Positioning (marketing)

From open-encyclopedia.com - the free encyclopedia.

fr:Positionnement

In marketing, positioning is the technique in which marketers try to create an image or identity for a product, brand, or company. It is the 'place' a product occupies in a given market as perceived by the target market. Positioning is something that is done in the minds of the target market. A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors.

Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

The ability to spot a positioning opportunity is a sure test of a persons' marketing ability. Successful positioning strategies are usually rooted in a product's sustainable competitive advantage. The most common basis' for constructing a product positioning strategy are:

• positioning on specific product features
• positioning on specific benefits, needs, or solutions
• positioning on specific use categories
• positioning on specific usage occations
• positioning against another product
• positioning through product class dissociation

More generally, there are three types of positioning concepts:

• 1 functional positions
  • solve problems
  • provide benefits to customers
• 2 symbolic positions
  • self-image enhancement
  • ego identification
  • belongingness and social meaningfullness
  • affective fulfillment
• 3 experiential positions
  • provide sensory stimulation
  • provide cognitive stimulation

Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis.

Generally, the product positioning process involves:

• 1 identifying competing products
• 2 identifying the attributes (also called dimensions) that define the product 'space'
• 3 collecting information from a sample of customers about their perceptions of each product on the relevant attributes
• 4 determine each products' share of mind
• 5 determine each products' current location in the product space
• 6 determine the target market's preferred combination of attributes (referred to as an ideal vector)
• 7 examine the fit between:
  • the positions of competing products
  • the position of your product
  • the position of the ideal vector
• 8 select optimum position

The term was coined in 1969 by Jack Trout in his paper: Trout, J., ""Positioning" is a game people play in today’s me-too market place", Industrial Marketing, Vol.54, No.6, (June 1969), pp.51-55.

See also

• marketing
• marketing management
• target market
• product management
• market segment
• product differentiation
• marketing plan
• sustainable competitive advantage
• strategic management
• marketing strategies

References

• 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.

• Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York, 1981, ISBN 0-446-34794-9

• Trout, J. and Rivkin, S. (1996) The New Positioning : The latest on the worlds #1 business strategy, McGraw Hill, New York, 1996, ISBN 0-07-065291-0

List of Marketing Topics	List of Management Topics
List of Economics Topics	List of Accounting Topics
List of Finance Topics	List of Economists