1. Product Positioning

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Types of Positioning-Distribution
Involves a unique method of distribution
Examples: Avon - direct sales
MEC - co op
Amazon – online

9. 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

10. Extra reading Product Positioning in Five Easy Steps