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65-460: This is a list of articles on general management and strategic management topics. For articles on specific areas of management, such as marketing management , production management, human resource management , information technology management, and international trade , see the list of related topics at the bottom of this page. Marketing management Marketing management employs tools from economics and competitive strategy to analyze

130-474: A brand audit is to determine whether a business's resource strengths are competitive assets or competitive liabilities. This type of audit seeks to ensure that a business maintains a distinctive competence that allows it to build and reinforce its competitive advantage. What's more, a successful brand audit seeks to establish what a business capitalizes on best, its level of expertise, resource strengths, and strongest competitive capabilities, while aiming to identify

195-407: A brand persona usually helps build this sort of connection. Positioning is one of the most powerful marketing concepts. Originally, positioning focused on the product and with Al Ries and Jack Trout grew to include building a product's reputation and ranking among competitor's products. Schaefer and Kuehlwein extend the concept beyond material and rational aspects to include 'meaning' carried by

260-419: A brand's mission or myth. Primarily, positioning is about "the place a brand occupies in the mind of its target audience". Positioning is now a regular marketing activity or strategy. A national positioning strategy can often be used, or modified slightly, as a tool to accommodate entering into foreign markets. The origins of the positioning concept are unclear. Scholars suggest that it may have emerged from

325-413: A broader range of users. Notes: Annotations, added in square brackets, were not in the original positioning statement, but are included here to show how the general format and elements of positioning statements described in the preceding discussion, have been applied to the specific example, which in this case is Volvo. Differentiation is closely related to the concept of positioning. Differentiation

390-438: A business's image and reputation with its customers. Furthermore, a brand audit seeks to determine whether a business is perceived as an industry leader in technology, offering product or service innovations, along with exceptional customer service, among other relevant issues that customers use to decide on a brand of performance. A brand audit usually focuses on a business's strengths and resource capabilities because these are

455-455: A business's position and future performance. Two customer segments are often selected as targets because they score highly on two dimensions: A commonly cited definition of marketing is simply "meeting needs profitably". The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segments than it will for other, non-targeted customers. In some cases,

520-403: A clear identity and placement to the needs of the consumers targeted as they will not only purchase the product, but can warrant a larger margin for the company through increased added value. A number of different positioning strategies have been cited in the marketing literature: (Being the first to claim a benefit or feature) (Being the best or exhibiting some type of superiority) (Being

585-441: A consumer's attitude. Research on persons' attitudes suggests that a brand's position in a prospective consumer's mind is likely to be determined by the "combined total of a number of product characteristics such as the price, quality, durability, reliability, colour, and flavour". The consumer places important weights on each of these product characteristics and it can be possible by using things such as promotional efforts to realign

650-448: A diagrammatic representation of consumers' mental perceptions of the relative place various brands occupy within a category. Traditionally perceptual mapping selects two variables that are relevant to consumers (often, but not necessarily, price and quality) and then asks a sample of the market to explain where they would place various brands in terms of the two variables. Results are averaged across all respondents, and results are plotted on

715-409: A firm's positioning. Upscale restaurants, for example, which previously flourished on expense account dinners and corporate events, may for the first time need to stress value as a sale tool. Repositioning a company involves more than a marketing challenge. It involves making hard decisions about how a market is shifting and how a firm's competitors will react. Often these decisions must be made without

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780-531: A graph to indicate how the average member of the population views the brand that make up a category and how each of the brands relates to other brands within the same category. While perceptual maps with two dimensions are common, multi-dimensional maps are also used. A key advantage of perceptual mapping is that it can identify gaps in the market which the firm may choose to 'own.' The following statistical procedures have been found to be useful in carrying out positioning analysis: The right positioning strategy at

845-448: A logical place. He said this is important because the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in their mind. In Positioning: The Battle for Your Mind , the duo expanded the definition as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at

910-474: A member of an exclusive club or group) (Strong registration of both category and brand) (Use competitor's strategy as a reference point) (Emphasize a problem, need or benefit where the firm can offer superior satisfaction) (Can be associated with seasonal products) To identify suitable positions that a company or brand might occupy in a given market, analysts often turn to techniques such as perceptual mapping or correspondence analysis. Perceptual maps are

975-401: A number of options: Repositioning involves a deliberate attempt to alter the way that consumers view a product or brand. Repositioning can be a high risk strategy, but sometimes there are few alternatives. Fishbein and Rosenberg's attitude models indicate that it is possible for a business to influence and change the positioning of the brand by manipulating various factors that will affect

1040-418: A part of brand strategy and even label it as "brand positioning". However, in the book Get to Aha! Discover Your Positioning DNA and Dominate Your Competition , Andy Cunningham proposes that branding is actually "derived from positioning; it is the emotional expression of positioning. Branding is the yang to positioning's yin, and when both pieces come together, you have a sense of the company's identity as

1105-435: A particular market a product must occupy an "explicit, distinct and proper place in the minds of all potential and existing consumers". It has to also be relative to other rival products with which the brand competes. This may require considerable research of customer perceptions and competitor activity in order to ensure that the points of difference are meaningful in the minds of customers. Perceptual mapping (discussed below)

1170-420: A primary analysis. For this, a variety of techniques are implemented. Some of the most common ones include: Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to identify trends and inform the company's marketing analysis . A brand audit is a thorough examination of a brand's current position in an industry compared to its competitors and

1235-516: A product for woolen garments should be broadened so that consumers would see it as a soap for use on all fine fabrics in the household. To implement, Lux was repositioned with a more up-market posture and began a long association with expensive clothing and high fashion. Cano has argued that the positioning strategy JWT used for Lux exhibited an insightful understanding of the way that consumers mentally construct brand images. JWT recognized that advertising effectively manipulated socially shared symbols. In

1300-436: A small- and medium-sized enterprises, the managing marketer may contribute to both managerial and marketing operations roles for the company brands. In a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product. To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and

1365-427: A valuable conceptual vehicle, which is effectively used to make various strategy techniques more meaningful and more productive. Several large brands – Lipton , Kraft , and Tide – developed "precisely worded" positioning statements that guided how products would be packaged, promoted, and advertised in the 1950s and 1960s. The article, "How Brands Were Born: A Brief History of Modern Marketing," states, "This marked

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1430-757: A whole". Positioning is part of the broader marketing strategy which includes three basic decision levels, namely segmentation, targeting and positioning, sometimes known as the S-T-P approach: In general terms, there are three broad types of positioning: functional, symbolic, and experiential position. Functional positions resolve problems, provide benefits to customers, or get favorable perception by investors ( stock profile ) and lenders. Symbolic positions address self-image enhancement, ego identification, belongingness and social meaningfulness, and affective fulfillment. Experiential positions provide sensory and cognitive stimulation. Both theorists and practitioners argue that

1495-448: Is "what a product does, and who it is for". For instance, Dove has been successfully positioned as a bar of soap for women with dry hands, vs. a product for men with dirty hands. Al Ries and Jack Trout advanced several definitions of positioning. In an article, Industrial Marketing , published in 1969, Jack Trout stated that positioning is a mental device used by consumers to simplify information inputs and store new information in

1560-412: Is a differentiated brand of prestige automobiles [marketing strategy] , That offers the benefits of safety [problem removal] as well as prestige [social approval] . The advertising for Volvo, should emphasize safety and performance [message strategy] and Must mention prestige as an entry ticket to the category And will downplay its previous family-car orientation in the interest of appealing to

1625-468: Is how a company's product is unique, by being the first, least expensive, or some other distinguishing factor. A product or brand may have many points of difference, but they may not all be meaningful or relevant to the target market. Positioning is something (a perception) that happens in the minds of the target market whereas differentiation is something that marketers do, whether through product design, pricing or promotional activity. To be successful in

1690-433: Is often used for this type of research. Visibility and recognition is what product positioning is all about as the positioning of a product is what the product represents for a buyer the business is targeting. As markets become increasingly competitive, buyers have more purchase choices, and the process of setting one brand apart from rival brands is critical success factor. It is vital that a product or service needs to have

1755-485: Is still working 25 years later." In relation to a SAAB campaign launched in 1961, Ogilvy later recalled that "In Norway, the SAAB car had no measurable profile. We positioned it as a car for winter. Three years later it was voted the best car for Norwegian winters." Yet other scholars have suggested that the positioning concept may have much earlier heritage, attributing the concept to the work of advertising agencies in both

1820-463: Is the responsibility of marketing managers to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner. Marketing management therefore often makes use of various organizational control systems, such as sales forecasts , and sales force and reseller incentive programs, sales force management systems , and customer relationship management tools (CRM). Some software vendors have begun using

1885-482: The market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning . Positioning (marketing) Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. It is different from the concept of brand awareness . In order to position products or brands, companies may emphasize

1950-460: The revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share , long-term profitability, or other goals. After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product, or brand has been determined, marketing managers focus on how to best implement

2015-427: The (product name) is a (product category) that (statement of key benefit – that is, compelling reason to buy). Unlike (primary competitive alternative), our product (statement of primary differentiation)." An annotated example of how this positioning statement might be translated for a specific application appears in the text-box that follows. To upper income, other brand switcher car buyers [target audience] ; Volvo

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2080-520: The Atlantic, the English agency, W. S. Crawford's Ltd, began to use the concept of 'product personality' and the 'advertising idea' arguing that in order to stimulate sales and create a 'buying habit' advertising had to 'build a definitive association of ideas round the goods'. For example, in 1915 JWT acquired the advertising account for Lux soap. The agency suggested that the traditional positioning as

2145-658: The US and the UK in the first decades of the twentieth century. Cano, for example, has argued that marketing practitioners followed competitor-based approaches to both market segmentation and product positioning in the first decades of the twentieth century; long before these concepts were introduced into the marketing literature in the 1950s and 60s. From around 1920, American agency, J. Walter Thompson (JWT), began to focus on developing brand personality, brand image , and brand identity—concepts that are very closely related to positioning. Across

2210-475: The borders of their home countries, making international marketing a part of those firms' marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand. In part, this is because the role of a marketing manager (or sometimes called managing marketer in small- and medium-sized enterprises) can vary significantly based on a business's size, corporate culture , and industry context. For example, in

2275-419: The brand." Ogilvy is on record as having used the positioning concept in several campaigns in the mid-1950s and early 1960s, well before Ries and Trout published their articles on the positioning. In relation to a Dove campaign launched in 1957, Ogilvy explained, "I could have positioned Dove as a detergent bar for men with dirty hands, but chose instead to position it as a toilet bar for women with dry skin. This

2340-416: The burgeoning advertising industry in the period following World War I , only to be codified and popularized in the 1950s and 60s. The positioning concept became very influential and continues to evolve in ways that ensure it remains current and relevant to practising marketers. David Ogilvy noted that while there was no real consensus as to the meaning of positioning among marketing experts, his definition

2405-476: The case of Lux, the brand disconnected from images of household drudgery and connected with images of leisure and fashion. As advertising executives in their early careers, both Ries and Trout were exposed to the positioning concept via their work. Ries and Trout codified the tacit knowledge that was available in the advertising industry; popularizing the positioning concept with the publication of their articles and books. Ries and Trout were influential in diffusing

2470-419: The chosen strategy. Traditionally, this has involved implementation planning across the "4 Ps": product management , pricing (at what price slot does a producer position a product, e.g. low, medium, or high price), place (the place or area where the products are going to be sold, which could be local, regional, countrywide or international) (i.e. sales and distribution channels), and promotion. Taken together,

2535-459: The claim that Ries and Trout devised the concept has been challenged by marketing scholars. According to Stephen A. Fox, Al Ries , and Jack Trout "resurrected the concept and made it their trademark." Some scholars credit advertising guru, David Ogilvy , with developing the positioning concept in the mid-1950s, at least a decade before Ries and Trout published their now-classic series of articles. In their early writing, Ries and Trout suggest that

2600-435: The company's implementation choices across the 4 P's are often described as the marketing mix , meaning the mix of elements the business will employ to " go to market " and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves

2665-427: The company's margin of profit is improving, or decreasing, and how much it is in comparison to the profit margin of established competitors. Additionally, a brand audit investigates trends in a business's net profits, the return on existing investments, and its established economic value. It determines whether the business's financial strength and credit rating are improving or worsening. This kind of audit also assesses

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2730-554: The company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products. For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as

2795-560: The concept of positioning from the advertising community through to the broader marketing community. Their articles were to become highly influential. By the early 1970s, positioning became a popular word with marketers, especially those that were working in the area of advertising and promotion. In 1981 Ries and Trout published their classic book, Positioning: The Battle for Your Mind (McGraw-Hill 1981). The concept enjoys ongoing currency among both advertisers and marketers as suggested by Maggard who notes that positioning provides planners with

2860-414: The concept was limited due to its focus on the product alone. In addition to the previous focus on the product, positioning now includes building a brand's reputation and competitive standing. John P. Maggard notes that positioning provides planners with a valuable conceptual vehicle for the implementation of more meaningful and productive marketing strategies . Many branding practitioners make positioning

2925-472: The distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through the marketing mix . Once a brand has achieved a strong position, it can become difficult to reposition it. To effectively position a brand and create a lasting brand memory, brands need to be able to connect to consumers in an authentic way, creating

2990-451: The elements that enhance its competitiveness. A business's competitive strengths can exist in several forms. Some of these forms include skilled or pertinent expertise, valuable physical assets, valuable human assets, valuable organizational assets, valuable intangible assets, competitive capabilities, achievements and attributes that position the business into a competitive advantage, and alliances or cooperative ventures. The basic concept of

3055-404: The examination of its effectiveness. When it comes to brand auditing, six questions should be carefully examined and assessed: When a business conducts a brand audit, the goal is to uncover the business's resource strengths, deficiencies, best market opportunities, outside threats, future profitability, and its competitive standing in comparison to existing competitors. A brand audit establishes

3120-479: The expectations of investors, employees, clients and regulators all needed to shift, and each company needed to influence how these perceptions changed. Doing so involves repositioning the entire firm. This is especially true of small and medium-sized firms, many of which often lack strong brands for individual product lines. In a prolonged recession, business approaches that were effective during healthy economies often become ineffective and it becomes necessary to change

3185-405: The firm may go so far as to turn away customers who are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons. In conjunction with targeting decisions, marketing managers will identify the desired positioning they want

3250-523: The firm's marketing and financial objectives. In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business's objectives. The content of marketing plans varies for each firm, but commonly includes: More broadly, marketing managers work to design and improve the effectiveness of core marketing processes , such as new product development , brand management , marketing communications , and pricing. Marketers may employ

3315-712: The industry context in which the firm operates. These include Porter's five forces , analysis of strategic groups of competitors, value chain analysis and others. In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing on their relative competitive strengths and weaknesses using SWOT analysis . Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation , degree of vertical integration , historical responses to industry developments, and other factors. Marketing management often implies market research and marketing research to perform

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3380-531: The late-1960s with the publication of a series of articles, followed by a book. Ries and Trout, both former advertising executives, published articles about positioning in Industrial Marketing in 1969 and Advertising Age in 1972. By the early 1970s, positioning became a popular word with marketers, especially those in advertising and promotion. In 1981, Ries and Trout published their now-classic book, Positioning: The Battle for Your Mind . However,

3445-408: The leader in "performance". Ideally, a firm's positioning can be maintained over a long period of time because the company possesses or can develop, some form of sustainable competitive advantage . The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers. To sum up, the marketing branch of a company is to deal with

3510-444: The positioning concept are unclear. Cano (2003), Schwartzkopf (2008), and others have argued that the concepts of market segmentation and positioning were central to the tacit knowledge that informed brand advertising from the 1920s, but did not become codified in marketing textbooks and journal articles until the 1950s and 60s. Al Ries and Jack Trout are often credited with developing the concept of product or brand positioning in

3575-407: The positioning concept was widely used in the advertising industry before the 1950s. Ogilvy's writings indicate that he was well aware of the concept and drilled his creative team with this idea from at least the 1950s. Among other things, Ogilvy wrote that "the most important decision is how to position your product", and "Every advertisement is part of the long-term investment in the personality of

3640-400: The positioning statement should be written in a format that includes an identification of the target market , the market need, the product name and category, the key benefit delivered and the basis of the product's differentiation from any competing alternatives. A basic template for writing positioning statements is as follows: "For (target customer) who (statement of the need or opportunity),

3705-400: The procurement of these services. Under the area of marketing agency management (i.e. working with external marketing agencies and suppliers) are techniques such as agency performance evaluation, scope of work, incentive compensation, ERFx 's and storage of agency information in a supplier database . Marketing management employs a variety of metrics to measure progress against objectives. It

3770-409: The right time and under the right circumstances". Positioning is closely related to the concept of perceived value. In marketing, value is defined as the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others. Value can be expressed in numerous forms including product benefits, features, style, value for money. The precise origins of

3835-425: The right time can help a brand build a powerful image in the mind of consumer(s). From time to time, the current positioning strategy fails to resonate. This could be due to new market entrants, changed customer preferences, structural change within the target market (such as ageing, segment creep) or simply that customers have forgotten about a brand and its position. When this happens, the company may need to consider

3900-425: The selling and popularity of its products among people and its customers, as the central and eventual goal of a company is customer satisfaction and the return of revenue. If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize

3965-401: The start of almost 50 years of marketing where 'winning' was determined by understanding the consumer better than competitors and getting the total 'brand mix' right. This early positioning tactic was focused on the product itself – its "form, package size, and price", according to Al Ries and Jack Trout The positioning concept continues to evolve. Traditionally called product positioning,

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4030-429: The strategic elements needed to improve the brand position and competitive capabilities within the industry. Once a brand is audited, any business that ends up with strong financial performance and market position is more likely than not to have a properly conceived and effectively executed brand strategy. A brand audit examines whether a business's share of the market is increasing, decreasing, or stable. It determines if

4095-469: The term customer data platform or marketing resource management to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems. Globalization has led some firms to market beyond

4160-431: The tools of business process re-engineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly. Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency . Marketers may therefore coordinate with the company's Purchasing department on

4225-518: The weights of price, quality, durability, reliability, colour and flavour of which can then help adjust the position of a brand in the mind of the prospective consumer. Companies engaging in repositioning can choose to downplay some points of difference and emphasize others. In volatile markets, it can be necessary – even urgent – to reposition an entire company, rather than just a product line or brand. When Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks, for example,

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