Page 242 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 9: Segmentation, Targeting and Positioning

Notes
Example: Avis compared itself with Hertz, stressing that it tries harder because it the
second-biggest can rental company. Samsung Laser Printer compared itself with HP Laserjet and
thereby jumped cleverly onto the same platform.
9. Pro-environment approach to positioning aims to show that the company is a good citizen.

Example: Canon mentions on its packages, “Made from recycled material.”
10. Product class, such as freeze-dried coffee shown as a product that is a different one from
instant or regular coffee.

Example: Dove soap positioned as a moisturiser and not the toilet soap, and Pears as
glycerine soap.

11. Price/quality is a powerful positioning technique.

Example: Zenith computers say “Multinational quality, Indian price.”

12. Country or geographic area, such as German engineering, Russian vodka, Benarasi silk
sari, or Dehradun rice.

9.3.1 Repositioning

No matter how well a product appears to be positioned, the marketer may be forced to decide on
its repositioning in response to new opportunities or threats. The product may be provided with
some new features or it may be associated with some new uses and offered to the existing or new
markets.

Example: Johnson and Johnson repositioned their baby shampoos and lotions for the
adult market by changing the promotional and packaging strategy. This was in response to
growing opportunities due to lifestyle changes.

It is often difficult to reposition a product or brand because of consumers’ entrenched perceptions
and attitudes.

Positioning Errors

Common errors in positioning are:
1. Under positioning: This refers to a state of buyers having only a vague idea of the brand
and considering it just another “me too” brand in a crowded product category. The brand
is not seen to have any distinctive association.

Example: Brands like Sanyo, Hyundai Electronics, etc. in India don’t promote a strong
reason to buy their televisions instead to LG or a Sony.
2. Over positioning: In this situation, buyers have too narrow an image of the brand. Thus,
buyers might think that Apple makes only very expensive computers when, in fact, Apple
offers several models at affordable prices.

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