1. Chapter 9 Positioning Decisions

2. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.

3. 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.

4. 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.

5. Exhibit 9.5 Product Category and Brand Positioning (1 of 2)‏ Source : Adapted from P.S. Busch and M.J. Houston, Marketing Strategic Foundations (Burr Ridge, IL: Richard D. Irwin, 1985), p. 430. A. Product category positions (breakfast foods market)‏ Expensive Inexpensive Quick Time- consuming Bacon and eggs Cold cereal Instant- breakfast drinks Hot cereal Pancakes

6. Perceptual Map 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 1.0 0.8 0.6 0.4 0.2 -0.2 -0.4 -0.6 -0.8 Magic Mountain Japanese Deer Park Busch Gardens Knott’s Berry Farm Lion Country Safari Marineland of the Pacific Disneyland Economical Fun rides Exercise Fantasy Good food Easy to reach Educational, animals Little waiting Live shows

7. Positioning Map: Automobiles For Generation Yers More “Edgy” Less “Edgy” Expensive Inexpensive Scion Kia Sorrento $13k Cube Civic $20K

9. Exhibit 9.6 Perceptual Map of Women’s Clothing Retailers in Washington, D.C. Washington 1990 Women’s fashion market Women’s-wear value for the money Worst value Best value Women’s-wear fashionability Conservative versus current versus very latest Neiman-Marcus Saks Bloomingdale’s Hit or Miss The Limited Macy’s Nordstrom Garfinkels Casual Corner Kmart Britches Sears Dress Barn The Gap Loehmann’s TJ Maxx Sassafras Talbots Woodward & Lothrop JC Penney Hecht’s L&T Marshalls 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.

10. Exhibit 9.7 Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers Washington 1990 Women’s fashion market Worst value Best value Women’s-wear fashionability Conservative versus current versus very latest Neiman-Marcus Saks Bloomingdale’s Hit or Miss The Limited Macy’s Nordstrom Garfinkels Casual Corner Kmart Britches Sears Dress Barn The Gap Loehmann’s TJ Maxx Sassafras Talbots Woodward & Lothrop JC Penney Hecht’s L&T Marshalls Source : Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports , September 1990. Women’s-wear value for the money

11. Exhibit 9.8 Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points Washington 1990 Women’s fashion market Women’s-wear value for the money Worst value Best value Women’s-wear fashionability Conservative versus current versus very latest Neiman-Marcus 2 Saks Bloomingdale’s Hit or Miss The Limited Macy’s Nordstrom Garfinkels Casual Corner Kmart Britches Sears Dress Barn The Gap Loehmann’s TJ Maxx Sassafras Talbots Woodward & Lothrop JC Penney Hecht’s L&T Marshalls Source : Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports , September 1990. 4 5 1 3