week 3

Question 1

how to identify and develop a positioning strategy

Answer 1

• place the product occupies in consumers’ minds relative to competing products
• typically defined by consumers on basis of important attributes
• ex. porche is positioned on basis of performance and freedom

Question 2

what are benefits and symbolism

Answer 2

• type of positioning
• emphasizes benefits of brand and psychological meaning of brand to consumers

Question 3

what are positioning methods?

Answer 3

• value
• product attributes
• benefits and symbolism
• competition
• market leadership

Question 4

what is positioning rleative to competition

Answer 4

• position against a specific competitor
• position against an entire product classification

Question 5

what are steps to positioning?

Answer 5

1. determine consumers’ perceptions and evaluations in relation to competitors’
2. identify competitors’ positions
3. determine consumer preferences
4. select position
5. monitor positioning strategy

Question 6

what are issues to consider when thinking about positioning?

Answer 6

• what are central dimensions that underlie customers’ perceptions of brand in product class
• how do customers view our brand on these dimensions
• how do customers’ view competitors
• are there opportunities for new product introductions
• how to perceptions relate to preferences
• how can we improve competitive position (market share) given distribution of preferences in the market

Question 6

what is a positioning map

Answer 6

• place “competitors’ on a map
  – products, comps, offerings
• position them along relevant dimensions (relevant to customers)
• short distance = fierce competition
• easy to read, analyze
  – graphical, 2d map
  – human beings are good w/ graphical representations
  – better than raw numbers
• easy to communicate, convince, act

Question 7

what are mapping methods in marketing

Answer 7

1. perceptual maps
   - similarity based methods
   - attribute based methods
2. preference maps
   - ideal point model (unfolding model)
   - vector model
3. joint space maps (both perception & preference
   - simple joint space maps using modified perceptual mapping methods
   - vector model using prefmap-3
   - ideal point model using quasi-metric approach

Question 8

what are attribute based perceptual maps?

Answer 8

• perceptual maps derived from customer evaluations of competing products along pre-specified attributes

1. identify products and product attributes for eval
2. obtain perception data from questionnaires given to defined target segments
3. select perceptual mapping method
4. plot map

Question 9

what are attributes for positioning analysis

Answer 9

• performance: levels at which product’s primary characteristics
• durability: measure of product’s expected operating life
• reliability: measure of the probability that a product will malfunction/fail within specified time period
• serviceability: measure of ease of fixing a product that malfunctions/fails
• style: how well the product looks/feels to customer
• product image: conveying emotional aspects of products (ex. prestige, reputation, associated with product/comp)
• delivery: how product/service is delivered to customer
• other services:availability warranty/services that add value to customer’s purchase/use of product
• service image: number of attributes that contribute to overall perception of service (ex. competence, friendliness, courteousness of service employees)
• perceived quality: degree to which the product meets customers’ expectations of what the product/ service should be

Question 10

how to map brands/products

Answer 10

• brands that are close on map are close competitors
  – customers have similar perceptions about these brands
  – brands compete on the same dimensions but which ones?
• attribute lines show along which key dimensions brands are positioned
  – the smaller the angle, the higher the correlation
  – dotted line = inexpensive, solid line = expensive

Question 11

what are preference maps?

Answer 11

• preferences allow customers to choose among alternatives
• ex. all customers may perceive volvo as safe but not all customers value safety equally
• preferences do not necessarily go according to magnitude of an attribute
• cannot indicate which attributes should be changed to make a focal product more appealing to target segment

Question 12

what are the 2 types of preference representation?

Answer 12

• ideal point preference model ^
  – upside down parabola
  – y axis: preference, x axis: ideal point
• vector preference model x
  – y axis: preference, x axis: increasing vs decreasing preference

Question 13

what are joint space maps?

Answer 13

• incorporate both perceptions and preferences into the same map
• two simple methods:
  – averaged ideal point model: generating an average ideal point requires a hypothetical ideal brand and it includes average perceptions of the ideal brand
  – averaged vector model: associated vector shows direction of increasing preference, the further a product appears along this vector the more it is preferred