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19THE IMPORTANCE OF POSITIONING IN ACHIEVING THE STRATEGIC GOALS OF THE COMPANIES
Abstract
Following paper is dedicated to a discussion about some of the issues, connected to organization of product positioning on the market of goods and services: innovators' organization priorities, organization's name choice, commodity positioning determination in a specific goods category.
Keywords
positioning, segmentation, company image, brand, trade mark, unique associations, goods categories
AUTHORS
Svetlana Alivanova Victor Fursov Natalia Lazareva
Senior Lecturer, PhD in Economics, PhD in Economics,
PhD in Economics Professor Associate Professor
Stavropol State North-Caucasus North-Caucasus
Agriculture University Federal University Federal University
Stavropol, Russia Stavropol, Russia Stavropol, Russia
svalivanova@mail.ru fursov. va@mail.ru laz_n@rambler.ru
No company is going to achieve success, if their goods and services are similar to all other market offers. Companies have to target positioning and ability to differentiate so valuable for a consumer, as positioning is a business tactics.
Al Rice and Jack Trout, specialists in advertisement industry, were first to mention positioning. Their ideas were first published in 1969. Positioning is considered an art of distinguishing advantages of an already existing commodity, according to them (Trout, Rice, 2007).
The essence of positioning is not in creating a product (today's world is full of reproductions, copies of just about anything), not in cutting the costs (there is always someone who can outbid you), but in a search of deserved spot in consumer's conscience, or as the term states, position. We agree with the opinion, that the higher is your position in consumer's conscience, the harder it is for anyone to move you over. The thin g is, position is a created stereotype, and human stereotypes are one of the most stable things in the world.
Any marketing strategy is based on three fundamentals: segmentation, choice of aimed segments and positioning (Alivanova, Lazareva, 2009).
First thing company does is defines different consumer needs and distinguishes consumer groups of those commodities. Then, company chooses aimed segments out of those groups - groups and demands that it can satisfy better than others. After that company positions its offer in such a way that aimed recipient is clear about company's difference and image. Consequently, if positioning is performed unsuccessful, consumer fails to realize what is expected from the offer.
Therefore, in our opinion positioning can be defined as a process of creating company's offer and image, directed on finding a specific location in aimed group consumer's conscience. Its purpose is placing a trademark in consumer's conscience, resulting in maximum gains for the company.
Positioning starts with a product: commodity, type of service, company or even a personality, but positioning has nothing to do with working with the product itself. Positioning is working with potential consumers' way of thinking. In other words, the commodity is positioned in their conscience (Kotler, Keller, 2007).
Another point of view on positioning, presented by marketing specialists Michael Tracy and Fred Virsema, is represented debatable. Michael Treecy and Fred Viershmah, marketing consultants, introduced another point of view on positioning. "Value discipline" is called their positioning scheme. The main idea is, that an organization can try to become a leader in certain commodity in its' field of business, it can be a company with highest operations efficiency or a company that is closest to consumer, according to authors. Mentioned differentiation is based on an idea that any market consists of three types of consumers. Some like companies that are technological leaders (commodity leadership), others value reliable work (operational advantage), and others are expecting the fastest satisfaction of their individual needs (close relationship to consumer).
For instance, McDonald's has the highest functional effectiveness, but cannot cook burgers for each buyer individually. McDonalds cannot be a leader in respect to new goods as well, because each additional dish creates turmoil in its smoothly running operations. Every department has to follow its own disciplines of value even in large companies like General Electric. Division on release of household appliances pursues the aim of functional superiority, and the division of constructional plastic seeks to be closer to the buyer in GE.
M. Tracy and F. Virsema reasonably suggest companies to follow four rules in order to achieve success:
1. To become the best in one of the three value disciplines
2. To achieve satisfactory level in two other disciplines
3. To continue to perfect its position in the main discipline, in order not to lose its' position to a competitor
4. To increase efficiency in two other disciplines, as competitors are constantly maintaining the growth of consumer expectations
In order to start a program of positioning its' product, a company has to define brands' similarities and differences and communicate them to the market. We also believe that, positioning decision in particular has to be made based on the field of competition that is forming aimed market and competitors themselves, as well as ideal points of resemblance and difference in trade mark.
For example: "Colgate - Toothpaste #1 in the world", "Ariel - laundry detergent #1 in the world", "Orbit - best chewing small pillows" etc. Known brands which have the loyal consumers who aren't calling in question these statements are able to afford to use the surpassing positioning.
It is important, in our opinion, for definition of the competition field for positioning to establish a relation to a certain commodity category - to a type of goods or group of goods that are competing with a trademark, and are represented as its close substitutes.
Once the company has established aimed market and type of competition, it is possible to define market position itself. It is important to pinpoint similarities and differences correctly for that purpose.
Points of similarity - are features or gains that consumers are associating firmly with the trademark judge it in a positive way, and believe that they cannot find the same features or advantages to this extent with your competitors. It is a very difficult task to be able to cause solid, favorable and unique associations that can become points of difference.
Points of similarity - are not necessarily unique associations, other trademarks can cause them too. Points of similarity with competitors - are associations, aimed to be able to sustain points of difference with competitors.
Point of similarity with a particular characteristic or gain exists, if enough consumers believe that the trademark is "quite good" based on this feature. It is worth noting, that there is a "zone" or "range of tolerance or acceptance" (Fursov, Lazareva, 2011). The trademark does not necessarily have to be considered equal to competitors; although consumers must be certain that this particular feature or gain is showcased in the best way (Fursov, Lazareva, 2011).
One characteristic gets chosen and the emphasis is placed on its difference from competitors. For example, "our detergent removes grease just as well, but unlike a product of competitors it is more concentrated and economic".
The best approach in positioning is for the company to inform consumers that their product belongs to a certain goods category (Fursov, Lazareva, 2013). Before consumer decides, whether product is superior to competitors' product, he has to be informed, what kind of product it is in general and what does it do. Advertisement is focused on creating a comprehensive knowledge about a trademark while introducing new products, first of all, and only secondly, on creating its' image.
If the message directed at a buyer fails to convince about points of similarity and points of difference related to a certain category of goods, however, trademark tends not be considered as a competent market player.
There are three ways to communicate trademark relationship to a certain goods category:
1. To announce benefits of goods category
2. To compare to ideal examples
3. To use a descriptive word (short description of the product, following the trademark name).
"Positioning - is an organized system of locating open windows in a human conscience, based on messaging, where effective communication is performed only in the right place and in the right time" (Trout, Rice, 2007).
That is how Hertz is perceived by them as the world's largest car rental agency, the Coca-Cola Company - the famous supplier of soft drinks, and "Porsche" - one of the best sports cars It is not very simple for a competitor to affect an established opinion of consumers.
The easiest way to enter human conscience is to be first. One of the marketing laws states that: "Better be first, then to be better".
Even, when the company isn't the leader in the field, she can be a leader in the niche. That is how "Michelob", beer producing company, acted and took an unshakable position in a segment of expensive American beer with the concept: "The first class - is Michelob.
The Schlitz trademark used similar strategy of positioning, seeking to occupy leadership in category of "light beer": "The true taste of excellent light beer".
Other beer brand Beck's was successfully established in the "import beer" segment by means of its positioning "Have you tried the most popular beer in America from Germany? Take a sip of the beloved by Germans beer".
In order to be able to succeed in a world of super communicative society company has to establish firm position in a consumer mind. These positions must take into consideration not only weak and strong sides of its organization, but its' competitors' (Fursov, Lazareva, 2014). At the age of positioning to just invent something or make a discovery is not enough. It is not even necessary at times. The key is to be first to penetrate consumer's conscience (Fursov, Lazareva, 2011).
The Volvo company positions its cars as the safest and the most durable especially as these two indicators are compatible. Thus, the consumer quite reasonably can assume that the safe car will be also very durable.
There are examples of successful positioning of goods in the market on three advantages (Kyrennay, Alivanova, 2013). The Smith C company advances the Aqua fresh toothpaste as having three advantages (fight against cavities, fresh breath and bleaching of teeth). It is obvious that the considerable number of consumers would like to have the toothpaste assigned such advantages therefore it was only required to convince them that the offered product completely answers their hopes. The decision was unexpected: there was a three-colored toothpaste that subconsciously visually reminded the consumer of three advantages.
Let's get back to human conscience. Conscience plays a role of a defense mechanism from excessive volume of today's communication and denies all information, that it is not capable "to shortchange". It only accepts new information that correlates to a current state of mind. The rest is kicked to the side.
Human conscience rejects not only information, corresponding to existing knowledge and experience, but also not stored in sufficient quantity. We agree with the opinion of Harvard psychologist George Miller, brain is incapable to store more than 7 "pieces" of information at the same time. That is why all the lists, that have to be memorized, usually consist of 7 points: phone numbers, seven world wonders, "Snow-white and 7 gnomes".
The same rule logically applies to products. Moreover, if a person is not interested in one specific product category, he can name one-two brands (if so). That's when any organization has a goal to assume one of positions in a human conscience. In most cases these two brands are among the number of organizations, taking first places in sales on the market. Jack Trout fairly considers, that the first company established in consumer conscience takes up on average twice bigger part then brand #2 of the market (in a long run), and four times bigger then brand #3. And there are no changes possible to this equation.
One of the main elements of a trade mark is its name. "Property name" of the trademark - is a hook, used to grab hold of its market position and in consumer conscience. One of the main marketing decisions is the decision about the product name at the age of positioning. We (consumers) see not only what we are wishing to look at, but smell the fragrance, that wish to smell. It is necessary to choose a name that is almost, but is not exactly typical. Strong, near typical, vivid name will not allow competitors - imitators enter the territory, occupied by your product.
However, you should stay away from abbreviations while choosing a name. There are several reasons why not to. First of all, the name has to reflect products' pur pose and essence. If the product name consists of only abbreviation, consumer will simply not understand what you were trying to communicate to him. Secondly, the name has to be easy to remember. It's typical for a human being to remember only what is important and clear to him. But if a person cannot picture what a few letters on a package stand for, most likely this product will not stay in his conscience for long either.
The only organizations that can afford to use abbreviations in the name of the firm or a product are those that are already well known to the market. Practice of major corporation's shows that they were using full names of their organization at the beginning of their existence.
Summing up the result, it should be noted that, several methods used in positioning of goods on the market were discussed in this paper. It is suggested to use and base on rules, discussed prior, while forming a new commodity category and introducing a new product on the market. Otherwise, the new product may fail before it can "reimburse" all the costs invested in its' creation and promotion on the market of goods and services.
REFERENCES
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THE EXPERIENCE OF STUDENTS' VOCATIONAL TRAINING IN THE FRAMEWORK OF THE PROJECT OF PEDAGOGICAL EDUCATION MODERNIZATION
Abstract
The paper deals with the experience of the implementation of professional pedagogical training of students enrolled in non-teaching areas in the framework of academic mobility of students in accordance with the concept of modernization of teacher education. Reveals the principles, objectives and forms of organizing the practical training of future teachers at educational institutions of general education.
Keywords
modernization of pedagogical education, practical orientation of preparation of pedagogical personnel
AUTHORS
Elena Belyankova Irina Shchurinova
PhD, Chair of Legal Disciplines PhD, Chair of History and Archaeology
Tula State Lev Tolstoy Tula State Lev Tolstoy
Pedagogical University Pedagogical University
Tula, Russia Tula, Russia
helena-2106@mail.ru 48420511o@gmail.com
In the context of the modern Russian society transformation, the task of pedagogical education upgrading occurs. The modernization focus is set by Federal state educational standards, Professional standard of the teacher, as well as by the concept of pedagogical education modernization.
