Product differentiation and positioning

Positioning is the act of playing with minds of consumer.Brands differentiate and curate their unique positions into the lives of consumers

1. Product positioning, value proposition & differentiation Vijyata Assistant professor( dept.of mba ) Ranchi women’s college, Ranchi University

2. positioning Positioning is the process of occupying a meaningful and distinctive space in the mind of your target consumers, relative to competition. According to Al Ries and Jack Trout. Positioning starts with a product, a piece of merchandise, a service, a company, an institution or even a person ... But positioning is not about what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position products in the mind of the prospect.

3. Positioning alternatives According to Ries and Trout, there are three positioning alternatives; to strengthen a brand's current position in the mind of consumers to search for a new unoccupied position that is valued by enough consumers and grab it to deposition or reposition the competition.

4. POSITIONING STRATEGY

5. Perceptual map Perceptual maps use multidimensional scaling of perceptions and preferences that portray psychological distance between products and segments, using many dimensions. X-axis Y-axis

6. Premium Budget High performance Low performance PERCEPTUAL MAP : COSMETICS BRAND IN INDIA

7. differentiation Being different makes you more interesting Positioning begins with differentiating the company's marketing offer, so that it will give consumers more value than competitors' offers do. Differentiation is designing your product offering so that it has one or more unique qualities that are: Valued by your customer Consistent with your chosen positioning

8. Tools for differentiation Product differentiation ( performance, style and design , consistency, durability, reliability or repairability) Service Differentiation ( speedy, reliable or careful delivery ) Image ( branding, sponsorships, alliances ,CSR) Personnel ( hiring and training better people)

9. CURATING THE VALUE PREPOSITION Value proposition simply answers a question “Why you instead of others” A product's position is the complex set of perceptions, impressions and feelings that consumers hold for the product compared with competing products while choosing or rejecting that product. Point of Parity (POP) : That attribute which approximately matches with competitors offerings Point of Difference (POD) : The key attribute that gives your product a competitive advantage over the competition.

10. Which difference to promote Important -The difference delivers a highly valued benefit to target buyers. Distinctive - Competitors do not offer the difference, or the company can offer it in a more distinctive way. Superior -The difference is superior to other ways that customers might obtain the same benefit. Communicable - The difference is communicable and visible to buyers. Pre-emptive - Competitors cannot easily copy the difference. Affordable - Buyers can afford to pay for the difference. Profitable - The company can introduce the difference profitably.

11. unique proposition Products/brand’s attributes in superlative degree

12. Unique selling proposition( usp ) The unique product benefit that a firm aggressively promotes in a consistent manner to its target market. The benefit usually reflects functional superiority: best quality, best services, lowest price, most advanced technology. Unique emotional selling proposition( esp ) A non-functional attribute that has unique associations for consumers.

13. Positioning errors Underpositioning : A positioning error referring to failure to position a company, its product or brand. Overpositioning : A positioning error referring to too narrow a picture of the company, its product or a brand being communicated to target customers. Confused positioning : A positioning error that leaves consumers with a confused image of the company, its product or a brand. Doubtful/Implausible positioning : Making claims that stretch the perception of the buyers too far to be believed.

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