Product Positioning

Product Positioning

Think of positioning as the perception the target audience has of a product/service

Planning of a product’s position must involve issues such as:

1. The competition and how their products are perceived

2. The needs and desires of the target audience

3. Element of mystique/drama that the product/service naturally has about it

Product Positioning

In crowded markets, it is very important to position the product appropriately

In order to stand out, the product has to have a clear position in the audience’s mind

The idea is to “create an image” of the brand that is appealing to the consumer

Positioning is the attempt to obtain a ‘share of mind’

Without positioning a company would be forced to offer price cuts and costly advertising strategy to push its products

Types of Positioning-BenefitCustomers want every product they they buy to benefit them in some way

Competition is enhanced as companies try to “out benefit” one another and take the position away from the original brand (e.g. Coke Zero)

This is good for the consumer but may create stress for the marketer

May also increase production costs as each additional benefit is added to product/service

Types of Positioning-TargetFocusing all of the brand’s marketing toward a specific target market

Example: Target market for your cereal

This strategy should cause the target consumers to think that the company owns the target market

Problem with this method is target markets are constantly changing so frequent re-evaluation or re-positioning may be necessary

Nike 1

Types of Positioning-PriceTwo options here that marketers can offer:

Most expensive product in a category:◦ a luxury good that offers status over quality

(diamonds, caviar, Bentley, Rolls Royce)◦ best quality in a category (Mercedes, Lexus)◦ an exclusive product that deters unwanted

customers (hotels, fashion stores)

Least expensive product in a category:◦ value for the dollar (IKEA, Winners, Wal-Mart)◦ cheap for the very budget conscious (dollar

stores)Wal Mart

Types of Positioning-ServiceInvolves using a unique service aspect in the delivery of your product/service

Examples: Walmart - return policy and greetersMr. Lube - free newspaper, hours of

operationApple Store – sales staff quality of

serviceMetro – 24 hr grocery storeShoppers Drug Mart – 24 hr outlets

FEDEX

Types of Positioning-Distribution

Involves a unique method of distribution

Examples: Avon - direct salesMEC - co opAmazon – online

Positioning tips

Marketers must also ensure the positioning is clearly understood by the target market◦ Example: MEC is not primarily profit-driven = lower prices,

good quality, environmentally friendly

Making consumers understand exactly what they can expect from your product/service will ensure they do not go to the competition◦ Example: Tim Horton’s clearly Canadian

versus Country Style unclear

Being known for a particular “thing” can make a difference between success and failureExamples:◦ Volvo safety◦ Honda reliability

Extra reading

Product Positioning in Five Easy Stepswww.otmmarketing.com/portals/42226/docs/product_positioning.pdf