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Steps and tactics that are used to establish positioning, and conduct repositioning in international markets

20 important questions on Steps and tactics that are used to establish positioning, and conduct repositioning in international markets

What steps could be identified for the international positioning?

- Identification of target markets; group of consumers whose perceptions form the basis for the company or the products positioning. Members of various target markets may have different perceptions of the company. A company may be well positioned in one target market but not in another.

- Identification of competitors;

- Analysis of target market characteristics; points of difference and parity. Position maps are used to further clarify.

- Efforts to enhance or reposition

What involves the second part of STP?

- Target marketing; the marketing team chooses which market segments to pursue. Segments may have been established based on demographics, psychographic similarities, geographic area, geodemographics, consumer type, product benefits, or product uses.

A set of these segments; typically with a common element, constitutes the target markets that best fit with the company's marketing program

What different kinds of competition could be identified?

Several levels of international competition include:

- Product versus product

- Product line versus product line

- Brand versus brand

- Company versus company

- Industry versus industry

What is product versus product competition?

Product line consists of similar products within a particular category.

Product lines compete with depth and breadth, both of which affect positioning.

What is the depth and breadth of a product line?

Depth; The total number of products in that line.

Breadth; number of lines offered by the company.

Depth and breadth can create a stronger brand image, as the increased number of product offerings leads to the company becoming known to a wider variety of customers.

Depth and breadth also contribute to positioning at the product line versus product line level of competition.

As depth and bread expand, customers enjoy more choices and can rely on a brand when shopping, reducing purchase time, and quickly eliminating other purchase alternatives

What is brand vs brand competition?

A strong brand makes product diversification processes more manageable.

Well-known companies with powerful brand names enjoy key advantages in positioning efforts.

Brand equity contributes to positioning and becomes a major asset in brand versus brand competition.

What is company vs company competition?

A company can face an advantage, disadvantage, or relatively neutral outcome when competing with local firms. In some instances, where consumers are more cosmopolitan, a foreign entity may be more readily accepted; in areas where ethnocentrism prevails, a foreign competitor begins with a strategic disadvantage.

What are the problems related to entering an emerging market?

- Multinational firms face institutional voids in emerging market; do not have the structures or support needed to enter an emerging market and the country cannot meet those needs with local resources.

- The emerging market country may lack the data or delivery services required to meet the needs of the market.

- Lack of access to local capital or human resources might create another challenge.

Local firms already meet the needs of local markets. Multinationals encounter additional costs to adapt.

What is industry vs industry competition about?

Understanding the products's industry as well as other industries may take customers away will be part of the positioning process.

Carefull positioning means accounting for all levels of competition. The most powerfull will be similar products. Comparisons with similar brands and products from other industries will include price considerations.

What is identifying points of difference about?

- Tangible product benefits; value drawn from the physical components of the product

- Intangible product benefits; are the value drawn from the social, emotional, and nonphysical aspects of consumption.

What are positioning maps?

Tools used to map the company and its competitors in terms of consumer attitudes or perceptions. The marketing team examine factors that drive purchases and influence purchasing decisions.

An important tool for international marketers, helping them understand how a company's products and brands are perceived by consumers in other countries.

Normally the perceptions of quality increase as the price of the product rises.

The positioning map should be designed to identify attitudes related to a company's source of differentiation. Actual product attributes can be examined.

What are the two additional variables that may be used to examine the position of a product or brand?

- Share of mind; product position in terms of brand awareness

- Share of heart; emotional components; the ways consumers experience the product and its social context. Relationships, emotions and experiences are part of a products position.

A product exhibition with high share of mind combined with high share of heart holds a strong marketing advantage.

What is enhancing or repositioning about?

Repositioning normally will be undertaken only when circumstances indicate that a more radical approach is in order.

Enhancing position involves all standard and nontraditional marketing approaches. A brand featuring a unique product attribute will be marketed with a strong emphasis on the feature.

Price-quality relationship positioning may be emphasized in what way?

- Various tactics aimed at the position chosen; high price; fans of high-priced items. Low-price; continuous focus on price

Medium- price and quality; value as the primary selling point. Highly similar in both domestic and international markets.

Where does product user positioning in international markets focus on?

Psychological, sociological or spiritual values held by potential consumers. Positive attitudes toward the country-of-origin, or pleasant feelings associated with the actual use of the product.

Sociological distinctions; include the emphasis on feelings of belonging, social status based on use of the product or connections to family.

Where does product class normally focus on?

May rely on universal endorsement; ISO

Where does cultural symbol positioning focus on?

Local icons for instance

What remains the key of using this methods of positioning?

Consistency remains the key to enhancing product positioning using any of these methods.

Enhanding a products position often involves overlapping concerns.

What is bottom-of the pyramid positioning?

Characteristics;
- Consumers typically already have awareness of the product and the benefits it provides.

The challenge is not differentiation, the concern becomes shifting the company's focus. Within the bottom-of the pyramid market, the position also signals a high price.

It involves educating the consumers about the steps the company has taken to adapt to the consumer's level of income. Requires repositioning the product or brand as being attainable in terms of price

What two ethical concerns have arisen in the area of positioning?

- The role that positioning can play in encouraging consumption, purchase things they don't need. Leading to envy and greed.

- The ethical issue regard to body image and self-image. Unethical driver of low self-esteem. When consumers in less or least-developed countries are the target market.

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International positioning

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Steps and tactics that are used to establish positioning, and conduct repositioning in international markets

20 important questions on Steps and tactics that are used to establish positioning, and conduct repositioning in international markets

What steps could be identified for the international positioning?

What involves the second part of STP?

What different kinds of competition could be identified?

What is product versus product competition?

What is the depth and breadth of a product line?

What is brand vs brand competition?

What is company vs company competition?

What are the problems related to entering an emerging market?

What is industry vs industry competition about?

What is identifying points of difference about?

What are positioning maps?

What are the two additional variables that may be used to examine the position of a product or brand?

What is enhancing or repositioning about?

Price-quality relationship positioning may be emphasized in what way?

Where does product user positioning in international markets focus on?

Where does product class normally focus on?

Where does cultural symbol positioning focus on?

What remains the key of using this methods of positioning?

What is bottom-of the pyramid positioning?

What two ethical concerns have arisen in the area of positioning?

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