According to the name “product positioning,” a product or service’s goal is to occupy a specific position within a target market (or “niche”). Perceived value refers to a product’s position in the marketplace as compared to its competitors.
So, basically, this is an effort to establish the product’s place in its target audience’s minds. Consequently, the company determines how and on what basis it must present its products for sale.
For example: Life boy soap is proven for germ protection
As a result, we can say that product positioning is the process of creating an image and value for the product’s intended use in order to secure a distinct, desirable position in the minds of customers.
In this way, the company conveys an important message to its customers while also gaining an advantage in the marketplace. It provides a compelling argument for why your product should be purchased. Positioning can be used in a variety of ways.
Use of Positioning
Place: The product’s location within the target market.
Rank: How does the product compare to its competitors when a variety of factors are taken into account?
Mental Attitude: The state of mind of the consumer.
Strategic Process: Activities that must be carried out in order to achieve the best possible market position.
Successful positioning requires the marketer to be well-versed in the latest trends and competitive information.
Why is product positioning so important?
When a company uses product positioning, it pinpoints the specific market niche that it hopes to seize and explains why it thinks it can do so successfully.
It is the goal of every business to make a unique impression on the consumer’s mind when it comes to its product or service. In this stage, the company explains what the product stands for and how it differs from other products on the market.
When a brand name is linked to a consumer’s identity, it creates an image in the consumer’s mind that reflects that identity. Instead of purchasing the product itself, they’re purchasing an image in their head.
Perceptual Map – What Is It?
As a tool to help with product positioning, perceptual maps can be used. These 2D diagrams show where a product stands in relation to its competitors on the market or should stand in relation to its competitors based on the factors that are important to customers, such as price, quality, customer service, and ease of use, among others.
Methods/Approaches for positioning your product
A product can be positioned based on its features or benefits to consumers.
Product positioning can be done on the basis of the brand’s characteristics or the benefits it offers. Cars, smartphones, cameras, electronic appliances, and more are all examples of companies that employ this strategy. For example, If you want a long-lasting paint, Berger is the brand for you.
In the context of oral hygiene, Listerine serves solely as a mouthwash.
These products are sold at higher prices to cover their manufacturing costs and marketing costs because they are more expensive to produce and market than their lower-priced counterparts because they offer better quality and features. For instance, Honda cars are positioned as high-end automobiles.
In this strategy, the product is positioned with a specific target audience in mind. As an illustration, consider Johnson & Johnson’s baby product line.
Positioning based on the type of use:
An event or timeframe is used to position the product in this strategy. For example, to get rid of dandruff, use Head & Shoulders
Category-based positioning for businesses:
A strategy for making consumers think of a brand as belonging to a different product category than the one it actually does. There are many competitors in an existing product category, so this is used when there aren’t any new competitors. As a disinfectant and a cleaning agent, Finis perfumed phenyl has been placed on the market.
Corporate identity positioning:
A company’s brand name can serve as a strong indicator of its competitive edge when promoting a new brand. Like Toyota, Haier, LG,
Positioning by competitor
It’s when the competitor has a strong market presence, and the marketer wants customers to see their brand as superior or on par with the competitor’s product, that marketing strategy is used. Like Surf Excel and Tide.