Positioning: definition, importance and positioning strategies

Definition of positioning

Positioning is the effort to make target buyers think of a product in one particular, favourable way that sets it apart from its rivals. A product's position is what buyers actually think and feel about it, judged against the competing products they know. Positioning follows segmentation and targeting and is expressed through the whole marketing mix.

Importance of positioning

1. Differentiation. It makes a product stand out from many similar products in a crowded market.
2. Simplifies choice. Consumers are overloaded with information; a clear position helps them remember and choose the brand.
3. Guides the marketing mix. Product design, price, channels and advertising follow from the chosen position.
4. Competitive advantage. A strong position is hard for rivals to take away and can support premium prices.
5. Customer loyalty. A clear, consistent promise builds trust and repeat purchase.
6. Focus. It aligns the firm's resources on the benefits that matter to its target market.

Positioning strategies

1. Attribute or feature positioning. Positioning on a product feature. Example: a phone positioned on the longest battery life; a scooter on its large storage space.
2. Benefit positioning. Positioning on the benefit the customer gets. Example: a toothpaste positioned on relief from sensitivity; an anti-dandruff shampoo.
3. Use or application positioning. Positioning on a usage occasion. Example: a biscuit for tea-time; a chocolate for celebrations; a drink for energy after exercise.
4. User positioning. Positioning for a particular type of user. Example: a scooter for young women; a health drink for growing children; a credit card for frequent travellers.
5. Competitor positioning. Positioning directly against a competitor or as an alternative to the leader. Example: a challenger brand comparing its price and features with the leader's.
6. Price-quality positioning. Positioning as premium (high quality, high price) or as value for money. Example: a luxury car brand versus an economy car; a budget hotel chain.
7. Product-class positioning. Positioning against another product category. Example: a juice brand positioned as a healthy alternative to soft drinks.
8. Cultural symbol positioning. Using cultural symbols or heritage. Example: an ayurvedic brand drawing on tradition and natural ingredients.

Firms also choose an overall value proposition; Kotler and Armstrong list more for more (premium), more for the same, the same for less, less for much less (budget) or more for less.

Conclusion

Positioning gives a product a distinct identity in the customer's mind. A position, once won, must be defended: every later change in product, price or advertising should be checked against it. Choosing a relevant strategy and delivering it consistently is essential for competing successfully.