Topic 4

Positioning
Topic Outline:

Positioning-Definition

Perceptual Mapping & Positioning Dimensions

Positioning Statements; Evaluating Positioning Statements and

Repositioning
Positioning
refers to the development of strategy that helps to influence how a particular
market segment perceives a brand, good, or service in comparison to the competition.
Positioning is all about defining a space in the mind of the customer — something that
your customer thinks of and associates with your product.

Market positioning refers to the process of establishing the image or identity of a

brand or product so that consumers perceive it in a certain way. For example, a car maker
may position itself as a luxury status symbol.
Remember that positioning doesn’t just mean what your target market thinks
about your product. Rather, it’s about how they think about it relative to competitors’
products — your product is less expensive, performs better, or fits better with the
customer’s lifestyle. Positioning often relates to a brand’s strategic objectives.
Perceptual Mapping & Positioning Dimensions
Perceptual mapping is a graphic display explaining the perceptions of customers with
relation to product characteristics. Perceptual mapping is a diagrammatic technique used
by marketers in an attempt to visually display the perceptions of customers or potential
customers.
Positioning is facilitated by perceptual mapping to determine the ideal points of
consumers. This helps to determine if positioning should be functional, symbolic, or
experiential. Strong positioning will enable a single product to appeal to different
customers for different reasons.
Perceptual Mapping Example:

Positioning Statements
After marketers work through the process of homing in on the best positioning
strategy, they arrive at the final step: the positioning statement. The positioning
statement reflects everything you’ve learned up to that point about how your product,
service, or brand can best reach your target segment. As a statement, it explains exactly
how you plan to provide value to those target customers. In effect, it’s a short, persuasive
argument.
Typically, a positioning statement is one sentence that succinctly identifies the
target market and spells out what you want them to think about your brand. This
statement should include 1) the target segment, 2) the brand name, 3) the product/service
category or frame of reference in which you are establishing this market position, 4) the
key points of differentiation, and 5) the reasons customers should believe the positioning
claims.
Crafting the Positioning Statement
■ To [target audience], Product X is the only [category or frame of reference] that
[points of differentiation/benefits delivered] because [reasons to believe].
■ The parts of the formula supplied by you (the marketer) are as follows:

• The “target audience” is a brief description of the segment you’re targeting

with this positioning strategy. For example: young urban males, managing
partners in law firms, or small business owners in the Pacific Northwest.

• “Product X” is your product, service, or brand name.

• The “category or frame of reference” is the category of products or services

you’re competing in. For instance: spectator sporting events, virtual
assistant services, or employer 401K benefit plans.

• The “points of differentiation/benefits delivered” explains both what

problem you solve and how you solve it in a different and better way than
competitors. It highlights the competitive advantage(s) underpinning your
positioning strategy. Be sure to explain not just what is different about you,
but why customers care about that difference.

• The “reasons to believe” are any proof points or evidence that show your
customers how you live up to your claims about how you are different and
better.
Let’s look at some examples of well-written positioning statements:
AMAZON (circa 2001, when it sold primarily books)
■ For World Wide Web users who enjoy books, Amazon is a retail bookseller that
provides instant access to over 1.1 million books. Unlike traditional book retailers,
Amazon provides a combination of extraordinary convenience, low prices and
comprehensive selection. (“Figuring Out…”, 2014).
Evaluating Positioning Statements
■ How do you know when a positioning statement is going to be effective? Obviously,
positioning statements should contain all the elements in the formula above, since
that information is needed to translate the positioning strategy into a well-
developed marketing mix.
– Is it tailored to the target market?
– Is it simple, focused, and memorable?
– Does it provide an unmistakable picture of your product, service, or brand?
– Can you deliver on the promise you make?
– Does it provide helpful direction for designing the marketing mix and other
decisions?
Repositioning

Positioning is a powerful tool, but when you position a product, service, or brand,
the world doesn’t stand still. Market conditions change. Your customers and competitors
change. You change.

Positioning should be designed to last. But for most offerings, you’ll eventually
need to revisit your positioning strategy and consider whether to make adjustments. This
process has a very logical name: . In some ways, repositioning is more challenging than
initial positioning because you’re building on prior established work, trying to strengthen
what’s working and fix what isn’t—it’s a bit like remodeling an old house instead of
building one from scratch.

References
■ Berner, R. (2007). Chanel’s American in Paris. BusinessWeek, 70–71.
■ Kelley, L. and Jugenheimer, D.W. (2015). Advertising Account Planning: Planning
and Managing an IMC Campaign (3rd ed.). Routledge.
■ Figuring Out The Delicate Art Of Positioning Your Startup. (2014, August 25). Fast
Company. http://www.fastcompany.com/3034721/hit-the-ground-
running/figuring-out-the-delicate-art-of-positioning-your-startup.
■ Positioning templates. (n.d.). EquiBrand Consulting.
http://equibrandconsulting.com/templates/positioning-templates