What Frame Of Reference Will Customers Use In Making A Choice To Use/purchase This Brand/service?

Perception

iv Positioning

refers to the evolution of strategy that helps to influence how a particular market segment perceives a brand, good, or service in comparing to the competition. Positioning is all about defining a space in the mind of the client — something that your customer thinks of and assembly with your product.

Recall that positioning doesn't but mean what your target market thinks virtually your product. Rather, it's about how they remember almost it relative to competitors' products — your product is less expensive, performs amend, or fits meliorate with the customer's lifestyle. Positioning often relates to a brand'southward strategic objectives.

Perceptual Mapping & Positioning Dimensions

is a graphic brandish explaining the perceptions of customers with relation to product characteristics. Perceptual mapping is a diagrammatic technique used by marketers in an effort to visually display the perceptions of customers or potential customers. Typically the position of a production, product line, brand, or visitor is displayed relative to their contest. Some perceptual maps use different size circles to indicate the sales volume or market share of the various competing products.

Perceptual maps commonly have two dimensions even though they are capable of having more than than that. For instance, in the perceptual map below, you lot can see consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and swish/affordable. This sample of consumers felt that Porsche cars were the sportiest and classiest of the ones in the study. They felt that Plymouth cars were the most practical and conservative. Cars that are positioned shut to each other were seen as similar on the relevant dimensions past the consumer. For instance, consumers saw Buick, Chrysler, and Oldsmobile every bit similar: they are shut competitors and form a competitive group. A visitor considering the introduction of a new model may look for an expanse on the map free from competitors or detect a mode to further differentiate and stand out from the crowd.

A perceptual map that plots various car brands; the x-axis represents "conservative vs sporty" attributes; the y-axis represents "classy vs practical" attributes. — Consumer perceptions of automobiles can be mapped by comparing (X axis) how conservative they are versus how sporty they are; and (Y axis) how classy and distinct they are versus how practical and affordable they are. Based on the

Positioning is facilitated by perceptual mapping to determine the ideal points of consumers. This helps to determine if positioning should be functional, symbolic, or experiential. Potent positioning will enable a single product to entreatment to different customers for unlike reasons. For example, 2 people are interested in buying a new car; one wants a car that is powerful and stylish while the other buyer is looking for a car that is reliable and safe and even so they buy the same exact motorcar. One purchase solved a trouble and exemplifies functional positioning while the other buy is an example of symbolic and/or experiential positioning.

Positioning Statements

After marketers piece of work through the procedure of homing in on the best positioning strategy, they arrive at the terminal pace: the . The positioning statement reflects everything you lot've learned up to that point most how your product, service, or brand can best reach your target segment. As a statement, it explains exactly how you plan to provide value to those target customers. In effect, it's a short, persuasive argument.

Typically, a positioning statement is one judgement that succinctly identifies the target market and spells out what you lot desire them to think nearly your brand. This statement should include 1) the target segment, 2) the brand name, 3) the product/service category or frame of reference in which you are establishing this market position, four) the key points of differentiation, and 5) the reasons customers should believe the positioning claims.

The brand consultancy EquiBrand (north.d.) recommends the following straightforward formula for writing positioning statements:

To [target audience], Product X is the just [category or frame of reference] that [points of differentiation/benefits delivered] because [reasons to believe].

The parts of the formula supplied by y'all (the marketer) are as follows:

The "target audition" is a brief description of the segment y'all're targeting with this positioning strategy. For case: young urban males, managing partners in law firms, orsmall concern owners in the Pacific Northwest.
"Product 10" is your product, service, or brand proper noun.
The "category or frame of reference" is the category of products or services yous're competing in. For instance: spectator sporting events, virtual assistant services, or employer 401K do good plans.
The "points of differentiation/benefits delivered" explains both what problem you solve and how y'all solve it in a different and improve style than competitors. It highlights the competitive advantage(southward) underpinning your positioning strategy. Be certain to explicate not only what is unlike about you, but why customers care almost that difference.
The "reasons to believe" are any proof points or evidence that evidence your customers how you alive upwards to your claims nearly how you are different and improve.

Permit'south look at some examples of well-written positioning statements:

For Www users who enjoy books, Amazon is a retail bookseller that provides instant access to over 1.1 meg books. Unlike traditional book retailers, Amazon provides a combination of boggling convenience, low prices and comprehensive selection. ("Figuring Out…," 2014).

This clearly worded positioning statement follows the formula closely, even though the "reasons to believe" are added equally a 2d sentence. It presents the competitive advantage ("instant access to over ane.1 million books") as a clear differentiator, and with this wording we also understand the problem Amazon solves–user-friendly admission to lots of books. The specific reasons to believe are highly desirable benefits for the target audience. Annotation that World wide web refers to the Cyberspace.

To frugal people, Motel 6 is the alternative to staying with family and friends that provides a welcoming, comfortable night's rest at a reasonable price. (Kelley & Jugenheimer, 2015).

The Motel 6 case is a very concise positioning argument. Information technology's interesting that the frame of reference is "staying with friends and family," rather than "motels" generally. This shows an astute understanding of the target customer'due south mindset and the recognition that the motel chain's leading competitor is non staying in a motel. The point of differentiation also reveals the problem Motel half-dozen solves: where to get a "welcoming, comfortable nighttime's rest at a reasonable price." Its points of differentiation and reasons to believe mistiness together, but the statement provides well-focused direction for a marketing mix that targets "frugal people."

For cost-conscious moms of large bluish-collar families with active children, Tide is the brand of laundry detergent that gets dress their cleanest and keeps them looking new considering "improved" Tide formulation powers out stains while keeping dress from fading and fraying. (Kelley & Jugenheimer, 2015).

This third positioning statement identifies the target audience so specifically that it's easy to create a vivid mental motion-picture show of the customer. The problem Tide solves is very clear: getting clothes clean. This statement emphasizes the product's competitive advantage around cleaning power and superior formulation, while promising valued benefits that customers enjoy when they use this product. The onus here is on the brand to provide these concrete benefits around not "fading and fraying," but these are definite reasons to believe if indeed the product can deliver.

Evaluating Positioning Statements

How practise you know when a positioning argument is going to exist effective? Manifestly, positioning statements should comprise all the elements in the formula to a higher place, since that information is needed to translate the positioning strategy into a well-developed marketing mix. There are other criteria you should look for, as well. For example, the following:

Is it tailored to the target marketplace? Too often, positioning statements either leave out the target segment, or else the entire approach isn't really suited to that unique grouping. If a positioning statement would work only every bit well if you plugged in a completely unlike target segment, then you probably haven't thought deeply plenty nearly your target'due south unique needs and what will make them want your product. Or, yous've defined your target segment too narrowly, in which example you should revisit whom you're trying to accomplish.
Is it uncomplicated, focused, and memorable? A positioning statement that is overly circuitous will exist hard to execute against because it isn't focused plenty to deliver a clear message to the customer. Make certain it is very clear what trouble(s) yous solve. Utilize easy-to-understand words instead of jargon that muddles the meaning. If your statement is running long, consider trimming a few differentiators or benefits. It'southward really very proficient to clip down to the essentials so your pregnant is crystal articulate. Make every word count!
Does information technology provide an unmistakable picture of your product, service, or brand? Your positioning argument should work beautifully for you, merely not very well for your competitors. If you can substitute whatsoever competitor'southward name for your ain in the positioning argument—and information technology still sounds credible—then you need some additional piece of work on your differentiators and competitive advantages. If y'all are going to own your market niche, it must be a place that no one else can easily occupy.
Tin can you evangelize on the promise you brand? The positioning statement promises some benefits or outcomes to your customers. You must be able to consistently alive upwards to this promise—otherwise you'll lose credibility, and your offering will stand for something that'south untrustworthy. If you lot can't live up to your promise, you lot need to take some other, more realistic await at the offer'south benefits and the customers' reasons to believe.
Does information technology provide helpful direction for designing the marketing mix and other decisions? From the positioning statement, you lot should have a sense of what types of activities and messages are consistent with that positioning and support the make yous are working to build.

By combining client enquiry and perceptual mapping, a marketer can too create a positioning statement using i of the 3 basic concepts discussed below.

The Iii Basic Concepts for Positioning:

Functional Positions: Functional positions deal with solving a trouble, providing benefits, and getting a favourable perception from investors, stockholders, and consumers.
Symbolic Positions: Symbolic positions deal with cocky-image enhancement, ego identification, belongingness, social meaningfulness, and affective fulfillment.
Experiential Positions: Experiential positions deal with providing sensory or cerebral stimulation.

Repositioning

Positioning is a powerful tool, but when you position a product, service, or brand, the world doesn't stand up still. Market atmospheric condition change. Your customers and competitors change. Y'all change.

Positioning should exist designed to terminal. But for most offerings, y'all'll eventually need to revisit your positioning strategy and consider whether to brand adjustments. This procedure has a very logical name: . In some ways, repositioning is more challenging than initial positioning because you're edifice on prior established work, trying to strengthen what's working and set what isn't—information technology'due south a bit like remodeling an former house instead of building one from scratch.

Just as the proper noun implies, repositioning involves irresolute the identity of a product relative to competing products. Many famous companies have saved declining products by repositioning them in the market. When a company initiates a repositioning strategy, it needs to change the expectations of stakeholders, including employees, stockholders, and financial backers. An arrangement tin reposition a product line, a brand, or an entire company. Determining which type of repositioning is needed isn't always easy; it is important to sympathise the changes in the current market and how competitors will react to the modify. If a change is volatile and is unprecedented, there may not exist enough information bachelor to use to make a conclusion. Understanding the strengths and weaknesses of a company can help determine when repositioning may be necessary and how the alter should occur.

Despite the risks, repositioning can be wildly successful when information technology is handled effectively. A skillful instance in betoken is the American Ruddy Cantankerous. In 2009, the U.S. had sunk into the Great Recession, and the American Reddish Cantankerous ("ARC") was also feeling the pain. With its budget relying heavily on charitable donations, and with Americans giving less due to the recession, the nonprofit organization faced a upkeep deficit going into the fourth quarter.

For many nonprofit organizations, the last quarter of the twelvemonth is prime fundraising flavour, since people open up their wallets for vacation giving. Up until 2009, this was not the example for the Red Cantankerous. Americans gave generously to the organisation during disasters, but the ARC wasn't people's acme choice for holiday giving. Seeing an opportunity in this apparent disconnect, the ARC engaged a creative agency to help repositioning the organisation in the minds of potential donors.

Inquiry confirmed that the competitive advantage of the American Red Cross, in consumers' minds, was providing help in times of disaster. The system's and then-current positioning of "Modify a Life, Starting with Your Ain" shared a powerful emotional message, merely it did non reinforce the competitive advantage or create a sense of urgency effectually giving to the ARC. The repositioning effort developed a new positioning direction expressed in the tag line "Requite the gift that saves the solar day."

This message reinforced the powerful office that the Reddish Cantankerous plays in times of disaster and invited Americans to be part of that important work. With words like "give the gift," information technology also implanted the thought of the ARC as a dandy recipient for holiday giving. The following video was created as office of the 2009 integrated marketing entrada that introduced this new positioning.

The repositioning was a resounding success. Income increased more than than 5 percent compared to prior years. People who saw ads associated with the repositioning entrada were twice as likely to donate equally people who didn't come across them. The 4th quarter of 2009 was one of the strongest since 2000. Make awareness increased by 6 percentage points. The benefits didn't terminate in 2009, either. Building on their success, the ARC expanded the repositioning campaign in 2010. By the stop of the year, income had increased 26 percent over 2009, and the average gift size increased 43 percent ("American Ruby-red Cantankerous…," 2009).

These impressive results reveal the ability of repositioning when it is handled well.

Media Attributions

The graphic of the "Perceptual Map: Consumer Perceptions of Various Automobiles" by Niosi, A. (2021) is licensed under CC BY-NC-SA and is adapted from PerceptualMap1.png from https://upload.wikimedia.org/wikipedia/commons/6/60/PerceptualMap1.png

Text Attributions

The section on "Positioning Statements" and "Evaluating Positioning Statements" are adapted from Developing Positioning Statements created by Lumen Learning which is licensed nether CC BY.
The section under "Repositioning" is adjusted from Introduction to Repositioning created by Lumen Learning which is licensed under CC BY.
The 2 opening paragraphs are adapted from Launch! Advertising and Promotion in Real Time [PDF] by Saylor Academy which is licensed under CC BY-NC-SA 3.0.
The section under "Perceptual Mapping and Positioning Dimensions" is adapted from Principles of Marketing by Academy of Minnesota which is licensed under a Artistic Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
The section on "Repositioning" is adapted from Repositioning created by Lumen Learning which is licensed under CC BY.

References

American Crimson Cantankerous Launches Gifts that Save the Solar day Holiday Campaign. (2009, November eighteen). Direct Marketing. https://www.nonprofitpro.com/article/american-carmine-cantankerous-launches-gifts-save-day-vacation-entrada-414580/all/.

Berner, R. (2007). Chanel'due south American in Paris. BusinessWeek, 70–71.

Kelley, L. and Jugenheimer, D.Due west. (2015). Advertising Account Planning: Planning and Managing an IMC Campaign (3rd ed.). Routledge.

Figuring Out The Fragile Art Of Positioning Your Startup. (2014, August 25). Fast Company. http://www.fastcompany.com/3034721/hit-the-ground-running/figuring-out-the-frail-fine art-of-positioning-your-startup.

Positioning templates. (due north.d.). EquiBrand Consulting. http://equibrandconsulting.com/templates/positioning-templates.