1. What is positioning
What are the building blocks of marketing strategy: marketing does not have foundation
Marketing follows a systematic approach that goes from description (market sensing) to prescription
(strategy formulation to make strategic action)
- Positioning comes after segmentation and targeting. After knowing who you are
targeting. Sometimes after positioning, you go back to segmentation and target. But
normally is segmentation → targeting → positioning
- The attempt to influence the mental position of the product/brand/company in the
mind of target customers. AKA sometimes could be called Values, Unique Selling
point, value proposition.
- Marketing managers could rely on 4P, but always doubtful. but if you decide based
on positioning, less risks, easier to argue. Having clear P having easier decisions
Positioning case: Quidel: Pregnancy diagnostics product
2 segments of potential customers: they realised they cannot target both at the same time, so they
produce 2 products for both.
, - Brand name for Hopefuls: Conceive (focus on the outcome). QuickVue for Fearfuls (Focus on
the quick)
- Brand positioning: Emphasizing reliability and quick
- SKU position: placing next to diapers or baby stuffs in the stores vs next to condoms
- Brand extensions: ovulation testing vs self tests
- Price: Hopefuls could pay more
Summary: as a brand, you cannot be everything, you have to understand your customers. Lesson is to
really pay attention to your CUSTOMERS
Case 2: Dairylea Dunkers
- Customers are not the consumers. Parents buy the food for kids to consume..
- Focus group: third thing in the lunchbox.
Conceptualize between: Nutritional and Junk (parents care about this) and Boring and Fun (child).
→ Positioning statement: Fun and active way to provide daily nutrition for children for both mother
and children. Fun advertising for children, engage the child
Summary: it is not just about what customer needs, but also about Competitors positioned to serve
them (chips, sweets). You have to define your COMPETITORS.
Case 3: Celebrations
Customers are looking for small snacks, instead of big regular packs. Celebrations know that the trend
is not updated → they leverage all famous brands in bag and give customers a treat.
- Started the idea in 1995, but only launched in 1997 as Celebrations. Actually took them 2
years to create the mini bar from the big ones.
- They wanted to make sure it’s right for customers to buy from Celebrations, the bars stay the
same
, Summary: you have to deliver what you promise. Marketing as “promise” → Company: building
brands from the inside out. this is important for positioning strategy.
The 3C framework: Customers, Competition and Company.
Why of Positioning?
Small details matter: products speak for itself, but the brand matters a lot when you want to
shape/frame and differentiate what people think of your products and brand appeal. You need to have
a compelling story for customers to buy your products.
If companies forget about customers: only know about what they could do and others could do:
- Companies do not know if there is a need for their products, and don’t know what their
products contribute to the customer’s needs. There might be a lack of demand or need. If you
have what you deliver but there is no demand → for nothing.
If companies ignore competition:
- No one tells you what is your performance. If your product is good, but there is an
alternative or second option, you might provide a product without differentiation or a
copy cat.
- the danger of not paying attention to competition: fails to innovate and see new
competitors. Your positioning strategy will be undermined based on external
environment.
If companies ignore company: Fails to deliver brand promise.
→ Apply 3 C as your tools to come up with positioning.
Tool 1: Using 3C models
Step 1: Separate analysis of each element
Step 2: Find the idea that speaks to all three.
Expressing the position:
- The brand mantra/strapline.
- values: You could be too ambitious and not really clear