Asked Dec 11, 2019

Explain how the result of a brand positioning analysis affects the final decision about where to position a new brand or reposition an existing one. 


Expert Answer

Step 1

Brand positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Brand positioning describes how a brand is different from its competitors and where, how, it sits in the customer’s minds.

Positioning a new brand in customer minds or repositioning a current brand involves a series of steps. These steps apply to goods and services, in domestic or international markets, and new or existing brands. Thus, when we say brand it includes both existing goods and services and planned new products-goods or services that do not yet exist. This is not to suggest that the determinant product attributes and the perceptions of consumers of the various competitive offerings will remain constant across countries or other market segments; rather they are likely to vary with most products.

Identify a relevant set of competitive products

Positioning analyses are useful at many levels: company, business unit, product category, and specific product line or brand. At the company or business unit level’s analyses are useful to determine how an entire company or business unit is positional relative to its competitors.

At the product category level, the analysis examines customers' perceptions about types of products they might consider as substitutes to satisfy the same basic needs.

A marketer could obtain customer perception of the new product concept relative to likely substitute product on various critical determinant attribute.

Step 2

Identify determinant attributes

Positioning, whether for goods or services can be based on a variety of attributes-some in the form of surrogates that imply desirable features or benefits as a positioning base. Some common bases are the following.

Features are often used in physical brand positioning and, hence with industrial products.

Benefits like features are directly related to a brand.

The manufacturing process is often the subject of a firm’s positioning efforts.

Ingredients as a positioning concept is illustrated by some clothing manufacturers saying their sports shirts are made only of organic cotton.

Endorsements are of two types which are performed by experts.

A comparison with a competitor’s brand is common.

Consumers can use many attributes to evaluate competing brand’s but the number influencing a consumer’s choice is typically small, patty because consumers can consider only attributes of which they are aware. It is important to recognize that the importance attached to these attributes often varies.


Collect data about customer’s perceptions for products in the competitive set

This market knowledge is developed by first conducting qualitative research, perhaps interviews of focus groups to learn which attributes are determinant. then quantitative research follows, perhaps a survey of consumers about their perceptions, to gather data on how competing product scores on these attributes.

Step 3

Analyze the current positions of products in the competitive set

a useful tool for doing so is the positioning grid, also called a perceptual map. The positioning grid provides a visual representation of the positions of various products or brands in the competitive set in terms of two determinant attributes where more than two attributes are to be considered in a positioning analysis, multi-dimensional grids or multiple grids are produced.

Determine the attributes on which the brand positioning will be based is a key outcome of the positioning process and a driver of the marketing communication strategy, as well as the marketing strategy overall, that will ultimately be developed.

Building a positioning grid

Positioning for a new store could be done by examining the positioning map for empty spaces where no existing store is currently located. There is such a gap in the upper right quadrant of the value/fashion ability map. T...

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