Positioning

Ajilal

• Positioning is also defined as the way by

which the marketers attempt to create a

distinct impression in the customer's mind.

• Positioning is a concept in marketing which

was first introduced by Jack Trout (

"Industrial Marketing" Magazine- June/1969)

and then popularized by Al Ries and Jack

Trout in their bestseller book "Positioning -

The Battle for Your Mind." (McGraw-Hill

1981)

Brand positioning process

Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its solutions at a significant discount over the other competitor(s).

• Generally, the brand p

• positioning process involves:

• Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions)

• Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.)

• Documenting the provider's own positioning as it exists today (may not exist if startup business)

• Comparing the company's positioning to its competitors' to identify viable areas for differentiation

• Developing a distinctive, differentiating and value-based positioning concept

• Creating a positioning statement with key messages and customer value propositions to be used for communications development across the variety of target audience touch points (advertising, media, PR, website, etc.).

Product positioning process

• Generally, the product positioning process involves:-

• Defining the market in which the product or brand will compete (who the relevant buyers are)

• Identifying the attributes (also called dimensions) that define the product 'space'

• Collecting information from a sample of customers about their perceptions of each product on the relevant attributes

• Determine each product's share of mind

• Determine each product's current location in the product space

• Determine the target market's preferred combination of attributes (referred to as an ideal vector)

• Examine the fit between the product and the market.

Positioning concepts

• More generally, there are three types of positioning concepts:

• Functional positions

• Solve problems

• Provide benefits to customers

• Get favorable perception by investors (stock profile) and lenders

• Symbolic positions

• Self-image enhancement

• Ego identification

• Belongingness and social meaningfulness

• Affective fulfillment

• Experiential positions

• Provide sensory stimulation

• Provide cognitive stimulation

• Measuring the positioning[edit]

• Positioning is facilitated by a graphical

technique called perceptual mapping,

various survey techniques, and statistical

techniques like multi dimensional scaling,

factor analysis, conjoint analysis, and logit

analysis.

• Repositioning a company

• In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather than just a product line or brand. When Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks, for example, the expectations of investors, employees, clients and regulators all needed to shift, and each company needed to influence how these perceptions changed. Doing so involves repositioning the entire firm.

• This is especially true of small and medium-sized firms, many of which often lack strong brands for individual product lines. In a prolonged recession, business approaches that were effective during healthy economies often become ineffective and it becomes necessary to change a firm's positioning. Upscale restaurants, for example, which previously flourished on expense account dinners and corporate events, may for the first time need to stress value as a sale tool.

• Repositioning a company involves more than a marketing challenge. It involves making hard decisions about how a market is shifting and how a firm's competitors will react. Often these decisions must be made without the benefit of sufficient information, simply because the definition of "volatility" is that change becomes difficult or impossible to predict.

• Positioning is however difficult to measure, in the sense that customer perception on a product may not tested on quantitative measures.

Positioning strategies

• The following is a list of some established product positioning strategies. Think about your product in terms of

each one

• and see how they fit.

• • Against a Competitor: Positioning your product directly against a competitor’s typically requires a specific product

• superiority claim. A memorable example is Avis Rental Cars’ We’re #2. We try harder.

• • Away from a Competitor: Positioning yourself as the opposite of your competitor can help you get attention in a

market

• dominated by some other product. A famous example is 7-UP calling itself the Uncola.

• • Benefits: This strategy focuses on a benefit your product provides to your target audience. Examples include

Volvo’s

• emphasis on safety and Crest toothpaste’s focus on reducing cavities.

• • Product Attributes: Highlighting a specific attribute of your product can also be compelling. For example, Ritz

Carlton

• hotels focus on luxury; Motel 6 focuses on economy.

• • Product Categories: Comparing your product to a product in a different category can be an effective way to

differentiate

• yourself. In a soap-compares-itself-to-lotion example, Palmolive dishwashing liquid claims that it softens you

hands

• while you do the dishes.

• • Usage Occasions: This kind of positioning stresses when or how your product is used by your target audience.

Jeep’s

• focus on off-road driving is an excellent example.

• • Users: Focusing on the unique characteristics of specific users can also be effective. The …For Dummies series

of

• instruction books are attractive to people who want to learn about a topic from a source that doesn’t assume any

prior

• knowledge on the reader’s part.

• Positioning characteristics

• The goal of product positioning is to keep your product on top of your customers’ mind when they’re considering a

• purchase. To be successful, product positioning must achieve three objectives:

• • Differentiate your product from the competition’s

• • Address important customer buying criteria

• • Articulate key product (or company) characteristics

• Marketing messages and positioning have a lot in common

• During the process of generating product positioning strategies, periodically review each one against the following list

• of characteristics.

• Is your product positioning strategy:

• • Single-minded—does it convey one primary message at a time?

• • Meaningful—will it connect with the target audience?

• • Differentiating—does it contrast your strengths against the competition?

• • Important—is it pertinent and significant to the target audience?

• • Sustainable—will it resonate with the target audience well into the future?

• • Believable—will it ring true with the target audience?

• • Credible—can you clearly substantiate your claims?

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