This document provides an overview of positioning in marketing. Positioning aims to make a brand occupy a distinct position relative to competitors in a customer's mind. It involves emphasizing distinguishing features or creating a suitable image through advertising. Once positioned, it is difficult to reposition a brand without losing credibility. The document discusses definitions of positioning, the brand and product positioning processes, positioning concepts, and repositioning companies.
1. Positioning(marketing)
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Positioningisamarketingstrategythataimsto make a brandoccupy a distinctposition,relative to
competingbrands,inthe mindof the customer.Companiesapplythisstrategyeitherbyemphasizing
the distinguishingfeaturesof theirbrand(whatitis,whatitdoesand how,etc.) or theymaytry to
create a suitable image (inexpensive orpremium, utilitarianorluxurious,entry-levelorhigh-end,etc.)
throughadvertising.Once abrandis positioned,itisverydifficulttorepositionitwithoutdestroyingits
credibility.Itisalsocalledproductpositioning.
Contents [hide]
1 Definitions
2 Brand positioningprocess
3 Productpositioningprocess
4 Positioningconcepts
5 Repositioningacompany
6 See also
7 References
8 External links
Definitions[edit]
2. PositioningwasfirstintroducedbyJackTroutin 1969 ("Industrial Marketing"Magazine- June/1969) and
thenpopularizedbyAl RiesandJackTrout intheirbestsellingbook"Positioning - The Battle forYour
Mind."(McGraw-Hill 1981)
Thisdiffersslightlyfromthe contextinwhichthe termwasfirstpublishedin1969 byJack Trout in the
paper"Positioning"isagame people playintoday’sme-toomarketplace"inthe publicationIndustrial
Marketing,inwhichthe case ismade that the typical consumerisoverwhelmedwithunwanted
advertising, andhasa natural tendencytodiscardall informationthatdoesnotimmediatelyfinda
comfortable (andempty) slotinthe consumer'smind.Itwasthenexpandedintotheirground-breaking
firstbook,"Positioning:The Battle forYourMind,"in whichtheydefinePositioningas"anorganized
systemforfindingawindowinthe mind.Itisbasedon the conceptthat communicationcanonlytake
place at the right time andunderthe right circumstances"(p.19 of 2001 paperbackedition).
What mostwill agree onis thatPositioningissomething(perception) thathappensinthe mindsof the
target market.Itis the aggregate perceptionthe markethasof a particularcompany,productor service
inrelationtotheirperceptionsof the competitorsinthe same category.Animportantconceptin
positioningisthatitexpectsthatconsumerscompare andanalyze productsinthe marketplace,whether
basedon featuresof the productitself (quality,multiple uses,etc.),price,and/orpackagingand
image.[1] Itwill happenwhetherornota company'smanagementisproactive,reactiveorpassive about
the ongoingprocessof evolvingaposition.Butacompanycan positivelyinfluence the perceptions
throughenlightenedstrategicactions.
A company,a productor a brandmust have positioningconceptinordertosurvive inthe competitive
marketplace.Manyindividualsconfuse acore ideaconceptwitha positioningconcept.A Core Idea
Conceptsimplydescribesthe productorservice.Itspurpose ismerelytodetermine whetherthe idea
has anyinteresttothe endbuyer.In contrast,a PositioningConceptattemptstosell the benefitsof the
productor service toa potential buyer.The positioningconceptsfocus onthe rational oremotional
benefitsthatbuyerwillreceive orfeel byusingthe product/service.A successfulpositioningconcept
mustbe developedandqualifiedbefore a"positioningstatement"canbe created.The positioning
conceptis sharedwiththe targetaudience forfeedbackandoptimization;the PositioningStatement(as
definedbelow) isabusinessperson'sarticulationof the targetaudience qualifiedideathatwouldbe
usedto developacreative brief foranagencytodevelopadvertisingora communicationsstrategy.
PositioningStatementAswritteninthe bookCrossingthe Chasm(Copyright1991, by GeoffreyMoore,
HarperCollinsPublishers),the positionstatementisaphrase so formulated:For(targetcustomer) who
(statementof the needoropportunity),the (productname) isa(productcategory) that(statementof
3. keybenefit–that is,compellingreasontobuy).Unlike (primarycompetitive alternative),ourproduct
(statementof primarydifferentiation).
Differentiationinthe contextof businessiswhatacompanycan hangits hat onthat no otherbusiness
can. For example,forsome companiesthisisbeingthe leastexpensive.Othercompaniescredit
themselveswithbeingthe firstorthe fastest.Whateveritisa businesscanuse tostand outfrom the
restis calleddifferentiation.Differentiationintoday’sover-crowdedmarketplaceisabusiness
imperative,notonlyintermsof a company’ssuccess,butalsofor itscontinuingsurvival.
Brand positioningprocess[edit]
Effective BrandPositioningiscontingentuponidentifyingandcommunicatingabrand'suniqueness,
differentiationandverifiable value.While "me too"brandpositioningcontradictsthe notionof
differentiation,thistype of "copycat"brandpositioningcanworkif the businessoffersitssolutionsata
significantdiscountoverthe othercompetitor(s.)AccordingtoLamb,some companiespositiontheir
brands"as beingsimilartocompetingproductsorbrands";a few examplesare "margarine tastinglike
butter"and "artificial sweetenerstastinglikesugar".[1] Thiscanalsobe seeninreactive marketing,
whencompaniesrepositionmore thanjustproducts:afterTargetaddedfoodand groceryitemsto
become a "supercenter",certaingrocerystores(suchasTexaschainHEB) addedretail productsto
become supercentersaswell.Anotherexample wouldbe the iPhonespawningseveral competitive
smartphones - differentiatedfromApple,yes,butnotas significantlyasApple wouldpreferbasedon
the patentinfringementlawsuitsfiledbyApple.[2] The conclusionseemstobe emulate,butdonot
duplicate.Asthe HarvardBusinessReview noteswhendiscussingpositioningandstrategy,"A company
can outperformrivalsonlyif itcanestablishadifference thatitcan preserve."[3]
Generally,the brandpositioningprocessinvolves:
Identifyingthe business'sdirectcompetition(couldinclude playersthatofferyourproduct/service
amongsta larger portfolioof solutions)
Understandinghoweachcompetitorispositioningtheirbusinesstoday(e.g.claimingtobe the fastest,
cheapest,largest,the #1 provider,etc.)
Documentingthe provider'sownpositioningasitexiststoday(maynotexistif startupbusiness)
Comparingthe company'spositioningtoitscompetitors'toidentifyviableareasfordifferentiation
Developingadistinctive,differentiatingandvalue-basedpositioningconcept
4. Creatinga positioningstatementwithkeymessagesandcustomervalue propositionstobe usedfor
communicationsdevelopmentacrossthe organization
Productpositioningprocess[edit]
Generally,the productpositioningprocessinvolves:-
Definingthe marketinwhichthe productor brandwill compete (whothe relevantbuyersare)
Identifyingthe attributes(alsocalleddimensions) thatdefinethe product'space'
Collectinginformationfromasample of customersabouttheirperceptionsof eachproducton the
relevantattributes
Determine eachproduct'sshare of mind
Determine eachproduct'scurrentlocationinthe productspace
Determine the targetmarket'spreferredcombinationof attributes(referredtoasan ideal vector)
Examine the fitbetweenthe productandthe market.
Positioningconcepts[edit]
More generally,thereare three typesof positioningconcepts:
Functional positions
Solve problems
Provide benefitsto customers
Get favorable perceptionbyinvestors(stockprofile) andlenders
Symbolicpositions
Self-image enhancement
Ego identification
Belongingnessandsocial meaningfulness
Affectivefulfillment
Experiential positions
5. Provide sensorystimulation
Provide cognitivestimulation
Repositioningacompany[edit]
Main article:Turnaroundmanagement
In volatile markets,itcanbe necessary - evenurgent- to repositionanentire company,ratherthanjust
a product line orbrand.WhenGoldmanSachs and Morgan Stanleysuddenlyshiftedfrominvestmentto
commercial banks,forexample,the expectationsof investors,employees,clientsandregulatorsall
neededtoshift,andeachcompanyneededtoinfluence how theseperceptionschanged.Doingso
involvesrepositioningthe entire firm.
Thisis especiallytrue of small andmedium-sizedfirms,manyof whichoftenlackstrongbrandsfor
individualproductlines.Inaprolongedrecession,businessapproachesthatwere effective during
healthyeconomiesoftenbecome ineffectiveanditbecomesnecessarytochange afirm'spositioning.
Upscale restaurants,forexample,whichpreviouslyflourishedonexpenseaccountdinnersand
corporate events,mayforthe firsttime needtostressvalue as a sale tool.
Repositioningacompanyinvolvesmore thanamarketingchallenge.Itinvolvesmakingharddecisions
abouthow a marketis shiftingandhowafirm'scompetitorswill react.Oftenthesedecisionsmustbe
made withoutthe benefitof sufficientinformation,simplybecause the definitionof "volatility"isthat
change becomesdifficultorimpossibletopredict.
Positioningishoweverdifficulttomeasure,inthe sense thatcustomerperceptionof aproductmay not
have beentestedonquantitativemeasures.
See also[edit]
Brand management
Brand community
Customerengagement
Marketing
Marketingmanagement
6. Target market
Productmanagement
Market segment
Productdifferentiation
Marketingplan
Sustainable competitiveadvantage
Strategicmanagement
Marketingstrategies
Placebo(originsof technical term)
Points-of-parity/points-of-difference
Right-time marketing
List of renamedproducts
References[edit]
BusinessDictionary.(n.d.) Definitionof Positioning.Retrievedfromhttp://www.businessdictionary.com
Lamb, C.(2013). e-StudyGuide forMKTG 7. Retrievedfromhttps://books.google.com/books
Trout, J.,(1969) ""Positioning"isagame people playintoday’sme-toomarketplace",Industrial
Marketing,Vol.54,No.6,(June 1969), pp. 51–55.
Ries,A.and Trout,J. (1981) Positioning,The battle foryourmind,WarnerBooks - McGraw-Hill Inc.,New
York, 1981, ISBN 0-446-34794-9
Trout, J.and Rivkin,S.(1996) The NewPositioning:The latestonthe worlds#1 businessstrategy,
McGraw Hill,NewYork,1996, ISBN 0-07-065291-0
Moore,G. (1991) Crossingthe Chasm,HarperCollinsPublishers,1991.
Levi,K.(2007) "Differentiate orDiminish:The ArtandNecessityof BusinessPositioning",(March2007),
p. 9
External links[edit]
^ Jumpupto: a b Lamb,Charles(2012). Essentialsof Marketing(7e ed.).Mason,OH: South-Western
Cengage Learning.pp.279–82. ISBN 978-0-538-47834-2.
7. Jumpup ^ "Apple Inc.v. SamsungElectronicsCo.Ltd.et al,CaliforniaNorthernDistrictCourt,Case No.
5:11-cv-01846. FiledApril 15,2011; Apple Inc.v.HTC Corporationetal,Delaware DistrictCourt,Civil
ActionNo.:1:12-cv-1004-GMS. Filed8/3/2012; Apple Inc.etal v.Motorola Mobility,Inc.,California
SouthernDistrictCourt,Case 3:2012cv00355. Filed:February10,2012.; Apple Inc.v.SanhoCorporation,
CaliforniaNorthern DistrictCourt,5:2010cv04042, Filed:September9,2010.; Apple Inc.v.Nokia
CorporationandNokiaInc.,Delaware DistrictCourt,Case 1:09-cv-00791-GMS. Filed12/11/09".
Justia.com.
Jumpup ^ Porter,Michael (November1996). "What Is Strategy?".Harvard BusinessReview.
Categories:Marketing
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