The art (and science) of Positioning
What is your position? Do you have a position? Understanding the concept of strategic positioning is a critical but often overlooked aspect of successful marketing. It is a result of communicated perceptions about a product or brand that is different from image. A position is a distinct place in the mind of your customer, a point that is usually set in relation to the competition. Closely related to brand distinction, a well defined positioning strategy can be used to create differentiation and quickly communicate the uniqueness of a product or service.
Your position is what you stand for in the mind of the customer. Are you known as an exclusive, high priced option or as having the best service in your industry? Adopting a position that is owned by your competition is a common mistake. If a competitor is well known for reliability, it is ill advised to try and adapt reliability as your positioning. The idea is to be relevant to the customer and to find an attribute that makes you unique.
For example, who do you think of when it comes to cola drinks? Most people say “Coca-Cola”. Coca-Cola rules the category of cola drinks. Think of a category as a ladder. On each rung is a position. On the top rung of the cola ladder sits Coke. This translates to larger market share and staying power. On the second rung sits Pepsi. One the third rung, RC Cola. On the fourth rung - who cares? They are not in the game.
It is very difficult to unseat the top rung position. In fact, in the early cola wars, a group of smart people decided to compete with Coca-Cola. These wise folks knew that competing with Coke head-on would be suicide. Instead, they decided to create a refreshing, carbonated drink that would take the position as the antithesis of Coke. Instead of a brown liquid, it was clear. Named, 7-Up, this product was perfectly positioned as “The UnCola” - thus creating a new category (lemon/lime carbonated drinks), taking the top position and taking massive market share from the leader in the industry, Coca-Cola.
Developing a positioning strategy is highly dependent on the techniques of marketing research. I have used the following seven steps to help industrial and other business to business companies identify the most profitable position.
1. Know what your customer wants. Start with listing all the possible wants and needs that your product or service may satisfy.
2. Identify the competitors.
Primary competitors are those that compete to satisfy the core need and usually are very similar to your offerings. Secondary competitors are indirect competitors, those that do not come immediately to mind.
3. Understand how your customers evaluate their options.
The standards people use to choose from similar options are the foundation upon which a position is built. You must understand these options and how the buyer weights them. Avoid a position that is low on the customers list of standards.
4. Understand how your competitors are perceived.
Positioning is always in relation to competitors. Research how each primary and secondary competitor positions itself. In many markets, competitors may have no position or a weak position making it easier to identify the most beneficial position.
5. Watch for gaps.
Upon analysis you may identify a category that is not being served by the competition. If other factors indicated that the category is viable, being the first to offer a product or service is an advantageous position.
6. Plan and carry out the strategy.
Once the target market has been selected and the desired position determined, you must design a program that ensures that every piece of information about the product or service will create the intended perception. This is where a succinct positioning statement and well thought out brand strategy become important.
7. Monitor the position.
Markets and categories shift over time. It is important to make sure that the intended position is the one actually achieved by the product or brand. A position may need to be slightly adjusted over time according to changes in the market place.
Your position is much more than a mere slogan. Get it wrong at your own risk.
Your position is what you stand for in the mind of the customer. Are you known as an exclusive, high priced option or as having the best service in your industry? Adopting a position that is owned by your competition is a common mistake. If a competitor is well known for reliability, it is ill advised to try and adapt reliability as your positioning. The idea is to be relevant to the customer and to find an attribute that makes you unique.
For example, who do you think of when it comes to cola drinks? Most people say “Coca-Cola”. Coca-Cola rules the category of cola drinks. Think of a category as a ladder. On each rung is a position. On the top rung of the cola ladder sits Coke. This translates to larger market share and staying power. On the second rung sits Pepsi. One the third rung, RC Cola. On the fourth rung - who cares? They are not in the game.
It is very difficult to unseat the top rung position. In fact, in the early cola wars, a group of smart people decided to compete with Coca-Cola. These wise folks knew that competing with Coke head-on would be suicide. Instead, they decided to create a refreshing, carbonated drink that would take the position as the antithesis of Coke. Instead of a brown liquid, it was clear. Named, 7-Up, this product was perfectly positioned as “The UnCola” - thus creating a new category (lemon/lime carbonated drinks), taking the top position and taking massive market share from the leader in the industry, Coca-Cola.
Developing a positioning strategy is highly dependent on the techniques of marketing research. I have used the following seven steps to help industrial and other business to business companies identify the most profitable position.
1. Know what your customer wants. Start with listing all the possible wants and needs that your product or service may satisfy.
2. Identify the competitors.
Primary competitors are those that compete to satisfy the core need and usually are very similar to your offerings. Secondary competitors are indirect competitors, those that do not come immediately to mind.
3. Understand how your customers evaluate their options.
The standards people use to choose from similar options are the foundation upon which a position is built. You must understand these options and how the buyer weights them. Avoid a position that is low on the customers list of standards.
4. Understand how your competitors are perceived.
Positioning is always in relation to competitors. Research how each primary and secondary competitor positions itself. In many markets, competitors may have no position or a weak position making it easier to identify the most beneficial position.
5. Watch for gaps.
Upon analysis you may identify a category that is not being served by the competition. If other factors indicated that the category is viable, being the first to offer a product or service is an advantageous position.
6. Plan and carry out the strategy.
Once the target market has been selected and the desired position determined, you must design a program that ensures that every piece of information about the product or service will create the intended perception. This is where a succinct positioning statement and well thought out brand strategy become important.
7. Monitor the position.
Markets and categories shift over time. It is important to make sure that the intended position is the one actually achieved by the product or brand. A position may need to be slightly adjusted over time according to changes in the market place.
Your position is much more than a mere slogan. Get it wrong at your own risk.
posted by Pete Monfre at 5:38 PM
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