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Unformatted text preview: USC M ar keting 307 #5 Positioning and Br and 2008 Ira S. Kalb. All rights reserved. 1 1. Definition . Positioning involves identifying a target audience that has an unfilled need and creating an image of your product that fills that need better than competitors. 2. Lock and Key Metaphor . To better understand Positioning it is useful to break it into two components using the metaphor of a lock and key. 2-1. Lock. The target market segment with an unfilled need 2-2. Key. The image of the product that fills that need better than competitors. The key can be made to provide three levels of success and success. 2-2-1. Level 1. The image of the product is in terms of a memorable benefit. 2-2-2. Level 2. The image of the product is in terms of a memorable benefit that is difficult to copy. 2-2-3. Level 3. The image of the product is in terms of a memorable benefit that is impossible to copy ( a do not duplicate key ). 1. Benefits of Level 3 . If you can get to Level 3, you have the most secure form of positioning that can be used to 3-1. Lock out competitors 3-2. Unlock greater sales and profits because your product will have a unique image that cannot be easily copied. You can purchase a major league baseball for a few dollars. However, the baseball Barry Bonds hit into the stands to break a home run record was sold for over $1 million because it was unique (level 3 positioning). Disney is often at level three because there is only one Mickey Mouse and Donald Duck. Its brand is estimated to be worth $100 billion. Coca Cola is worth about the same because it is the original. Positioning related terms. Uniqueness Added value Competitive Advantage Elephants trunk Niche Value proposition USC M ar keting 307 #5 Positioning and Br and 2008 Ira S. Kalb. All rights reserved. 2 4. Types of competitors there are three main types competitors two external (1) Direct and (2) Indirect and one internal (3) similar products in your product line 4-1. Direct These are products produced by others that can be used to fill similar needs of a similar target audience. The Toyota Camry and the Honda Accord would be direct competitors. 4-2. Indirect While often forgotten by marketers, indirect competitors are usually the most formidable because they include (1) Substitutes and (2) Status Quo or Nothing the decision of buyers to keep their money and leave things the way they are. 4-3. Your other products This is also an often forgotten competitor that can be very formidable. When one of your products competes with another the term for that is cannibalization....
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This note was uploaded on 03/31/2009 for the course BUAD 307 taught by Professor Morristowns during the Fall '07 term at USC.
- Fall '07