Product Positioning

Good Essays
Product Positioning

A product positioning statement has four main components – the target, the frame of reference, the differentiation, and the reason(s) to believe.

THE TARGET
The target is who the product is for – who is the target user or customer of the product. The key to a good target definition is to balance being specific with being concise, you need to describe the target well enough that they can be identified, without being so verbose that your positioning statement goes beyond one or two sentences. Using the Adam and Even example, the target for positioning the apple is “hungry men willing to be adventurous with their palette” (after all, Adam had never had an apple before).

THE FRAME OF REFERENCE
The frame of reference is the known object or subject area that The Target can refer to in order to understand what the product is. Before the TV there was little or no easy comparison, so the frame of reference may have been something like “an entertainment device that blends the in-home enjoyment of radio with the visual stimulation of live theatre.” For the apple referenced above this may be something as simple as “a natural snack food.”

THE DIFFERENTIATION
The differentiation is the thing or things that set your product apart from similar offerings from your competitors (let’s face it, if there is no differentiation then there is no reason for a customer to choose your product over a competitor). The differentiation can come in many forms – feature deltas, price, quality, support, social acceptance, etc. For example the differentiation of a Sony TV and Samsung TV may be Sony’s reputation in the electronics business, or their track record of performance, since both TV’s likely have the same features. Samsung’s differentiation may be price (Sony is likely to charge more for their reputation). Going back to our apple, the differentiation may be that it “is sweeter and juicier than any other fruit in the land.” Of course, that a big claim – and

You May Also Find These Documents Helpful

  • Powerful Essays

    Product positioning

    • 1243 Words
    • 4 Pages

    Product Positioning "Product positioning" is a marketing technique intended to present products in the best possible light to different target audiences. The method is related to "market segmentation" in that an early step in major marketing campaigns is to discover the core market most likely to buy a product—or the bulk of the product. Once segmentation has defined this group ("active seniors," "affluent professional working women," "teens") the positioning of the product consists of creating…

    • 1243 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Product positioning

    • 736 Words
    • 3 Pages

    Positioning Positioning is an essential part of launching your product and company in the market. The term “positioning” should be viewed both as a verb and a noun. As a verb, it can be defined as deploying a set of tools and processes used to influence and control the market’s perception of your product or company in relation to any competing alternatives. As a noun, it can be defined as an attribute or condition associated with your product. Nevertheless, positioning is not what your company…

    • 736 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Product Positioning

    • 513 Words
    • 2 Pages

    Tata Nano – The People’s Car 1) Why was this product a special one for market? With the concept of NANO, Ratan Tata Chairman of the TATA Group, had a vision of making “a common man’s car” which would be safe, affordable and made personal transportation available to anyone and everyone who could not afford to own a four-wheeler. It was meant to bring a new Dimension to the automobile industry with its low cost manufacturing. A new segment, Ultra Low Cost (ULC) was created, where Nano was…

    • 513 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    1. Positioning- Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. The result of positioning is the successful creation of a customer focussed value proposition. Examples- a) Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers. b) Indica by Tata Motors for small car consumers…

    • 2899 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Summary: All companies use a specific positioning strategy when advertising their product. This strategy tells their customers and potential customers what feature of their business they want to be focused on. Allstate wants their customers to focus on the quality level of their product while State Farm and Progressive wants people to focus on certain attributes of their products. 21st Century wants potential customers to focus on their low prices and high quality of their insurance while The General…

    • 436 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    ISSN 1392-2785 ENGINEERING ECONOMICS. 2008. No 1 (56) COMMERCE OF ENGINEERING DECISIONS Theoretical Aspects of Product Positioning in the Market R ta Ostasevi i t Kauno technologijos universitetas K. Donelai io g. 73, LT-44029, Kaunas The article consists of fourteen parts, starting with the introduction where the novelty, the problem of the research, the object of the research, the purpose of the research and the research methods are described. The purpose of the article is systemization and…

    • 4381 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Brand Positioning Submitted by: Rishi Dewan PGDM-Marketing (DCP) IMT Ghaziabad Contents Introduction 2 Process of Positioning 3 Strategies of Positioning 5 Positioning by Product attributes 5 Positioning by Quality 5 Positioning by Price 6 Positioning by User Category 7 Positioning by Use 8 Positioning by Competitor 9 Positioning by Celebration 10 Positioning Errors: 11 1. Under-positioning 11 2. Over Positioning 11 3. Confused positioning 12 4…

    • 5108 Words
    • 21 Pages
    Good Essays
  • Good Essays

    Products, Positioning, and Market Segmentation Thorson, Esther (Ed). 1989. Advertising Age: The Principles of Advertising at Word. Lincolnwood, IL: NTC Business Books. Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's minds. Products and their brand names are newsmakers themselves. Wendy's hamburgers, Apple computers, and California raisins (particularly when they sing and dance) are objects of our attention and interest…

    • 1317 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Segmentation variables spar can consider when segmenting the market are: a) Geographic segmentation which assumes that customers within a particular geographic location, be it a country, region, city or even suburb may be targeted with the same product offering and market mix. This is the most common form of market segmentation; wherein companies segment the market by attacking a restricted geographic area. The following are examples of geographic variables often used in segmentation; (i) Religion…

    • 894 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Table of Contents Market Segmentation and Product Positioning 2 1.1. Introduction 2 1.2. Product the company will offer 2 1.2.1. Motorcycle industry an overview 2 1.2.2.Motorcycle industry in US an overview 3 1.3.Marketing Objectives of the Motorcycle Company: 4 1.4.Primary Characteristics of the Motorcycle 4 1.5.Branding Strategy 5 1.6.Product Positioning: 6 1.6.1.Short-run Strategy: 6 1.6.2.Longer-Run Strategies 6…

    • 1650 Words
    • 7 Pages
    Best Essays