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Positioning (marketing)




Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.


PRODUCT POSITIONING STRATEGY


The ability to spot a positioning opportunity is a sure test of a person's marketing ability. Successful positioning strategies are usually rooted in a product's Sustainable Competitive Advantage . The most common basis for constructing a product positioning strategy are:

  • Positioning on specific product features

  • Positioning on specific benefits, needs, or solutions

  • Positioning on specific use categories

  • Positioning on specific usage occasions

  • Positioning on a reason to choose an offering over the competition

  • Positioning against another product

  • Positioning through product class dissociation

  • Positioning by cultural symbols



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 products' Share Of Mind
# Determine each products' 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 #--- The position of your product

  • The position of the ideal vector

  • # Position


The process is similar for positioning your company's services. Services, however, don't have the physical attributes of products - that is, we can't feel them or touch them or show nice product pictures. So you need to ask first your customers and then yourself, what value do clients get from my services? How are they better off from doing business with me? Also ask: is there a characteristic that makes my services different?

Write out the value customers derive and the attributes your services offer to create the first draft of your positioning. Test it on people who don't really know what you do or what you sell, watch their facial expressions and listen for their response. When they want to know more because you've piqued their interest and started a conversation, you'll know you're on the right track.


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


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 .


SEE ALSO




Lists




REFERENCES


  • Trout, J., (1969) ""Positioning" is a game people play in today’s me-too market place", ''Industrial Marketing'', Vol.54, No.6, (June 1969), pp.51-55.

  • Ries, A. and Trout,J. (1981) ''Positioning, The battle for your mind'', Warner Books - McGraw-Hill Inc., New York, 1981, ISBN 0-446-34794-9

  • Trout, J. and Rivkin, S. (1996) ''The New Positioning : The latest on the worlds #1 business strategy'', McGraw Hill, New York, 1996, ISBN 0-07-065291-0