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Positioning Errors and Differential Strategies

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1 You have been asked to give a brief lecture on "Positioning Errors to Avoid" for a local Chamber of Commerce luncheon. Provide a brief summary of your lecture. In your lecture be sure to give specific examples, other than those indicated in the textbook, of known service companies avoiding or falling prey to "positioning errors".

2 Ricketts Heating and Air installs natural gas-fired central heating systems with timers. In the wintertime, if the owner of a system wants to have the house cooler when no one is there, but have it heated back up before anyone arrives home, he or she can use this timing system. How could Ricketts use service to differentiate its heating systems?

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Solution Summary

This solution explains "positioning errors to avoid" through discussion and specific examples. It also explains how Ricketts Heating and Air, who installs natural gas-fired central heating systems with timers, could use the timing service to differentiate its heating systems.

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Please see response attached, which is also presented below. I hope this helps and take care.

RESPONSE:

#1. You have been asked to give a lecture on "Positioning Errors to Avoid" for a local Chamber of Commerce luncheon. Provide a brief summary of your lecture. In your lecture be sure to give specific examples, of known service companies avoiding or falling prey to "positioning errors".

Ideally, companies position their products for maximum competitive advantage. Positioning is the place the product occupies in the customers mind relative to the competing products. Positioning is typically defined by the consumer on the basis of important attributes.

Positioning is about choosing a positioning strategy: 1) identifying possible competitive advantage 2) Products, services, channels, people, or image can be sources of differentiation 3) Choosing the right competitive advantage 4) How many differences to promote 5) Unique selling proposition. Any point of departure from these basic tenets, then are considered potential positioning errors.

1) Improper Focus and Positioning

Positioning is the process whereby marketers position the product to occupy a clear and distinctive position relative to other competing products. Don't market to build up the company, but approach marketing to demand an immediate response from the recipient. Improper focus and positioning can be avoided by following the proper solution positioning of marketing. http://marketing.about.com/cs/advertising/tp/marketmistakes.htm Solution: Write a positioning statement provides direction or focus to a business or organization. It is a no nonsense statement of how your company is perceived in the minds of your target market. Develop your statement by following the steps below at http://marketing.about.com/cs/advertising/ht/writeposition.htm

Example of Good Positioning Statement:

To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. http://66.102.7.104/search?q=cache:0Vc_HjQ-YTAJ:www.brescia.edu/academics/syllabus/spring05/mgt403/kotler10.ppt+positioning++statement+KFC&hl=en

Examples of Good Positioning in Business:

Let's take a secular business example of good positioning for a product...Taco Bell. Taco Bell is a taco place. So their competition would seem to be Mexican restaurants, right? Well not really, any real Mexican restaurant worth it's salsa has better food than Taco ...

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