Question 2 (c)

Product positioning, how it differs from market targeting, with examples

9 marks

Time to write
About 18 minutes
Topic
Segmentation, targeting, positioning

Question

Question 2 (c) · 9 marks

"In marketing, positioning is the process of creating, relative to competitors, a distinct and memorable image of a brand or product in the target audience's minds." Keeping this statement in view, discuss the concept of product positioning. In what way is it different from market targeting? Also provide some examples.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • Keeping thisTie the answer to the quoted statement: say what it means first, and come back to it at the end.
  • examplesExamples are asked for: one short example with each point.
  • processA process: the steps in order, one heading each.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Comment on the statement and the concept of positioning 4 marks 7 min
  3. 2 Difference from market targeting 3 marks 5 min
  4. 3 Examples 2 marks 4 min
  5. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

The statement and the concept of positioning

The statement explains positioning as creating a distinct and memorable image of a brand in the minds of the target audience, relative to competitors. Three points stand out. First, positioning takes place in the customer's mind: a product's position is simply what buyers think of it on the attributes they care about. Second, it is relative: it is meaningful only in comparison with competing brands. Third, it must be distinct and memorable: a vague or confused image gives customers no reason to choose the brand. Product positioning is therefore the work of shaping the offer and its image so that target buyers think of it in one particular, favourable way that sets it apart from rivals.

Picture itProduct positioning, how it differs from market targeting, with examples

1Among twenty identical packs, her hand goes straight to the one that owns its shelf.

PositioningMake target buyers think of a product in one particular, favourable way that sets it apart from its rivals

2On the late train home, his phone is the one still awake—the battery phone.

Attribute or feature positioningA phone positioned on the longest battery life

3And at tea-time, one biscuit has made the tea tray its home.

Use or application positioningA biscuit for tea-time

Steps in positioning

  1. Identify possible competitive advantages: product, service, channel, people or image differences.
  2. Choose the right differences: those that buyers value, that rivals cannot easily copy, and that the firm can communicate and afford while still making a profit.
  3. Select an overall value proposition; Kotler and Armstrong describe five, from more for more (premium) to more for less.
  4. Communicate and deliver the chosen position consistently through the whole marketing mix.

Positions may be based on product attributes, benefits, usage occasions, users, comparison with competitors, price and quality, or cultural symbols.

Positioning and market targeting compared

BasisMarket targetingProduct positioning
PurposeSelecting which segments to serveDeciding how the product should be perceived in those segments
QuestionWhom shall we serve?What place shall we occupy in their minds?
OrderFollows segmentationFollows targeting
FocusMarket attractiveness and the firm's resourcesCompetitive advantage and customer perception
ResultTarget marketPositioning statement and value proposition

Targeting decides the audience; positioning decides the message and the image the firm will build with that audience.

Examples

  1. A budget airline positions itself on low fares and punctuality, while a full-service airline stresses comfort and service.
  2. A toothpaste brand positions on cavity protection, a rival on herbal ingredients and a third on whitening.
  3. A car brand positions on safety; another on fuel efficiency and low maintenance; a luxury maker on prestige.
  4. A detergent brand positions on stain removal for heavy users, while a premium liquid detergent positions on care for delicate fabrics.

Conclusion

Positioning gives a brand a clear identity in the minds of its chosen customers, set against its competitors. It is distinct from targeting, which chooses those customers, but the two must fit together. A brand that tries to be everything to everyone ends up with no clear position; one that chooses its audience carefully and promises one strong benefit becomes memorable.

Where the 9 marks sit

#ComponentMarks
1Comment on the statement and the concept of positioning4
2Difference from market targeting3
3Examples2
Total9
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