Presentation Transcript
PRODUCT POSITIONING : PRODUCT POSITIONING 15.823 Internet Marketing
Prof. Glen L. Urban
Spring 2001
Slide2 : Understanding Customers
Consumer Behavior
B2C vs B2B Strategy Formulation
Trust vs. Push
Product Design
Segmentation
Positioning Customer Acquisition
Advertising / PR/Selling
Pricing & Promotion Distribution
Channel
Logistics Relationship Building
Fulfillment
Service
OUTLINE : OUTLINE Positioning Versus Segmentation
Positioning Example
Analytic support for Mapping
Does it Pay to be First? -- Order of Entry Theory
Implications for Internet
Slide5 :
B C A
D
B A • • • • • • • • E
POSITIONING : POSITIONING GIVEN SEGMENTATION
CBP
DIMENSIONS
COORDINATES
FULFILLMENT
UNIQUE POSITION
SHARE/PROFIT
Slide7 : MAPPING STEPS Define category/segment
Identify products that compete
Attributes and features that differentiate
Group attributes - perceptual dimensions
Draw map
Implications
CLASS EXAMPLE : CLASS EXAMPLE On Line Trading
evoke -- dimensions --triad comparisions
judgement for position
preference vectors
implications
POSITIONING ANALYSIS : POSITIONING ANALYSIS LEVEL I
focus group
customer contact
inspect competition
perceptual map -- judgment
LEVEL II
factor analysis
preference vectors
conjoint analysis
LEVEL III
simulation models
Slide10 : MAPPING INPUTS BILL -- M.B. 500
BILL -- HONDA
BILL -- BUICK
ELECTRA Luxury style reliable MPG performance Durability/resale quality maintain safe 6
5
5 6
6
5 3
5
3 4
7
5 3
6
4 5
6
4 4
4
4 5
7
5 5
7
6
DATA COLLECTION : DATA COLLECTION Email lists
Zoomerang
On Line Panels
NFO
Burke
Greenfield
Slide12 : FACTOR LOADINGS Dimensions Attribute
Luxury 0.88 0.10
Style 0.72 0.08
Reliable 0.45 0.63
M.P.G. 0.24 0.64
Safe 0.52 0.31
Maintain 0.10 0.67
Quality 0.48 0.64
Durability & Resale 0.38 0.60
Performance 0.67 0.35
Slide13 : Emotional Honda Lincoln Town Car Chrysler New Yorker Buick Riviera Cadillac Eldorado Rational Olds
Slide14 : Honda Lincoln Town Car Chrysler New Yorker Buick Riviera Cadillac Eldorado Rational Olds BMW Jaguar MB Emotional
Slide15 : Honda Lincoln Town Car Chrysler New Yorker Buick Riviera Cadillac Eldorado Rational Olds BMW Jaguar MB Emotional
Slide16 : ENGINEERING
FEATURES PERCEPTION
PREFERENCE
SURUGA EXAMPLE : SURUGA EXAMPLE
Aim of eBusiness@Suruga : Aim of eBusiness@Suruga Buyer Centric
Idea Base
Trust for Customer Construct business model of eCRM.
Construct new services and products of eBusiness.
Construct secure business with internet customers. Keyword for Success What shall Suruga do?
INTERNET STUDY? : INTERNET STUDY? Talk to Customers -- Listen
Study Competitors -- judgmental Map
Focus Groups
Budget study if VC -- Crowded Out There
Active Role in Study
Internet Study : Internet Study STEPS
BUDGET
DEFINE TARGET MARKET
DESIGN SURVEY
ATTRIBUTE GENERATION
STATISTICAL MAPPING
Name Dimensions
Number of Dimensions
Coordinates of Brands
Importance Vectors
MANAGER’S ROLE
$50k to $250K
Be Sure Correct Segment Definition is Used
Specify Decision Requirements
Assure Completeness
Input Judgment
Examine Additional
Dimension for Relevance
Review for Reasonableness
Decide on Number of Sub-group
Internet Study - Cont’d : Internet Study - Cont’d STEPS
FEATURES
SIMULATE IMPROVED POSITIONING
MANAGER’S ROLE
Select Features and Levels,
Link to preference and/or Perception
Be Sure Shift Can Be Achieved, Confirm with Concept/Product Tests
DOES IT PAY TO BE FIRST? : DOES IT PAY TO BE FIRST?
THEORY : THEORY Determinants -- +/-
Memory -- Accessibility
Switching costs - risk and satisfaction
Learning about Market
Market Power - Share & Channel
Scale -- Production and Funds
Continuing Innovation
Standard Setting
Broader Product Line
Technology/Market window
Best Positioning?
Empirical
Slide26 : ORDER OF ENTRY AND MARKET SHARE IN CONSUMER GOODS BUSINESS Average
Market Share Pioneer 29
Early Follower 17
Late Entrant 12
(371 SBU’s) Pioneer 16% 20% 23% 41% 100%
Early Follower 41% 24% 19% 16% 100%
Late Entrant 56% 25% 12% 7% 100% Frequency Distribution
for Market Share Less than 10 10-19 20-29 30 & up Total
DATA : DATA 131 Brands
36 Categories
Share - Last Purchases
Order
Advertising
Preference
ORDER OF ENTRY : ORDER OF ENTRY 1ST 2ND 3RD 4TH 5TH 6TH 7TH
100
57 43
42 32 26
34 26 22 18
29 22 18 16 15
25 19 16 15 13 12
23 17 15 13 12 11 9 Market
Share
Strategic Implications : Strategic Implications Market Share Reward for Innovation
If First:
Position Well-Preempt
Support - Advertising & Promotion
If Second or Third:
Premium Position
Support - Advertising & Promotion
Faster But Lower
Innovate for Market
Leadership -- But Risk
IMPLICATIONS FOR INTERNET : IMPLICATIONS FOR INTERNET Mapping -- Do It!
Listen /Focus Groups
Budget for Study in VC
Segmentation and Positioning Strategy vs. Potential Competition -- Preempt
Core Benefit Proposition -- Not Technology
Establish with Features and Keep Innovating
First In has Value
But Catch window
Have Best Position
Spend behind It
Catch the
buzz on authorSTREAM
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