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Product Positioning

This document discusses product positioning strategies. It defines product positioning as creating a distinct image of a brand in customers' minds relative to competitors. Effective positioning is more important than actual product attributes. The document outlines that positioning involves: 1) Defining who the target customer is 2) Communicating what functional benefits the product provides 3) Establishing why customers should choose the brand over alternatives 4) Maintaining a consistent brand image through marketing mix strategies Successful positioning occupies a unique space in customers' minds and creates brand loyalty through meaningful perceived differentiation from competitors.

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Aiman Tuha
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96 views32 pages

Product Positioning

This document discusses product positioning strategies. It defines product positioning as creating a distinct image of a brand in customers' minds relative to competitors. Effective positioning is more important than actual product attributes. The document outlines that positioning involves: 1) Defining who the target customer is 2) Communicating what functional benefits the product provides 3) Establishing why customers should choose the brand over alternatives 4) Maintaining a consistent brand image through marketing mix strategies Successful positioning occupies a unique space in customers' minds and creates brand loyalty through meaningful perceived differentiation from competitors.

Uploaded by

Aiman Tuha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Product Positioning

The Challenge
● Over-communicated society.
● Numerous marketing messages/ads everyday.

Challenge: Create a distinct and persuasive product or


service image in the mind of customer.
Positioning
● Positioning is the source of major decisions in
marketing.
● Marketing Mix: entire combination attempts to
communicate the brand position to consumers.
● Product positioning: defined brand image relative to
competition within a market segment.
● Each brand is noticed when it occupies a particular
point or space in the consumer’s mind.
Defination
• Product Positioning refers to all the activities
undertaken by a marketer to create and maintain the
concept of value regarding its brand in the minds of
customers as against competitors brand.

• Product positioning is the image that a product


produces in the mind of customers in comparison to the
competitors products and also in comparison to other
products of the same company.
Positioning
● Right positioning is more important than actual
attributes of the product.
● Different images assigned to same products in different
markets, for different segments.
● It is repositioning the product without making any
change in the actual product.
● Marketers try to capture a niche, no other products
does.
● Create a product image congruent with the relevant
self-image.
Getting into the Mind of the
Consumer

• It is easier if the product or service happens to be the


first in the market.
• However, not everything is lost if a marketer is not the
first in the market the marketer needs to make attempt
to occupy a unique position in the customer’s mind.
Positioning
● Major contribution of positioning: introduced the concept
of distance dissimilarity between brands in the
perceptual space of consumers.
● It presents many opportunities for perceived
differentiation of products and brands.
Positioning
● When brands are perceived different, they create a loyal
following.
● The differentiation should be convincingly meaningful
and persuasive for target customers.
● It’s not really what product does, but what marketer
does to the mind of customers.
Examples of positioning

Based on size
Based on shape
Based on toughness and endurance
Based on low price
Based on high price
Based on quality
Based on time of day
Based on substitution
Based on sex of the consumer
Based on age
Based on athletic approach
Based on cultural symbols
Positioning Strategy
Essentially Revolves around Four Questions:

1. Who am I? (identity, lineage, family)


2. What am I? (functional capabilities)
3. For whom am I? (who I serve best)
4. Why me? ( why choose me over other alternatives)
Popular Brand Positioning
Approaches
1. By corporate identity - Sony, Seiko, Shan Foods, Lays
2. Brand endorsement - Lux, Shan Foods, Shangrila
3. Product attributes/benefits - Economy, safety, reliability
4. Occasion & Time - Cadbury, Vicks VapoRub
5. Price - Quality -
6. Product Category - Honda Civic, Civic Vti Oriel
7. Product User - Fair & Lovely (for women and men),
Honda Motorcycle.
Repositioning
• Same product and target market, change in
image of product.
• The product may be acceptable in functional
terms but fails because it lacks the required
image.
• The contexts in which the customers come
into contact with the company are changed
to reflect the new image.
Positioning
• Positioning is normally done by managers
with an ‘inside-out’ thinking and is based on
what is going on in the organization.

• But actually for a positioning strategy to be


successful, it has to be based on an ‘outside-
in’ strategy. .
QUIZ
How do segmentation, targeting and
differentiation create value for customers?

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