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Encyclopedia > Positioning (marketing)

A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind". Al Ries is a best-selling author and Chairman of Ries & Ries consulting firm with his daughter, Laura Ries. ... Jack Trout is an owner of Trout & Partners consulting firm. ...


Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions. Target market is the market segment to which a particular product is marketed. ...


In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... A brand is a customer experience represented by a collection of images and ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme. ...


Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.


De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

Contents

Product positioning process

Generally, the product positioning process involves:

  1. Defining the market in which the product or brand will compete (who the relevant buyers are)
  2. Identifying the attributes (also called dimensions) that define the product 'space'
  3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
  4. Determine each product's share of mind
  5. Determine each product's current location in the product space
  6. Determine the target market's preferred combination of attributes (referred to as an ideal vector)
  7. Examine the fit between:
    • The position of your product
    • The position of the ideal vector
  8. Position.

The process is very similar for positioning your company's services. Services, however, don't have the physical attributes of products - that is, we can't feel them or touch them or show nice product pictures. So you need to ask first your customers and then yourself, what value do clients get from my services? How are they better off from doing business with me? Also ask: is there a characteristic that makes my services different? One of the main objectives of Advertising and promotion is to establish what is called mind share (or share of mind). ...


Write out the value customers derive and the attributes your services offer to create the first draft of your positioning. Test it on people who don't really know what you do or what you sell, watch their facial expressions and listen for their response. When they want to know more because you've piqued their interest and started a conversation, you'll know you're on the right track.


Positioning concepts

More generally, there are three types of positioning concepts:

  1. Functional positions
    • Solve problems
    • Provide benefits to customers
    • Get favorable perception by investors (stock profile) and lenders
  2. Symbolic positions
    • Self-image enhancement
    • Ego identification
    • Belongingness and social meaningfulness
    • Affective fulfillment
  3. Experiential positions
    • Provide sensory stimulation
    • Provide cognitive stimulation

This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...

Measuring the positioning

Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis. Perceptual mapping is a graphics technique used by marketers that attempts to visually display the perceptions of customers or potential customers. ... Statistical surveys are used to collect quantitative information about items in a population. ... Multidimensional scaling (MDS) is a statistical technique often used in marketing and the social sciences. ... Factor analysis is a statistical technique that originated in psychometrics. ... See also: Conjoint analysis, Conjoint analysis (in healthcare) Conjoint analysis, also called multiattribute compositional models, is a statistical technique that originated in mathematical psychology and was developed by marketing professor Paul Green at the Wharton School of the University of Pennsylvania. ... Logit analysis is a mathematical technique used by marketers to assess the scope of customer acceptance of a product, particularly a new product. ...


See also

Look up branding in Wiktionary, the free dictionary. ... A famous guru of Marketing and Promotion, Jack Trout has crystalised many strategies for easy application in the real world market. ... The discipline of brand management was started at Procter & Gamble PLC as a result of a famous memo by Neil H. McElroy. ... A brand community is a community on the basis of attachment to a product or marque. ... Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... Marketing management is the practical application of marketing techniques. ... Target market is the market segment to which a particular product is marketed. ... This article or section does not adequately cite its references or sources. ... Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. ... In marketing, product differentiation is the modification of a product to make it more attractive to the target market. ... In marketing and business strategy, proximity mapping is a technique used by IBM, McKinsey and other corporations to illustrate the relative closeness of market segments or characteristics in a two-dimensional space -- typically a sheet of paper or a presentation slide. ... This article or section does not adequately cite its references or sources. ... Companies that compete by selling similar products (or even substitutes) to the same group of customers constitute an industry. ... This article or section does not cite its references or sources. ... Strategy serves as the foundation of a marketing plan. ... The technical term placebo is precisely applied in the specialized medical domains of pharmacology, nosology, and aetiology to denote the pharmacologically inert, dummy simulator of an active drug that serves as a scientific control in clinical trials designed to determine the clinical efficacy of that particular drug. ... These can be utilised in the positioning (marketing) of a brand for competitive advantage via brand/product benefits. ... The 22 Immutable Laws of Marketing is a book written by marketing gurus Al Ries and Jack Trout and first published in 1993 (First paperback edition published 1994). ...

Lists

This is a list of over 200 articles on marketing topics. ... This is a list of articles on general management and strategic management topics. ... This aims to be a complete list of the articles on economics. ... This is a list of topics which are relevant to Accountancy. ... What follows is a list of over 250 Wikipedia articles on finance topics. ... This is an alphabetical list of well-known economists. ...

References

  • Trout, J., (1969) ""Positioning" is a game people play in today’s me-too market place", Industrial Marketing, Vol.54, No.6, (June 1969), pp.51-55.
  • Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York, 1981, ISBN 0-446-34794-9
  • Trout, J. and Rivkin, S. (1996) The New Positioning : The latest on the worlds #1 business strategy, McGraw Hill, New York, 1996, ISBN 0-07-065291-0

  Results from FactBites:
 
Positioning (marketing) - definition of Positioning (marketing) in Encyclopedia (358 words)
In marketing, positioning is the technique in which marketers try to create an image or identity for a product, brand, or company.
Positioning is something that is done in the minds of the target market.
Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis.
  More results at FactBites »

 
 

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