Positioning

Question 1

What is Positioning?

Answer 1

Positioning occurs when a brand takes on a:
- Stance
- Attitude
- Point of view
The place an offering
occupies in consumers’ minds on important features relative to competing products.
Example: car companies position their
products as fast, fun, exciting, fuel efficient,

Question 2

Product Positioning

Answer 2

The key to positioning a product effectively is discovering the
perceptions of its potential customers.

Question 3

4 steps in determining its positioning

Answer 3

1. Identify the important features for the product
2. Discover how target customers rate competing products with respect to these features
3. Discover where the company’s product is on these features in the minds of potential customers
4. If necessary, reposition the product

Question 4

Types of Positioning

Answer 4

Five types of positioning that a business might use:
1. Benefit Positioning
2. Target Positioning
3. Price Positioning
4. Distribution Positioning
5. Service Positioning

Question 5

Benefit Positioning

Answer 5

• Consumers expect every product they purchase to benefit them in some way.
• Companies will position their products or services as being the one that offers consumers more benefits than competing products or services.
• Companies will keep adding benefits to their products in order to try to keep ahead of the competition.

Question 6

Target Positioning

Answer 6

• Target market: the group of people that the manufacturer wants to buy their product.
• Consumer segment: a group of people who share particular interests or buying habits.

Question 7

Price Positioning

Answer 7

The marketer is faced with two options:
- Offer the most expensive product in the category
- The product must then be positioned as a luxury good (status), a high-quality item, or an exclusive product.
- Offer the least expensive product in the category
- The product is positioned as the affordable option
- Must watch out that people don’t think it’s junk

Question 8

Distribution Positioning

Answer 8

Some companies use a unique sales technique and become
known for their method of distribution.
Example: Avon Products Inc. (direct-sales)

Question 9

Service Positioning

Answer 9

Offering services that other companies are not offering
Examples:
- the first convenience store open 24 hours
- a store that provides tea/coffee, music, scented candles, or
comfortable change rooms