This is the act of designing a company’s offering and image to occupy a distinctive place in the target market’s mind. I.e. The act of creating a difference between a company’s offer from those of competitors.
Positioning is the process of establishing and maintaining a distinctive place in the market for the organizations’ product or brands. Positioning starts with the product, but positioning is not what you do to a product. Positioning is what you do to the mind of the customer. You should concentrate on the perception of the customer and not the reality of the product. Positioning then is how the product is perceived and evaluated by the target market, relative to competing products. To the consumer perception is reality. That is why it is said that a marketing battle is fought in the minds of consumers. Marketers who attain a superior position in customers’ minds have won the marketing battle.
A difference is worth establishing to the extent that it satisfies the following criteria:
1. Important: The difference delivers a highly valued benefit to a sufficient number of buyers.
2. Distinctive: The difference is delivered in a distinctive way
3. Superior: The difference is superior to other ways of obtaining the benefit.
4. Pre-emptive: The difference cannot be easily copied by competitors.
5. Affordable: The buyer can afford to pay for the difference.
6. Profitable: The Company will find in profitable to introduce the difference.
Positioning Strategies:
1. Attribute Positioning: A company positions itself on an attribute e.g. size, number of years in existence.
2. Benefit Positioning: The product is positioned as the leader in a certain benefit.
3. Use or Application Positioning: Positioning a product as the best for some use or application.
4. User Positioning: Positioning a product the best for some user group e.g. Bic pen, food for consumption.
5. Competitor Positioning: The product claims to be better in some way then a named competitor.
6. Product Category Positioning: The product is positioned as the leader in a certain product category
7. Quality or Price Positioning: The product is positioned as offering the best value
As companies increase their number of claims for their brands, they risk disbelief and loss of clear positioning. Companies must avoid four major positioning errors.
1. Under Positioning: When buyers have only a vague idea of the brand.
The brand is seen as just another entry in a crowded marketplace. E.g. When Pepsi introduced its clear crystal Pepsi in 1993 (U.S.A.) customers were distinctively unimpressed. They didn’t see ‘clarity’ as an important benefit of a soft drink.
2. Over Positioning: Buyers may have too narrow a image of the brand. These buyers might think that suits at Sir Henry’s start at 15000/= when in fact it offers affordable suits started at 3000/=
3. Confused Positioning: Buyers might have a confused image of the brand resulting from the company making too many claims or changing the brands positioning too frequently e.g. Omo, Zain
4. Doubtful Positioning: Buyers might find it hard to believe the brand claims in view of the products features, price or manufacturers.