Define Product Positioning. What are the steps in Product Positioning?

Definition of Product Positioning

The act of creating an image of a product or brand in the consumer's mind is known as positioning. In the words of Kotler, “Positioning is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target consumers minds.” In short, the process of creating an image for a product in the minds of targeted customers is known as product positioning. Close-up toothpaste is looked upon by the consumers more as a mouth wash than a teeth cleaner, while ‘pepsodent/colgate' has created an impression of germ killer in the consumer's minds.

STEPS IN PRODUCT POSITIONING
 

1) Identifying potential competitive advantages: Consumers generally choose products and services which give them the greatest value. The key to winning and keeping customers is to understand their needs and buying processes far better than the competitors do and deliver more values.
 

2) Identifying the competitor's position: When the firm understands how its customers view its brand relative to competitors, it must study how those same competitors position themselves.
 

3) Choosing the right competitive advantages: It refers to an advantage over competitors gained by offering consumers greater value either through lower price or by providing more benefits.
 

4) Communicating the competitive advantage: The company should take specific steps to advertise the competitive advantage it has chosen so that it can impress upon the minds of consumers about the superiority claimed in respect of the product over its competing brands.
 

5) Monitoring the positioning strategy: Markets are not stagnant. They keep on changing. Consumer tastes shift and competitors react to those shifts. After the desired position is developed, the marketer should continue to monitor its position through brand tracking and monitoring.