Marketing management

MARKETING MANAGEMENT
ANU PRASANNAN
17|5|2013

QUESTION:
How much of positioning in the
market today is driven by product
positioning and how much is left for
brand positioning? Give at least five
examples of both type of positioning.

POSITIONING
“In marketing, positioning is the process by which
marketers try to create an image or identity in
the minds of their target market for
its product, brand, or organization.”

Re-positioning the competition
• Repositioning a competitor is different from
comparative advertising.
• Comparative advertising seeks to convince
the consumer that one brand is simply better
than another.
• Consumers are not likely to be receptive to
such a tactic.

• Re-positioning involves changing the identity
of a product, relative to the identity of
competing products.
• De-positioning involves attempting to change
the identity of competing products, relative to
the identity of your own product

Example #1
• Tylenol successfully repositioned aspirin by
running advertisements explaining the
negative side effects of aspirin.
• Consumers tend to perceive the origin of a
product by its name rather than reading the
label to find out where it really is made.

EXAMPLE #2
• When Pringle's new-fangled potato chips were
introduced, they quickly gained market share.
• However, Wise potato chips successfully
repositioned Pringle's in the mind of consumers by
listing some of Pringle's non-natural ingredients
that sounded like harsh chemicals, even though
they were not.
• Wise potato chips of course, contained only
"Potatoes. Vegetable oil. Salt.“
• As a resulting of this advertising, Pringle's quickly
lost market share, with consumers complaining
that Pringle's tasted like cardboard, most likely as a
consequence of their thinking about all those
unnatural ingredients.

FREE RIDE TRAP
• Some firms have built a wide range of
products on a single brand name.
• Others, such as Procter & Gamble have
selected new names for each new
product, carefully positioning the product in a
different part of the consumer's mind

Product vs. Brand
A product is something that is
made in a factory
A brand is something that is bought by a
customer.
A product can be copied by a
competitor.
A brand is unique.
A product can be quickly outdated. A successful brand is timeless.

Product positioning
• Product positioning is a marketing strategy that aims to
make a brand occupy a distinct 'position,' relative to
the competing brands, in the mind of the customer.
• Firms apply this strategy either by emphasizing the
distinguishing features of their brand (what it is, what it
does and how, etc.) or try to create a suitable image
(inexpensive or premium, utilitarian or luxurious, entry-
level or high-end, etc.) through advertising.
• Once a brand is positioned, it is very difficult to
reposition it without destroying its credibility.

Example #1
• Tide detergent powder is positioned on
bringing incomparable whiteness - it makes
clothes whiter than white.
• In that the marketer is basically stating that in
a crowded market with multiple brands
offering whiter/cleaner clothes Tide is and
always will be a superior in cleaning the
clothes.

Example #2
• In the classic example of Avis claiming
"No.2, We Try Harder," the point was to say
something so shocking (it was by the
standards of the day) that it cleared space in
your brain and made you forget all about who
was #1, rather than making some
philosophical point about being "hungry" for
business.

Example #3
• Swatch.
The most famous example I can think of is
Swatch. Created as a defense against low
priced Japanese quartz watches that swamped
the market, instead of competing on
price, [parent company] SMH positioned the
product as the famous "fashion watch,"
thereby creating a whole new market, much
larger in size than the original watch market.

Example #4
• Hyundai.
Another fantastic example is Hyundai, a company
that understands how to consistently move
upstream through intelligent product positioning.
Hyundai is increasingly creating havoc in the
market for their competitors and finding ways to
innovate, and develop value propositions that
resonate with their customers and prospects.

Example #5
• “Dabur Chyawanprash “to strengthen their
body’s internal defense mechanism and fight
against germs, infections and stress. That’s the
image of Dabur Chyawanprash in the minds of
consumers.
#6 .A Rado watch would lose its charm if its
price is equal to a Sonata or a Maxima Watch

#7
• 7-Up.
The famous positioning of 7-UP as the "Uncola"
perfectly positioned that product for those
who did not want to consume cola drinks. For
those who do (a confirmed Coca-
Cola fanatic), the positioning of 7-UP had no
appeal.

#8
• "To the passionate car enthusiast, the all new
911 Carrera is the sports car that defines who
we are.
Porsches statement
The ad also says "ignites passionate drivers" and it
"defines the purest expression of who we are."
This are completely status types of comments to
touch on that Esteem aspect of Maslow.

#9
• Wal-Mart has positioned themselves as the
go-to store for the masses.
• An amazing marketplace, Walmart carries
everything from food to tires. And all for less
money, a position that telegraphs to
consumers that you can get everything you
want here – you don’t need to shop around.

Volkswagen is a good example of
great product positioning.
• The company announced the goal of becoming
the biggest automaker in the world. That
positions them as a car that’s reliable and a
company that’s permanent.
• Buyers feel comfortable knowing they will always
be able to get parts, and the cars will retain their
value. VW’s ads position themselves by showing
20-somethings driving the cars, which appeals to
the Millennial Market, the Net Generation, who
will be buying cars now and for many years.

BRAND POSITIONING
• Brand positioning is at the very core of brand
building.
• A clear and concise brand positioning provides
a single voice to tell your brand’s story.

Example #1
When you think Volvo, you might think safety?
The fact that you remember the brand name
and have a positive associations with that
brand makes your product selection easier
and enhances the value and satisfaction you
get from the product?'

Example # 2
• Kit Kat’s(NESTLE) target market is men and
women of all ages.
• The brand is youthful in nature, and focuses on
the consumer segment who love chocolate, and
are willing to indulge themselves with chocolaty
snacks.
• What draws consumers to this brand is its
association with “breaks” due to its tag line “Have
a Break, Have a Kit Kat”.
• It’s low prices, constant over the past 100
years, allows it to target the mass consumer
market, as opposed to other high-end chocolate
brands such as Godiva,5-star,etc

Example #3
• Need to keep it fresh. Look at Coca-Cola.
– Its image is as fresh today as when it started. It’s not luck.
It’s careful nurturing and development of the brand.
– Can exploit brand equity with brand extensions, if there is
value.

Example #4
• Mercedes promises well-
built, prestigious, safety, performance.

Example #5
• 3. Co branding/Dual branding:
"Intel inside."
• Brand equity is the value a brand adds to the
product.

# 6
• There is a Domino's Pizza commercial (1985)
successfully positioning the brand at the
desirable benefit level.
• Domino positions its brand very successful in
customers' minds.

Example #7
• The Pepsi Challenge is a good example of a position-
driven brand marketing campaign. Position-driven brand
advertising is all about positioning a brand, relative to a
leading brand in the brand category. Two keys to brand
positioning are:
• brand awareness (or increasing brand awareness) in a
particular brand category, and
• differentiating the brand so customers will remember it.
• Coke is the current and historic leader of the cola brand

CONCLUSION
In fact, the brand becomes one of the
benefits, because it embodies trust, an
anticipation of predictable quality and
performance, and most of all, a feeling that
this is an identity you want to be associated
with as a customer.

• A brand's name is perhaps the most important
factor affecting perceptions of it. Brand
positioning of products drives the market around
three fourth of the total and the rest through the
other positioning strategies
• In the past, before there was a wide range of
brands available, a company could name a
product just about anything.
• These days, however, it is necessary to have a
memorable name that conjures up images that
help to position the product.

• The brand positioning drives the market more
than that of the product positioning in today’s
scenario.
• The brand position is the specific niche in the
market that the brand defines itself as
occupying

Marketing management

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