Positioning is a company’s use of its MARKETING STRATEGY to create and maintain a particular image in the minds of its consumers. After identifying a target market, marketers attempt to influence how consumers view their PRODUCT or brand and how their organization is perceived relative to the COMPETITION. Marketers recognize that individuals formulate mental positions for products, and often these images are based on a single attribute or limited experience. Many marketers conduct research to understand how consumers develop positions and what position their products have among consumers. To develop a positioning strategy, marketers typically engage in a three-step process. First, they select a positioning concept, attempting to determine what is important to consumers. In the late 1990s, a British condom manufacturer conducted a series of FOCUS GROUPS in order to position their product. They found consumers were interested in both protection and freedom, and since their competitors emphasized protection, the company emphasized freedom. Second, marketers design the dimension or feature that effectively conveys the position to the target market. A position can be communicated by appearance, slogan, brand name, the place where a product is sold, and many other ways. Third, marketers coordinate the marketing mix components to convey a consistent position. Over time, marketers may need to adjust or change their positioning strategy as consumer needs and market competition changes. Repositioning is an attempt to change the image of a product in consumers’ minds. One of the classic cases of repositioning was Philip Morris’s shift of Marlboro cigarettes. Marlboros were initially targeted to women, but with the advent of the Marlboro Man, the company completely changed their product’s image without changing the product itself. When developing a positioning strategy, marketers can engage in a variety of alternatives. One option is to position a product directly against the competition. For example, Southwest Airlines has successfully positioned itself as the low-cost alternative to the major airlines in short-haul airline travel. Another option is to position a product relative to a product class or attribute. In the 1990s many companies attempted to position their products as environmentally friendly. (One egg company distinguishes its product as coming from “happy hens,” allowed to exist in pens rather than cages.) A third option is to distinguish products or brands based on price and quality. Many hotel chains segment themselves from the competition based on price and quality images. Crucial to success in positioning is creating a differential advantage—i.e., any feature perceived as desirable and different from that of the competition. Some dry-cleaning stores promote their use of environmentally friendly cleaning agents. Universities have found that success on the sports fields generates a positive image of the institution as a whole.
See also BRANDS, BRAND NAMES; MARKET RESEARCH; MARKET SEGMENTATION; TARGET MARKETS.