Categories
Notes

Positioning By Rices and Jack

Consumers only accept advertisements with prior knowledge or experience.

1. Getting into their mind

  • Be first
  • Market leader (which increases shares)

2. Positioning of a leader

  • 4:2:1. Firm at first place will have twice as much shares as the second firm.
  • To be first in the market is more important than the firm’s ability.
  • Multibrands – new brands
  • Move to new markets.

3. Positioning of a follower

  • Claimed by: age, high price, gender, time of day, place of distribution, quantity…

4. Repositioning the competitor

  • List negative about the competitors

5. The power of name

  • Coined names
  • Might be confused with other firms

6. The No-name trap

  • Abbreviations

7. The Free-Ride trap

  • Name new products based on the previous name

8. The line extension trap (not a good idea)

  • Products shouldn’t have similar names
  • When line extension can work: 1) Low volume product 2) Crowded market 3) Small advertisement budget 4) Commodity product 5) Distribution by sales reps

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