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PositioningandCompetitionPositioningToeffectivelycreateandimplementthebestbrandpositioningstrategies,onemustpayclosea

ttentiontothecompetition.PositioningPositioning,adefinition:Theactofdesigningaproductanditsimagetooccupyadistinctplaceinthemind

ofthetargetcustomer(s).Agoodbrandpositioningclarifiestheessenceofthebrand,whatgoalsthatitwillhelpthecons

umerachieve,andhowithelpsachievetheminitsownuniqueway.Theresultofagoodpositioningisthecreationofa“customerfocusedvalueproposition”.

PositioningPositioningrequiresproductcategorymembership,brand/productdifferences,andbrand/productsimilar

itiestobedefined.PositioningDefinitions:Category:agroupofproductsagainstwhichaproductcompetesandeachproductinthegroupcanactasaclosesubstitutefort

heothers.CategoryMembership:aproduct’sinclusioninacategory.Whodefinescategoriesanddeterminesaproduct’smembers

hip?Answer:thecustomers.PositioningDefinitions:Points-of-difference(PODs):attributesorbenefitsconsumersstronglyassociat

ewithabrand/productandbelievethattheseattributesandbenefitscannotbefoundincompetitors.Points-of-parity(POPs):attributesorbenefitsconsumersbelieveth

atabrand/productshareswithotherbrands/products.PositioningAlthoughconsumersultimatelydecideabrand/product’scategorymemb

ership,marketerscanandshoulddomuchtoinfluenceconsumersinregardstothechoicemade.Threewaystoinfluencemembershipchoice:1.Announcecategorybe

nefits2.Comparetoexemplars3.RelyontheproductdescriptorPositioningMethodstoinfluencecategorymembership(detai

ls):•Announcethecategorybenefits:inadvertisingandpromotion,explainwhattheusagebenefitsare.•Comparingt

oexemplars:comparethebrand/producttoexistingcategorymemberswhichtendtobeviewedasthebest.•Relyontheproductdescriptors:usethep

roductdescription(s)toimplyorexplicitlystatecategorymembership.PositioningOneoftheproblemswithpositioningisthatmanybenefitsarenegativelycorrelated,

meaningyougetbadwithyourgood.Forexample,lowcostandluxurydonotseemtogotogether.PositioningThreeapproachestoaddre

ssingthenegativecorrelationamongbenefits:1.Launchmorethanonemarketingcampaign,witheachonefocusingonadifferentbenefit.2.Linktoanentitythatalreadyh

astherightmix.3.Providetheconsumerswithadifferentperspectiveandsuggestthattheymightbeoverlookingorignoringcertainconsiderations.Position

ingTobebranded,aproductmustbedifferentiated.Fivedimensionsofproductdifferentiation:1.Product2.Services3.Personnel4.Channe

l5.ImagePositioningProduct,areaswhichcanbedifferentiated:•Form•Features•Conformance•Durability•Reliability•Reparabili

ty•Style•Design•QualityPositioningServices,areaswhichcanbedifferentiated:•Orderingease•Delivery•Installation•Customertraining•Customerc

onsulting•MaintenanceandrepairPositioningPersonnel,areaswhichbedifferentiated:•Competence•Courtesy•Credibility•Reliability•Responsiveness•Communic

ationPositioningChannel,areaswhichcanbedifferentiated:•Coverage•Expertise•PerformancePositioningImage,areaswhichcanbedifferentiated:•Symbols,colors,s

logans•Atmosphere•Events•BrandcontractsCompetitionInevitability,yourbrand/productwillbesubjecttocompetition.Therefore,analysisoft

hecompetitivesituationisimportant.If“wheretoenteramarketornot”isthedecisionthatyoumustmake,thenusingMichaelPorter’sFiveFo

rcesmodelforanalysiswouldbebeneficial.CompetitionPorter’sFiveForcesmodelcanhelpyoudeterminetheintrinsic,long-runprofitattractivenessofa

marketormarketsegment.TheFiveForcesinclude:1.Industrycompetitors2.Potentialentrants3.Substitutes4.Buyers5.Supp

liersCompetitionUsingthemodelcanexposethefollowingpotentialthreats:•Threatofintensesegmentrivalry•Threatofnewentrants

•Threatofsubstituteproducts•Threatofbuyers’growingbargainingpower•Threatofsuppliers’growingbargainingpowerCompetitionIdent

ifyingandanalyzingcompetitors:Acompetitorisacompanythatcansatisfythesamecustomerneedsthatyoucan.Identify

ingcompetitorsseemslikeaneasytask,butcompaniesandproductsaremoreoftenhurtbyemergingcompetitorsornewtechnologies.CompetitionOncec

ompetitorshavebeenidentified,thenperformanalysisintheseareas:•Strategies•Objectives•StrengthsandweaknessesCompetitio

nPotentialcompetitivestrategies:•Market-leaderstrategies•Market-challengerstrategies•Market-followerstrategies•Market-Nicherstrate

gies(seeExternalEnvironmentAnalysis)