Chapter 2: Positioning Theory as a Theoretical Framework for the Research
2.7 Techniques in Positioning Research
Other analytical tools for decision making in positioning research suggested by Walker et al. (2011, p.162-172) include conjoint analysis, factor analysis and discriminate analysis and multidimensional scaling.
The “conjoint analysis determines which combination of a limited number of attributes consumers most prefer” (Walker et al., 2011, p.165). Walker et al (2008, p.166) suggest that this is more useful for new products as it cannot provide information on how consumers perceive existing products.
Factor analysis is a statistical technique used for developing positioning grids based on marketing research data (Walker et al., 2008, p.166). Discriminate analysis “determines consumer’s perceptual dimensions on the basis of which attributes best differentiate or discriminate among brands”
(Walker et al., 2008, p.166). Mulitdimensional scaling comes up with dimensions based on consumers’ judgements about the similarity of or their preferences for the actual brands (Walker et al., 2008, p.166).
For this study the researcher chose to use the value curve and perceptual maps. This study included a number of competing institutions with a range of dimensions. These were thus sufficient for what the researcher was trying to achieve.
Step 5: Determine customers’ most preferred combination of determinant attributes
Customer preferences can be measured by surveying respondents and asking them to think of the ideal product or brand within a product category (Walker and Mullins, 2011 p.165). Respondents could then rate their ideal product and existing products on a number of attributes (Walker and Mullins, 2011, p.165). Alternatively a conjoint analysis statistical technique can be used to learn which attributes are more important than others to the consumer (Walker and Mullins, 2011, p.165).
Step 6: Examine the fit between preferences of market segments and the current position of product (market positioning)
According to Walker and Mullins. (2011, p. 166), “because differences between customer’s ideal points reflect variations in the benefits they seek, a market positioning analysis can simultaneously identify distinct market segments as well as the perceived positions of different brands”. By looking at the clusters in one, two or more locations on the map of the customer’s ideal points, distinct market segments can be considered and is represented by a circle (Walker and Mullins, 2011, p.
167). The size of the circle represents the relative proportion of customers within a particular segment (Walker and Mullins, 2011, p. 167). Walker and Mullins, (2011, p.167) state that by examining the preferences of customers in different segments along with their perceptions of the positions of existing brands, analysts can learn much about:
• The competitive strength of different brands in different segments
• The intensity of the rivalry between brands in a given segment and
• The opportunities for gaining a differential position within a specific target segment.
Step 7: Write a positioning statement or value proposition to guide the development and implementation of marketing strategy
According to Walker and Mullins (2006, p.168) the final decision about where to position a new brand or reposition an existing one should be based on the market targeting analysis and the results of a market positioning analysis. The position chosen should match the preferences of a particular market segment and should take into account the current positions of competing brands (Walker and Mullins¸ 2011, p.168).
McDonald and Payne (1996, p.101) suggest 3 broad options for positioning:
1. Strengthen current position against competitors.
2. Identify an unoccupied position on the map, or 3. Reposition the competition.
In deciding which of the above options to choose the positioning should be meaningful, believable and unique (McDonald & Payne, 1996, p.102).
According to Walker and Mullins (2006, p.168) once the desired positioning for the product has been determined it should be written up especially so that those responsible for implementing the strategy can have a clear understanding of it. Two approaches to do this are through the positioning statement and the value proposition.
Kotler and Armstrong (2004, p.265) state that a positioning statement should summarise the company or the brand positioning and take this form:
To (target segment and need), our (brand) is (concept) that (point-of-difference).
An example to illustrate this is a positioning statement for Volvo: “For upscale American families, Volvo is the automobile that offers the utmost in safety” (Walker et al, 2008, p168).
A value proposition is the full positioning of a brand - the full mix of benefits upon which it is positioned (Kotler and Armstrong, 2004, p.262). It should answer the customer’s question: why should I buy your brand? (Kotler and Armstrong, 2004, p.262). Walker and Mullins (2011, p.169) state that a value proposition should include:
• Target market
• Benefits offered (and not offered)
• Price range (relative to competitors)
Walker and Mullins (2011, p.169) emphasise that the positioning statement or value proposition need to state the benefits that the user of the product will obtain rather than the features or attributes of the product itself.
“Once the company has chosen a position, it must take strong steps to deliver and communicate the desired position to target consumers” (Kotler and Armstrong, 2004, 267). The company, its staff, its policies and image all need to convey a consistent message which reflects the desired position (McDonald and Payne, 1996, p.102). The practical aspects of the positioning strategy include the planning of the marketing mix, the product, price, place and promotion (Kotler and Armstrong, 2004, p.267). Kotler and Armstrong (2004, p.267) advise that a company must take care to maintain the established position through consistent performance and communication. The company should
also closely monitor and adapt the position over time to match changes in consumers needs and competitors strategies (Kotler and Armstrong, 2004, p.268).