07 POSITIONING

Summary

In this session of the MM5001 Marketing Management course, Mila Armilia discusses the concept of positioning in the customer's mind. She explains that positioning is determined by customer perceptions and is crucial for building a competitive advantage. The session outlines four steps to effective positioning: evaluating a perceptual map, identifying competitive advantages, finding value propositions, and crafting a strong positioning statement. Potential issues like under, over, and confused positioning are also addressed, highlighting the importance of clear brand identity and customer understanding.

Takeaways

• 🎯 Positioning is a strategic marketing concept that occurs after segmenting and targeting, focusing on where a brand stands in the customer's mind relative to competitors.
• 🏷 Positioning is not determined by the brand owner but by the customer's perception of the brand's value proposition.
• 🤝 Positioning involves a complex set of perceptions, impressions, and feelings that customers have for a product compared to competing products.
• 📊 A perceptual map is a tool used to evaluate where a product stands within an industry, comparing it on important buying dimensions like price and quality.
• 🛠️ There are four steps to decide positioning: evaluate the perceptual map, choose the right competitive advantage, find possible value propositions, and create a clear and strong positioning statement.
• 🚫 Positioning problems can include under-positioning (no clear image), over-positioning (too narrow a focus), and confused positioning (conflicting or confusing messages).
• 📈 A perceptual map helps in understanding the relative positioning of a product by placing it on a map with two dimensions, showing how it compares to competitors.
• 🔄 Perceptual maps are dynamic and relative, focusing on what matters to consumers and can change over time as perceptions evolve.
• 🏆 Competitive advantage in positioning comes from offering something memorable and sustainable that customers value and that competitors cannot easily replicate.
• 📝 A strong positioning statement is crucial as it communicates the brand's unique value proposition clearly, helping to solidify its place in the target market's mind.

Q & A

What is the main topic discussed in the session?

The main topic discussed in the session is positioning in marketing management.

What are the prerequisites for positioning according to the script?

The prerequisites for positioning are segmenting and targeting, which means deciding who the target market is before positioning can be determined.

What does positioning refer to in the context of the script?

Positioning refers to where a brand takes place in the customer's mind, which is defined by the customer's perceptions, impressions, and feelings about the brand compared to competitors.

How is positioning related to value propositions?

Positioning is related to value propositions as it is determined by how the value propositions are delivered to the customer and how they are perceived in the customer's mind.

What are the four steps to decide positioning as mentioned in the script?

The four steps are: 1) Evaluate the perceptual map, 2) Choose the right competitive advantage, 3) Find the possible value propositions, and 4) Make a clear and strong positioning statement.

What is a perceptual map and what does it represent?

A perceptual map is a tool for mapping the consumer perceptions of a product versus competing products on important buying dimensions, helping to understand where exactly a product stands within the industry compared to others.

What is the significance of choosing the right competitive advantage in positioning?

Choosing the right competitive advantage is significant because it determines what sustainable edge the brand has that customers will remember and value, contributing to the brand's unique position in the market.

What are the possible problems that might occur with positioning as outlined in the script?

The possible problems are under positioning (no clear image or position), over positioning (too narrow focus), and confused positioning (customer confusion about the brand's unique value proposition or due to too much information).

How does the script define the term 'perceptual map' in the context of cars?

In the context of cars, the perceptual map evaluates important buying decisions such as price and quality, placing brands in relation to these factors to understand their market position.

What is the relationship between a perceptual map and a positioning map according to the script?

A perceptual map and a positioning map are used interchangeably, both focusing on choosing important dimensions for evaluating a product within the industry and understanding consumer perceptions relative to competing brands.

What does the script suggest as the final outcome of effective positioning?

Effective positioning results in establishing an image or identity of the brand in a way that consumers perceive it in a certain desired manner, influencing their perceptions within a specific target segment.

Outlines

00:00

📌 Introduction to Positioning in Marketing Management

In this session, Mila Armilia introduces the concept of positioning within the framework of marketing management. The discussion follows the previous sessions on segmenting and targeting, emphasizing that positioning occurs after identifying the target market. Positioning is described as the place a brand occupies in the customer's mind, which is determined by the customer's perceptions, impressions, and feelings about the brand relative to competitors. The session outlines four steps to decide on positioning: evaluating a perceptual map, choosing a competitive advantage, identifying value propositions, and crafting a clear positioning statement. Potential positioning problems such as under positioning, over positioning, and confused positioning are also discussed.

05:00

📈 Understanding Perceptual Maps for Competitive Positioning

The second paragraph delves deeper into the use of perceptual maps in positioning. It explains that a perceptual map helps to visualize a product's position relative to competitors based on important buying dimensions, such as price and quality in the example of the car industry. The paragraph clarifies that a perceptual map is synonymous with a positioning map and is crucial for selecting relevant dimensions to evaluate a product within its industry. The dynamic nature of market positioning is highlighted, indicating that it is based on customer perceptions and can change over time. The summary concludes with the definition of market positioning as the process of establishing a brand's image or identity in a way that aligns with the desired consumer perception.

Keywords

💡Positioning

Positioning is a marketing concept that refers to the process by which a company defines how it wants its target market to perceive its products or services. In the video, positioning is described as where a brand takes place in the customer's mind, which is not determined by the company but by the customer's perceptions and feelings towards the brand's value propositions. The script emphasizes that positioning is about the complex sets of perceptions, impressions, and feelings that customers have for a product compared to competitors, which is crucial in building a competitive advantage.

💡Segmenting

Segmenting is the process of dividing a market into distinct groups of consumers with similar needs or characteristics. The script mentions that positioning can only be defined after segmenting and targeting, indicating that it is a subsequent step in the marketing strategy. Segmenting helps companies to understand their market better and tailor their offerings to specific groups, which is foundational for effective targeting and positioning.

💡Targeting

Targeting involves selecting the most attractive segments from the market to focus marketing efforts on. The video script explains that after segmenting, a company decides who their target market is, which is a prerequisite for positioning. Targeting is essential because it helps companies to concentrate their resources on the most promising segments, ensuring that the positioning strategy resonates with the chosen audience.

💡Perceptual Map

A perceptual map is a visual representation used to understand how consumers perceive different brands or products in the same industry. The script describes how a perceptual map helps in evaluating where a product stands within the industry relative to competitors, typically along two important buying dimensions. In the context of the video, a car product's perceptual map is used as an example, with price and quality as the two dimensions.

💡Competitive Advantage

Competitive advantage refers to the attributes that make a company's product or service more desirable to customers than those of its competitors. The video script discusses how positioning can build a competitive advantage by creating a clear and differentiated image in the minds of consumers. A strong positioning can make a product stand out and be remembered by customers, which is a key aspect of competitive advantage.

💡Value Propositions

Value propositions are statements that communicate the unique value a product or service offers to customers. The script explains that value propositions are closely related to positioning because they convey how a product delivers value to customers. Finding the right value propositions is one of the steps in deciding positioning, as they help shape the customer's perception of the brand.

💡Positioning Statement

A positioning statement is a clear and concise declaration that articulates how a company wants its brand to be perceived by its target audience. The video script mentions that making a very clear and strong positioning statement is one of the steps in deciding the position of a product. This statement is important as it guides the marketing strategy and ensures consistency in how the brand is presented to the market.

💡Under Positioning

Under positioning occurs when a brand does not have a clear image or actual position in the market. The script identifies under positioning as a potential problem that can occur, which can lead to a lack of recognition or differentiation among competitors. This lack of clear positioning can make it difficult for consumers to identify what the brand stands for.

💡Over Positioning

Over positioning happens when a brand tries to focus too narrowly, potentially alienating potential customers who do not fit within the narrow focus. The video script points out over positioning as another potential problem, suggesting that it can limit the brand's appeal to a broader market.

💡Confused Positioning

Confused positioning is when customers are unclear about a brand's unique value proposition or where it stands in relation to competitors. The script describes this as a problem where customers are confused about the brand's position, possibly due to conflicting or confusing statements, or simply too much information, which makes the brand's positioning unclear.

💡Relative Positioning

Relative positioning is the concept of comparing a brand's position to that of its competitors. The video script explains that when discussing positioning, it's not just about how a product is perceived by customers, but also about its relative positioning compared to other competitors. This relative positioning helps consumers to differentiate between similar products and understand where a brand fits within the market.

Highlights

Introduction to the concept of positioning in marketing management.

Positioning is defined as where a brand takes place in the customer's mind.

Positioning is determined by the customer's perception of a brand's value propositions.

Positioning is about the complex sets of perceptions, impressions, and feelings a customer has for a product.

The importance of relative positioning in comparison to competitors.

Positioning helps in building a competitive advantage for a product.

Four steps to decide positioning: evaluate a perceptual map, choose a competitive advantage, find value propositions, and create a positioning statement.

A perceptual map helps in understanding a product's position within the industry relative to competitors.

The necessity of choosing a sustainable competitive advantage that customers remember.

Identifying possible value propositions to differentiate from competitors.

Creating a clear and strong positioning statement to effectively communicate a brand's identity.

Potential positioning problems such as under positioning, over positioning, and confused positioning.

Under positioning occurs when there is no clear image or actual position for the brand.

Over positioning happens when the focus is too narrow.

Confused positioning arises when customers are unclear about the brand's unique value proposition.

The perceptual map's role in showing consumer perceptions on important buying dimensions.

The dynamic nature of perceptual maps and their use in evaluating product positions within an industry.

Market positioning as the process of establishing a brand's image or identity in the consumer's mind.

The session's conclusion and anticipation for the next session on positioning.

Transcripts

[Music]

thank you

hello

welcome back with me Mila armilia

windassari from the School of Business

and management in City technology bundle

again in this courses

mm5001 marketing management

and in this sessions we are going to

talk about positioning

so if you notice that the previous two

sessions before this session is actually

talking about segmenting and then

targeting

so positioning can be divine only after

we have decided who are our segment is

and who will be our target market then

the next step is to decide where our

positioning is

so what is positioning

positioning is where your brand takes

place in the customer's mind

so basically positioning is not divided

by you as the brand owner or you as a

company

other than that positioning was defined

by the customer how your customer might

think about your value propositions and

therefore sometimes positioning and well

propositions are correlated each other's

how your value propositions deliver to

your customer then it becomes your

positioning on the customer's mind

so positioning is about the complex sets

of perceptions

impressions

and feelings that the customer have for

your product compared to the competing

product

so when we are talking about the

positioning actually we are not only

talking about how you was perceived by

your customer but also in related to

your relative positioning compared to

the other competitors

so your product is defined by the

customer and decide the positions of

your product occupies in each of your

targeted segment since every Target

segment might have a different

perceptions about your product

so how positioning can build competitive

Advantage how can we think that the way

we position our product can divide our

competitive advantage

so there are four ways to decide our

positioning

first evaluate the perceptual map

perceptual map is about a mapping

about figuring out where is exactly your

product within the industry compared to

the other competitors

the second

choose the right competitive advantage

so you have to decide it what is your

sustainable competitive advantage to be

something that your customer really

remember about

the third one

find the possible value propositions

and the last one is you make a very

clear and strong positioning statement

so that was the four steps on deciding

the position

and what might be the possible

positioning problem

there are three problems that might

occur

first one under positioning

if it is wall no clear image no actual

positions at all the second if it is

over positioning

if for example you provide two narrow

Focus

and the third one is confused

positioning

so the customer is really confused where

your positions what is your unique value

propositions

conflicting and confusing statement or

maybe because of just too much

informations so it's not really clear

where you are positioning at

so now let's evaluate how the perceptual

Maps looks like you might say in this

figure

so positioning or perceptual map show

the consumer perceptions of the marketer

versus the competing product on the

important buying dimensions

usually the perceptual map has two

dimensions

for example in these examples we are

evaluating the perceptual map of a car

product

and the important buying decisions there

are two factors in the car

first is about the price

second is about the quality

so when we are evaluating the perceptual

map we are trying to put each of the

brain

compared and relative to the others when

we are looking for for example if it is

high price and high quality then it goes

to the merciless bets

while in the other hand we might think

like

um not so good quality but not so low

price maybe we can put Toyota theres for

example

so by evaluating perceptual map we know

exactly our positions compared to the

other competitors

perceptual map is usually used

interchangeably with the position map

so perceptual map and positioning map is

actually about choosing what matters and

as an access what dimensions are

important to evaluate the product within

those industry

so it is about the perceptions it is

relative and it is dynamic

so when we are saying about positioning

basically Market positions reverse to

the customer perceptions of a brand in

related to the competing brand

and what I can summarize is Market

positioning refers to the process of

establishing an image or an identity of

the brand so that consumer perceive it

in a certain way

and therefore positioning can be happen

because after you know exactly who your

target market is then you would like to

portray in that specific Target segment

where your customer perceptions will be

placed

so that's all that I can have for the

positioning sessions today thank you for

paying attentions and see you in the

next session