10-1 Positioning & Perceptual Mapping – Flashcards
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Segmentation
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Divvies up your market by customer types Helps target the appropriate consumer/customer Focuses your marketing efforts to specific customer/consumer groups Is customer or product/service-focused
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Positioning
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Differentiates one's own product or service from other competing entries in the marketplace Positioning is different from segmentation, but can be done with/without segmentation Helps you look for open opportunities * Strategic in nature, through tactics are born from it
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Facts About Positioning
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1. Not what you do to a product, but what you do in the mind of a prospect/consumer 2. Based on communication and must take place at the right time and under the right circumstances 3. Helps your brand enter the prospect's mind 4. If your brand does not resonate with the prospect, you have a positioning problem
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Positioning is Based on Messaging and Communications
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Advertising, websites, PR, mailers, emails, inserts, etc.
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Key Elements of Positioning
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Positioning "planks" are the individual components of the messaging Positioning compares products/services against each other positioning is brand-specific Positioning elements are a product of strategic MR
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Requirements for Effective Positioning
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1. Uniqueness 2. Importance / Desirability 3. Believability
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Relationship Among the Three Components
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All 3 components are in the mind of the consumer (psychological yet marketing-focused) Not all 3 are found in any one positioning plank/statement The unique claim rests on plausible support * An effective positioning statement then must be unique and plausible in order to be an effective positioning plank
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7 Key Questions to Ask About Strategic Positioning
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1. Is this position already taken by a competitor? 2. Is the feature/benefit important to the target market? 3. Is there objective evidence to support our positioning? 4. Can we deliver against this claim? 5. Do our prospects/customers now believe we can deliver? 6. What kind of support must we present to make out claim even more believable? 7. How much promotion effort will be required to register this position firmly in the minds of the target market?
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Perceptual Maps
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Perception is the organization, identification, and interpretation of sensory information in order to represent and understand the environment Follows that the position of a brand is based on the perceptions of the target market
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Perception and Marketing
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As marketers, we generally control the perception of consumers IF all information flows through marketing channels
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Perception as Researchers
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As researchers, we may be interested in how consumers perceive products and services
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Perceptual Space
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Marketers and market researchers sometimes use perceptual maps to identify where brands are positioned in "perceptual space"
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Perceptual Maps can be Created Using...
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Factor Analysis (FA) Discriminant Function Analysis (DFA) Multidimensional Scaling (MDS) Correspondence Analysis Perceptual maps and CHECK POWERPOINT
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Data Requirements
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Individual-Level Data Aggregate-Level Data
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Individual-Level Data
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FA and DFA only need brand ratings - Likert scales widely used - Basis variables can be of many didfferent types MDS needs special data -- Requires "similarity" data" between brands -- Similarity data pairs each brand for comparison --Uses Likert scales
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Aggregate-Level Data
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Correspondence analysis uses categorical data/contingency tables
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Caveats on Perceptual Maps
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1. MDS "similarity data" is very taxing on the respondent 2. Labeling of axes often difficult 3. Interpretation of the maps is often difficult 4. Perceptual maps may not be actionable
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Perceptual maps may not be actionable Questions about...
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How do the maps translate to changes in positioning? How are positioning planks derived from the maps? How are changes in messaging and communications made based on the maps? How are the maps strategic in nature?
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Positioning Based on Needs...
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Is more actionable
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Positioning Based on Needs
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1. Means-end chain analysis can produce relevant needs/benefits Myers calls this Benefit Structure Analysis (BSA) Myers notes that needs-based segments are superior
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Process
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Needs-based positioning starts with qualitative work (laddering) to uncover the benefits consumers seek from a product category
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Benefits
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Benefits are between attributes and values
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Positioning based on needs produces...
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A positioning Opportunity Profile (POP) (HPI)
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POP
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Reveals the competitive strengths and weaknesses for two competing brands
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POP Charts Produce Relative Positions
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1. Cost of entry 2. Brand superiority 3. Brand deficiencies 4. Open opportunities
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Process of "Building" a POP Study
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1. Qualitative work to uncover/ladder needs 2. Two types of survey/quantitative data are collected (importance and performance) 3. Data analysis focuses on importance and performance (the axes of the resulting charts are importance and performance) 4. Importance must be cut into 2 or 3 categories (importance categories can be made many ways) 5. Performance/delivery is brand relative 6. A chart is built where importance is plotted by performance (4 quadrants) 7. POP charts can be constructed for different segments
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Two types of survey/quantitative data are collected...
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Importance - general, not brand specific Performance/delivery - specific to each brand
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The two axes of the resulting "charts" are importance and performance
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Axes are not statistically derived Interpretation of the data relatively straightforward
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Importance must be cut into two or three categories:
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Highly important needs Moderately important needs Low importance needs
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Performance/delivery is brand relative
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Relative positions can be cut many ways Usually top two box/not top two box (i.e., 9 or 10 on a 10-point scale is the "top two box" rating) Difference scores can also be calculated
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A chart is built where importance is plotted by performance
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Importance on the vertical axis Performance on the horizontal axis
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The chart produces different "quadrants"
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Cost of entry—confirm Brand superiority—reinforce Brand deficiencies—fix or resign Open opportunity—key positioning plank (new)
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Relationship Between Segmentation and Positioning
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Segmentation tells us how the market is defined Segmentation allows us to target one or more market opportunities Positioning takes place within a target market segment Positioning tells us how we can compete more effectively in that market segment
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Segmentation uses...
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The importance data gathered in the survey
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Positioning uses...
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Both the importance data and the performance/delivery data
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POPs can be constructed for each segment so...
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So that different positioning planks (messaging) can be customized to target markets
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Advantages of POP
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More customized and sophisticated May resonate with the targets more Unique Importance/desirable Believable
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Disadvantages of POP
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Increases complexity for the marketing department/ad agency May muddle or confuse the messaging
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Ask these questions to determine the effectiveness of your positioning, whether or not segments are used in positioning:
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Is this position already taken by a competitor? Is the feature/benefit important to the target market? Is there objective evidence to support our positioning? Can we deliver against this claim? Do our prospects/customers now believe we can deliver? What kind of support must we present to make out claim even more believable? How much promotion effort will be required to register this position firmly in the minds of the target market?
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Positioning as an Organizational Process
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Market research delivers the data (POPs, perceptual maps, etc.) and the recommendations for strategy The client (internal or external) adopts the strategy Ad agencies then create advertising to execute the positioning strategy (tactics)
