POSITIONIN
G
The seventh P in the Marketing Mix is Positioning. When
a company presents a product or service in a way that is
different from the competitors, they are said to be
positioning” it. Positioning refers to a process used by
marketers to create an image in the minds of a target
market.Solid positioning will allow a single product to
attract different customers for not the same reasons. For
example, two people are interested in buying a phone;
one wants a phone that is cheaper in price and
fashionable while the other buyer is looking for a phone
that is durable and has longer battery life and yet they
buy the same exact phone
There are three basic concepts for positioning. These
are Functional Positions, Symbolic Positions and
Experiential Positions. Functional Positions deal with
solving a problem, providing benefits and getting a
favorable perception from investors, stockholders and
consumers. Symbolic Positions deal with self-image
enhancement, ego identification, belongingness, social
meaningfulness and affective fulfilment and
Experiential Positions deal with providing sensory or
cognitive stimulation.
Step 1: Confirm Your Understanding of Market Dynamics
At the start of the positioning process, you need 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?If you don't have answers to these
questions, you should consider conducting formal or informal
marketing research to reach a better understanding of your target
market and the market dynamics around it.
Step 2: Identify Your Competitive Advantages
A competitive advantage is some trait, quality, or capability that allows you to outperform
the competition. It gives your product, service, or brand an advantage over others in
purchasing decisions. Competitive advantage may come from and or all of the following:
Price: Something in your production process or supply chain may make it possible for you
to provide comparable value at a lower cost than competitors.
Features: You may provide tangible or intangible features that your competitors do not:
for example, more colors, better taste, a more elegant design, quicker delivery,
personalized service, etc.
Benefits: You may provide unique benefits to customers that your competitors cannot
match. Benefits are intangible strengths or outcomes your customer gets when they use
your offering. For example, time savings, convenience, increased control, enjoyment,
relaxation, more choices, feeling better about oneself, being more attractive, etc.
Create a list of the things that make you different from competitors in positive ways. Then
identify which of these factors are also competitive advantages: the influential factors
that help you perform better in the marketplace and cause customers to choose your
product, service, or brand over other options.
Step 3: Choose Competitive Advantages That Define Your Niche
Your list of competitive advantages represents a set of possible
positioning strategies you could pursue for your product, service,
or brand. The next step is to examine how these factors fit into
customer perceptions of your broader competitive set. Your goal
is to pick a positioning approach that gives you a unique and
valued position in the market that competitors are not addressing.
How to Create an Effective Market Positioning
Strategy?
Create a positioning statement that will serve to identify your business and
how you want the brand to be perceived by consumers.
1. Determine company uniqueness by comparing to competitors
Compare and contrast differences between your company and competitors to
identify opportunities. Focus on your strengths and how it can exploit these
opportunities.
2. Identify current market position Identify your existing
market position and how the new positioning will be beneficial
in setting you apart from competitors.
3. Competitor positioning analysis Identify the conditions of the
marketplace and the amount of influence each competitor can
place on each other.
4. Develop a positioning strategy
Through the preceding steps, you should achieve an
understanding of what your company is, how your company is
different from competitors, the conditions of the marketplace,
opportunities in the marketplace, and how your company can
position itself.
•Brand positioning is important for a company to have a clear way
to share the value their brand brings to customers
