Positioning Background Essay

Beginning of Positioning Positioning term This is awkward. Why not â€Å"The term positioning†¦Ã¢â‚¬  started in 1972, when Ries and Trout wrote several articles about â€Å"The Positioning Era† for the trade paper Advertising Age. It because ? familiar when more than 1000 speeches have had been given about Positioning among 21 different countries around the world to advertising groups. In addition, more than 150,000 copies of the â€Å"little orange booklet† were distributed which reprints the Advertising Age articles. (The Battle for your mind, 3) This paragraph has awkward wording. Also, check your tenses. What does Positioning Mean Many authors, professors and experts came up with the meaning of positioning; despite their differences they all have the same meaning. According to Ries and Trout (date) Positioning is not what you do to a product, Positioning is what you do to the mind of the prospect (Book). Explain further. Similarly Jack Trout defines Positioning as to know how to grammatically wrong differentiate yourself from your competitors ( Paper). While Kotler (date) mentioned in his book as is the way that consumer defined the product on important attributes and how the place of produce in the consumers’ mind relative to competing products. (Armstrong & Kotler page 185)   This entire sentence is confusing. Rephrase it or break it down into several sentences so the idea can be better understood. after reviewing other authors definitions , we came up with our own definition so we can describe positioning as creating and designing a remarkable place in the market for certain product to be kept in the target market’s mind in order to increase or maximize the potential benefits. (Orange book, 172), (Red Book, 237), (Kotler Book, 310) There are missing articles here. Check grammar. The content is good and the idea is presented well enough. Importance of Positioning Going through several researches and books about Positioning strategy has shown how this strategy is playing an important role in the marketing. Implementing Positioning method gives the reason to buy your product rather your competitors’ product as Trout mentioned in his article (You have to tell your story as to why you are different or better). (The business Time Singapore) Another role of positioning is that, if a company does a great job pf positioning the market will not get confused and it would be much easier for the company to do the rest just by taking it from the positioning strategy such as the marketing planning and differentiation.(Kotler Book , 310)In addition, positioning really help the companies to produce differ and unique product from current and potential competing product, which can attract the target market in a positive way. Beside that, although there are continuous stream of advertising, customer would accept only the product that stuck in their mind due to knowledge or experience http://www.quickmba.com/marketing/ries-trout/positioning/. Also, concerning to the main point of positioning which is based on differentiation as Ries and Trout view it as a creative strategy must be taken for an existing brand in an overcrowded marketplace. . ( tree book , 193,194)   Check nouns that have to be pluralized. Grammar is wrong in certain sentences. Also, the first sentence is very confusing. Try breaking the ideas down into different sentences. Being successful is very easy when the product is well known and has a significant place in the market, while it could be very difficult if there is no major a little difference between the products. Therefore the succeed of firm’s positioning efforts is really very important. ( tree book , 193,) , This is similar to what is mentioned in to Trout & Al Ries book ( The Battle for your mind) , which is the easiest way to get into the consumer’s mind is to be the first , while being the second is nowhere.( The battle for your mind /19,21) Positioning Steps There are several steps to be followed in order to use Positioning strategy , which is mainly not about create new product , but its about manipulate with what’s already up there in the mind.( The battle for your mind , 5). But positioning steps can differ from author to author, as a result of that positioning step for two different authors will be explained below in order to came up with the summitries and difference: Walker & Boys Positioning Steps Walker and Boyd subtract the main steps from Ries and Trout books, articles. So any company who wants to reach the required position for its products and evaluating the new strategies for positioning a new entry, there are 8 steps outlined should be follow. These steps can be followed are very applicable as it can be use for product and service in any area. Here are the steps below: Identify a relevant set of competitive products: In this stage, marketers should make a positioning analysis, which means knowing the customer‘s opinion about certain products that can satisfy their basic needs and knowing our product’s competitors. But in order to know the products position in the market, marketer should use the positioning map (It called sometimes the perceptual map, its an excellent tool to know the brand position very well, it shows the position of new product with its competitors) which was the idea of Richard A. D’Aveni that came up several years ago. The market research is very necessary in this stage in order to get customer perception of the new product concept comparing with the same produce that have the same attributes. http://www.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?articleID=R0711G&ml_action=get-article&print=true Here is the example of positioning map: Two suggested criteria are used in order to make the judgment and the criteria are Fast delivery, limited or wide choice and comfortable environment. Then several brands are used in the map regarding how it position in the consumers’ mind considering the criteria. For example of that MacDonald is position as the fastest delivery service but limited choice unlike Caff Nero. This doesn’t mean that certain brand is better than another, it’s just that each brand is different and has special attributes. http://media3.bournemouth.ac.uk/marketing/10branding/05position.html Identify determinant attributes: Basically, positioning is really based on several attributes .But theoretically the consumer’ choice can be influenced by a small amount of features or benefits, because the greater number of features use for positioning a product, the greater the chance of confusion or even disbelief will be according to Trout & Al Ries (if you try to be all things to all people, you wind up with nothing). So, narrowing the focus of your expertise would be better in order to establish a unique position as specialist. (Battle for your mind, 195) However, using one or more features for position a product would really make the consumer recognize to attach that features with the product .So, the main attributes are: Features: It’s mainly used for physical product like the fastest or quietest product. Benefits: It’s the same as features which means it related to the product in direct way such as Volvo’s known on its safety and durability. Price/Quality: as Wal-Mart position itself as the lowest price seller of quality product and it has been very successful with that. Country or Geographic area: which means the product name include the name of country producer such as French wines and Russian Vodka. Determine consumers’ perceptions: In order to create perceptual map, marketers use several tools to collect and analyze customer’s perceptions about competitive positioning of alternative products used as Multidimensional scaling (MDS) which refer to several statistical techniques that are usually used in data visualization in order to identity the similarities and differences in data. While the Discriminate analysis it’s a statistical technique that used in marketing when there is only one dependent variable but several independent variables, it looks at the responses to the questions asked about the product attributes and underlining dimensions. http://www.indopedia.org/Discriminant_analysis_(in_marketing).html http://en.wikipedia.org/wiki/Multidimensional_scaling In this stage, the attributes should be identify by analyst in order the consumers use it to evaluate the product and service in the same category. Then, determine the best attributes that have been chosen by the consumer among all the brands. Therefore, this stage basically is about how the consumer’s positions the competitors in the market. Analyze the intensity of a product’s current position: Some brands might be recognize by consumers , while the others are not exits in the consumer’s mind .As a result, unknown brand would defiantly not occupy a position in the consumer’s mind. So, in order to acquiring an intense position, the first thing to do is building a brand awareness which must be associated with some concepts relating to the purchase decision strongly. But to reach an intense position, you should develop the relationship between the brand and few numbers of attributes. However, there are some chances that brand can gain a positioning intensity like when there are limited brands control certain a product in the market and consumer’s minds, so it’s not wise to competing head –on against the leaders on the basis of attributes by competitors because it’s not effective regarding Al Ries & Trout in their book (If you proposed position calls for head-to head approach against a marketing leader, forget it. Its better to go around an obstacle rather than over it . Back up .try to select a position that no one else has a firm grip on). A better option is to focus an attribute prized by member of given market segment such as targeted women and young families by Ford Windsatr minivan, as it has been introduce since 1994 with a successful advertising campaign which really helped to compete the leading minivan seller Dodge Caravan.( The Battle for your mind , 195) Analyze the product’s current position: In order to know if the brand occupies a strong position on particular attributes, marketer should make a lot of marketing researches and analyze by using some techniques such as Multidimensional scaling, discriminate analysis and perceptual positioning map. The perceptual positioning map would really help (see appendix 1) as a small distance between two brands shows that brands are considerable alike while the greater distance refer shows brands are being very different. So, the intensity of competition between the brands alike is much greater than the others. But always try to position your product in an empty space, being the first is the easiest way to get into a person’s mind due to Ries & Trout. (The battle for your mind, 19) In addition, the perceptual positioning map provides great information about position opportunities such as launching new brand or repositioning. It could be done by finding an empty space in the map which shows no store is exiting or located currently. But finding space or gap empty might be regarding couple reasons like technical constraints which will be impossible for any brand to attain. Determine consumers’ preferred combination of attributes: This stage is mainly about what are the most important attributes for consumers, so there are many different ways the analyst can be use to measure the customer preferences and make them involve in the positioning analysis. For example of that survey which can be answer by the consumer to know their opinion of the ideal product or brands within a product category. So, respondents can know what consumer wants by rating the ideal product and exiting products on number of attributes. Other option is not only to rate the similarity between couple of brands available in the market but also explain their degree of preference for each. For both cases the analyst, who use the suitable statistical techniques, will defiantly know where to locate the respondents, ideal point relative to the position for different available brands on the product space map. Define market positioning and market segmentation: To well define the market segmentation, the difference in the seeking benefits by different kind of consumer should be considered. Because regarding the difference of ideal point by consumer, reflects different benefits they seek. So, the market positioning analysis can defiantly classify the differences between the market segments and the unique position for different brands. If the consumer’s ideal point divided in two or more location on the product space map, it considerably defines each as different market segment. According to the analyst is that each cluster represent by circle the induce most of the ideal points for the segment and the size of the circle shows the relative proportion of customer within a particular segment. So, by knowing the customer preference in different segments together with the awareness of the existing brands, analyst can figure out three things like how strong is the competitive between different brands in different segments, the intensity of the competition between brands in a given segment and the great chance for getting a differentiated position within known target segment. Select a positioning strategy : In the final stage, where it comes to answer the question where should certain company position a new brand or repositioning, so there are two things should be based one choosing the strategies which are market target analysis and result of market positioning analysis. When choosing the position, it should match the preferences of specific market segment and considered the positions of current competing brands. Other aspects should be considered also such as the attractiveness for target market, strengths and weakness of competitors as well as the required cost to maintain these positions. There are seven different positioning strategies, which can be chosen based on how to reach its marketing objectives: Monosegment positioning: It’s about produce a product and makes a special marketing program to the preference of a single market segment. This strategy considered as an advantage for the brand within the target market, but it won’t gain a lot of sales in other segment. The best use of this strategy with mass marketing. Multisegment positioning: This strategy produces a product that attract different consumer from different segments. The features of this strategy are very attractive as its offer higher economies of scale ,smaller investment requirements, avoid dispersion of managerial attention .The best use of this strategy when the individual segment are small. Standby positioning: it’s not a wise to switch of using Monosegment and Multisegment, so using several brands that each one positioned to serve only one segment’ needs, although if it increase the total market share. So, there is a possibility to use Monosegment strategy when they have to do so. Therefore, standby strategy is prepared plan that include product specifications, product attributes as well as details for the marketing program which will be used for new product position   . Imitative positioning: It’s the same as the head on strategy, where a new brand position itself the same as or slimier of it competitors. Using this strategy can be suitable sometimes, when a new brand’s firm has distinctive advantages beyond positioning such as better access to channels of distribution. Anticipatory positioning: It’s considered as evolution strategy that can match the segments’ need. Its appropriate when new brand doesn’t not expect a fast acceptance and popularity. Adaptive positioning: It can be used in certain period in order to reposition the brand to satisfy the new segment’s needs. Defensive positioning: when a company occur strong positioning in the market with a single brand , it uses its completive   strategies and introduce a new additional brand in the same position and segment. David & Aaker Positioning steps: Regarding David A. Aaker & J. Gary Shansby , professors of marketing at the University of   California , they have introduced six steps for developing a positioning strategy : Identify the competitors : List the competitors in number of ways in order to have primary and secondary groups of competitors. For example of that grouping other diet cola drinks, all cola drinks, all soft drinks, nonalcoholic beverages, all beverages. Another way is the development of associations of product with use situations, such as asked about the appropriate beverage for the snack, then asked more specific question in order to have a list of use beverage resulted. Also, the other group will be asked which beverage is suitable for which situation, and the beverage that ranked as for the snack, it will be compete primarily with the appropriate beverage for the snack. This would really help in knowing and identifying the competitors although the market research is not used. Determine how the competitors are Perceived and Evaluated: In this step the buyers are the main resources as they are the target market, so for example the first question will be to identify the two most similar brands from a set of three competing brands and the reasons for being this two similar and different from the other .Next, respondents would be asked which of the tow you prefer and why. After that, using logic, judgment or factor analysis in order to remove all the extra points from the list. The final step is to identify which brand is the most important to respondents. Determine the competitors’ portions: In this stage, we are going to know how each competitor include our entry position itself in the market with the respect for each other. Multidimensional scaling can be used because its purpose is to scale objects on several dimensions. So, simply to ask a group of our target market to scale the various objects on the product association dimensions. This is the same as the perceptual map, even though it has some major disadvantages such as unfamiliarity with some brands, difference among respondent. Analyzing the customers: Understand the customer and know how the market is segmented would really help I knowing how to choose the best positioning strategy. Of course there are many questions should be asked in our mind such as what is the behavior of our target , how the product’s role play in the customer’s lifestyle †¦etc. A very important approach for segmentation is benefit segmentation which refers to the benefits of product or the product association that customer believes how it’s important. So, in order to know the rate of product association, customer can be asked to know their judgments or their point of view about the ideal brands which will be combination of the entire customer’s preferred product association. Customers are then will be divided as group defined by product association. However, having different group would really help to ask each group what they like about it the brand and how they can describe it. Then , the result will show if it need an improve for the brand’s image by more understating for the lifestyle of segmentations, behavior, income and many other things in order to target the segmentation well. Making the Positioning Decision: There are four steps should be considered before taking the actual positioning decision: Positioning usually implies a segmentation commitment: which means that before the decision is made, the commitment in focusing on certain segments should be made in order not to turn back on to seek potential buyers as well as not be constrained by the reaction of other segments. An economic analysis should guide the decision: basically, there is tow factors should be depending on the potential market size X the penetration probability. Attracted a sizeable segment by a positing strategy is considered as one implication for the structure. In addition if group of customers are attracted to there brand, it should have worthwhile market share to begin with. Also, if new buyers attracted to the product class, an assessment should be done to the potential size of that growth area. If the advertising is working stick with it: having a good advertisement campaign that can represent or reflect the brand image as it required is the key of good advertising , no matter how long it has been shown because the value of consistency through time cant be overestimated. Don’t try to be something you are not: sometimes it’s tempting to decide on a positioning strategy that exploit a market need or opportunity, but assume your product is something its So, test the product in order to ensure it deliver what it promises and compatible with a proposed image. Monitoring the Position: the positioning objective should be measurable like any marketing objectives, therefore in order to evaluate the positioning and get information about future positioning strategies, it’s very essential to monitor the position consistency. For example of that Hamburger Helper used personality test. Compare between 2 authors Even though Trout & Al Ries are the main founders or creators of Positioning, they did not write about specific steps for Positioning, but others professors and authors extract the steps from their articles, books and lectures among the years. So, there are different number of steps are mentioned by different authors, but overall they aiming for the same purpose. So, a comparison will be made between Walker and Boyed (W &B) & A. Aaker and J. Gary Shansby (A & J) in order to clarify the similarities and differences. First of all, as can be seen from the report above that W &B mentioned or talked about 8 steps for using Positioning strategy, while A &J summarize their steps into 6. Both W & B and A & J talked about Identifying the competitors, which A &J mentioned it in both step 1 and 2, the first step is where to list the competitors while in the second step knowing the consumers opinion about the competitors’ products. But, W & B instead of that recommend to use the perceptual map in the first step as it in order to know the product’s position regarding its competitors. In addition, W & B recommended to use the perceptual map in the first step to know the consumer’s opinion about certain product that similar to yours based on two suggested criteria. Using the perceptual map is very informative as it shows our competitors, beside that the consumers’ opinions about them by rank them in different places. Both if them W & B and A & J talked about the same point in the step three which is Knowing the competitors position in the market, although each one talked about using different tools as A & J recommend to use Multidimensional scaling and W & B recommended to use Multidimensional scaling and Discriminate analysis to create the perceptual map. They recommend to use the Discriminate analysis when there is only one dependent variable but several independent variables. However, step 4 for A & J is about Analyzing the customers, while for the   W & B they talked about it in steps two, six and seven. Al though their are different in title but it has the same purpose which is knowing what customer preferred attributes for the product in order to provide it in the product. A & J not only use this step to know customer’s preferred product association but also use the consumer’ answers or result to improve the product’s image. The same thing for W & B but they use the result for getting better differentiated position within known target segment .Also, W& B recommend to use different tools to be involve in the positioning analysis such as surveys in order to know the consumer’s ideal brand attributes. As for the step four according to W & B its Analyze the intensity of a product’s current position, this is also mentioned by A & J in step six but not in details because they focus more in monitoring the position in the future. Both of them talked about evaluate the position of our product and how strong the position is regarding the competitors. In addition W & B gave some solutions in order to acquiring an intense position. On the other hand, the final steps for both of them are quite different as W & B talked about several different strategies that should be chosen from based on how to reach its marketing objectives, while step 5 for A & J is giving the process for how to take the positioning decision considering many other aspect in order to choose the right and most suitable strategy as they don’t consider choosing the strategy as a step because I think following all the steps they mentioned would make the strategy choice much easier. Hotel Positioning    Hotel considered as any product or company that aims to attract customers, by position itself in the right place. Having a unique market position would boost the market share. Therefore, the argument here is how to make the travelers to book our hotel rather than other’s properties, which is known as market position. The Hotel position must provides several attributes that guests needs and wants. There are two perspectives can be evaluated the hotel brand’s position which are the brand’s management and guest. First the brand’s management should have several concept or plan of the hotel’s intended position and what it will offer to be different than its competitors. As for the guest, the hotel should provide what it does promise. http://www.allbusiness.com/marketing-advertising/segmentation-targeting/537095-1.html However, to establish new hotel brand there are many questions should be answer such as what position you already own due to overcrowded society with very strong hotel brand like Sheraton, Hilton†¦etc. So, it’s very easy to work with other brands out there during the positioning strategy according to Trout & Ries (The battle for your mind, 193). This means, knowing how people in the UAE see Al Dar and try to apply it in the hotel rather than taking other places because it would be very hard especially who has a very long history in the hospitality industry. Review Don’t use â€Å"So† to start a sentence. Check your subject-verb agreements. Your sentences are mostly too long. Although you clearly have a good grasp of the content, the presentation is confusing. Don’t try to cram all your ideas into one sentence. The citations are not MLA style. Check for missing articles and for misplaced articles. Some wordings are awkward and need to be revised. Although the outline and the flow is clearly well thought out, you need to be more academic in your writing. Don’t shorten your words. Use â€Å"It is† instead of â€Å"It’s†. Where you are more comfortable using simpler words, do so. Avoid double negatives such as â€Å"doesn’t not† Grammar is badly in need of editing. There are a lot of unnecessary words that just make the lengthy sentences confusing. Instead of using â€Å"For example of that† why not â€Å"An example of that is†¦Ã¢â‚¬  Say â€Å"with respect to† not â€Å"with respect for†. An â€Å" ‘s† indicates possession or ownership while simply adding an â€Å"s† indicates plurality. There are a lot of instances wherein the two are confused for each other. Check the verbs. Know when to use gerunds and know when not to. â€Å"Cant† is different from â€Å"can’t† There are instances where â€Å"there† is used when it should be â€Å"their†. Also check for missing linking verbs. The paper gives the reader the idea that the author understands the concepts very well. However, it does not give the reader much insight as to what those concepts are. One can easily get lost in the long sentences. The grammar and tense problems also add to the confusion.