The relationship of price to quality is among the most important considerations for consumers when they make a decision -Companies may use value positioning to let consumers know that while they are getting much less, they are paying less -Some companies say that they are offering same value for less money Product attributes -Focuses on features that are most important to target market -When they are based on attributes they tend to focus on prodct leadership emphasizing innovation, quality, design and reliability Benefits and symbolism -Emphasizes benefits and the psychological meaning of the brand -Meanings created by these brands are often the reasons consumers buy them rather than lesser known brands -Symbols create a strong brand Competition -Choose to position products head to head -Lead to price wars -Don’t position too closely -Choose a differentiation strategy by going after a less competitive niche Market leadership -Emphasize their leadership position within their industry
Positioning by using perceptual mapping -Perceptual map: displays in two or more dimensions the position of products or brands in the consumers mind -Steps oDetermine consumers perceptions and evaluations of the firms product or service in relation to competitors Asking questions about their coemption or productoIdentify the markets ideal points and size Used to evaluate positioning strategy oIdentify competitors positions Understand how consumers view their brand relative to to others oDetermine consumer preference What does the consumer really want, the ideal product or service that appeals to each market oSelect the position Reposition or cate to that marketoMonitor to positioning strategy Repositioning -Good marketers revaluate the position -Keep up with changes Proactive companies constantly tinker with their strategy -Brand repositioning: A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.-It is not without costs or risks, costs may not be recovers
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- Fall '12