POSITIONING:Clarity about target market, Clarity about point of difference

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Brand Management (MKT624)

Lesson 18

POSITIONING

Introduction

This lecture continues to discuss the components of definition of positioning. The first

component of "clarity about business and category" having been discussed in the previous

lecture, the discussion now moves on to "clarity about target market" and "clarity about point

of difference". An effort is also made to discuss why does the need arise to reposition the brand

for considerations of growth and expansion.

Clarity about target market

· Does the market we are trying to reach fall within the target range? The product has to

have complete compatibility with the likes and preferences of the target market. Creating

taste profile and visual aspects of cold sandwiches by company XYZ in dissonance with

the taste of professionals wanting to have sandwiches at lunch time will keep the product

out of the range of the target market. The product must look like the one created for the

target. It must taste like the one preferred by the target. And, it must be priced within a

range acceptable to the target.

· Do they consider themselves as part of the target market? Offering cold sandwiches that

basically have western taste and looks may not appeal to a working class that does not

prefer any side of western culture. Such customers may not look upon themselves as the

target for the product being offered to them.

· Are they reachable? The target market must be reachable through the channels that a

company may use as chain of supply. Not having effective distribution in a geographical

area will deprive many potential customers of using your product and hence undermine

brand's value.

· Will the target market be interested in the point of difference? The question of "a product

for whom" is applicable here. Fabricating a driver's cabin on an agricultural tractor may

not attract many customers as another feature, for the agriculturists may be looking for

something with better application to tilling of land. You have to have complete clarity

about the point of difference the prospects are interested in. The positioning of the brand

otherwise will not be very effective.

· Why have they not been approached before? In case the target market has not been

approached for features that you may find attractive for them, think about any constraints

that may impede your efforts. Do your homework properly and then decide to take the

strategic action. Working on product features requiring exorbitant investment may not be

worth the effort. The objective is to offer value to customer and also create value for the

company to improve profitability. You have to maintain balance between the two.

Clarity about point of difference

· Is the key benefit important to customers? Very much in line with the preceding

discussion, you have to determine that the key benefit is relevant for the customers. The

target market of a small-sized family car may not be interested in benefits offered by

sports models. Such benefits may be very attractive, but they are not important to the

target customers.

· Can we really deliver it? Has it have any elements of wishes? If the company does not

have the capability, due to any given reasons, then the point of difference remains just a

wish devoid of reality. Brand managers should not tax their energies on such wishful

ventures.

Brand Management (MKT624)

Can we sustain this point of difference over time? A very important question, it must be

asked and answered a lot of times before positioning a brand. Company XYZ has to make

it absolutely sure that it can deliver the sandwiches as it promises to its customers.

Sustainable ability and effort are more important than the initial enthusiasm to undertake

the project. The company must be able to always deliver the way it envisages while

defining the position of its brand.

Can we further fortify it? The beauty of creating a position for the brand lies in further

fortifying it. Fortification of positioning comes through factors like having technology

edge, quality human resource, and financial resource to name a few. At the same time, the

market must offer you the opportunity to involve your resources in fortifying the position

of your brand. Entering with a quality product and all the resources in a market that is

shrinking may not offer you the opportunity to fortify your brand's position.

Where can it place us on the brand value pyramid? Clarity about which stage of the value

pyramid the product belongs is important. It enables you to formulate compatible strategic

moves to work on the position of the brand.

Ramifications caused by a change in positioning

Subtle (not very obvious) changes are caused to positioning of your brand as and when you

grow and expand. The very factor of staying current and contemporary brings such slight

changes. You are getting into innovations and raising your standards to keep occupying the

brand pinnacle position.

A change in features and attributes will and should cause a change in price. An upward change

in price is taken for granted. A downward change can also occur due to changing market

conditions. You must stay sensitive to any ramifications in terms of segmental changes. If such

changes occur, then you must be ready to make adjustments to your communication tactics.

Sheer reinforcement of the delivery concept at company XYZ may necessitate new equipment

and better logistics. Growth potential will necessitate (part of the vision) putting up of small

utility restaurants. It will cause a change in the positioning of the brand, which before the

introduction of restaurants is all about delivering free to customers. The company with the

induction of restaurants is now attracting customers to its points of sale. This shift may call for

a change in positioning, which in turn means adjusting your communication strategies.

Adjusting and then strengthening your brand's position becomes an objective, because that

brings the brand more and more credibility. This becomes a case of meeting growth with

credibility. That is why it is said that positioning is the determinant of key operational

strategies.

The factors that we have discussed definitely have a bearing on pricing, distribution, and

investment strategies as primary strategies and also on a few other associated strategies like

location of restaurants and the decision to go or not go for franchising etc.

Ramifications of a shift in positioning must be considered very carefully. Credibility must

never be lost, for the established position in the mind of the customer has to be not only

maintained but fortified, whenever possible.

A real life example of a shift in positioning by a major European car manufacturer Volvo

explains the phenomenon with authenticity1. This maker of cars is known for safety standards.

Communication about those features has always been the hallmark of Volvo's advertising and

brand contract to maintain that particular position of safety.

The maker decided to change the position to high-performance cars instead of maintaining the

position of intelligent design with focus on safety features. It was such a departure from the

original position that prospects could not accept that information on high performance. Their

over-simplified mind had safety features as the established position occupied by Volvo. A

Brand Management (MKT624)

sudden departure from the original position to the one adopted made the prospects think the

company probably had compromised the safety features. The shift in positioning was not

managed with credibility. Sales dropped!

Bibliography:

Scot M. Davis: "Brand Asset Management Driving Profitable Growth through

Your Brands"; Jossey-Bass, A Wiley Imprint (115)

Suggested reading:

Scot M. Davis: "Brand Asset Management Driving Profitable Growth through

Your Brands"; Jossey-Bass, A Wiley Imprint (109-127)

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