Transcript Positioning Strategies and Incidence of Congruence in two UK Store

Positioning strategies
and incidence of
congruence of two UK
store card brands
Charles Blankson
Abstract



This study examines the activities and
congruence of positioning strategies within the
UK store card sector.
With triangulation research methodology, results
confirm branding activities.
Most popular position strategies are:
Marks and Spender Card brand: “Service,” “Value for
money,” and “The Brand Name.”
• Harrods Card brand: “Top of the range” and “The
Brand Name.”
•



There are congruencies between the two card
brands, which are marketing “communications”
efforts and consumers’ “perceived” strategies.
There are no congruencies between managers’
“presumed” strategies and the brand’s marketing
“communications” efforts.
While “communications” positioning activities are
recognized by the target group, managers
“presumptions/intentions” are unclear in
“communications.”
Introduction and background to the study



Positioning Activities provide the objectives for
products and services, therefore offerings’
positions in the marketplace are/should be
assessed to determine if goals of position have
been accomplished.
Advertisements today, have an objective to
position an offering in the consumer’s mind.
“…in a real sense, position analysis takes all the
materials that have been developed about the
situation and puts them together into the
message idea…” (Ray, 1992)



Therefore, this article looks at two store card
brands: Marks and Spencers (or M & S) and
Harrods and studies brand position strategies
and congruence in positioning.
Positioning: is concerned with the attempt to
modify the tangible characteristics and the
intangible perceptions of a marketable offering in
relation to the competition. (Arnott 1992, 1993)
Formally defined “…positioning is the deliberate,
proactive, iterative process of defining,
measuring, modifying, and monitoring consumer
perceptions of a marketable object…” (Arnott
1992, pp. 111-114)

Positioning involves:
•
•

Defining the dimensions of a particular perceptual
space that adequately represented the target
audience’s perceptions.
Measuring objects locations within that space and
modifying actual characteristics of the object and
perceptions of the target audience via a marketing
communications strategy.
So in other words the process of positioning:
•
Is iterative
• Requires deliberate and proactive involvement of the
marketer.



Explanations are in terms of consumer and
managerial/organizational perspectives from
three key issues:
1. Consumers
2. Companies
3. Competitors
Positioning strategies are applied to this study
by examining their use through service
managers.
However,
Positioning a service is more difficult than
positioning a product because of the need to
communicate vague and intangible benefits.
(Assael, 1985)


A challenge encountered in positioning service
brands is “tangible product attributes provide
more favorable consumer perceptions than
intangible attributes” (Darley and Smith, 1993).
Overall, tangible attributes, rather than intangible
attributes, are more likely to affect a consumers’
perception when used in advertising, because
intangible attributes advertising (services)
provides consumer with no objective perceptual
criteria and therefore they will rely on consumers
emotions in most cases (Darley and Smith,
1993).


Advertisements of services, overall, contain
more emotional appeals than product
advertisements (Cutler and Javalgi, 1993).
To increase or improve tangibility of services
positioning strategies and tactics included:
•
•
•

Advertisements with emotions
Advertisements with personalized headlines
Symbolic representation of the services
(Culter and Javalgi, 1993)
Counter arguments say that there are similarities
between services and physical goods, (Baker,
1981; Levitt, 1981; Middleton, 1983) or the
tangible and intangible, therefore there is no
suitable reason to use different positioning
strategies (Buttle, 1986; Wyckham et al., 1975).


For services, contextual specifics must be taken
into consideration when assessing/evaluating
the use of positioning strategies of services (de
Chernatony and Dall’Olmo Riley, 1999).
This research examines:
•
The use of a newly developed generic typology of
positioning strategies.
• Tests the congruence of positioning activities using
the typology in the UK retail sector.

The rationale for this research is: increased
competition within the store card sector has
occurred due to the increase in personal income
and wealth and development in information
technology (Burnham et al., 2003).



The subject of positioning store card brands is
important because of increasing competition
between retailers, especially to improve
customer retention.
It is imperative for managers and advertising
executives to decide which marketing
communications to employ and how much they
affect the consumers’ perceptions.
The reason for comparing Marks and Spencers
Cards with Harrods Cards is because they
appear to be two opposing spectrums in terms of
branding and target groups.
Research aims and objectives


The aim of the research is to:
1. Identify the positioning strategies
2. Determine the related congruence in positioning
activities.
Objectives:
1. Determine the positioning strategies (presumed practice)
2. Determine the positioning strategies employed in marketing
communications (actual practice)
3. Determine the target group’s perceptions of positioning
strategies (perceived practice)
4. Test the congruence between executives’/experts’
presumptions, actual positioning practices as exhibited in
marketing (advertisements), and the target group’s
perceptions of the employed positioning strategies
Research methodology

To determine the position strategies and
test congruence in activities/efforts 3 main
populations were used:
1. Executives & Experts
2. Companies’ Marketing Communications
3. Members of the Public (Target Groups)
Executives and Experts

Executives of M & S and Harrods and
other organizations were considered to
represent the most appropriate sources of
such information because it is a valid way
of obtaining consensus and developing an
appreciation of the relevant issues.


Population is defined as marketing managers,
product directors, and store managers for
executives, and advertising executives, senior
research directors of plastic card institutions,
managers and partners in consultancy firms and
academics in the case of experts.
20 executives and 43 experts were interviewed
•
•
First, a face-to-face interview was conducted with
open-ended questions that elicited the executives or
experts descriptions of their organizational positioning
strategies.
Second, they were presented with eight positioning
strategies and asked to rate each one on a scale of 17, where 1 was very irrelevant and 7 was very
relevant in comparison to their own
positioning/marketing activities.
Companies’ Marketing Communication

With the diversity of the communications
media, a number of different sample
frames were examined:
•
Newspaper Ads
• Brochures, Pamphlets & Leaflets
• Camera Pictures

Content analysis: a research technique
used in analyzing the content of any
information with regard to key trends and
themes.
The coding procedure used in this study
was the frequency system. Which is the
case whereby the occurrence of a specific
theme (copy point) is recorded and given a
single point.
 The content of each marketing
communication form was coded using the
scale-items of the eight positioning
strategies.
 If any of the scale-items of a particular
construct was present it was considered to
indicate a corresponding positioning
strategy.

Members of the Public
Comprised of all individuals who use store
cards and have a high literate background.
 1,000 members were sent a questionnaire
and 357 questionnaires were received
yielding an effective 35 percent response
rate.

Selection of sampling method
Convenience and snowball techniques
were used for executives and experts
 Convenience non-probability sampling
method was used for companies’
marketing communications
 Probability sample design was drawn from
random sampling method was used on
members of the public

Measurements

It was decided to adopt a newly developed
generic, appropriate for services and
goods, consumer derived typology of
positioning strategies, (Blankson and
Kalafatis, 2000, 2001) serving as the
measurement for the examination of the
employment of positioning strategies.




The typology comprises eight dimensions that
collectively are measured as summated scales
of 31 items.
Each item relates to consumers’ perceptions of
products and services, so it can be applied to
manufacturing and services industries.
The typology can be useful in assessing
positioning activities through the employment of
the strategies in firms’ marketing communication
tactics and strategies.
The data analysis comprised assessment of
measurement accuracy and examination of
response patterns of positioning strategies of
each card brand under examination.
Results
Positioning strategies
Data from each of the populations were subjected
to ANOVA with null hypotheses of no significant
differences in the mean values associated with each
of the eight positioning strategies.
In order to simplify presentation of the results, only the summarized results are
presented.
M&S card
Table I Positioning strategies: M & S card
__________________________________________________________________________________________________________________
Populations
Positioning
Executives’/experts’
Communications
Target group’s
Strategies
views
Other
Print
TV(n/a)
Overall
perceptions
___________________________________________________________________________________________________________________
Top of the range
*
Service
*
*
*
*
Value for money
*
*
*
*
Reliability
*
*
Attractive
*
*
Country of origin
The brand name
*
*
*
*
Selectivity
*
F-ratio = 3.838; F-ratio 12.972; F-ratio = 24.571;
F-ratio = 7.802;
F-ratio = 17.706;
df = 7,136;
df = 8,111;
df = 7,32;
df = 7,152;
df = 7,620;
sig. = 0.001
sig. = 0.000
sig. = 0.000
n/a
sig. = 0.000
sig. = 0.000
Note: n/a denotes not applicable; Other refers to brochures, pamphlets, leaflets, and outdoors (i.e. billboards, bus shelters, bus sides,
Taxi sides, underground stations, and company premises windows)
__________________________________________________________________________________________________________________________
Harrods card
Table II Positioning strategies: Harrods card
___________________________________________________________________________________________________________________
Populations
Positioning
Executives’/experts’
Communications
Target group’s
Strategies
views
Other
Print
TV (n/a)
Overall
perceptions
___________________________________________________________________________________________________________________
Top of the range
*
*
*
*
Service
*
*
Value for money
Reliability
*
*
Attractive
*
*
Country of origin
*
The brand name
*
*
*
*
Selectivity
*
*
F-ratio = 6.123; F-ratio 3.680;
F-ratio = 16.000;
F-ratio = 6.142;
F-ratio = 54.914;
df = 7,120;
df = 7,72;
df = 7,56;
df = 7,136;
df = 7,693;
sig. = 0.000
sig. = 0.002
sig. = 0.000
n/a
sig. = 0.000
sig. = 0.000
Note: n/a denotes not applicable
________________________________________________________________________________________________________________________
M & S vs Harrods card
Table III Congruence in positioning activities among the three populations
__________________________________________________________________________________________________________________________
Presumed vs Actual communications
Actual communications strategies vs
Strategies
Perceived strategies
Store card brands
Store card brands
Positioning strategies
M & S card
Harrods card
M & S card
Harrods card
_________________________________________________________________________________________________________________________
_
Top of the range
NE
E
PdC
E
Service
E
PdC
E
PdC
Value for money
E
NE
E
NE
Reliability
PdC
PdC
PdC
PdC
Attractive
CF
PdC
CF
PdC
Country of origin
NE
PdC
NE
NE
The brand name
E
E
E
E
Selectivity
NE
PdC
PdC
PdC
NE = 4/16 (25 percent)*
E = 5/16 (31 percent)
CF = 1/16 (6 percent)
PdC = 6/16 (38 percent)
NE = 3/16 (19 percent)
E = 5/16 (31 percent)
CF = 1/16 (6 percent)
PdC = 7/16 (44 percent)
Congruence/link (E+NE) = 9/16 (56 percent)
No Congruence/No link (CF=PdC) = 7/16 (44 percent)
Congruence/link (E+NE) = 8/16 (50 percent)
No Congruence/No link (CF=PdC) = 8/16
(50 percent)
Employed strategy(ies) = The brand name
Employed strategy(ies) = The brand name
* Percentages have been rounded off
Note: NE = Strategy not employed, E = Strategy employed, CF = Strategies in communications do not reflect presumptions or perceptions,
PdC = Strategies presumed or perceived to be present despite/without communications
Conclusion
The development of positioning, which is
essentially, a statement about what the
firm’s offering is and stands for, and which
the customer can relate to and
understand, is an important and vital part
of marketing communications plan and
branding tactics.
M & S Card’s positioning activities
1. Service
2. Value for money
3. The Brand Name
Harrods Card
1. Top of the range
2. The Brand Name
Managerial implications




Study provides positioning strategies
Study serves as a starting point
Study provides strategies and benchmarks for
applying positioning strategies
Study helps guide marketing managers and
marketing researchers as to how and when to
use what positioning strategies and models
Limitations and future research
directions
Convenience samples
 Disparity in the dates of data collection
 Inability to capture current positioning
deliberations, i.e. dated study
 Subjective analysis from in-depth
face-to-face interviews and content
analysis
