PRODUCT POSITIONINGSlide 2OUTLINESlide 4Slide 5POSITIONINGSlide 7CLASS EXAMPLEPOSITIONING ANALYSISSlide 10DATA COLLECTIONSlide 12Slide 13Slide 14Slide 15Slide 16SURUGA EXAMPLESlide 18Aim of eBusiness@SurugaSlide 20INTERNET STUDY?Internet StudyInternet Study - Cont’dDOES IT PAY TO BE FIRST?THEORYSlide 26DATASlide 28Slide 29Slide 30ORDER OF ENTRYStrategic ImplicationsIMPLICATIONS FOR INTERNETPRODUCT POSITIONING15.823 Internet MarketingProf. Glen L. UrbanSpring 2001Understanding CustomersConsumer BehaviorB2C vs B2BStrategy FormulationTrust vs. PushProduct DesignSegmentationPositioningCustomer AcquisitionAdvertising / PR/SellingPricing & PromotionDistributionChannelLogisticsRelationship BuildingFulfillmentServiceOUTLINE•Positioning Versus Segmentation•Positioning Example•Analytic support for Mapping•Does it Pay to be First? -- Order of Entry Theory•Implications for InternetBCADBA••••• • ••EPOSITIONINGGIVEN SEGMENTATIONCBPDIMENSIONSCOORDINATESFULFILLMENTUNIQUE POSITIONSHARE/PROFITMAPPING STEPSDefine category/segmentIdentify products that competeAttributes and features that differentiateGroup attributes - perceptual dimensionsDraw mapImplicationsCLASS EXAMPLE•On Line Trading•evoke -- dimensions --triad comparisions•judgement for position•preference vectors•implicationsPOSITIONING ANALYSISLEVEL Ifocus groupcustomer contactinspect competitionperceptual map -- judgmentLEVEL IIfactor analysispreference vectorsconjoint analysisLEVEL IIIsimulation modelsMAPPING INPUTSBILL -- M.B. 500BILL -- HONDABILL -- BUICK ELECTRA LuxurystylereliableMPGperformanceDurability/resalequalitymaintainsafe655665353475364564444575576DATA COLLECTION•Email lists–Zoomerang•On Line Panels–NFO–Burke–GreenfieldFACTOR LOADINGSDimensionsAttributeLuxury 0.88 0.10Style 0.72 0.08Reliable 0.45 0.63M.P.G. 0.24 0.64Safe 0.52 0.31Maintain 0.10 0.67Quality 0.48 0.64Durability & Resale 0.38 0.60Performance 0.67 0.35Emotional•Honda•Lincoln Town Car•Chrysler New Yorker•Buick Riviera•Cadillac EldoradoRational•Olds•Honda•Lincoln Town Car•Chrysler New Yorker•Buick Riviera•Cadillac EldoradoRational•Olds•BMW•Jaguar•MBEmotional•Honda•Lincoln Town Car•Chrysler New Yorker•Buick Riviera•Cadillac EldoradoRational•Olds•BMW•Jaguar•MBEmotionalENGINEERINGFEATURESPERCEPTIONPREFERENCESURUGA EXAMPLEAim of eBusiness@Suruga•Buyer Centric•Idea Base•Trust for Customer•Construct business model of eCRM.•Construct new services and products of eBusiness.•Construct secure business with internet customers.Keyword for SuccessWhat shall Suruga do?INTERNET STUDY?•Talk to Customers -- Listen•Study Competitors -- judgmental Map•Focus Groups•Budget study if VC -- Crowded Out There•Active Role in StudyInternet StudySTEPSBUDGETDEFINE TARGET MARKETDESIGN SURVEYATTRIBUTE GENERATIONSTATISTICAL MAPPINGName DimensionsNumber of DimensionsCoordinates of BrandsImportance VectorsMANAGER’S ROLE$50k to $250KBe Sure Correct Segment Definition is UsedSpecify Decision RequirementsAssure CompletenessInput JudgmentExamine AdditionalDimension for RelevanceReview for ReasonablenessDecide on Number of Sub-groupInternet Study - Cont’dSTEPSFEATURESSIMULATE IMPROVED POSITIONINGMANAGER’S ROLESelect Features and Levels,Link to preference and/or PerceptionBe Sure Shift Can Be Achieved, Confirm with Concept/Product TestsDOES IT PAY TO BE FIRST?THEORY•Determinants -- +/-–Memory -- Accessibility–Switching costs - risk and satisfaction–Learning about Market–Market Power - Share & Channel–Scale -- Production and Funds–Continuing Innovation–Standard Setting–Broader Product Line–Technology/Market window–Best Positioning?•EmpiricalORDER OF ENTRY AND MARKET SHARE IN CONSUMER GOODS BUSINESSAverageMarket SharePioneer 29Early Follower 17Late Entrant 12(371 SBU’s)Pioneer 16% 20% 23% 41% 100%Early Follower 41% 24% 19% 16% 100%Late Entrant 56% 25% 12% 7% 100%Frequency Distributionfor Market ShareLess than 10 10-19 20-29 30 & up TotalDATA131 Brands 36 CategoriesShare - Last PurchasesOrderAdvertisingPreferenceORDER OF ENTRY1ST 2ND 3RD 4TH 5TH 6TH 7TH10057 4342 32 2634 26 22 1829 22 18 16 1525 19 16 15 13 1223 17 15 13 12 11 9Market ShareStrategic ImplicationsMarket Share Reward for InnovationIf First:Position Well-PreemptSupport - Advertising & PromotionIf Second or Third:Premium PositionSupport - Advertising & PromotionFaster But LowerInnovate for MarketLeadership -- But RiskIMPLICATIONS FOR INTERNET•Mapping -- Do It!–Listen /Focus Groups–Budget for Study in VC•Segmentation and Positioning Strategy vs. Potential Competition -- Preempt•Core Benefit Proposition -- Not Technology•Establish with Features and Keep Innovating•First In has Value–But Catch window–Have Best Position–Spend behind