Positioning is defined as the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind.
For Example – What brand occurs in your mind when I say walkman? I guess Sony. Similarly what do you think of when I say photocopies? I think Xerox or Cannon. Thus these brands have positioned themselves in the mind of their customer such that whenever the generic product is mentioned immediately these brands come into our mind. Now if I ask most innovative company – I guess you will name APPLE : I agree with you.
Thus Positioning can be defined with the following core points
- Positioning is a final step in the Segmentation Targeting and Positioning step
- Positioning requires a holistic approach and is one of the most useful tools for marketers.
- Positioning is almost completely about perception. How the customer perceives your product or brand is what positioning is all about. Thus the best mass marketers like to use marketing tactics which touch the whole market (Example – Vodafone Zoozoo’s)
- Perceptual mapping is generally used to determine the Positioning of a product in the target market.
- Positioning can make or break a brand. A rightly perceived product / company gets lots of returns from the market as compared to a wrongly perceived company. Example – Airtel vs Reliance telecom
- Communication is of ultimate importance in positioning. The right communication can go a long way in determining the perception of a product / brand.
- Finally, Attributes – tangible or intangible (in case of services) are necessary to be involved in the product which increase the positioning of the product in the customers mind.