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: The competition and how their products are perceived The needs and desires of the target audience 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-Benefit Customers 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-Target Focusing 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-Price Two 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-Service Involves using a unique service aspect in the delivery of your product/service Examples: Walmart - return policy and greeters Mr. Lube - free newspaper, hours of operation Apple Store – sales staff quality of service Metro – 24 hr grocery store Shoppers Drug Mart – 24 hr outlets FEDEX

Types of Positioning-Distribution Involves a unique method of distribution Examples: Avon - direct sales MEC - co op Amazon – 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 failure Examples: Volvo  safety Honda  reliability

Extra reading Product Positioning in Five Easy Steps www.otmmarketing.com/portals/42226/docs/product_positioning.pdf