160 Marketing Dynamics Copyright Goodheart-Willcox Co., Inc. LO 9.2-3 Product Positioning Evaluating competitive advantages helps in deciding how to present the product, or position the product, in a way that appeals to the target market. Product positioning is the process used to influence g the customer’s perception of a brand or product in relation to the competition. It is a marketing strategy that focuses on influencing the perception of a product in the minds of consumers. To do this, a company determines the needs and wants of its customers and positions its product to be appealing. For example, Southwest Airlines positions them- selves as the low-cost airline with no hidden or unex- pected fees. This product positioning is supported by the company’s Transfarency campaign: “Low fares. Nothing to hide. That’s Transfarency.” In this case, Southwest identified that airline customers wanted reasonable, honest, straightforward pricing without unexpected or hidden fees. The company’s marketing team positioned the product to satisfy customers in their market. Products are commonly positioned using features and benefits, price and quality, and competitive positioning. • Features and benefits. Products may be positioned based on key features and benefits that a product offers the customer. Promotions based on features and benefits highlight a unique attribute of the product and emphasize its value to customers. • Price and quality. Businesses may position their products on the basis of price, which often is seen as an indication of quality. The high price of a product can be used to emphasize high quality, prestige, or luxury. A low-priced product can be positioned as a good value or budget-conscious product, but may be perceived to be lower in quality. • Competitive positioning. Businesses regularly evaluate their competition in order to keep a competitive advantage. In promotions based on competitive positioning, a company may directly compare its product to that of a competitor. Many cell phone carriers use competitive positioning in their promotions by showing maps that compare coverage areas or graphics that illustrate the service reliability of competing carriers. Repositioning is changing the marketing g strategy used to influence consumer perception of a product in comparison to the competition with the goal of increasing sales. There are instances in which the original positioning strategy failed and adjust- ments become necessary. GongTo/Shutterstock.com Southwest Airlines positions itself as an affordable option for cost-conscious consumers. How do you think product positioning influences customers? Mean, Median, and Mode There are three measures of the center of a data set. The h mean is the average of all values in the data set. M an is calculated by adding a all values and dividing that a sum by the total number of values. The median is the middle number in a data set. To find the median, the t numbers must be listed in numerical order. The mode is the value tha occurs most frequently in the data set. Solve o the following problems. 1. A recent survey of gasoline prices for a region reported p these es prices per gallon: $3.49, $3.67, $3.52, $3.58, and a $2.56. What is the mean price per p gallon?n 2. An online electronics n retailer sold merchandise at the following prices during one hour: $99, $105, $75, $116, $99, 9 $105, $105, and $116. A. What is the mode price? B. What is the e mean price? You Do the Math