Positioning Decisions

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Chapter 9

• Positioning Decisions

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Positioning is the act of designing the companys
offering and image to occupy a distinctive place
in the the target markets mind.
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Exhibit 9.4Steps in the Positioning Process (1
of 2)
1. Identify relevant set of competitive products.
2. Identify the set of determinant attributes
that define the product space in which
positions of current offerings are located.
3. Collect information from a sample of customers
and potential customers about perceptions of each
product on the determinant attributes.
4. Analyze intensity of a products current
position in customers minds.
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Exhibit 9.4Steps in the Positioning Process (2
of 2)
5. Determine products current location the
product space (product positioning).
6. Determine customers most preferred
combination of determinant attributes.
7. Examine the fit between preferences of market
segments and current position of product (market
positioning).
8. Select positioning or repositioning strategy.
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Exhibit 9.5Product Category and Brand
Positioning (1 of 2)
A. Product category positions (breakfast foods
market)
Expensive
Bacon and eggs
Cold cereal
Time- consuming
Quick
Pancakes
Hot cereal
Instant- breakfast drinks
Inexpensive
Source Adapted from P.S. Busch and M.J. Houston,
Marketing Strategic Foundations (Burr Ridge, IL
Richard D. Irwin, 1985), p. 430.
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Perceptual Map
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Positioning Map Automobiles For Generation Yers
More Edgy
Kia Sorrento
Scion
Cube
Expensive
Inexpensive
13k
20K
Civic
Less Edgy
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• What is Scions Mission Statement?

"To satisfy a trend setting youthful buyer
through distinctive products and an innovative,
consumer-driven process."
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Exhibit 9.6Perceptual Map of Womens Clothing
Retailers in Washington, D.C.
Washington 1990 Womens fashion market
The Limited
Neiman-Marcus
Saks
Bloomingdales
Macys
Nordstrom
Womens-wear fashionability Conservative versus
current versus very latest
Hit or Miss
Dress Barn
Garfinkels
TJ Maxx
Sassafras
The Gap
Casual Corner
Loehmanns
LT
Marshalls
Britches
Hechts
Kmart
Woodward Lothrop
Sears
JC Penney
Talbots
Womens-wear value for the money
Worst value
Best value
Source Adapted from Douglas Tigert and Stephen
Arnold, Nordstrom How Good Are They? Babson
College Retailing Research Reports, September
1990, as shown in Michael Levy and Barton A.
Weitz, Retailing Management (Burr Ridge, IL
Richard D. Irwin, 1992), p. 205.
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Exhibit 9.7Perceptual Map of Womens Clothing
Retailers in Washington, D.C., Showing the Ideal
Points of a Segment of Consumers
Washington 1990 Womens fashion market
The Limited
Neiman-Marcus
Saks
Bloomingdales
Macys
Nordstrom
Womens-wear fashionability Conservative versus
current versus very latest
Hit or Miss
Dress Barn
Garfinkels
TJ Maxx
Sassafras
The Gap
Casual Corner
Loehmanns
LT
Marshalls
Britches
Hechts
Kmart
Woodward Lothrop
Sears
JC Penney
Talbots
Womens-wear value for the money
Worst value
Best value
Source Adapted from Douglas Tigert and Stephen
Arnold, Nordstrom How Good Are They? Babson
College Retailing Research Reports, September
1990.
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Exhibit 9.8Perceptual Map of Womens Clothing
Retailers in Washington, D.C., Showing Five
Segments Based on Ideal Points
Washington 1990 Womens fashion market
The Limited
Neiman-Marcus
3
2
Saks
4
Bloomingdales
Macys
Nordstrom
Womens-wear fashionability Conservative versus
current versus very latest
Hit or Miss
Dress Barn
Garfinkels
TJ Maxx
Sassafras
The Gap
Casual Corner
Loehmanns
1
LT
Marshalls
Britches
Hechts
Kmart
Woodward Lothrop
5
Sears
JC Penney
Talbots
Womens-wear value for the money
Worst value
Best value
Source Adapted from Douglas Tigert and Stephen
Arnold, Nordstrom How Good Are They? Babson
College Retailing Research Reports, September
1990.
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Exhibit 9.3Comparisons of Physical and
Perceptual Positioning Analysis

• Physical positioning
• Technical orientation
• Physical characteristics
• Objective measures
• Data readily available
• Physical brand properties
• Large number of dimensions
• Represents impact of product specs and price
• Direct RD implications

• Perceptual positioning
• Consumer orientation
• Perceptual attributes
• Perceptual measures
• Need for marketing research
• Perceptual brand positions and positioning
  intensities
• Limited number of dimensions
• Represents impact of product specs and
  communication
• RD implications need to be interpreted