How to Measure the Effectiveness of Positioning?

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Positioning > Best Practices > How to Measure the Effectiveness of Positioning?

How to Measure the Effectiveness of Positioning?
Anneke Zwart, Student (University), Netherlands, Moderator
In order to know how effective positioning is, positioning effectiveness should be measured.
Two main groups of positioning measurements exist, namely company-based and customer-based.
1. Company-based positioning measurement approaches
With these approaches, managers are surveyed on the positioning they are exerting. Afterwards, the information obtained will be linked to the financial performance (sales, profits, market shares) of the brand.
2. Customer-based positioning measurement approaches
These approaches obtain information from customer surveys. The resulting information is used in several ways:
2a. One way is to determine whether the associations that we intended to establish in the mind of consumers are consistent with the actual perceived associations of the customers. Hereby it is assumed that efficient positioning is the degree to which there is consistency between what companies claim and the perception of the customers.
2b. The other way is using perceptual maps which determine a brand’s position in a “virtual space”, displaying how consumers perceive the good compared to other products in terms of for example properties and preferences.
Source: Fuchs, C. and A. Diamantopoulos. (2012). Customer-perceived Positioning Effectiveness: Conceptualization, Operationalization, and Implications for New Product Managers*. Product Development & Management Association vol. 29, 229-244.

Example of Perceptual Map

Example of Perceptual Map

Measuring the Effectiveness of Positioning
Atmazaki, Professor, Indonesia, Member
You explained these two approaches to measuring the effectiveness of positioning well.
Both are valid and each has strengths, but perhaps the latter approach is more oriented to the customer, it may be better.

Measuring of Positioning Effectiveness: The 4 D’s of Branding
Jagdish Mehta, Entrepreneur, India, Member
There are many metrics to measure the potential of and actual effectiveness of brands. The simplest means is to apply the concept of what we call the 4 D’s of Branding™:
- Differentiation
- Distinctiveness
- Defendable
- Digit-able
An effective and powerful brand must measure up in all 4 areas.
Distinctiveness: Your brand should be distinct when compared to all spoken and visual communications to which your target audiences will be exposed. The more unique and distinct your communications, the wider the field of effective competitive strength it will have. There are simple means to apply to test the distinctiveness of your brand. Ask us!
Differentiation: The brand strategy and brand assets must set your offering apart and clearly articulate the specific positioning intent of your offering.
Defendable: You will be investing in creating your brand assets and in all cases your brand must have proprietary strength to keep others from using close approximations. This applies to your trade names and other proprietary words as well as to your logos, symbols and other visual assets.
Digit-able: In most businesses there is strong and growing element of electronic communications and commerce that dictate that all brand assets be leveraged effectively in tactile and electronic forms. This goes for all brand assets.

Measuring the Effectiveness of Positioning
George Kerstholt, Strategy Consultant, Netherlands, Member
These concepts are largely based ont he work of Foote, Cone & Belding, published as the FCB-grid in 1987. (A Guide to the FCB Grid, March 1987 that says "the grid is now 8 years old".)
Pre positioning research, positioning and after positioning research gives you a means of measurement.
The effectiveness can be measured both on market share and market position, however the CFO and similar colleagues will be interested most in the turnover and extra profits generated.

Measuring Effectiveness of Positioning is Difficult
BIJOYEN, Entrepreneur, India, Member
Measuring positioning effectiveness is a difficult task in the real world. The effectiveness can be measured on a segment basis, but overall market positioning is not possible.
Many company fail to understand the segments properly and just bombard their products/services. Ultimately they fail.

Problems with Models to Measure Positioning
Juan Perez Eras
Company-based positioning has a problem related to managers' criteria and subjectivity about the performance, therefore results could be unreliable / slanted.
Customer-based positioning should normally reflect better how customers identify and accept a brand.
A three axis analisys (financial performance, customer perception, company's perception) could be useful to obtain a more complete outlook of brands that are competing in market.

How to Mesaure the Effectiveness of Positioning
In my opinion companies should first set the rules for mesaurements and apply these rules for the positioning needed. Wether it will be company-based or customer-based.
I agree with the view that it's more difficult to measure the effectiveness of positioning for the second group (customer-based).

Measuring Positioning Effectiveness
Jafeth Quintanilla, Teacher, Peru, Member
I believe that to for a further discussion about measuring the effectiveness of positioning, we must first have very clear what kind of positioning we are analysing.
A. The positioning in PRICE could be different to positioning in QUALITY or the positioning in business IMAGE.
B. Likewise, becuase positioning is the idea or belief about of a BRAND, of a PRODUCT or of a COMPANY, first we must define which of these concepts we wish to discuss.
In any of these kinds of positioning we can measure the effectiveness through surveys by asking questions about the details that define such positioning, and by using metrics that help to obtain an accurately idea of the existing positioning.

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