Positioning is the process of creating a different mental position or image of a product or service in the customer’s mind compared to other brands in the market. Every business actor considers brand positioning as one of the most important aspects of overall brand creation. That’s because people usually have different perceptions about a brand based on how the brand is positioned in the market.
Good positioning makes the product unique and makes users consider using it as a distinct advantage for them. Not only that a good positioning also makes a brand or product stand out from the rest, gives it the ability to set a higher price and prevent competition from others and allows brand or product flexibility in expansion, change, distribution and advertising.
The Importance of Positioning
In marketing, the concept of positioning is followed after market segmentation wherein companies create a position statement for their brand, product, or service that helps customers identify the business.
Positioning is broadly classified into three types:
It is used when a brand or product provides a solution to a problem and provides benefits to the customer. It focuses on the function, benefit or utility it provides to the customer.
This is useful for creating a brand image which helps create brand equity. For example when a customer has a special concern, social relationship, identification with the product.
It creates a sensory and cognitive simulation in the customer’s mind. It is one of the foundations of a customer-relevant experience.
In general, companies use a positioning process in determining the steps to place a product or service in the right way in the minds of consumers. If a company decides to change people’s perception of a brand, they will generally change the logo, slogan, and other things that are required of the brand. This process is known as brand repositioning, which helps create a distinct brand image.
Positioning Strategy Key Factors
Positioning is very important for any brand, product or service to ensure an impression is created in the minds of consumers. The main factors that companies consider when creating a strategy for a brand or product are:
Positioning can be done on how the product looks, feels, appears and so on. Key product features can be used to highlight value and create a positioning around it.
Utilities and Benefits
It takes into account the value a product gives and which needs are solved. This shows clear benefits in terms of value. For example. Savings in electricity costs can be a clear benefit for customers.
It defines how the product can be used. All different use cases and scenarios can be used to create interesting positioning.
The time, event or occasion when the product can be used. Association with an event like New Year’s can lead to a strong positioning in the minds of customers.
Positioning can be done when compared to competitive offers. This is done by many companies to use their existing competitive positioning and make it better to create a better positioning.