Positioning and Differentiation

Explains the process and types of positioning strategies.

1. Positioning and Differentiation
By: Dr. Deepa Rohit, LLIM
Reference : Marketing Management by Kotler, Keller, Koshy and Jha
Dr. Deepa Rohit, LLIM 1

2. Crafting
The Brand
Positioning
Dr. Deepa Rohit, LLIM 2

3. Meaning
•Positioningistheactofdesigningthecompany’s
offeringsandimagetooccupyadistinctiveplacein
themindsofthetargetmarket
•Thegoalistolocatethebrandinthemindsof
consumerstomaximizethepotentialbenefitto
thefirm
Dr. Deepa Rohit, LLIM 3

4. Positioning
•Theresultofpositioningisthesuccessfulcreationof
customer-focusedvalueproposition-areasonwhythetarget
marketshouldbuytheproduct
•Abrand’spositionisasetofassociationstheconsumerhaswith
thebrandlikeattributes,lifestyle,useretc
•Itisarelativeconcept.Itreferstocomparativeassessmentbythe
consumerofhowthisbrandissimilarto/distinctfrom
competition
Dr. Deepa Rohit, LLIM 4

5. Positioning
Target
Audience
Category
Points of
Parity
Point of
Differentiation
or uniqueness
of your brand
Dr. Deepa Rohit, LLIM 5

6. Determining the positioning strategy
1.Determining a frame of reference by identifying the target market and
relevant competition
2.Identifying the optimal points of parity and points of difference brand
associations given that frame of reference
3.Creating a brand mantra to summarize the positioning and essence of
the brand
4.Communicating Positioning
Dr. Deepa Rohit, LLIM 6

7. 1. Determining a competitive frame of reference
•Identifying competitors –category membership, industry and market
point of view
•Analysing competitors
Dr. Deepa Rohit, LLIM 7

8. 2. Identifying Optimal PODs& POPs
•Points-of-Difference (PODs) –are attributes or benefits that consumers
strongly associate with a brand, positively evaluate and believe they
could not find to the same extend with a competitive brand
–Desirable to consumer
–Deliverable by the company
–Differentiating from competitors
•Points-of-Parity (POPs) –are attributes or benefits associations that are
not necessarily unique to the brand but may in fact be shared with
other brands
Dr. Deepa Rohit, LLIM 8

9. Establishing Brand Positioning
Category
Membership
•What a product is
•What function it
serves
PODs
Communicating
Category
membership
Communicating
PODs& POPs
Dr. Deepa Rohit, LLIM 9

10. Positioning Strategies / approaches
•Functional Positioning
–Product Attribute : Heinz Ketchup –Thick , 5 Star
–Benefit positioning : Pril–No Chikanai, Silk
–Quality or price positioning: McDonald -25 Rs. Menu
–Use or application positioning: Knorr Soup (Small ) –Evening
Snacks
•Positioning by Product User: Lux
•Positioning by cultural symbols/ Heritage: Hettich–German Quality
•Competitor positioning
Dr. Deepa Rohit, LLIM 10

11. Repositioning
•Change the tangible attributes and then communicate the new
proposition to the same target market
•Change the way a product is communicated to the original
market
•Change the target market and deliver the same product
•Change both attribute and the target market
Dr. Deepa Rohit, LLIM 11

12. DIFFERENTIATION STRATEGIES
Dr. Deepa Rohit, LLIM 12

13. Means of Differentiation
1.Basedonproductattributes
2.EmployeeDifferentiation
3.Channeldifferentiation
4.Imagedifferentiation
5.Servicesdifferentiation
Dr. Deepa Rohit, LLIM 13

14. Summary
•Positioning is an act of creating unique space in consumers’ mind
•Positioning is communicated through advertising, store, sales promotion
and service delivery
•TG Identification Category membership POP & POD 
Communicating PODs
•Differentiation is done to a product or service
Dr. Deepa Rohit, LLIM 14