Positioning definition, process, and importance
The term “positioning” refers to the customer’s perception of a good or a service in relation to its competitors. After “segmenting” a market and “targeting” a customer, a business “positions” its product within that market, or, in other words, “attempts to create a distinct impression in the customer's mind.”
So how can you successfully position your product and survive in the competitive marketplace?
Identify a relevant set of competitive goods or services serving your target market, and avoid disregarding important substitute products or potential competitors, in order not to risk being blindsided by unforeseen competition!
Recognize the determinant attributes defining the “product space”, and conduct qualitative and quantitative researches to collect data about existing and potential customers’ perceptions for products in the competitive set.
Analyze the current positions of products in the competitive set by means of the positioning grid (or the perceptual map)!
Determine customers' most preferred combination of determinant attributes by using the most appropriate statistical technique, and examine the fit between preferences of market segments and your current brand position.
Come up with a clear and succinct positioning statement or a value proposition to guide the development and implementation of your marketing strategy!
Effective positioning decisions establish the foundation upon which winning marketing strategies and programs are built!