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Topic 3: Market Positioning, defined as, balance between, connects on,…
Topic 3: Market Positioning
:check:
What is Market Positioning?
Link:
CorporateFinanceInstitute
The ability to influence consumer perception regarding a brand or product relative to competitors
To establish the brand image or product so that consumers perceive it in a certain way
Fast-food restaurant
as the provider of cheap meals
TV seller
as the most innovative and cutting-edge
Handbag seller
as a luxury status symbol
Competitive advantage
An attribute that enables a company to outperform its competitors
:check:
Optimization
Link:
HarvardBusinessReview
Centrality
:world_map:Centrality-Distinctiveness Map
:moneybag:SALES
Volume
increases
as Centrality increase
Volume
decreases
as Distinctiveness increases
:thinking_face:PRICING
Decreases
as Centrality increases
Increases
as Distinctiveness increases
:money_with_wings:PROFITABILITY
Example using car brands
Kia Motors
Low Distinctiveness, Moderate Centrality
:bulb:Market a unique, enhanced car design
increasing :arrow_up: Distinctiveness
Kia will be allowed to raise prices and boost revenue
Tesla
High Distinctiveness, Low Centrality
:bulb:Market itself to a broader customer base
increasing :arrow_up: Centrality
Although, Pricing decreases with an increase in centrality, increase in Sales Volumes will sustain revenues
No always a trade-off between C and D
:mortar_board:How representative a product is of the company (The first brand to come to mind when you think of the category)
Coca-Cola in soft drinks/ McDonald's in fast food
Distinctiveness
:large_blue_diamond:A brand's ability to stand out so that buyers can easily identify it
Tesla in cars (electric vehicles)
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Strategies
Link:
CorporateFinanceInstitute
Product
Price
Benefit/Quality
Competitors
:clipboard::Forms several approaches
Position by:
Product price
Associating your brand/product with competitive pricing
Product quality
Associating your brand/product with high quality
Product attributes and benefits
Associating your brand/product with certain characteristics or with certain beneficial value
Competitors
Making consumers think that your brand/product is better than that of your competitors
:carousel_horse:Market position definition and objective
:shrug:How to create
1.Determine company uniqueness by comparing to competitors
2.Identify current market position
Competitor positioning analysis
Develop a positioning strategy
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Importance of Positioning
Link:
Houston Chronicle
:compression:Weigh Competitive Pressures
this company's product or service should being preferred over other competitive
stand out from the crowd
Distinctiveness
:bow_and_arrow:Targeting Communication Channels
connecting with their identified target audiences more effectively
:silhouettes:Understanding Customer Needs
key messages resonating with customers
demographic and psychological attributes
:key:Carefully Crafted Key Messages
conveying the differentiating, value-added aspects of your product to audience
:money_mouth_face: impacts the ultimate purchase decision.
defined as
balance between
connects on
defined as
defined as
E.g.
E.g.
has implications on
according to customer survey
according to customer survey
How to
optimize
?
therefore
How to
optimize
?
think about it...
therefore
think about it...
Objective:
lead to
refers to
E.g.
positions itself
positions itself
positions itself
consists of
steps include:
consists of
:arrow_right:
relate to
refers to
refers to
refers to
refers to
leads to
based on
explains why
which relates to
leads to
allows for