5_307_Positioning

5_307_Positioning - U SC M ar k eting 307 #5 Positioning...

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USC Marketing 307 • #5 Positioning and Brand © 2006 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 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
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USC Marketing 307 • #5 Positioning and Brand © 2006 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. Rather than take business away from outside competitors, you are taking it away from yourself. Some are not concerned about this because they think the company still makes the money, but it’s a big problem since it causes confusion , and confused buyers often don’t by anything from you, but might buy from a competitor that confuses them less.
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5_307_Positioning - U SC M ar k eting 307 #5 Positioning...

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