Transcript Competitve Positioning - Southern Methodist University

Competitive Positioning
and
Competitive Advantage
Professor Chip Besio
Cox School of Business
Southern Methodist University
Positioning
 The place that the product or service occupies in
the customer’s mind relative to competing
products
 Positioning should be superlative
– Most
– Best
– Strongest
– Fastest
Is the positioning believable?
Positioning
HOW DO YOU DO IT?
Differentiate
the product
Step 1 - Identify a set of possible advantages relative
to competitors
Step 2 - Select the competitive advantage(s) most
important to the target market
Communicate
the selected positioning
Step 3 - Effectively communicate and deliver the
chosen positioning in the market
Differentiation is Based on
Competitive Advantage
 Competitive Advantage - An advantage enjoyed
by a single product relative to other products in
the market
 General sources of competitive advantage:
– Overall cost leadership - can offer best value;
lowest prices
– Product differentiation - unique product
characteristics or associations
– Narrow customer focus (niching) - addresses
wants and needs of particular customer segment(s)
Adapted from: Michael Porter
Sustainable Competitive
Advantage
Is the competitive advantage difficult for
competitors to emulate?
–
–
–
–
Can competitors copy you?
How quickly?
How much investment is required?
Can the company continue to improve on its
advantage?
Positioning Strategy
Development Process
1 Identify the competitors.
2 Assess perceptions of them.
3 Determine their positions.
4 Analyze consumer preferences.
5 Make the positioning decision.
Positioning
PERCEPTUAL MAP
Definition: A spatial representation of how target
customers perceive competing brands
– Brands that are perceived to be similar are located close
to each other
– Brands that are perceived to dissimilar are further apart
Use the perceptual map to:
– Determine how target customers perceive the product
– Identify competitors
– Select a positioning
Using positioning and perceptual maps to
increase milk sales to children and adults
Strategies for positioning dairy drinks for
kids and repositioning chocolate milk to
reach adults
Select a Positioning
Selection of a positioning depends on:
 Ideal point for target customers
 Current perceptions of the product
 Product’s competitive advantage(s)
Select a Positioning
There are four general positioning strategies:
 Head-on
 With an Idea
 For Social Accountability
 U.S.P. - Unique Selling Proposition
Select a Positioning
Product
Attribute(s)
Value
Away from
Competitors
Benefit(s)
Offered
G
H
C
A
Against a
Competitor
D
E
Product User
B
F
Product
Usage
Cultural Symbols
Adapted
from: Prentice
Hall
PRODUCT POSITIONING APPROACHES
APPROACH
BY ATTRIBUTES/BENEFITS
BY USE OR APPLICATION
BY USER
BY PRODUCT CLASS
BY COMPETITOR
EXAMPLE
TOOTHPASTE
SEGMENT: CHILDREN
BENEFIT: FLAVOR & COLOR – STRIPE
DECAY PREVENTION – CREST
SEGMENT: TEENS, YOUNG ADULTS
BENEIT: FRESH BREATH & WHITE TEETH – ULTRA BRITE
SEGMENT: SMOKERS
BENEFIT: WHITE TEETH & PLAQUE PREVENTION – TOPOL
ARM & HAMMER BAKING SODA
 WATER CLEANER IN POOLS
 “ORDER-EATER” IN REFRIGERATION
 TOOTHPASTE
COLD REMEDIES
 EVENING – NYQUIL
 ALL DAY –CONTACT
MICHELOB
 WEEKENDS
 EVENINGS
LAXATIVES
 FEMALES – CORRECTOL
DEODORANTS
 FEMALES – SECRET
MARGARINE VS. BUTTER
PORK VS. CHICKEN
AVIS AGAINST HERTZ
HUGGIES AGAINST PAMPERS
 MALES – EX LAX
 MALES – BRUTE
APPROACH
EXAMPLE
MARRIOTT HOTEL GROUP
PRICE-QUALITY
CONTINUUM
Quality (Amenities)
Price (Room Rate)
Economy
Standard
Good
Marriott
Marquis
High
Above
Average
Average
Fairfield
Low
Inn
Superior
Marriott
Courtyard
CRAFTING A POSITIONING STATEMENT
For
(target market and need),
the
(product, brand name)
is a
(product class or category)
that
(statement of unique attributes or benefits provided)
CRAFTING A POSITIONING STATEMENT
VOLVO EXAMPLE
For upscale American families who
desire a carefree driving experience,
Volvo is a premium-priced automobile
that offers the utmost in safety and
dependability.
Use the Marketing Mix to
Support the Positioning
 Based
on the positioning or unique selling
proposition, develop a marketing mix
plan for each targeted segment
Marketing Mix 1
Segment 1
Marketing Mix 2
Segment 2
Marketing Mix 3
Segment 3
STP Review
1.
Divide market into segments, each of which
behaves differently vis-à-vis your product
2.
Select certain segment(s) and focus on them
3.
Tailor a marketing mix for each segment
4. Think small!