexample,lowcostandluxurydonotseemtogotogether.PositioningThreeapproachestoaddressingthenegativecorrelationamongbenefits:1.Launchmorethanonemarketingcampaign,witheachonefocusingonadifferentbenefit.2.Linktoanentitythatalreadyhastherightmix.3.Providetheconsumerswithadifferentperspectiveandsuggestthattheymightbeoverlookingorignoringcertainconsiderations.PositioningTobebranded,aproductmustbedifferentiated.Fivedimensionsofproductdifferentiation:1.Product2.Services3.Personnel4.Channel5.ImagePositioningProduct,areaswhichcanbedifferentiated:•Form•Features•Conformance•Durability•Reliability•Reparability•Style•Design•QualityPositioningServices,areaswhichcanbedifferentiated:•Orderingease•Delivery•Installation•Customertraining•Customerconsulting•MaintenanceandrepairPositioningPersonnel,areaswhichbedifferentiated:•Competence•Courtesy•Credibility•Reliability•Responsiveness•CommunicationPositioningChannel,areaswhichcanbedifferentiated:•Coverage•Expertise•PerformancePositioningImage,areaswhichcanbedifferentiated:•Symbols,colors,slogans•Atmosphere•Events•BrandcontractsCompetitionInevitability,yourbrand/productwillbesubjecttocompetition.Therefore,analysisofthecompetitivesituationisimportant.If“wheretoenteramarketornot”isthedecisionthatyoumustmake,thenusingMichaelPorter’sFiveForcesmodelforanalysiswouldbebeneficial.CompetitionPorter’sFiveForcesmodelcanhelpyoudeterminetheintrinsic,long-runprofitattractivenessofamarketormarketsegment.TheFiveForcesinclude:1.Industrycompetitors2.Potentialentrants3.Substitutes4.Buyers5.SuppliersCompetitionUsingthemodelcanexposethefollowingpotentialthreats:•Threatofintensesegmentrivalry•Threatofnewentrants•Threatofsubstituteproducts•Threatofbuyers’growingbargainingpower•Threatofsuppliers’growingbargainingpowerCompetitionIdentifyingandanalyzingcompetitors:Acompetitorisacompanythatcansatisfythesamecustomerneedsthatyoucan.Identifyingcompetitorsseemslikeaneasytask,butcompaniesandproductsaremoreoftenhurtbyemergingcompetitorsornewtechnologies.CompetitionOncecompetitorshavebeenidentified,thenperformanalysisintheseareas:•Strategies•Objectives•StrengthsandweaknessesCompetitionPotentialcompetitivestrategies:•Market-leaderstrategies•Market-challengerstrategies•Market-followerstrategies•Market-Nicherstrategies(seeExternalEnvironmentAnalysis)