Strategic Marketing: Planning and Control, Third Edition

(Wang) #1

map is based upon two axis representing key attributes in a particular
market. These attributes are identified through market research and are
determined by consumer’s perceptions of the important factors in a market.
This could for example be price and quality, or style and performance
or a range of other issues. Products/companies or more particularly
brands can then be placed according to their position on these attributes
(see Figure 9.7).
In the case of Figure 9.7, in the Hotel market the key attributes are
deemed to be the price and the facilities. Hotel A on this map is seen as
expensive but with a full range of facilities. The Hotel B is perceived to be
inexpensive but with limited facilities. Both of these are reasonable consist-
ent offerings. Hotel C, however, is seen as expensive but with intermedi-
ate level of facilities. This position does not offer any unique aspects.
There may of course be more than two key attributes in a market. Figure
9.7 doesn’t map out quality. Hotel C may be seen as having high service
quality for instance. To gain a fuller picture obviously more than one pos-
itioning map can be developed. There are also more sophisticated three-
dimensional mapping techniques available for marketers to use.
Through the use of perceptual maps marketers can establish the current
situation in a particular market. There will then be a number of alterna-
tives from which to choose.


Targeting, positioning and brand strategy 191

Illustrative Example 9.1


Silverjet
In January 2007 Silverjet started operating a low cost ‘full-frills’ business class only airline
service between London Luton airport and New York’s Newark airport. The company offers
return fares starting at £999 with some promotional fares as low as £799. This not only under-
cuts traditional carriers’ business class prices but also the prices of other business class only
rivals, such as, Eos and Maxjet. Silverjet’s service consists of 100 business class flat beds, per-
sonal in-flight entertainment systems, individual food service, ladies-only toilets and a quiet
zone. The company provides a free passenger pick-up from London Luton Parkway station
to take passengers to Silverjet’s dedicated passenger terminal which operates a luggage
concierge service rather than the traditional check-in operation and provides free wi-fi
Internet access, plasma screen televisions, drinks and a mini Foyles library. Passengers, how-
ever, are only required to arrive at the terminal 45 minutes before the flight. The airline claims,
it is the first carbon neutral airline as it charges passengers a mandatory carbon offset payment
within its fares.
Silverjet believe there is a market segment that wants a business class level of service
but doesn’t wish to spend up to £4000 for the privilege. In March 2007 Silverjet’s average
load factor was 60 per cent well ahead of plan. The company now plans to buy two further
aircraft and increase its operations starting with an additional daily flight from London to
New York.
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