Influencing consumer perception of a brand or product in relation to rival brands
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What is Market Positioning?
Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.
For example:
- A handbag maker may position itself as a luxury status symbol
- A TV maker may position its TV as the most innovative and cutting-edge
- A fast-food restaurant chain may position itself as the provider of cheap meals
Types of Positioning Strategies
There are several types of positioning strategies. A few examples are positioning by:
- Product attributes and benefits: Associating your brand/product with certain characteristics or with certain beneficial value
- Product price: Associating your brand/product with competitive pricing
- Product quality: Associating your brand/product with high quality
- Product use and application: Associating your brand/product with a specific use
- Competitors: Making consumers think that your brand/product is better than that of your competitors
A Perceptual Map in Market Positioning
A perceptual map is used to show consumer perception of certain brands. The map allows you to identify how competitors are positioned relative to you and to identify opportunities in the marketplace.
An example of consumers perception of price and quality of brands in the automobile industry are mapped below:
This map is for illustrative educational purposes only.
How to Create an Effective Market Positioning Strategy?
Create a positioning statement that will serve to identify your business and how you want the brand to be perceived by consumers.
For example, the positioning statement of Volvo: “For upscale American families, Volvo is the family automobile that offers maximum safety.”
1. Determine company uniqueness by comparing to competitors
Compare and contrast differences between your company and competitors to identify opportunities. Focus on your strengths and how they can exploit these opportunities.
2. Identify current market position
Identify your existing market position and how the new positioning will be beneficial in setting you apart from competitors.
3. Competitor positioning analysis
Identify the conditions of the marketplace and the amount of influence each competitor can have on each other.
4. Develop a positioning strategy
Through the preceding steps, you should achieve an understanding of what your company is, how your company is different from competitors, the conditions of the marketplace, opportunities in the marketplace, and how your company can position itself.
What is Market Repositioning?
Market repositioning is when a company changes its existing brand or product status in the marketplace. Repositioning is usually done due to declining performance or major shifts in the environment.
Many companies, instead of repositioning, choose to launch a new product or brand because of the high cost and effort required to successfully reposition a brand or product.
Example of Market Repositioning
The example below describes Coca-Cola’s repositioning of Mother Energy Drinks:
The Coca-Cola Company launched Mother Energy Drinks in 2006 into the Australian market. The launch campaign was professionally executed, and Coca-Cola was able to leverage its distribution channels to get the product into major retailers. However, the taste of Mother Energy Drink was subpar and repeat purchases were very low.
Coca-Cola was faced with a decision: to improve and reposition the product or withdraw it and introduce a new brand and product.The company ultimately decided to reposition the product due to already high brand awareness.
The biggest challenge faced by Coca-Cola was to persuade consumers to try the product again. The company changed the packaging, increased the size of the can, and improved the taste of the product. The relaunch of the product featured a new phrase – “New Mother, tastes nothing like the old one.”
Ultimately, Coca-Cola was able to successfully reposition Mother Energy Drinks and the brand today competes with the two leading energy drinks in the market – V and Red Bull.
Other Resources
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FAQs
Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.
What are the 4 positioning strategies? ›
There are four main types of positioning strategies: competitive positioning, product positioning, situational positioning, and perceptual positioning. Competitive positioning involves comparing your product or service with that of the competitors.
What are the 5 P's of marketing positioning? ›
The 5 P's of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things.
What is an example of a positioning strategy? ›
A great positioning strategy example would be a computer company that focuses on providing cutting edge technology at premium costs before their competitors. Another example of positioning strategy would be a large chain store that focuses on providing popular goods to many people at a low cost.
Why is market positioning so important? ›
Market positioning is a critically important part of marketing strategy since it determines to a large extent what customers perceive is being offered to them. This involves: Market segmentation (analysing the different parts of a market) Targeting (deciding with market segments to enter)
What are the 3 C's positioning? ›
One of these fundamental principles is the three C's of marketing. The three C's – customers, competition, and company – are essential to creating a marketing strategy that will resonate with your target audience, differentiate your offerings from your competition, and effectively communicate your brand's value.
What is Nike's positioning strategy? ›
Nike's brand positioning centers around innovation, quality, performance and an inspirational image. Nike utilizes geographic, demographic & psychographic/behavioral market segmentation strategies to gain a better understanding of their customers.
What are the 3 P's of positioning? ›
This, then, is the "3 P's." And there is only one logical order for the 3 P's and that is price, then place, then promotion. As a restatement of a brand's positioning strategy, a brand's core benefit proposition suggests what pricing strategy it should use.
What are the 7 positioning strategies? ›
A brand positioning strategy is the foundation of any successful brand. The seven essential elements are: market category, target audience, USP, brand differentiation, brand personality, brand identity and pricing strategy.
What are the six steps in a positioning strategy? ›
6 Steps To Ensure You're Developing An Effective Brand Positioning Strategy
- How is your brand currently positioned? ...
- Who is your target customer? ...
- Who are your competitors? ...
- What does the future look like? ...
- How is your brand different? ...
- Create and implement your brand positioning statement.
Amy Guettler defines the 6 critical brand-positioning strategies that can revitalize a company brand.
- Quality Positioning. ...
- Value or Price Positioning. ...
- Benefit Positioning. ...
- Problem and Solution Positioning. ...
- Competitor-Based Positioning. ...
- Celebrity-Driven Positioning. ...
- How did we accomplish this goal? ...
- What did we accomplish?
The five tools of the promotion mix include advertising, personal selling, sales promotions, direct marketing, and public relations (PR).
What are the three strategies of pricing? ›
The three most common pricing strategies are:
- Value based pricing - Price based on it's perceived worth.
- Competitor based pricing - Price based on competitors pricing.
- Cost plus pricing - Price based on cost of goods or services plus a markup.
The 7Ps of marketing are product, price, place, promotion, people, process and physical evidence. This post and more is contained within our CIM ebook, 7Ps: a brief summary of marketing and how it works. Learn the 7Ps and you're well on your way to having your marketing fundamentals completed.
What are the three types of market positioning? ›
There are three standard types of product positioning strategies brands should consider: comparative, differentiation, and segmentation. Through these strategies, brands can help their product stand out by targeting the right audiences with the best message.
How do you determine the market position of a product? ›
Key steps in product positioning include knowing your target audience, understanding product features, creating unique selling propositions, assessing competitors, promoting product benefits, and maintaining brand positioning.
What is an example of product positioning in marketing? ›
Apple. Apple positions itself as a high-quality, premium brand on the cutting edge of technological development. The brand's mission emphasizes this innovation-centric slant, with an aim “to bring the best user experience to its customers through innovative hardware, software, and services.”
What does a strong market position mean? ›
Market positioning is the strategic differentiation of a product to make it more valuable in the minds of consumers. A strong market positioning strategy will identify a clear value proposition and have a strong marketing strategy for building and communicating a brand's identity.
