Positioning (Marketing) - Explained
What is a Positioning Strategy?
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Table of ContentsWhat is Positioning?Why is Positioning Useful? Examples of Positioning Strategies Price Positioning Positioning through QualityDemographics-Related Positioning Benefit PositioningProblem and Solution Positioning Celebrity-Driven Positioning Positioning by Repositioning (Competitor-Based Positioning)
What is Positioning?
Position is used to understand what consumers think about us and our brand. More specifically, positioning is a way of positioning our product or brand in comparison to the competition. In other words, it's what people think about our product or our brand compared to the other options on the market.
Why is Positioning Useful?
Positioning helps us to understand the consumer and to mold their view of our product. It also allows us to differentiate our product. It gives us a way to make ourselves stand out - which can lead to competitive advantage.
Examples of Positioning Strategies
Product positioning is meant to make a product a market leader and reinforce a certain image with consumers. Companies may employ several strategies in order to achieve desired missions that may include:
A company can use pricing strategies to appeal to consumers who are sensitive to price mostly middle and low income earners. The brand can set the price of its product below the average market price if it enjoys the economies of scales. Alternatively, the company can create an image that associates the brand with highly priced items or services. This strategy exploits the psychological belief by consumers that an item set to be expensive is highly valuable.
Positioning through Quality
A company can maximize on a quality stance to gain market traction for their products. For instance, companies in the technical industry can focus on their superior engineering and identify themselves as producers of quality products in comparison to the competition. Quality positioning strategies means that a product will be priced higher than the industry prices. The high pricing is due to probably an attempt to recoup the high expenses involved in quality production through sales.
A company can narrow its focus to certain demographics such as age or gender. For instance Dove soap was positioned as beauty soap for women. Similarly, in the beverage industry some drinks are positioned to target women, recently Mary Walker an alcoholic drink was introduced targeting women while the traditional brand Johnnie walker seems to be reserved for men.
Generally, advocating for the benefits a product provides is the norm in brand positioning in order to attract sales. However, a brand needs to narrow down or highlight a unique benefit that no similar competing product has yet claimed. For instance, Colgate manufacturer glaxo-smith built the toothpaste brand on a benefit positioning strategy. The company promised Colgate would prevent gingivitis and cavities an attribute no competing toothpaste had claimed.
Problem and Solution Positioning
A product can be positioned as solving common problem that faces consumers every day. For instance precooked noodles as solving the pressures of time and energy required to prepare a meal by providing a simple and faster solution.
Luxury items can be positioned by celebrity appeal. Getting a celebrity to endorse a certain product can lead to increased sales and even opening up new markets. Consumers who emulate celebrities may find it easy to purchase a product endorsed by their favorite personality.
Positioning by Repositioning (Competitor-Based Positioning)
Repositioning is a competitive based positioning strategy that employs counter strategies by the marketing team. The aim of a repositioning strategy is to change the product view in the minds of targeted consumers in relation to a major competing product claim. One example of a repositioning statement is by Avis in the1960s when they developed an advertising campaign to alter the image of it competitor Hertz. The company's slogan was Avis is only number 2. We try harder
- What is a Market?
- What is Target Marketing?
- What is Market Segmentation?
- How Many Segments to Target?
- How Do We Segment Consumer Markets?
- Benefit Segmentation
- How Do We Segment Business Markets?
- Using Data for Market Segmentation
- Buying Power Index
- What is Customer Relationship Management?
- What is Behavioral Targeting?
- What is Positioning?
- What is a Positioning Statement?
- What is a Perceptual Map?
- Cultural Factors Affecting Marketing
- International Marketing is Challenging