POSITIONING

Positioning in marketing refers to the process of defining how a brand, product, or service is
perceived in the minds of target customers relative to competing offerings. It involves creating a
unique and distinct image for the brand or product that resonates with the target audience,
differentiating it from competitors in a way that highlights its strengths and value proposition.

In essence, positioning is about finding a space in the market where your product or service can
meet the needs of a specific customer segment more effectively than alternatives, and
communicating that difference clearly to the consumer.

Key Elements of Positioning:

1. Target Audience: Clearly identifying who the product or service is intended for.
2. Category or Frame of Reference: Determining the category in which your brand or
product belongs (e.g., luxury cars, organic snacks, budget-friendly tech).
3. Unique Selling Proposition (USP): The key benefit or differentiator that sets your brand
apart from competitors.
4. Brand Promise: What customers can expect from your brand in terms of benefits,
experiences, or solutions.
5. Proof Points: Evidence or reasons why your brand or product delivers on its promise.

Steps in Developing a Positioning Strategy:

1. Identify the Target Market: Clearly define the specific customer segment(s) you are
targeting. This helps focus your positioning efforts on what is most relevant to that group.
2. Analyze Competitors: Understand how competitors are positioned in the market. What
are their strengths and weaknesses? How do customers perceive their brands? This
analysis helps identify gaps or opportunities in the market.
3. Define Your Unique Value Proposition (UVP): What makes your product or service
different or better than others in the market? This could be based on quality, price,
features, customer service, or other unique aspects of your offering.
4. Create a Positioning Statement: A concise statement that captures the essence of your
positioning. A typical positioning statement follows a format like:
o "For [target audience], [brand/product] is the [category/frame of reference] that
[unique benefit/USP] because [reason to believe/proof points]."
o Example: "For busy professionals, MobiFit is the fitness app that offers quick,
personalized workouts because it uses AI to tailor routines based on your goals,
time, and fitness level."
5. Communicate the Positioning: Consistently communicate your positioning through your
messaging, branding, and marketing channels. This could include advertising, social
media, website design, customer support, and even product packaging. All aspects of the
customer experience should reinforce your positioning.
Types of Positioning Strategies:

There are various strategies that companies can use to position their products in the market,
depending on their goals, customer needs, and competitive landscape. Some of the most
common positioning strategies include:

1. Price-Based Positioning

 Definition: Positioning a product or brand as being more affordable or offering better

value for money than competitors.
 Example: Walmart positions itself as "Everyday Low Prices," appealing to budget-
conscious consumers.
 When to Use: This is most effective for products or services that have minimal
differentiation and where price sensitivity is high.

2. Quality-Based Positioning

 Definition: Positioning the product as high-quality, premium, or luxury, often at a higher

price point.
 Example: Rolex is positioned as a luxury brand offering unmatched craftsmanship and
exclusivity.
 When to Use: This strategy works well when you can back up the quality claims with
superior product features, customer experiences, or brand reputation.

3. Feature-Based Positioning

 Definition: Emphasizing a specific feature or set of features that differentiate the product
or service from the competition.
 Example: Apple positions its iPhone with the advanced camera system, longer battery
life, and unique design features.
 When to Use: When the product offers innovative or distinctive features that customers
value and which provide a competitive advantage.

4. Benefit-Based Positioning

 Definition: Positioning a product based on the benefits it provides to the customer, such
as convenience, emotional satisfaction, or solving a particular pain point.
 Example: M&M’s uses the positioning of “melts in your mouth, not in your hand,”
focusing on the practical benefit of not having messy candy.
 When to Use: This strategy is effective when the product provides a clear functional or
emotional benefit that directly addresses customer needs or desires.

5. Lifestyle-Based Positioning
  Definition: Associating the brand with a particular lifestyle, set of values, or identity that
appeals to the target audience’s aspirations.
 Example: Nike’s "Just Do It" slogan and messaging positions the brand as one that
supports an active, can-do, and athletic lifestyle.
 When to Use: This is effective for products or services that align with specific customer
lifestyles or social groups (e.g., fitness, sustainability, outdoor adventures).

6. Usage-Based Positioning

 Definition: Positioning based on when or how the product is used, emphasizing its
relevance for certain occasions or situations.
 Example: Red Bull positions itself as an energy drink that’s ideal for people who need a
boost during sports, work, or late-night activities.
 When to Use: When the product is most relevant or beneficial during specific times,
contexts, or experiences (e.g., holiday promotions, seasonal products).

7. Competitor-Based Positioning

 Definition: Positioning a product directly against a competitor, either by highlighting its

superior advantages or by adopting an alternative approach.
 Example: Pepsi’s campaigns often position itself against Coca-Cola by emphasizing its
younger, more vibrant brand image.
 When to Use: This strategy works when competing in a mature, saturated market where
you need to differentiate by directly addressing a competitor’s weaknesses or offering a
better alternative.

Positioning Map (Perceptual Map):

A positioning map (or perceptual map) is a visual tool used to plot competitors’ brands and
your own brand based on two key attributes that are important to consumers. The map shows
how brands are perceived in terms of factors like quality, price, or other differentiating factors.

Example:

 X-axis: Price (Low to High)

 Y-axis: Quality (Low to High)

By placing brands on the map, you can see where your brand sits in relation to competitors,
identify gaps in the market, and determine if there are opportunities for differentiation or
repositioning.
 POSITIONING AND REPOSITIONING

 Positioning: Refers to how a brand is initially placed in the market to target a specific
audience. It’s about setting up a long-term perception.
 Repositioning: In some cases, brands or products need to shift or redefine their
positioning based on changes in the market, consumer preferences, or competition.
Repositioning might involve altering product features, target audiences, pricing, or
marketing messages to better align with new customer needs or market trends.

WHY POSITIONING MATTERS

 Differentiation: Positioning helps brands stand out in a crowded market by highlighting

what makes them unique and valuable to customers.
 Customer Connection: A strong positioning strategy resonates with customers on a
deeper level, aligning with their needs, desires, or values.
 Brand Loyalty: Clear positioning builds trust and loyalty, as customers come to associate
the brand with consistent benefits and quality.
 Competitive Advantage: A well-positioned brand gains a competitive edge, making it
harder for competitors to replicate its value in the minds of consumers.

By defining and communicating a clear and unique positioning, businesses can attract the right
customers, create meaningful brand experiences, and drive long-term growth.