Businesses use marketing to let customers know where they stand in the market and to shape how they view their products and services.
The brand identity is established through marketing, which also affects how customers see the brand in relation to alternatives offered by competitors.
Product Positioning is the image that a produce in the mind of customers in comparison to the competitor’s products and also in comparison to other products of the same company.
Positioning is the act of designing the company’s offering and image to make a distinctive place in the mind of the target market or consumer.
Process of Product Positioning
- Analyze the consumer’s perceptions in relation to competitors.
- Identify competitor’s positions.
- Find out consumer preferences.
- Select the position for the product.
- Monitor the positioning Strategy.
Examples of Product Positioning
The best watch in the world is considered to be a Rolex.
The biggest soft drink firm in the world is Coca-Cola.
One of the best sports cars in the world is considered to be a Porsche.
These businesses hold those positions, making it difficult for a rival to steal them.
We’ve already provided a few examples of product positioning, but let’s take a closer look at one very well-known brand’s positioning.
One of the most well-known companies in the world, Nike is known for creating competitive sportswear for all consumers (not just elite athletes).
Nike presents itself as a firm that offers top-notch, stylish clothes to athletes from all walks of life, rather than just as a manufacturer of shoes and athletic wear.
Even more, these items deliver under the most trying circumstances and motivate sportsmen to perform at their best.
Offering your products at a competitive or lower price than your competitors is known as price-based positioning. And most frequently, people choose these products exclusively on the basis of price, without weighing or contrasting the alternatives.
Example of Price based positioning
The grocery store is the clearest example of price-based positioning since there, discounts enable companies to directly compete on price savings.
Quality based positioning
Quality based positioning refers to the practice of brands using greater price to imply a product of superior quality or status while avoiding price competition.
The focus of a quality-based product positioning strategy is on the product’s quality as its main selling point. This kind of position is frequently used by organisations because it can apply to both products and services.
When highlighting quality, businesses frequently contrast it with the quality of a rival who offers a comparable product.
Example of Quality based positioning
Rolex has dominated the luxury watch industry and will continue to do so.
The variety of products the brand offers is primarily the focus of this kind of product positioning. The audience will be aware of their variety of options in this way.
The brand may contrast the variety offered by its competitors with the variety offered by its product to demonstrate that the company offers a wide variety with the product.
A company may compare how many products they have to those of its competitors to highlight the huge variety they provide, or they may highlight how each of their products are unique and different from the others.
Example of Variety-based positioning
No one provides a wider range than we do. There is a different ice cream flavor for every occasion, with over 15+ options ranging from honey butter pecan to mint agave. So that you can have as much ice cream as you want, whenever you want, get yours in a range of sizes.
Utilizing alternatives offered by competitor brands helps to distinguish products and showcase their benefits. It aids companies in differentiating their products and showcasing their uniqueness.
Performance product positioning
Performance-based product positioning places a strong emphasis on a product’s performance. This kind of approach is more interested in how something works than in how something looks.
Although it can also apply to a digital product, performance positioning is most often used with physical products.
Even though performance positioning marketing frequently highlights how its product is the top performing one on the market, it may or may not draw direct comparisons to similar competitors.
Example of Performance product positioning
voted three years in a row as the computer brand with the best performance. With our newest PC model, the Aero 2000, the highest-rated HD i10 core processor notebook currently on the market, you can satisfy all of your computing needs. Enjoy its unparalleled style and performance.
Advantages of Product positioning
We’ve listed the top advantages of product positioning to illustrate why it’s one of the most successful marketing strategies.
- Finding a competitive advantage in a changing market.
- Meeting customer expectations.
- Reaffirming your brand’s name and its products.
- Gaining customer loyalty.
- Developing an effective promotional strategy.
- Attracting new customers.
- Boosting competitive strength.
- Launching new products.
- Showcasing new features of existing products
- Aligning product’s key benefits with customers’ needs.
What is product positioning used for?
A product’s or service’s positioning describes how it addresses a certain need, want, or desire that the target market is missing. it’s a crucial component of marketing because it establishes and clarifies a company’s goals while highlighting how its brand stands apart from similar competitors.
What are the 4 main components of product positioning?
- Identification of the target market and comprehension of its needs, desires, and preferences.
- Creating a USP (unique selling proposition) that distinctly separates the product from its rivals.
- Developing a brand identity that appeals to the target audience and fosters loyalty.
- Creating a communication strategy that successfully communicates the brand’s message.