Positioning

Positioning consists of arranging for a market offering to occupy a clear, distinctive and

desirable place relative to competing products in the minds of target customers.

Why Positioning?

Objectives of Positioning:

1. To create a distinctive place of a product or service in the minds of potential

customers.

2. To convey attractiveness of the product or the service to the target market.

3. Place an intangible service within a more tangible frame of reference.

4. Help influence both service development and redesign of existing service.

5. Follow consideration of the competitor’s possible moves and responses so that

appropriate action can be taken as.

6. To give the target markets the reason of buying your services and then design

the whole strategy.

7. To provide guidelines for the development of marketing mix with each element

being consistent with the positioning.

Positioning Analysis seeks answers to the following questions:

1. What is the current position of the product or service in the mind of the target

customer?

2. What position does the firm want to own i.e., looking for positions or holes in the

market place?

3. How can it be done (select the appropriate approach that will work for the target

market)?

Qualities of a successful positioning:

Creation of a successful position comes from two sources i.e. physical product

differentiation and brand communication.

The following are the qualities that help to make a successful position:-

1. Relevance: Often brand managers identify and position the

brand on an attribute, which is different but is relevant for

customers.

2. Distinctiveness: Customers have few needs that are

unfulfilled and the customers have many choices to fill the

needs they have. If brand’s position lacks distinctiveness, it

will be forced to compete on the basis of price and promotion

only.

3. Coherence: There is a need to integrate all forms of

communication to bring coherence to the brand’s position.

4. Commitment: Once a position is adopted, it takes

commitment to stay committed to the position in the face of

competitor’s threat to ensure the long-term position of the

brand in the market.

5. Durability: The brand’s position built over a period of time in

consumers mind.

6. Clarity: A brand’s position should have clarity so that it will

be easy to communicate and quick to comprehend.

7. Courage: Adopting a strong position requires clarity of vision

and courage for the brand manager.

POSITIONING PROCESS

Various Steps of developing affective positioning:

1. Market Positioning

2. Psychological Positioning

a. Objective positioning

b. Subjective positioning\

3. Positioning approaches

The positioning process should be dynamic and it must keep pace with the changes

in the marketing environment in including changing needs of the customer and

changing tactics of the competitors.

STEP 1: Market Positioning

It is defined as the process of identifying and selecting markets or segments, that

represents business potential, to determine the criteria for competitive success.

This must be based on the following factors:

1. Thorough knowledge of needs, wants and perceptions of the target market, and

2. Benefits offered by the service offered.

The service provider may have a ‘wish image’ but as a matter of the fact ‘no image’

exists if the customers do not perceive the image of the offering.

The evaluation of the image of the offering perceived by the customer can be used

to identify the crucial elements, which comprise the benefits.

STEP 2: Psychological Positioning:

This step involves the use of communication to convey, the firms or its offerings

identity and image to the target market. It convert the needs into images and

positions the offering in the customer’s mind. Psychological positioning enables

marketers to create a unique product image with the objective of creating interest

and attracting customers.

For example, two tourist attractions which are dissimilar may be perceived as the

same by a consumer and two similar tourist attractions may be perceived as

different. Marketer make an attempt to control the positioning and do not allow it to

let it happen.

2 kinds of Psychological Positioning:

1. Objective positioning

2. Subjective positioning

Objective Positioning.

The OP relates to the objective attributes of the physical product. It is concerned

with creation of an image of service offering that reflects physical features and

functional features. Usually Psychological positioning is concerned with what

actually is, what exists. e.g Mussorie is mountain.

OP is usually used in the Tourism industry. An attraction or destination which has a

unique features, that feature can be used to objectively position the attraction or

destination to create an image and to differentiate it from the competition.

Degree of Objective positioning depends upon the uniqueness of features. If the

features of an attraction are not unique the objective position will be of lesser

degree.

For example, Many tourist attractions which are promoted with pictures of beaches

or mountains fail to create a distinct image or successfully differentiate the offering.

Subjective Positioning

SP relates to the subjective attributes of the service offering. It is the (mental

perceptions) image and other attributes perceived by the tourist and not the

physical aspect of the offering.

For example, For a tourist perceptions about Taj and resulting image may not

necessarily reflect the true state of the Taj’s physical characteristics. They may

simply exists in tourists mind and not all the tourists images agree with a particular

perception or image.

STEP 3: Positioning Approaches

There are several approaches to positioning of product and service offerings.

Service marketers may select an appropriate approach from the following positioning

approaches based on the information collected during market positioning and

psychological positioning. Psychological positioning creates as image but positioning

approach completes the picture , using visuals and words, reinforce what the

offering does best and what benefits are offered by it.

1. Positioning by attributes, features or customer benefits:

In this marketer place emphasis on the benefits of the particular featuror attributes of

the offering.

2. Positioning by Price Value

‘Value for money’ can be utilized for positioning the offering effectively. In the

international environment price is normally not used for positioning as the customer may

not identify lower price with lower quality. Price value can e exemplified by Malaysia

tourism’s positioning statement says “ Malaysia gives more natural value” i.e it is

projecting not only more value for your money but added benefit of its natural

attractions.

3. Positioning by use of application:

Service offering is positioned on the basis of the reason for its use.

For example, Hotel Inter-Continental, New Delhi positions itself to the meeting

market with “meeting place” and promises one stop meeting solutions, consistent

standards, attention to detail and personalized service.

4. Positioning according to users or class of users

This relates to consumer segments using a service offering

Airlines target the executive class, the frequent fliers and the tourists.

For example, The Ashok group position itself to corporate world with “Conference

venues can help write corporate history” and promises attention to the minutest

detail.

5. Position with respect to product class

The positioning could be based on functional benefits as well as symbolic and

emotional benefits. This technique is generally used to associate an offering with

experiences that are unique.

For example, Thailand Tourism positions as holding a convention in Thailand

is :Smooth as silk where sky is the limit”.

6. Positioning against competition

This approach is used to meet the competition “HEAD ON” to bring out differences

between destinations. The international player avoid this approach because it may

involve negative statements about other country or regions. but it is regularly

employed in product and services marketing

For example, Visa cards compete with American Express by examples of places in

the world that do not accept American Express cards only Visa cards are accepted.

7. Positioning by endorsement

It involves use of celebrities or other product successes. Rebok has used Rahul

Dravid for their products.

8. Positioning by quality dimensions

RATER(Reliability, Assurance, Tangibility, Empathy and Responsiveness is usually

used for positioning the services. Firms choose one or combination of more tan one

quality dimensions to position their offering.

a. Reliabily: it refers to ability to perform the service dependably and accurately. First

Flight Couriers Ltd may use “Any time Any where First” be using reliability

dimensions.

Telecom services, airlines services, banking services cannot stay in game without

reliability.

b. Assurance: Assurance is knowledge, courtesy of employees and their

ability to convey trust and confidence. The insurance health care and

banking usually use this dimension for positioning.

For example: PNB positions itself by conveying trust and confidence by

“…. The name you can Bank upon”

c. Tangibility: It relates to physical facilities, equipment, personnel and

communication materials. Tangibility is used by hotels, restaurants,

tourism and retailers. As the tangibles of service are highly visible

elements, they must be designed such that they are consistent with

positioning approach.

For example, Sahara Airlines has always placed tremendous importance on

customer satisfaction and they have been positioning themselves as High on

achievement by showing the awards won by them in their advertisements.

d. Responsiveness: It relates to willingness o help customers provide prompt

service. At Hotel Radisson every question asked is answered by Yes I

Can! Be it midday or midnight people at Radisson are trained to respond

to the customer needs promptly. Through Responsiveness, they build the

repeat business.

9. Positioning by Physical Evidence: “Someone who purchases a service may go

away empted handed – but does not go empty headed”. They have memories,

and it is the jpb of the service provider “ to make these memories stay as

possible”. The service organizations use physical evidence like advertisements,

brochures, visiting cards etc. to solidify the image of the organization or its

offering in the customers mind. The quality of paper, graphics, colour schemes of

a brochure, building aesthetics, exteriors all are significant in positioning

10. . Positioning by Process: it is defined in term of two variables:

a. Complexity

b. Divergence

Complexity relates to number of steps involved in service delivery.

Divergence relates to latitude or variability f those steps. These two variables play

important role in positioning or repositioning of the services.

For example:

1. An electrician who provides repair services are low in complexity and high in

divergence because each time he repairs, his performance is varying.

2. The car washing service process is low in complexity as well as divergence

because number of steps involved are not too many and also there is hardly any

variability in performance.