Market positioning

Market positioning is “the place a product occupies in consumers minds relative to competing products”. Not to be confused with product positioning. Where the Journal of Advertising Research defines product positioning as a “brand’s objective (functional) attributes in relation to other brands”. It comes down to the effectiveness of the Integrated Marketing Communications (IMC) strategy that the marketer uses as to how compelling the message is deciphered by the consumer. Which in turn, creates the position the brand/product occupies within the consumers mind. A well-positioned brand should accommodate the needs of the targeted segment and offer differentiation from other competing brands, where value proposition is achieved. Effective product positioning has the potential to create a powerful brand; however, if done poorly it can ruin a brands reputation, which will crush a businesses success.

There are different strategies that can be used to entice the segment the marketer is trying to reach which will help consumer’s position the brand in their mind. Communication clutter (noise) can get in the way of messages from a brand, which will hinder a consumer’s ability to effectively position a product or service.[5] Therefore, a message must be clear, concise, communicated, and targeted correctly.

Marketers have the power to create marketing strategies that can be more appealing to specific target market groups. Which is related to the way consumers position the brand in their minds; the more consumers that prefer one brand to another, the more that brand will dominate the market. This is generally achieved by the brand having a differentiated marketing strategy that is sustainable and communicates a message effectively through communication clutter.

Positioning is a marketing strategy, which aims to differentiate a brand in relation to competing brands in order to gain market share. It is the act of designing and creating the company’s image and communicating the benefits of the company’s products, so it gains a distinct place in the market. This can be done by highlighting the main features of the brand or through advertising channels. Each brand differentiates itself differently to gain customers and to create a distinct position in the mind of the consumer. The essence of this marketing strategy is for companies to create a story that facilitates the growth of their business and indicates how their business desires to be perceived by the stakeholders. After a brand has been positioned, it is very challenging to reposition the brand without demolishing the image or integrity of the brand.

Positioning strategies are generally used to differentiate the brand from its competitors; however, the positioning strategy needs to be flexible so it can adapt to changes in the external environment. The strategies that businesses develop need to be simple; multiple concepts may confuse the customers and weaken the effectiveness of the strategy. Using a unique brand name that reflects the vision and objectives of the business will allow for a superior competitive position. This will help businesses secure financial returns from the targeted market. The three techniques used in positioning include brand, product and price. The combination of these will contribute to a successful positioning strategy.

Positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. It is also called product positioning.

Positioning is one of the most powerful marketing concepts and the meaning of positioning was rather limited in the earlier years when marketing was just getting started which focused on the concept of reputation. Positioning then became “the place a brand occupies in the mind of its target audience”.[14] Under this meaning many companies now use the concept of positioning as a part of their everyday marketing activities or strategies and is also used as a tool for explaining how consumers can relate to foreign markets easier.

Enis & Cox explain to us that word positioning was introduced by an advertising executive in his 1969 article which was published in “Industrial Marketing” and “Advertising Age” Jack Trout, an advertising executive. A few years later in 1972, Jack Trout teamed up with Al Ries who was another advertising executive, in order to write an article called “Positioning cuts through chaos in marketplace” which was also published by “Advertising Age”. In the early 1970s, positioning became a popular word with workers within marketing, especially those that were working in the area of advertising and promotion. Positioning continues to be a frequently used term in marketing literature as Maggard states positioning provides us with a valuable conceptual vehicle, which is effectively used to make various strategy techniques more meaningful and more productive.

See also

Market segmentation, Business Intelligence, Market penetration

Material

• Positioning book review

Papers

• Trout, J., (1969) “Positioning” is a game people play in today’s me-too market place, Industrial Marketing, Vol.54, No.6, (June 1969), pp. 51-55.

Books

• Trout, J., & Ries, A. (1982). Positioning: The battle for your mind. Replay Radio, Radio New Zealand.
• Trout, J., & Rivkin, S. (2010). Differentiate or Die: Survival in our era of killer competition. John Wiley & Sons.
• Sengupta, S. (2005). Brand positioning: Strategies for competitive advantage. New Delhi: Tata McGraw-Hill.