Exam 5: Consumer perception

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There are seven from which to choose:
1. Umbrella positioning - this strategy entails creating an overall image of the company around which many products can be featured individually. This strategy is appropriate for very large corporations with diversified product lines.
For example, Woolworths' umbrella positioning is 'Fresh Food People'.
2. Positioning against the competition - as the name implies, comparing your product directly against your rival.
For example, Duracell ads state 'Duracell lasts up to three times longer than Eveready Super Heavy Duty (In AA, AAA, C and D sizes only)'. In Australia, Herron has run a successful campaign against Panadol and most recently Nurofen with its latest campaigns positioning the brand and products as Australian owned and produced.
3. Positioning based on a specific benefit - slogans and campaigns that smartly and precisely depict the key benefit of the brand they promote and have effectively positioned these brands in the minds of consumers. Effective depictions of a core benefit often include memorable imagery.
For example, Cadbury Chocolate has an emblematic picture of 'a glass and a half [of full cream dairy milk]' on its packaging.
4. Finding an 'unowned' position - in highly competitive markets, finding a niche unfilled by other companies.
For example, a clever approach in finding an 'unowned' position was Palmolive's claim to 'soften your hands as you do the dishes'; today, even though many people no longer wash dishes by hand, Palmolive still positions its dishwashing liquid as 'tough on grease, soft on hands'.
5. Filling several positions - because unfilled gaps or 'unowned' perceptual positions present opportunities for competitors, sophisticated marketers create several distinct offerings, often in the form of different brands, to fill several identified niches.
For example, Colgate-Palmolive, one of the largest producers of laundry detergents (which are actually commodity-like products, since the physical make-up of almost all detergents is largely identical), offers consumers such brands as Fab (deeply cleans, softly protects fabrics, and whitens and brightens clothes), Dynamo (for front-loading washers), Cuddly (extra softness and freshness), Sard Wondersoap (for pre-treating and shifting tough stains) and several other detergents. It would be difficult for a manufacturer to penetrate the detergent market with a product that offers a benefit that is not already provided by a Colgate-Palmolive brand.
6. Packaging as a positioning element - packaging must convey the image that the brand communicates to buyers.
For example, 'Earth Friendly' laundry powders are in green or plain recyclable packaging, signifying their environmentally friendly nature. Their packaging is thus consistent with their positioning as products that 'touch the earth lightly'.
7. Product repositioning - regardless of how well positioned a product appears to be, the marketer may be forced to reposition it in response to market events, such as a competitor cutting into the brand's market share or too many competitors stressing the same attribute. For example, rather than trying to meet the lower prices of high-quality private-label competition, some premium-brand marketers have repositioned their brands to justify their higher prices, playing up brand attributes that had previously been ignored.
For example, David Jones attained exclusive deals with fashion designers (such as Collette Dinnigan) and various suppliers (such as Witchery) to achieve a point of distinction from its closest competitor, Myer. Complementing its service levels, store ambience and range of goods, exclusive offerings allowed David Jones to retain its loyal consumers and avoid price wars in the marketplace.

Correct Answer:

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Consumers often judge the quality of a product or service on the basis of a variety of informational cues that they associate with the product. Some of these cues are intrinsic to the product (or service); others are extrinsic, such as price, store image, service environment, brand image and promotional message. In the absence of actual experience with a product, consumers often 'evaluate' quality on the basis of extrinsic cues, cues that are external to the product itself. Either singly or together, these intrinsic cues and extrinsic cues provide the basis for perceptions of product and service quality.
It is more difficult for consumers to evaluate the quality of services than the quality of goods. This is because services have the following characteristics: intangibility, variability, the fact that they are simultaneously produced and consumed, and their perishability. When 'evaluating' a service, a consumer is more likely to base their judgment on extrinsic cues such as price, image, service environment and promotional messages as with services, an actual experience with the product is absent. In addition to this, when evaluating a service, a consumer may also rely on surrogate cues which are extrinsic cues that signal quality.
Examples of perceiving the quality of a product can include the following:
-Consumers might judge the flavour of ice-cream or cake by colour cues or the quality of laundry detergent may be determined by the colour of the product or its packaging.
-The size of packaging may influence the perceived quality of a product, for example, popcorn is perceived to be of better quality when packaged in larger packages.
Examples of perceiving the quality of a service can include:
-When evaluating a doctor's services, the quality of the reception area and consulting room furnishings, the number of framed degrees on the wall, the pleasantness of the receptionist and the professionalism of the nurse all contribute to the consumer's overall evaluation of service quality.