by Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.
For example:
A handbag maker may position itself as a luxury status symbol
A TV maker may position its TV as the most innovative and cutting-edge
A fast-food restaurant chain may position itself as the provider of cheap meals
Types of Positioning Strategies
There are several types of positioning strategies. A few examples are positioning by:
Product attributes and benefits: Associating your brand/product with certain characteristics or with certain beneficial value
Product price: Associating your brand/product with competitive pricing
Product quality: Associating your brand/product with high quality
Product use and application: Associating your brand/product with a specific use
Competitors: Making consumers think that your brand/product is better than that of your competitors
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.
For example, the positioning statement of Volvo: “For upscale American families, Volvo is the family automobile that offers maximum safety.”
- 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 they can exploit these opportunities.
- Identify current market position
Identify your existing market position and how the new positioning will be beneficial in setting you apart from competitors.
- Competitor positioning analysis
Identify the conditions of the marketplace and the amount of influence each competitor can have on each other.
- 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.
Importance of Positioning
Positioning involves both launching new brands into the marketplace (new brand positioning), and repositioning old brands. It is concerned with the differentiation of products and services and ensuring that they do not degenerate into a commodity. To maximize its potential a company should position itself in its core market segments, where it is objectively or subjectively differentiated in a positive way over competing offerings.
Positioning is particularly import for services in the market. As a result of competitive pressure the consumer is becoming increasingly confused by the huge offering of services within each market sector. These offering are communicated by a vast number of advertising messages promoting different features of the services. The key to a successful positioning strategy is to promote the feature which the company is best and which exactly matches the needs of the customer.
Because of intangibility and other features associated with services, consumers find that differentiation of services can be more difficult and complex. Successful positioning makes it easier for the customer to see a company‟s services as being different from others and exactly what is wanted.
Positioning is a strategic marketing tool which allows managers to determine what their position is now,
What they wish it to be and what actions are needed to attain it. The permits market opportunities to be identified, by considering positions which are not met by competitors‟ products. It therefore helps influence both product development and the redesign of existing products. It also allows consideration of competitor‟s possible moves and response often considered at the product level although it is also relevant at the product sector and organizational level. Positioning involves giving the target market segment the reason for buying your services and thus underpins the whole marketing strategy. It also offers guidelines for development of a marketing mix with each element of he it being consistent with the positioning.
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