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Unformatted text preview: USC Marketing 307 • #5 Positioning and Brand © 2009 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. It’s 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 • Elephant’s trunk • Niche • Value proposition USC Marketing 307 • #5 Positioning and Brand © 2009 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 09/13/2009 for the course BUAD 307 taught by Professor Morristowns during the Spring '07 term at USC.
- Spring '07