Market Positioning
Positioning has evolved to refer to the process through which marketers attempt to build an image or identity for their product, brand, or organisation in the minds of their target market. The core of every marketing plan is brand positioning.
It is the process of creating a company’s proposition and brand that stands out and is appreciated in the eyes of its target market. By outlining a brand’s core values, its unique selling proposition, how it compares to other brands, and the reasons people choose it, a strong brand positioning aids in directing marketing strategy. Therefore, brand positioning may be defined as the standing or perception that a brand has among current and future consumers.
Market positioning is the capacity to shape consumers’ perceptions of a brand or product in comparison to rivals. Establishing a brand’s identity or image with the intention of influencing how customers see it is the goal of market positioning.
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 your competitors
Positioning Strategies
- Positioning by product attributes and benefits
It is to associate a product with an attribute, a product feature, or a consumer feature. Sometimes a product can be positioned in terms of two or more attributes simultaneously. The price/quality attribute dimension is commonly used for positioning the products.
A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. Marketers attempt to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision).
- Positioning by Price/Quality
Marketers often use price/quality characteristics to position their brands. One way they do it is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach for positioning the product.
Another way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. Although price is an important consideration, the product quality must be comparable to, or even better than, competing brands for the positioning strategy to be effective.
- Positioning By Use or Application
Another way is to communicate a specific image or position for a brand to associate it with a specific use or application. Surf Excel is positioned as stain remover ‘Surf Excel hai na!’ Also, Clinic All Clear – ‘Dare to wear black’.
- Positioning By Product Class
Often the competition for a particular product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. Manufacturers of music CDs must compete with the cassette industry. The product is positioned against others that, while not exactly the same, provide the same class of benefits.
- Positioning By Product User
Positioning a product by associating it with a particular user or group of users is yet another approach. Motography Motorola Mobile, in this ad the persona of the user of the product has been positioned.
- Positioning By Competitor
Competitors may be as important to positioning strategy as a firm’s own product or services. In today’s market, an effective positioning strategy for a product or brand may focus on specific competitors.
This approach is similar to positioning by product class, although the competition is within the same product category in this case. Onida was positioned against the giants in the television industry through this strategy. Onida colour TV was launched with the message that all others were clones and only Onida was the leader— ‘Neighbour’s envy, owner’s pride’.
- Positioning By Cultural Symbols
This is an additional positioning strategy wherein the cultural symbols are used to differentiate the brands. Examples are Humara Bajaj, Tata Tea, and Ronald McDonald. Each of these symbols has successfully differentiated the product it represents from competitors.
