Page 64 - Marketing the Basics 2nd

56 Marketing: the Basics
single-benefit positioning is a cost-effective positioning strategy, eventually, some competitor, new innovation or change in consumer preferences threatens a firm’s leadership position.
Since a firm’s leadership position is eventually threatened by competition, innovation or changes in consumer preferences, it stands to reason that promoting more than one benefit hedges against these potential treats. Exactly how many benefits to promote cannot be addressed directly because the issue largely depends on the type of product being offered. Generally speaking a product should be positioned according to these four rules:
1 Never under-position: Under-positioning occurs when customers cannot readily identify the brand or the brand’s features. The product must stand out in the mind of the consumer.
2 Never over-position: Over-positioning occurs when the brand is promoted too narrowly. Volvo is still regarded as a car manufacturer that makes safe, reliable and durable automobiles. Few realize that Volvo also offers a critically acclaimed sports car.
3 Never over-promote: Highlighting every possible benefit, or changing the brand’s positioning frequently, will confuse buyers.
4 Never over-promise: Over-promising usually works for politicians, but history has shown consumer backlash is swift against firms that make dubious claims about their product’s features, quality or value.
A customer’s overall impression of a company is formed through their experience with the firm’s product, service, people, channels of distribution and product image. These five points of contact provide a firm with the opportunity to develop competitive advantages over their competitors, thus allowing the firm to differentiate themselves. A word of caution: a firm must offer and must deliver superior value and quality on those dimensions on which they differentiate themselves because customers constantly incorporate past experience into their decision making processes. The actual experience of dealing with all too many firms falls short of their