Chapter 9
Positioning Decisions
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Positioning is the act of
designing the company’s
offering and image to
occupy a distinctive
place in the the target
market’s mind.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.4
Steps in the Positioning Process (1 of 2)
1. Identify relevant set of competitive products.
2. Identify the set of determinant attributes that define the “product
space” in which positions of current offerings are located.
3. Collect information from a sample of customers and
potential customers about perceptions of each product
on the determinant attributes.
4. Analyze intensity of a product’s current position in
customers’ minds.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.4
Steps in the Positioning Process (2 of 2)
5. Determine product’s current location the product space
(product positioning).
6. Determine customers’ most preferred combination of
determinant attributes.
7. Examine the fit between preferences of market segments
and current position of product (market positioning).
8. Select positioning or repositioning strategy.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.5
Product Category and Brand Positioning (1 of 2)
A. Product category positions (breakfast foods market)
Expensive
Bacon and eggs
Cold cereal
Timeconsuming
Quick
Pancakes
Hot cereal
Instantbreakfast drinks
Inexpensive
Source: Adapted from P.S. Busch and M.J. Houston, Marketing Strategic Foundations (Burr Ridge, IL: Richard D. Irwin, 1985), p. 430.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Perceptual Map
Live shows
Easy to reach
Good food
Fantasy
Exercise
Fun rides
Disneyland
Knott’s
Berry
Farm
-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2
-0.2
Magic
Mountain
Little waiting
0.8
Educational,
animals
Marineland
0.4
of the
Japanese
Pacific
0.2 Deer Park
0.6
0.2
0.4
0.6 0.8 1.0 1.2 1.4 1.6
-0.4
-0.6
Irwin/McGraw-Hill
1.0
-0.8
Busch
Gardens
Lion
Country
Safari
© The McGraw-Hill Companies, Inc., 1998
Economical
Positioning Map: Automobiles For Generation Yers
More “Edgy”
Kia Sorrento
Scion
Inexpensiv
e
Cube
Expensive
$13k
$20K
Civic
Less “Edgy”
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998

What is Scion’s Mission Statement?
"To satisfy a trend setting youthful buyer through distinctive
products and an innovative, consumer-driven process."
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.6
Perceptual Map of Women’s Clothing Retailers in
Washington, D.C.
Women’s-wear fashionability
Conservative versus current
versus very latest
Washington 1990 Women’s fashion market
Worst value
The Limited
Neiman-Marcus
Saks
Bloomingdale’s
Macy’s
Nordstrom
Hit or Miss
Dress
Barn
The Gap
Casual Corner
L&T
Britches
Garfinkels
Kmart
Sears
TJ Maxx
Sassafras
Marshalls Loehmann’s
Hecht’s
Woodward & Lothrop
JC Penney
Talbots
Women’s-wear value for the money
Best value
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990, as shown in
Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.7
Perceptual Map of Women’s Clothing Retailers in
Washington, D.C., Showing the Ideal Points of a Segment
of Consumers
Women’s-wear fashionability
Conservative versus current
versus very latest
Washington 1990 Women’s fashion market
Worst value
The Limited
Neiman-Marcus
Saks
Bloomingdale’s Macy’s
Nordstrom
Hit or Miss
Dress
Barn
The Gap
Casual Corner
L&T
Britches
Garfinkels
Kmart
Sears
TJ Maxx
Sassafras
Marshalls Loehmann’s
Hecht’s
Woodward & Lothrop
JC Penney
Talbots
Women’s-wear value for the money
Best value
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.8
Perceptual Map of Women’s Clothing Retailers in
Washington, D.C., Showing Five Segments Based on Ideal
Points
Women’s-wear fashionability
Conservative versus current
versus very latest
Washington 1990 Women’s fashion market
Worst value
The Limited
Neiman-Marcus 3
2
Saks
Bloomingdale’s Macy’s
4
Nordstrom
Hit or Miss
Dress
TJ Maxx
Barn
Sassafras
The Gap
Casual Corner
Loehmann’s
Marshalls
Britches L&T
Hecht’s
Woodward & Lothrop
5
Sears
JC Penney
Garfinkels
1
Kmart
Talbots
Women’s-wear value for the money
Best value
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Exhibit 9.3
Comparisons of Physical and Perceptual
Positioning Analysis
Physical positioning
Perceptual positioning
•
•
•
•
•
•
•
•
•
•
Technical orientation
Physical characteristics
Objective measures
Data readily available
Physical brand properties
• Large number of dimensions
• Represents impact of product
specs and price
• Direct R&D implications
Irwin/McGraw-Hill
Consumer orientation
Perceptual attributes
Perceptual measures
Need for marketing research
Perceptual brand positions
and positioning intensities
• Limited number of dimensions
• Represents impact of product
specs and communication
• R&D implications need to be
interpreted
© The McGraw-Hill Companies, Inc., 1998