Principles of Marketing: Segmentation Targeting Positioning - Repositioning and Positioning Statements

What It Is

Repositioning and positioning statements are crucial marketing concepts that help businesses differentiate themselves from competitors and connect with their target audience. A positioning statement defines how a brand wants to be perceived by its customers, while a repositioning statement adjusts the brand's image to better align with changing market conditions or customer needs. For example, Coca-Cola repositioned itself from a niche soft drink to a global beverage brand by emphasizing its iconic status and emotional connections with consumers.

Key Concepts & Frameworks

• Unique Selling Proposition (USP): A statement that highlights a product's or service's unique benefits and features. Example: Nike's USP is "Just Do It," emphasizing its focus on performance and motivation.
• Positioning Matrix: A tool to evaluate a brand's position in the market based on its attributes and customer perceptions. Example: A car manufacturer uses a positioning matrix to determine whether its luxury brand is perceived as high-end or mid-range.
• SWOT Analysis: A framework to identify a brand's strengths, weaknesses, opportunities, and threats. Example: A company uses SWOT analysis to determine whether its strong brand reputation can offset its weak distribution network.
• 4Ps/7Ps: A marketing mix model that includes product, price, promotion, and place (4Ps) or product, price, promotion, place, people, process, and physical evidence (7Ps). Example: A restaurant uses the 7Ps to create a unique dining experience, including its menu (product), pricing strategy (price), advertising (promotion), and ambiance (people, process, and physical evidence).
• AIDA Model: A framework to structure marketing messages and campaigns, focusing on attention, interest, desire, and action. Example: A company uses the AIDA model to create a campaign that grabs attention with a catchy ad, generates interest with product demos, creates desire with customer testimonials, and drives action with a call-to-action.
• PESTEL Analysis: A tool to evaluate the external environment and identify potential opportunities and threats. Example: A company uses PESTEL analysis to determine whether changes in government regulations or technological advancements can impact its business.
• Customer Lifetime Value (CLV): A metric to calculate the total value of a customer over their lifetime. Example: A company uses CLV to determine whether investing in customer retention is more cost-effective than acquiring new customers.
• Return on Investment (ROI): A metric to measure the return on investment of a marketing campaign or initiative. Example: A company uses ROI to determine whether a social media campaign is generating a positive return on investment.

How to Apply It

• To create a positioning statement, start by identifying your target audience and their needs, then determine how your brand can meet those needs in a unique way.
• To reposition a brand, conduct market research to identify changing customer needs and preferences, and adjust your brand image and messaging accordingly.
• To develop a USP, focus on the benefits and features that differentiate your product or service from competitors.
• To apply the AIDA model, structure your marketing message and campaign to grab attention, generate interest, create desire, and drive action.

Common Mistakes

• Mistake: Assuming that a brand's positioning statement is set in stone and cannot be changed.
• Correction: Repositioning is a common and necessary step in marketing, especially in response to changing market conditions or customer needs.
• Mistake: Focusing solely on the product or service features rather than the customer needs and benefits.
• Correction: A USP should highlight the unique benefits and features that meet customer needs and preferences.
• Mistake: Ignoring the external environment and its impact on the business.
• Correction: Conducting a PESTEL analysis can help identify potential opportunities and threats that may impact the business.

Exam / Interview Tips

• Be prepared to explain the difference between positioning and repositioning statements.
• Understand the key concepts and frameworks, including the AIDA model and PESTEL analysis.
• Be able to apply these concepts to real-world scenarios and examples.

Quick Practice

Scenario 1: A company wants to reposition its brand to appeal to a younger demographic. What should it do?

A) Create a new product line B) Adjust its marketing messaging and imagery to appeal to a younger audience C) Increase its pricing strategy D) Reduce its advertising budget

Answer: B) Adjust its marketing messaging and imagery to appeal to a younger audience. This is because repositioning involves adjusting the brand image and messaging to better align with changing customer needs and preferences.

Scenario 2: A company wants to create a unique selling proposition (USP) for its product. What should it focus on?

A) The product's features and benefits B) The company's history and reputation C) The target audience's needs and preferences D) The competition's weaknesses

Answer: A) The product's features and benefits. A USP should highlight the unique benefits and features that meet customer needs and preferences.

Last?Minute Cram Sheet

• Positioning statement: A statement that defines how a brand wants to be perceived by its customers.
• Repositioning statement: A statement that adjusts the brand's image to better align with changing market conditions or customer needs.
• Unique Selling Proposition (USP): A statement that highlights a product's or service's unique benefits and features.
• AIDA model: A framework to structure marketing messages and campaigns, focusing on attention, interest, desire, and action.
• PESTEL analysis: A tool to evaluate the external environment and identify potential opportunities and threats.
• Customer Lifetime Value (CLV): A metric to calculate the total value of a customer over their lifetime.
• Return on Investment (ROI): A metric to measure the return on investment of a marketing campaign or initiative.
• 4Ps/7Ps: A marketing mix model that includes product, price, promotion, and place (4Ps) or product, price, promotion, place, people, process, and physical evidence (7Ps).
• Marketing Myopia: Focusing on the product instead of the customer need.
• Positioning Matrix: A tool to evaluate a brand's position in the market based on its attributes and customer perceptions.