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Subject A little more clarity on positioning

Saved By H Visser
Modified Date 02-Jun-2020 09:16
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After getting a few nervous e-mails regarding positioning, I thought it may be an idea to add this short explanation.

“External image on the axis” refers to the image which the organisation aspires to project to the potential customers. The axis refers to the x
and y axes on the table, as in a two-dimensional graph. In this case the external image is portrayed along the y-axis.

The positioning of an organisation is done using a X and Y axis. These are 2 dimensions. On both these axes, the qualities that the
organisation wants to emphasize are used to position itself.

Say for arguments sake you use “Quality” on the one axis and “Price” on the other. On the one end of Y it will be High (Quality), while
on the other end it will be Low (Quality). The same goes for price. On the one end it will be High (price) and the other end will be Low
(price). Then you use the X/Y diagram to position yourself against competitors. High quality/High price OR High quality/Low price, etc.
You position your organisation in one of the four blocks in the X/Y diagram against that of competitors. The positioning dimensions
MUST be something that is VALUED by the market.

That is a strategic position that the organisation takes. NOTE The quality/price dimensions are very basic and should NOT be used in
your image for your answer in an exam. It should also never be used for positioning for your real organisation, because price and
quality are the expected minimum to be able to participate in the market. Use something that is valued by the market (or even better,
by the different market segments).

Hope this helps.

Hennie Visser

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