Wednesday, March 12, 2008

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Importance of market positioning strategies

Position is to design the tender so that it takes a mansard clear and appreciated in the minds of consumers in the target market.

The "market positioning" is thanks to the "positioning of a product" on it.

The "positioning of a product" is defined as the way the product is defined by customers based on certain important attributes, ie the place in your mind regarding the competition.

A basic strategy for positioning of a product is called "competitive advantage", which is an advantage over competitors who are offering consumers get lower prices or providing more benefits that justify higher prices. Positioning is one of the key concepts in marketing today is why he devoted an entire section to "new position" with a fresh approach of the author Jack Trout.

This concludes some key concepts and learning basic marketing in terms of segmentation, target market selection and positioning in the market.

Marketing Manager to create a good positioning strategy is increasingly difficult. The technological revolution is generating an increasing stream of information produced in the mind of self-defense mechanisms such as locking information. The study of the mind tells us that our perceptions are selective, that our memory is highly selective and we can not process an infinite amount of stimuli. This means that we are confronted by people circumventing the information that they requested or do not want and preventing exposure to it not heeding or not remembering. On the other hand we tend to perceive things that are related to our existing interests and habits, either to support or refute them. Thus your task is to get people to accept the information you want to convey in the midst of an explosion of data generated by the Information Age.

For positioning strategies are implemented well, you should avoid these six pitfalls:

  • not deviate from its obvious strategy because they believe it is too simple.
  • not lose the niche positioning has already created be unsure of whether he will remain your choice in the future.
  • Do not make your statement of position in a far-fetched idea.
  • not let his personal ambitions or other direct positioning strategies.
  • not let the pursuit of profits in the short term, affect their positioning strategies.
  • not try to improve things that are working well.

What position?

In today's market, the image that has the competition is as important as our own. Sometimes even more important. Yes, as we have said, move into the consumer's mind, you need to know how is our competition, we must also know what will be the most appropriate way to compare with it. David Aaker proposed a systematic way about how to position themselves. Here are a few strategies that have been used effectively and that could even be defined as types of positioning or how to position:

Positioning based on product characteristics

Some products are ranked based on their characteristics or qualities. "Movilnet: digital technology," Telcel: expanded coverage. "

A new product can be positioned based on a feature that competitors have ignored. For example, Papa John's Pizza Pizza ranked as "quality ingredients."

is likely that companies try to position itself more of a feature or attribute, but the strategies involving many attributes, are difficult to implement and consumers tend to get confused and not remember, which is why it is best positioned strongly on one point (USP) and reinforced in the minds of consumers.

based Positioning Price / Quality

Some companies rely especially on these qualities. Toyota, for example, has positioned itself as the brand best price / value due to its quality. While the Chrysler Neon was positioned as the vehicle with the best price / value for the number of attributes and accessories that have (Safety, comfort, power, capacity) and the most comprehensive warranty.

Positioning with respect to the use

Another strategy is to link the product with a specific use or application. Gatorade, has positioned itself as the beverage used by athletes to rehydrate. Kellogg's Special K, is the cereal for those who want a balanced diet and fiber base, and indirectly, to stay on the line.

User-oriented positioning

This type of positioning is associated with the user as such or a class of users. Some companies choose a celebrity with which consumers want to identify. This strategy has to do with the characteristics of the product and the aspirational target. Revlon, for example with Cindy Crawford, or "Cat" Andres Galarraga with Maltin Polar. The consumers will be linked to the brand or product empathize with the character that represents it.

Positioning lifestyle

The opinions, interests and attitudes of consumers allow to develop a positioning strategy oriented lifestyle. In the case of United States Army, to investigate the lifestyle of those who chose this as their career, they discovered that they were conservative and patriotic people who were willing to accept the hard work, discipline and direction. On this basis developed a campaign that says, "Why the Army should be soft? Life is not ..."

positioning relative to competition

There are two reasons why you may be important position with reference to competition. The first is that it is much easier to understand something when we relate it to something else we already know, and we can give as an example the reference point in one direction: The Santa Maria University is facing the square Madariaga. Secondly, it is sometimes not so important how important the customers think the product is, but think it's as good as or better than, a specific competitor.

specific positions in relation to a particular competitor, it can be a great way to position themselves in relation to a particular attribute or characteristic, especially when we talk about price or quality. For example, Cheese Whiz is positioned relative to its economic competitor Rikes as cheese spreads that "yes the cheese is" calling attention to consumers on the particularity of its competitor, although cheaper, did not include among its ingredients, the milk, essential ingredient for making cheese.

In particularly difficult to position products such as liquor, it is important to refer to a competitor, so that the consumer may be a reference to the type of liquor and flavor to expect

At this point there are several ways to position with respect to competition, which will discuss below

positions first

Obviously, that is positioned first, it does relative to its competition, but we must speak of the position of the leader before you talk about competition, it is he who will set the tone.

When positioned in the minds of consumers, which makes it first, statistically proven, you get twice the market share that quadruples the second and third, how a popular saying: "He who hits first, hits twice." For example: What is the highest waterfall in the world? The Angel Falls, what about the second?, I think it is not so easy to remember.

leaders know when to properly handle their leadership, they can stay at the top for many years. Examples are Coca-Cola, Belmont, Motorola, etc.

"position of number 2?

Other companies have found itself as the No. 2, may be its niche and competitive advantage. Perhaps the best example of this is what Avis, a company in the rental car industry, which clearly ranked second only to Hertz, which earned him tremendous success under the premise that because the latter should do more in how to serve their customers.

One way to position as No. 2, may be to do as different or inferior to the leader. Volkswagen used this strategy in the '70s. "Think Small" was the concept, when the market was invaded by large cars, and those smaller apologized saying they were bigger inside than outside. Even VW car could be seen as the ugly, the fact that he was nicknamed the "Bug" (bug or cockroach). However, the results were excellent and the beetle became a classic. It was not even necessary to make radical changes, to continue selling successfully for years.

Repositioning

Now it is possible that a product can be maintained with a particular position for many years, but today, with so many technological innovations, markets increasingly global competitive and rapidly changing economy, it may be necessary to modify the position and perform a repositioning. Johnson & Johnson did it with one of its original position shampoos for children. When he realized that the market for children was declining, and decided to reposition its product as family life of the cooling.

Other companies have positioned themselves, to reposition his competitor. This sounds a bit complex, but it is not true. Here is an example. German beer Beck's got a notice saying: "You have tasted German beer is more popular in the United States, now try the German beer is more popular in Germany. This was how Beck's is positioned in relation to the leading beer: Lowenbrau.

Positioning by name

When positioned, the name is one of the key factors, to the point that when someone wants to order a beer, ask for a Polar, or a drink and asks for a Pepsi. I can remember my father when he asks an insecticide called the "Fleet", a brand that disappeared many years ago the market.

A company is entering new market, you must have a name that allows you to immediately be placed in a "ladder", which allows it to be identified with the product it represents. Some time ago, when there was so much competition, any name would work (did not come from a Pepsi drug called Pepsin?) But today is more important to a more direct relationship between the name and type of products produced to facilitate its remembrance.

similar names

On the other hand, what happens when a small company has a name very similar to a larger, important and best positioned?. It will never happen of anonymity. If you simply do not advertise, it is likely to benefit from the activities in this area make the other company, but can not grow under this pattern. Without contrast, strives for a better place under its "ladder" is most likely that their efforts are diluted and benefit the competitor. We can cite the case of Goodrich and Goodyear tires. Who do you think will benefit?. In our country we can cite an example, what is the difference between Farmatodo and Farmahorro?. Apparently they already have realized the problem then decided to start to differentiate their logos. That of Farmahorro was blue and the red Farmatodo, both simple and thick font. Farmatodo now decided to change to blue to green and a more differential typography. And what would they think of a new chain of pharmacies under the name of Farmaplus?.

Names that are not names

But what happens when the name is name?. How many of these names recognized: JMC, BBDO, FCB, AW, JWT, APL, AJL? Or IBM, GCT, GE, KFC, MRW, EFX, GEP?. We take the task of reviewing in a card and find all the above as names of companies and organizations. In the first part, all correspond to Advertising Agencies, probably, for someone who is not related to the environment simply do not mean anything. We are not talking about small businesses and most are subsidiaries of multinationals, with a turnover of several billion Bolivars. This happens many times to simplify phonetically the name of the company. For example, it is much easier to say AW, which Advertising Workshop Nazca Saatchi & Saatchi, or APL instead of Amiratis Puris Lintas.


Source: Notes Iespana. Segmentation, selection and positioning.

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