Design Research Methods

Class #3: Positioning

Positioning

“Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. Perhaps yourself.

But, positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.”

Why Do We Need Positioning

 Over communicated society

 People’s minds are simple

 Positioning allows you to be seen and heard in a complicated world

Goal of Positioning Research

 Find holes in the marketplace

 The basic approach is NOT to create something new and different, but anchor (or manipulate) what people already think and know, and “retie to connections that already exist.”   Have to understand what already exists

  Strengthen it

  Redefining results in more failures than successes

  The solution to a positioning problem is usually found in the prospect’s mind, not in the product or solution.

Examples of Positioning

 Easiest way to get into the prospect’s mind is to be first.

WHICH COMPANY INVENTED THE COMPUTER?

Examples of Positioning

 …Or different

 Find tylenol..for the millions who should not take aspirin

 Stoli—made in Russia

 Volkswagen: think small

 Stowe: Ski capital of the East. One of the top 10 ski resorts in the world.

How to be Different

 Before, it was about identifying the Unique Selling Proposition (USP)

 Now, not many products and services are unique.

 Now strategy is king. Advertising and Design are focused on getting into the mind of the prospect.

Positioning Research

 “Mapping the Prospect’s Mind”

 Understand current position

  Identify gaps in marketplace

  Identify opportunities for refining or changing positioning

Positioning Research: Techniques

  Interviews

 What defines a luxury car?

 Write down all the luxury car brands you can think of.

 Circle the top three.

 What are the first three words that come to mind when you hear “Ferrari?”

 Who buys a Ferrari? Describe them?

 Who is Ferrari’s competition? Why?

 Describe what it feels like to drive a Ferrari? Own a Ferrari? Sell your Ferrari?

Positioning Research: Techniques

 People to interview

 client management

  field sales

 product development

 customer service staff

 sales

 client customers

 competitor-loyal customers.

Positioning Research: Techniques

 Observations: Who comes into a Ferrari dealership?

 Review the data:

 Where are the Ferrari sponsorships?

 Where are the Ferrari dealerships?

 What do Ferrari owners do for a living?

 How long do people keep their Ferrari’s?

 How many people buy another Ferrari?

Positioning Research: Techniques

 Surveys & Quantitative Tools

 Rate each of these car companies on a scale of 1-10 for the following attributes

  (also called semantic differential)

Porche Ferrari Lexus Mercedes Maserati Bentley Audi

Fast 9 10 5 7 8 7 7

Worth $ 2 1 10 8 3 2 8

Cool 10 10 2 8 10 8 9

Sporty 10 10 1 5 8 2 8

Luxurious 3 2 7 9 10 10 5

Safe 2 2 10 10 5 8 8

Prestigous 10 10 5 10 9 10 5

Waste of $ 10 10 10 6 10 10 6

Elite 10 10 10 7 10 10 8

Snobby 7 7 7 7 10 10 7

Reliable 6 6 10 10 5 8 5

Positioning Research: Analysis

  Identify the trends and differences

Porcshe Ferrari Lexus Mercedes Maserati Bentley Audi

Fast 9 10 5 7 8 7 7

Worth $ 2 1 10 8 3 2 8

Cool 10 10 2 8 10 8 9

Sporty 10 10 1 5 8 2 8

Luxurious 3 2 7 9 10 10 5

Safe 2 2 10 10 5 8 8

Prestigous 10 10 5 10 9 10 5

Waste of $ 10 10 10 6 10 10 6

Elite 10 10 10 7 10 10 8

Snobby 7 7 7 7 10 10 7

Reliable 6 6 10 10 5 8 5

Positioning Research: Analysis

Porsche

Ferrari

Lexus

Mercedes

Maserati

Bentley Audi

0

2

4

6

8

10

0 2 4 6 8 10

Worth the Money

Fast

Positioning Research: Analysis

The purpose here is to refine hypotheses about how customers see and define the marketplace.

Positioning Research

Helps firms to answer such questions as:   Based on customer perceptions, which target segments are

the most attractive?

  How should we position our new products with respect to our existing products?

  How do our customers view our brand?

  What product name is closely associated with the attributes that our target segment perceives as desirable?

  Which brands do our target segments see as our closest competitors?

  What product attributes are responsible for the perceived differences between products?

  How would changes in a product's perceived attributes alter the product's market share?

Assignment 3

 Pick one of your everyday things.

 Recommendation and pitch/presentation for improving the positioning of that “everyday things”