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Unit 4.1 Marketing Planning - Positioning Map

The document discusses the concept of positioning maps, which illustrate how a product or business is perceived relative to competitors based on dimensions such as price and quality. It emphasizes the importance of a unique selling proposition (USP) for establishing competitive advantage and customer loyalty, as well as the differences between niche and mass marketing strategies. Additionally, it highlights the significance of understanding customer perceptions to inform marketing strategies and identify market gaps.

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Koshla Renton
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12 views20 pages

Unit 4.1 Marketing Planning - Positioning Map

The document discusses the concept of positioning maps, which illustrate how a product or business is perceived relative to competitors based on dimensions such as price and quality. It emphasizes the importance of a unique selling proposition (USP) for establishing competitive advantage and customer loyalty, as well as the differences between niche and mass marketing strategies. Additionally, it highlights the significance of understanding customer perceptions to inform marketing strategies and identify market gaps.

Uploaded by

Koshla Renton
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Unit 4.

1 Marketing
Planning: Positioning
Map
A position map
• The positioning of a product or business describes how it is
percieved relative to its competitors.
• Apple’s positioning is based on innovation and design.

A positioning map shows customers’ perception of the product and


of the business, relative to its competitors.
This helps a business identify where its products fit in the market
relative to its rivals.
The usual dimensions to compare are price and perceived quality,
but one can include other dimensions.
High
Price
Brand
X

Brand
C

Brand
Z

Low High
Quality Quality
Brand
Y
Brand
B

Brand
D
Brand
A
Low
Price
How to use a
positioning
map
Brand A is regarded by customers as low price
and low quality. Customers may not regard this
brand as valuable. It is a budget brand.
Brand C is low quality but (close to brand Y) but it
is relatively expensive. This means that, regarding
the lowered priced brand, brand C is not in a very
competitive position as customers can move to
Brand Y or Brand B since they will have better
perceived quality for a cheaper price.
Brand D is in a very competitive position as it is
perceived to have relative high quality at a low
price. This brand may likely appeal to customers.
Profits may be small for this company.
Brand X is perceived to have high quality and
high price. Perceived as a premium brand.
Example of a
positioning
map
Consider the following airlines,
where do you think they would be
positioned in terms of price &
quality?
High
Price
Brand
X

Brand
C

Brand
Z

Low High
Quality Quality
Brand
Y
Brand
B

Brand
D
Brand
A
Low
Price
Positioning
Map
continued . . .
• The axes of a product positioning
map will depend on the specific
features or aspects in a market.
• In the car industry, customers may
value whether it is ‘luxury’,
’economy’, ‘family’, or ‘sporty’.
Positioning Map
uses

• Using this business tool may help identify gaps in


the market which a business could target with new
products/services.
• Or it can inform a business of their current
perceived ‘location’ versus what they aspire to be.
• In any case, the positioning map helps businesses
adjust their marketing activities to increase their
sales and market share.
Quick Activity! Using a
Positioning Map
• In the next slide, you will see a positioning map with two
different dimentions.
• In the handout, please write a description of each brand
describing what their percieved positions mean for this
brand.
• This is an indivual task (15 minutes to complete)
• In groups of 3, explain your interpretation of this
positioning map to your group members (20 mins to
complete)
More
delicious

Brand
C
Brand
X
Brand Brand
A Z

Less
More
Natural
Natural
Brand
Y

Brand
B

Brand
D

Less
delicious
It important to emphasise that a positioning map should

reflect the customers’ perception of a product/service rather

than what the business would like to think its position is.

The business can utilise this information to understand their

position in the market and, if desired, adapt its marketing

strategy to change its position.


The unique selling point or
proposition (USP)
This is a feature of a product that differentiates it from other competing products in the market.
The differentiating factor is what makes a product unique and helps to explain why consumers
choose one product over another.
Why is having a USP important for a business/brand?
• Helps to establish a firm’s competitive advantage in its product offering and, as a result, helps to
attract more customers.
• Leads to customer loyalty as customers can identify something special about the product in
comparison to rival products. Leads to improved revenue as customers buy a product or service
that best meets their needs.
• Makes the product or service easy to sell. Sale representatives who see value in the product or
even use the product will find it easier to passionately and persuasively sell the product to
customers.
The difference between
niche market and mass
market
Niche Marketing
Niche marketing is when a firm targets a relatively small market segment of the whole
market – that is, a particular group with similar customer needs and wants.
A business can tailor-make its marketing approach and avoid wasting time and money on
activities that are not relevent.
Example
of niche
market
REASONS WHY:
• Since the focus is on one segment of the
Niche market, the resources required may be
relatively small. This makes it affordable and
Marketing feasible for a start-up business.
• The business may not be perceived as a threat
common in by larger organizations because the business
small focuses on a small segment of the market.
• By catering to the needs of a specific group, the
businesses small business may be able to charge high
prices.
Niche REASONS WHY:
Marketing • Small businesses potentially have a low number
of total customers. Hence, if there is a change in
common in consumer tastes and preferences, niche
marketing may leave the business without
small customers.

businesses • If the busines is successful and has a lot of


profit, then a larger business may want to enter
but could the market. It will be difficult for the small
business to match the output of the big
be business.

dangerous
Mass market
• In contrast, a mass market approach targets the market as
a whole. This involves high volumes of production and
much higher capacity level than nice marketing.
• This may be unrealistic for a start-up as they do not have
the resources to implement this type of growth strategy.
• Mass market is appealing to businesses because they do
not need to produce a range of versions or adapt their
marketing activities for different segments.
• On the other hand, mass production means that the
business may not meet the needs and wants of some parts
of the market.
In pairs, please
answer the
following
questions

• The other group will read


the answers and give
feedback to each other.
• Reminder: Make sure your
answers use business
content and refer to the
case study.
TOK
Corner
Can companies know us
better (through market
research) than we know
ourselves?

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