Positioning is defined as the act of designing the company’s offering and image to occupy distinctive place in the target market’s mind. A simple example of positioning would be If I say An expensive TV, what comes first to your mind probably will be A Sony or A Samsung TV whereas if i say a cheaper or VFM TV (value for money TV) you might think of an Onida or a Videocon. Thats positioning. Why is it that you have called out these respective names only? That is because how the brands are positioned in your mind in terms of awareness.
The main points that you should remember are:
- Positioning is the final part of the SEGMENT – TARGET – POSTION or STP process
- Positioning is undoubtedly one of the simplest and most useful tools to marketers.
- Positioning is all about ‘perception’. As perception differs from person to person, so do the results of the positioning map e.g. what one perceive’s as quality, value for money in terms of worth, etc, will be different to any other person’s perception. However, there will be similarities in certain cases.
- After segmenting a market and then targeting a consumer, next step will be to position a product within that market. It refers to a place that the product offering occupies in consumers’ minds on important attributes, relative to competing offerings. How new and current items in the product mix are perceived, in the minds of the consumer, therefore re-emphasizing the importance of perception!! New Product-need to communicate benefits.
The most attractive positioning that can be targeted in general is:
(a) Prospectively profitable: the segment’s characteristics (e.g. price levels, growth rate) and competitive environment (e.g. number of competitors, basis of competition) are conducive to a growing pool of profits.
(b) Homogeneous within the segment, i.e. members are relatively similar with respect to attitudes, buying criteria, media habits, etc.
(c) Heterogeneous across segments, i.e. members in different segments have fundamental differences and act accordingly.
(d) Accessible: members can be reached effectively with communications, and shop in outlets through which products can be efficiently distributed.
(e) Winnable: the company’s distinctive strengths match the segment’s requirements and provide an advantage versus competition, so the company can reasonably expect an acceptable share of the industry profits.
Here is a video by Marketing91 on Positioning.