© 2006 by Nelson, a division of Thomson Canada Limited6-104/21/23

Slides developed by:Slides developed by:

Peter YannopoulosPeter Yannopoulos

Chapter 6Chapter 6

Strategic PositioningStrategic Positioning

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Strategic Positioning

Expresses the long-term strategy of the organization

It reflects the core identity and related associations of the brand

It is derived from the value proposition

It results from occupying a unique position in the minds of customers

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Strategic Positioning

It helps engage or avoid a competitorIt drives all organizational activities

such as R&D, production, and personnel

It affects policies, procedures, hiring, training, and personnel decisions

It requires the performance of different activities

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Essence of Strategic Positioning

Strategic positioning is about being

different

Strategic positioning requires performing different activities fromthose performed by competing firms,or performing the same activitiesdifferently

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Operational Effectiveness

Operational effectiveness entails

performing similar activities

better than competitors

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Alignment of Strategic Positioning

and Organizational Activities

StrategicPositioning

StrategicPositioning

Facilitiesstrategy

Facilitiesstrategy

Research & development

Research & development

Organizational culture

Organizational culture

Resources &capabilities

Resources &capabilities

Marketingmix

Marketingmix

Productionstrategy

Productionstrategy

Human resources strategy

Human resources strategy

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Tangible Attribute Positioning

It is based on objective and observable characteristics

It is based on objective and observable characteristics

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Intangible Attribute Positioning

It is based on emotional attributessuch as image, feel, and fun

It is based on emotional attributessuch as image, feel, and fun

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The Strategic Positioning Process

Step 1: Identify direct and indirect competitorsStep 1: Identify direct and indirect competitors

Step 2: Identify determinant attributes or benefitsStep 2: Identify determinant attributes or benefits

Step 3: Determine customer perceptionsStep 3: Determine customer perceptions

Step 4: Select a positioning strategyStep 4: Select a positioning strategy

Step 5: Implement the positioning strategyStep 5: Implement the positioning strategy

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Criteria for Choosing Benefits or Attributes

The benefit or attribute is uniqueThe benefit or attribute is unique

The benefit or attribute is important to themarketThe benefit or attribute is important to themarket

The positioning claims can be supported byresources and capabilitiesThe positioning claims can be supported byresources and capabilities

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A Perceptual Map for Nonprescription Pain Relievers

Low

Effectiveness

Gentleness

High

HighLow

Bayer

Excedrin

Tylenol

Advil

Nuprin

Bufferin

Anacin Private Label

Aspirin

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The Positioning Statement

Product benefits

Targetcustomers

How product performs benefits

Productcategory

PositioningPositioningStatementStatement

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Positioning Examples

Maytag - dependabilityBMW – superior handlingSubway – healthy fast foodDominion stores – fresh obsessedTim Horton’s – Always fresh coffee

and baked goodsLexus – The relentless pursuit of

excellenceFedEx – Overnight delivery

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Strategic Positioning ApproachesStrategic Positioning Approaches

1. Benefit or attribute

2. Price/quality

3. Technical innovator

4. Use or application

5. Product class

6. Hometown favourite

7. Product user

8. Competitor

9. Brand dominance

10. Experience or originality

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Positioning Errors

DoubtfulPositioning

Faulty Positioning

Confused Positioning

Underpositioning

Positioning Positioning errorserrors

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Competitor Repositioning

DirectRepositioning

DirectRepositioning

IndirectRepositioning

IndirectRepositioning

CompetitorRepositioning

CompetitorRepositioning