What Is Product Positioning?
Product positioning is a strategic decision that companies take to create a distinctive identity for their product in the market, customer’s mind to market the product’s USPs & strengths.
It aims to make a clear impact on customer’s perception & to build a favourable effect on customer’s mind & making a clear difference from competitors.
This process is based on the solution that the product is providing, product quality and how the product rates itself in comparison to competitors.
For example, a company manufacturing herbal skin care products can position its products as natural, environmentally friendly, chemical etc.
It’s not just advertising or promotion that can influence positioning. This strategy is supported by all the marketing mix elements such as product features, price, promotion, and distribution.
Strategies Of Product Positioning
Product positioning is about how the customer will perceive the product so it is equally important to consider different strategies of product positioning. It’s about introducing the product to the masses. Let’s explore the key strategies that will help you define the position of your product.
Characteristics-based positioning
Every company gives some characteristics to the products to provide associations with different things. But, the company can only do this based on the brand identity & its image. For example, if a person worries about car safety they will probably choose Volvo because of the brand’s positioning. At the same time, another customer who pays attention to reliability would prefer Toyota.
Pricing-based positioning
The idea behind the pricing-based position is to put customer associations with competitive pricing in the market. Most companies focus on strategies of product positioning to position themselves as those that offer products or services at the lowest price. For example supermarkets, they can afford to provide customers with products for lower prices because of the lower costs they pay for shipping and distribution, huge turnover, and a large procurement of goods.
Use or application-based positioning
Application-based positioning means associating a product with a certain use of the application or a lifestyle. For example, people who are gamers and spend a lot of time on computers are used to certain types of computers and computer accessories. So, many products position themselves with high speed & load resistance etc.
Quality or prestige-based positioning
Few brands only focus on this type of product positioning strategy with a focus on quality & prestige the price increases & the number of customers decreases. Sometimes it’s about brand reputation that brings customers attractions. For example, Rolex has an association with achievement and excellence in sports and is popular among powerful and wealthy people.
Competitor-based positioning
This product positioning strategy involves using competitors’ alternatives to differentiate products and highlight their advantages. It helps brands distinguish their products and show their uniqueness.
Benefits of product positioning
We’ve prepared the top benefits of product positioning that show why it’s one of the most effective marketing tactics. It helps in:
- identifying key benefits of a product and matching them with customers’ needs;
- finding a competitive advantage even when the market changes;
- meeting customers’ expectations;
- reinforcing your brand’s name and its products;
- winning customer loyalty;
- creating an effective promotional strategy;
- attracting different customers;
- improving competitive strength;
- launching new products;
- presenting new features of existing products.
Product Positioning Map
Both Brand Perceptual Map and Product Positioning Map is one of the effective ways of marketing that help develop the brand, product, or service positioning strategies of a business in the market.
These two mapping techniques are measured and shown in the graphical representation on the X and Y axis. Each of the axes represents two different variables. Their line indicates their extreme in terms of quantity and quality. When you finally create these lines and label them with the respective criteria, you are good to go to map the existing brand or its products.
Then, if you know where your competitors exist on the map, you can also define your brand’s or product’s position. Please create multiple such maps with different variables.
Product positioning map or brand perceptual map are similar terms. They are often interchangeably used as well. However, both the terms have differences, and we have mentioned the key differences below:
Perceptual Map
Perceptual Map represents the positioning of dominant and competing brands. It is from the consumer’s perspective in the marketplace. It is essential to realize that the Perceptual Map only measures and shows the perception, as there is a significant difference between consumers’ opinions and market reality.
The Perceptual Map can be something other than the reality of the brand or product, as the consumers might have a different approach or viewpoint. Thus, you need to understand that viewpoint and mould your positioning grid.Â
Positioning Maps
A position Map doesn’t mean to measure and represent the consumer’s perception of a product and brand. It instead comprises different essential attributes for defining the market positioning of all the competing brands or products in the market.
As you can study the competing positions of the brands with the Positioning Maps, you can make the required changes in your strategic brand positioning to set your brand at the top or for brand leveraging. You can enter a gap or competition depending on your wish.
Product Positioning Marketing
A positioning strategy is a set of actions and processes that are designed to improve the image and visibility of a brand, company, or product. Product managers should plan for how people in the market will think about their product, as truly the only product positioning that counts is what your customers think as the product has a life of its own. If a customer isn’t thinking about it, your product doesn’t occupy that position.
Successful positioning strategies not only focus on where the product is today but also how the product could potentially progress to where you would ideally like it to be shortly. Businesses use marketing to communicate their market position to customers and influence their perception of the brand’s products or services. Marketing establishes the brand identity, influencing consumer perceptions of its position in the market relative to the alternatives available from competitors.
Examples Of Product Positioning
Nike — high quality
Nike, a famous brand that designs, develops, and manufactures running shoes and sportswear, positions itself as a company that provides athletes with high-quality, fashionable athletic sneakers and apparel.
BMW’s M Series
BMW’s M Series capitalists on the use-based positioning strategy. The M Series was positioned as a high-performance line of cars intended for racing and track use.
Red Bull’s Energy Drinks
Red Bull markets its energy drinks by boasting about the benefits they provide.
The drinks were positioned to give customers an extra boost of energy (wings), which made them appealing to people who needed an energy boost.