MKT 472 Quiz 3

Positioning

Who your brand or company is in the marketplace vis-à-vis the competition and in the eyes of the customer

What Determines Positioning?

• Product

• Price

• Place

• Promotion

Product

Designing a product with benefits that the target segment will value. How do you want your customers to think about your brand?

Price

Pricing your product so it’s profitable yet seen as valuable. How high a price can you command for your brand?

Place

Building distributor relationships to make the market offering available. Where do customers go to find your brand?

Promotion

Communicating all of this to the customer through an array of promotional activities—what do you say about your brand?

Perceptual maps

how the brands and their competitors are perceived in the minds of customers.

Single Provider Perceptual Map

Positioning various qualities on a perceptual map reveals a company’s strengths and weaknesses

Maps for Competitive Analysis

Compares overall perceived strengths and weaknesses with competitors

• Limited to two dimensions

Basics

Low Price, Low Quality

Good Value

Low Price, High Quality

Over-Priced

High Price, Low Quality

High-end

High Price, High Quality

Mass

Heavy Promotion, Wide Distirbution

Hard to Get

Heavy Promotion, Exclusive Distibution

Underadvertised

Light Promotion, Wide Distirbution

Niche

Light Promotion, Exclsuive Distribution

Suboptimal Matches

• Low Price, Exclsuive Distribution

• High Price, Low Quality

• Heavy Promotion, Exclsuive Distribution

Hard-to-Sustain Matches

• Low Price, High Quality

• Light Promotion, Wide Distribution

Optimal Matches

Mass: Lower quality, Lower price, Heavy promo, Wide distribution

High-end: High quality, High price, Light promo, Exclusive distribution

Positioning statement

• Addresses the target market

• Expresses a unique selling proposition (USP)

Which of the following combinations is least desirable in market positioning?

A. Heavy promotion and low availability

B. Light promotion and high availability

C. Low price and low quality

D. High price and high quality

(a) Heavy promotion and low availability

What is a product?

The term product is often used in a general sense, referring to a product profile or entire market offering, including the “thing” being offered, the image of the brand, or the central aspect of a producer-consumer exchange.

Products

Either a good or a service and is the most essential decision in the 4Ps because it is what the consumer is receiving in the exchange

Exchange

The company offers something (product) that will benefit the customer and the customer offers something in return (payment)

Marketers need to…

1. Determine what the customers want in order to increase the likelihood of exchange.

2. Determine what the company can profitably offer.

Intangibility

Extent to which you have something concrete

Pure goods

Paper & phone

Pure services

Massage & babysitting

Hybrids

Restaurant & beauty salon

Experience marketing

Consumers are buying the experience

Service qualities

May be evaluated prior to purchase

Experience qualities

Need trial/consumption before evaluation

Credence qualities

Difficult to judge even post-consumption

Services are simultaneously produced and consumed; thus,

1. Services cannot be stored; goods can

2. Services cannot be separated from the provider; goods can.

Variability

• Goods are made by machines; services are usually people intensive.

• Services change across customers and across time.

Core

Essential to the product offering and is expected by customers and can trigger dissatisfaction

Value-added

Supplemental and can compete/differentiate on satisfaction

Product mix

A company’s product lines

Breadth

Number of product lines

Depth

Number of products in a line