POSITIONING

Target Customers, need for the product; Elements of the

positioning statements Target market, frame of reference,
point of parity, point of difference, reason to believe your
claims; Criteria for evaluating the positioning statement
Relevance, clarity, uniqueness, attainability,
sustainability; Marketing Mix linkage to the
positioning statement
 POSITIONING
• In marketing positioning has come to mean the process by which marketers try
to create an image or identify in the minds of their target market for its
product, brand or organization. It is the relative competitive comparison their
product occupies in a given market as perceived by the target market.
• 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.
• “A product’s position is how potential buyers see the product.”, and is
expressed relative to the position of competitiors.
• Positioning is a concept in marketing which was first popularized by AI Ries and
Jack Trout in their bestseller book “Positioning-a battle for your mind”.
• Positioning refers to the process of creating a distinct and desirable place in the
minds of target customers relative to competing products or brands. It defines
how a product or service is perceived by the target audience and how it is
differentiated from others in the market. Effective positioning is essential for
developing a strong brand identity and attracting loyal customers.
• Target Customers: The specific group of consumers that
the company intends to reach and serve with its product
or service. These customers are often defined by
segmentation variables (such as demographics,
psychographics, and behavior) that allow the company to
understand their needs, desires, and purchasing habits.
• Need for the Product: The product must fulfill a genuine
need or desire within the target market. Identifying this
need helps define the product's value proposition and
clarifies its role in the customer's life. The need can be
practical, emotional, or aspirational.
• For example, if a company targets busy professionals, the
need may be for convenience, time-saving, or efficiency.
Elements of the Positioning Statement

a. Target Market
• Definition: The specific group of consumers
that the positioning is aimed at.
• Importance: Clear identification of the target
market ensures the positioning resonates with
the right audience.
• Example: "Busy professionals aged 30-45,
living in urban areas."
• b. Frame of Reference
• Definition: The category or context in which
the brand or product is placed, allowing
customers to understand what it is and what
it does.
• Importance: The frame of reference helps the
target market categorize the product in
relation to others in the market.
• Example: "An online project management
tool" or "A luxury skincare brand."
c. Point of Parity (POP)
• Definition: Attributes or benefits that the
product shares with other competitors in the
same category, ensuring that it is considered a
legitimate player within the market.
• Importance: Points of parity are the minimum
requirements for a product to be seen as
competitive and credible in its category.
• Example: For a soft drink, common points of
parity would be "carbonated" and
"refreshing."
d. Point of Difference (POD)
• Definition: The unique features or benefits
that make the product different from and
superior to competitors.
• Importance: Points of difference create a
competitive advantage by highlighting what
sets the product apart.
• Example: A point of difference for a soft drink
might be "made with natural sweeteners" or
"zero calories."
e. Reason to Believe Your Claims
• Definition: The evidence or rationale that
supports the product’s points of difference and
gives credibility to the claims made in the
positioning statement.
• Importance: Without a reason to believe, the
target market may dismiss the claims as
unsubstantiated or exaggerated.
• Example: "Clinically tested to be effective,"
"Endorsed by industry experts," or "Award-
winning product."
 Criteria for Evaluating the Positioning Statement
a. Relevance
• Definition: The positioning must address the needs, desires, and
values of the target audience.
• Importance: A relevant positioning statement will resonate with
consumers and lead to higher engagement and customer satisfaction.
• Example: If the target market values sustainability, positioning a
product as "eco-friendly" or "sustainably sourced" becomes relevant.
b. Clarity
• Definition: The positioning statement must be clear and easily
understandable. It should convey the brand’s promise in simple, direct
terms.
• Importance: Clarity avoids confusion and ensures that the message is
communicated effectively to the target audience.
• Example: "Our smartphone has the longest battery life" is a clear,
simple statement.
c. Uniqueness
• Definition: The positioning should emphasize what makes the brand or
product different from competitors and highlight its unique benefits.
• Importance: A unique positioning helps the brand stand out in a
crowded marketplace and attract customers seeking something
different.
• Example: "The only chocolate bar made with 100% fair-trade cocoa" is a
unique positioning in the chocolate category.
d. Attainability
• Definition: The positioning must be realistic and achievable. The brand
or product must be able to deliver on the promise made in the
positioning statement.
• Importance: If the positioning statement promises more than the
product can deliver, customers will be disappointed, leading to brand
distrust.
• Example: Promising "the best smartphone camera ever" would need to
be backed by real-world proof (e.g., superior technology).
e. Sustainability
• Definition: The positioning should have long-term
potential and remain relevant as market dynamics
evolve.
• Importance: A sustainable positioning is resilient to
market changes, competitive pressures, and shifts
in consumer behavior.
• Example: A positioning that focuses on
environmental sustainability ("100% biodegradable
packaging") can maintain relevance as consumers
become more eco-conscious.
 Marketing Mix Linkage to the Positioning Statement
a. Product
• The product’s features, design, and quality should reflect the claims made in the positioning
statement. For example, if the positioning focuses on luxury, the product must have premium
features and materials.
b. Price
• The pricing strategy must align with the brand’s positioning. A luxury brand might adopt a
high-price strategy, while a value-oriented brand would focus on affordability.
• Example: "Affordable yet stylish" might indicate a mid-range pricing strategy.
c. Place (Distribution)
• The channels through which the product is sold should reflect its positioning. A high-end
product may be available in exclusive retail outlets, while a mass-market product may be
found in supermarkets or online.
• Example: A luxury car brand would position its vehicles in exclusive dealerships, while a more
affordable car brand may sell through high-traffic locations.
d. Promotion
• Promotional strategies (advertising, PR, sales promotions) must reinforce the positioning
statement. This includes tailoring the messaging and visuals to align with the brand’s desired
image and the target customer’s values.
• Example: If the positioning emphasizes "innovation," the promotional campaign should
highlight the cutting-edge technology or features of the product.
• 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 preffered combination of
attributes (referred to as an ideal vector)examine the fit
between
1)The position of your product
2)The position of the ideal vector
 Positioning concepts
• More generally there are three types of positioning concepts
• Functional positions
1)Solve problems
2)Provide benefits to customers
3)Get favorable perception by investors and lenders
• Symbolic positions
1)Self image enhancement
2)Ego identification
3)Belongingness and social meaningfulness
4)Affective fulfilment
• Experiential positions
1)Provide sensory stimulation
2)Provide cognitive stimulation
• A six step question framework for successful
positioning:
• What position do you currently own?
• What position do you want to own?
• Whom you have to defeat to own the position you
want
• Do you have the resources to do it?
• Can you persist until you get there?
• Are your tactics supporting the positioning objective
you set?
 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.
• 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.