This document discusses positioning principles in advertising. It defines positioning as designing an offering and image to occupy a distinctive place in a target market's mind. Positioning is done through differentiating a product in ways customers value that competitors cannot easily copy. The relationship between positioning and differentiation is that differentiation techniques can be used for positioning. The positioning process involves understanding market dynamics, identifying competitive advantages, choosing advantages to define a niche, developing a positioning statement, and evaluating the statement. Reasons for repositioning include changes in the market, competition, consumer trends, and a company's internal environment. Pitfalls of repositioning are over, under, and confused positioning.

1. Positioning
Principles of Advertising

2. Positioning
• What is Positioning?
• It is the act of designing the company’s offering and
image to occupy a distinctive place in the target
market’s mind.
• - Positioning is what you do to the mind of
• the prospect
• - Customer does the Positioning
• - A product may have many distinctions. Which of
these are most important to the customers?

3. Differentiation
To make a product or service stand out from its
competitors in ways that provide unique value to the
customer
Identifies a set of characteristics and benefits that make
a product different and better for a target audience that:
1. Customers value when they are evaluating choices
2. Competitors cannot easily copy

4. Positioning vs. Differentiation
• Positioning refers to acquiring a space in the
mind of the customer whereas differentiation is
a marketing strategy companies use to make
their product unique to stand out from
competitors.
• The relationship between positioning and
differentiation is that differentiation can be used as a
positioning technique by companies.

5. Steps of the Positioning Process
1. Confirm your understanding of market dynamics
2. Identify your competitive advantages
3. Choose competitive advantages that define your
market “niche”
4. Define your positioning strategy
5. Create a positioning statement

6. Confirm Your Understanding of
Market Dynamics
A firm understanding of your target market and answers
to the following questions:
• In which product, service, or market category (also
called the “frame of reference”) do you plan to use this
positioning?
• Which target segment is your focus for the positioning
you are developing?
• What factors do these buyers evaluate when they
make a purchasing decision?
• How do these buyers view your competitors in the
category?

7. Identify Your Competitive Advantages
A trait, quality, or capability that allows you to
outperform the competition
Gives your product, service, or brand an advantage over
others in purchasing decisions
Comes from any or all of the following:
• Price
• Features
• Benefits

8. Choose Competitive Advantages That
Define Your Niche

9. Common Positioning Strategies
Differentiator Positioning Strategy Examples
Category Benefit Position yourself as “owning” an important
benefit and delivering it better than
anyone else
Volvo = Safety
Hallmark = Caring shared
Best fit for the
Customer
Position yourself as an ideal fit for the
customer’s personality, style, and
approach
Red Bull = Extreme
Business Approach Position yourself with a distinctive
approach to doing business
BeFiler = Easy DIY
Anti-Competition Position yourself as a preferred alternative
to the competition
Apple = Think different
Price Position yourself according to pricing:
lowest cost, best value for the money,
luxury or premium
Wal-Mart = Lowest prices
Quality Position yourself according to a quality
standard: high quality or else reliably
good quality at a reasonable price
Amreli Steel= Quality Steel

10. Positioning Statement
One sentence that concisely identifies the target market
and what you want customers to think about your brand
Includes:
1) the target market
2) the brand name
3) the key points of differentiation
4) the product/service category
5) why customers should believe the positioning claims

11. Formula for Positioning Statement
To [target audience], Product X is the only [category or
frame of reference] that [points of
differentiation/benefits delivered] because [reasons to
believe].

12. Criteria to Evaluate Positioning
Statements
• Is it tailored to the target market?
• Is it simple, focused, and
memorable?
• Does it provide an unmistakable
picture of your product, service,
or brand?
• Can you deliver on the promise
you make?
• Does it provide helpful direction
for designing the marketing mix
and other decisions?

13. Repositioning

14. Reasons to Consider Repositioning
Competition
• New competitors entering or leaving the market;
competitors joining forces
• Competitor’s innovation that threatens to make your
offering obsolete; competitive pricing strategies
Market environment
• Economic slow-down
• Changes in consumer confidence, the political climate,
or social forces like the movement around social
responsibility and sustainability

15. More Reasons to Consider
Repositioning
Consumer trends
• Changing tastes and preferences
• Evolving attitudes and behaviors
• New segments emerging as targets
Internal environment
• Changes in organizational leadership and strategy
• Acquisition or development of new technology
• Introduction of innovation that offers new competitive
advantages and differentiators

16. Pitfalls of Repositioning
• Over Positioning: This is where we have over
emphasized one or two points of the product and the
target market now has been very narrow perception of
what the product offers.
Example Bykea (Offers car rides at lowest rates at
the moment)
• Customers think Bykea only offers Bike services.
• Results in image issue, poor revenues.

17. Pitfalls of Repositioning
• Under Positioning: A failure to communicate a
strong compelling competitive position for a brand or
product. Hence, customers may not have a close
connection with a brand and instead go for products
from its competitors.
Example Pepsi Crystal (Same taste, different
look)
Clarity” not seen as an
important benefit by the audience.

18. Pitfalls of Repositioning
• Confused Positioning: A confused image of the brand
resulting from the company making too many claims or changing
the brand's positioning too frequently.
Example Velo
• Started off as a “high end” nicotine
product for motivated people who
are “On the go and unstoppable”.
- Changed it’s messaging to
highlighting “Downsides of smoking”.
- Changed the campaign again
to “Product of the future + alternative to smoke ”

19. Measuring Implementation
• Sales/revenue/ ROI on campaigns
• Number of new/returning customers
• Brand/product awareness or perceptions
• New leads or inquiries from inside and outside your target
segments
• Media attention
• Customer Satisfaction