Position It is about designing the offer so that it occupies a clear and appreciated place in the minds of the target market consumers.
The “market positioning” it is given thanks to the “positioning of a product” in it.
The “positioning a product”Is defined as the way in which the product is defined by customers according to certain important attributes, that is, the place it occupies in their minds in relation to those of the competition.
A basic strategy for positioning a product is the so-called “competitive advantage”, which is an advantage over competitors that is obtained by offering consumers lower prices or providing them with greater benefits that justify the higher prices. Positioning is one of the key concepts in current marketing.
With this we finish some key and basic concepts for learning marketing in terms of segmentation, selection of the target market and positioning in the market.
How to achieve market positioning?
In today’s market, the image of the competition is as important as our own. Sometimes even more important. Yes, as we have already said, to position yourself in the mind of the consumer, it is necessary to know how our competition is doing, we must also know what will be the most appropriate way to compare ourselves with it. David Aaker proposed a systematic way of positioning yourself. Below we will see some strategies that have been used effectively and that we could even define as types of positioning or how to position:
Positioning based on product characteristics
Some products are positioned based on their characteristics or qualities. “Movilnet: digital technology”, “Telcel: greater coverage”.
A new product can be positioned based on a characteristic that the competition has ignored. For example, Papa John’s Pizza positioned itself as the pizza of “quality ingredients”.
It is very likely that companies try to position themselves with more than one characteristic or attribute, but strategies that include many attributes are difficult to implement and the consumer tends to get confused and not remember them, which is why the most advisable thing is to position strongly on single point (USP) and reinforce it in the mind of the consumer.
Positioning based on Price / Quality
Some companies especially rely on these qualities. Toyota, for example, has positioned itself as the brand with the best price / value ratio due to its quality. While the Chrysler Neon is positioned as the vehicle with the best price / value ratio for the amount of attributes and accessories it has (safety, comfort, power, capacity) and the most extensive warranty.
Positioning with respect to use
Another strategy is to link the product with a specific use or application. Gatorade has been positioned as the beverage used by athletes in order to rehydrate. Kellog’s Special K is the cereal for those who want a balanced, fiber-based diet, and indirectly, to stay in line.
User-oriented positioning
This type of positioning is associated with the user as such or a class of users. Some companies choose a celebrity with whom consumers want to identify. This strategy has to do with the aspirational characteristics of the product and the target. Revlon, for example with Cindy Crawford, or the “Gato” Andrés Galarraga with Martín Polar. Consumers will feel linked to the brand or product by feeling an affinity with the character that represents it.
Lifestyle positioning
The opinions, interests and attitudes of consumers allow the development of a positioning strategy oriented towards their lifestyle. In the case of the United States Army, when researching the lifestyle of those who chose this as their career, they discovered that they were conservative and patriotic people who were willing to accept hard work, discipline and direction. Based on this they developed a campaign that says: “Why should the army be soft? Life is not … “
Positioning in relation to the competition
There are two reasons why it may be important to position yourself by referring to the competition. The first is that it is much easier to understand something when we relate it to something else that we already know, and we can give as an example the point of reference in one direction: Santa María University is in front of Madariaga Square. Second, sometimes it is not so important how important customers think the product is, but rather that they think it is as good as, or better what, a given competitor.
Positioning yourself specifically in relation to a certain competitor can be an excellent way to position yourself in relation to a particular attribute or characteristic, especially when it comes to price or quality. For example, Cheese Whiz positioned itself in relation to its cheaper competitor Rikesa as the spread cheese that “does have cheese”, drawing attention to consumers on the peculiarity that its competitor, although cheaper, did not include among its ingredients the milk, a fundamental ingredient for making cheese.
In products that are especially difficult to position, such as liqueurs, it is important to refer to a competitor, so that the consumer can have a reference on the type of liquor and flavor to expect.
At this point there are several ways to position yourself with respect to the competition, which we will analyze below:
Position yourself first
Obviously, the one who is positioned first does not do so in relation to his competition, however we must talk about the positioning of the leader before talking about the competition, since it is he who is going to set the tone.
When it comes to positioning itself in the mind of the consumer, the one who does it first, statistically proven, obtains twice the market share of the second and quadruples the third, as a popular saying goes: “He who hits first, hits two times”. For example: What is the highest waterfall in the world? Angel Falls, and the second? I think it’s not so easy to remember anymore.
When leaders know how to properly manage their leadership, they can stay on top for many years. As an example we have Coca-Cola, Belmont, Motorola, etc.
Position yourself as number 2?
Other companies have found that positioning themselves as No. 2 can be their niche and competitive advantage. Perhaps the best example of this case is Avis, a company in the vehicle rental industry, which clearly positioned itself as second only to Hertz, which brought it tremendous success under the premise that because they were second, they should make more effort in the way to serve your customers.
One way to position yourself as No. 2 may be to do so as different or inferior to the leader. Volkswagen used this strategy in the 1970s. “Think small” was the concept, when the market was invaded by very large cars, and those of smaller size apologized saying that they were bigger on the inside than on the outside. Even VW could be considered as the ugly car, which in fact was nicknamed the “Bug” (bug or cockroach). However, the results were excellent and the beetle became a classic. It was not even necessary to make radical changes to it, to continue to sell it successfully for years.
Repositioning
Now, it is possible that a product can maintain a certain positioning for many years, but today, with so many technological innovations, in increasingly competitive global markets, and with such changing economies, it is possible that it is necessary to modify that positioning and perform a Repositioning. Johnson & Johnson did it with one of their originally positioned children’s shampoos. When he realized that the children’s market was declining, he decided to reposition his product as a familiar, refreshing the life of it.
Other companies have positioned themselves by repositioning their competitor. This sounds a bit complex, but it is not really. Let’s look at an example. German beer Beck’s put out an ad that read: “You. you have tried the German beer that is most popular in the United States, now try the German beer that is most popular in Germany ”. This was how Beck’s positioned itself relative to the leading beer: Lowenbrau.
Positioning by name
When it comes to positioning, the name is one of the key factors, to the point that when someone wants to order a beer, they ask for a Polar, or a soft drink and ask for a Pepsi. I can remember that when my father asks for an insecticide he asks for the “Fleet”, a brand that disappeared many years ago from the market.
A company that is entering the market new, must have a name that allows it to be immediately placed on a “ladder”, which allows it to be identified with the product it represents. Some time ago, when there was not so much competition, any name could work (does Pepsi not come from a medicine called Pepsin?) But today a more direct relationship between the name and the type of products it manufactures is more important to facilitate your remembrance.