Designing for superior business performance

This type of value proposition or delight provides superior solutions to problems or offers superior benefits to customers. It gets the job to done, and better than any other. Functional delight is focused mainly on the function, superior or extra benefits, or utility that it gives to the customer. FedEx’s guaranteed overnight delivery is a functional positioning, it offers customers the benefit of fast reliable delivery which is superior to most other delivery services.

Symbolic delight creates a sense of social belongingness and reinforces the customers ideal self. If a segment values success – the symbolic positioning reinforces the customers’ view of being successful. If a segment values friendship, social belongingness or being desirable, then Symbolic positioning reinforces the customer ideal of belonging, being desired by and respected by others.

Luxury brands, and boutique beers or mixer drinks commonly use this type of appeal. Frequently, products reliant on symbolic appeal do not get the functional Job done any better than many other available options. An inexpensive wallet or handbag carries a customer’s items as well as a luxury model, but the luxury model reinforces the values the customer holds of their ideal self.

You can almost certainly recall product promotions with twenty young attractive people all drinking a particular soda, beer, or mixer drink. This creates a sense of being part of the young, beautiful, or successful group, hence this is Symbolic positioning. This example positioning does not warrant the beverage tastes any better, is any healthier or has any customer benefit other than cognitive. It offers the customer a self-image benefit. Functional and symbolic positioning can be combined – think of those laundry detergent promotions where the business proposes the superior cleaning ability along with the consumer being admired, and respect by their family and or peers.

Experiential positioning is positioning by offering a superior customer experience (sensory or cognitive).
Imagine an up-market restaurant. When you enter there is a concierge that calls you Sir or Maam. They escort you to the tables which all have pristine white starched tablecloths, stylish genuine silverware and the carpet is as plush as the seats at the table. The waiter pulls the chair out for you and waits for you to be seated. They bring the menu’s which are gold embossed with beautifully pictured and presented menu items but without any prices.
Compare this to another diner 200m down the street where you enter take your own seat in a booth, there are all sorts of funky gadgets sticking out of the walls and a casually dressed waiter on rollerblades drops the menu on the table as they whiz by to serve another table. There are no starched tablecloths, the silverware is basic and there are paper napkins and plastic cups only on the table. The first restaurant is an example of experiential positioning. It is positioning based on providing a special upmarket experience. The second restaurant might also be experiential but is offering casual and fun experience.

Pricing is an element of market positioning. Pricing can be premium as in our upmarket restaurant, differentiated as in the fun casual atmosphere restaurant or budget as for McDonalds or Burger King. Each element of the positioning needs to be supportive of the other elements of the positioning.

If the price is premium, then there must be some offer of superior desired benefits through functionality, ego-identification or experience or a combination of these.

Functionality

High | Medium | Low

[Role of superior functionality in here]

Symbolic

High | Medium | Low

[What values does the customer hold (psychographics) and how they will be reinforced? How will these appeals build an emotional rapport with customers in this segment]

Experiential

High | Medium | Low

[Achieving a position via Sensory and cognitive experience]

Pricing

High | Medium | Low

[Type of pricing, low cost, differentiated cost, premium. Role pricing will play in the positioning.]