- Strategic product positioning is the process of placing the product in the mind of the consumer
- positioning forms the basis of operational marketing, which must be consistent with brand positioning
- it is necessary to identify the distinctive elements (such as the benefits of the brand) of the product that can differentiate it from those of the competition, called competitive advantages. In this phase, an analysis of the strengths and weaknesses, the competitive context , the distinctive and unique benefits of the brand must be carried out
There are different Ways of ranking with respect to competitors
- through product differentiation (performance, longevity, reliability, design, novelty, etc.)
- through price differentiation (think of Ikea )
- by image differentiation (especially where brands are indistinguishable by tangible characteristics, such as Marlboro or Absolut Vodka )
We underline the importance of the credibility of the chosen positioning, in fact Bahrain Mobile Number List there are companies that use more positioning parameters or more product characteristics by combining more advantages (e.g. fresh water toothpaste) the risk is that of incurring an under-positioning, overlapping (too specialized) , confusing positioning, ambiguous (hardly credible) positioning and so on.
Once this strategy has been implemented, it is necessary to analyze the customer’s response behavior to the company’s positioning according to the theories based on the learning hierarchy:
Cognitive Response: Possessed Information and Knowledge
- affective response: evaluation
- behavioral response: act of purchase
Here are some behavior patterns
- high degree of involvement with intellectual perception mode = need for information (learn-feel-do) e.g. buy car
- high involvement and less information and more need for an emotional Cryp Email List stimulus: brand reflects values and self-esteem (feel-learn-do)
- minimum reasoning and many buying habits (do-learn-feel)
- low involvement and sensory purchase (do-feel-learn)
Want to know how to differentiate yourself ? here we introduce some notions on the value chain:
- primary activities: purchasing, production, distribution, marketing, assistance
- support activities: human resources, research and development, infrastructure, which aims to identify the factors of uniqueness
- Others shown in the image…
We conclude with a summary concept, namely that of market power or the ability to make the market accept a price higher than its competitors (therefore it has a less elastic demand). It depends on brand loyalty ( premium price acceptance , exclusivity rate, loyalty rate). This means that the more you invest in Branding, the more returns you will have in terms of price convenience.
Are we sure the ROI of branding is not measurable.