Market positioning is the manipulation of a brand or
family of brands to create a positive perception in the eyes of the public. If
a product is well positioned, it will have strong sales, and it may become the
go-to brand for people who need that particular product. Poor positioning, on
the other hand, can lead to bad sales and a dubious reputation. A number of
things are involved in market positioning, with entire firms specializing in
this activity and working with clients to position their products effectively.
When a product is released, the company needs to think
beyond what the product is for when it comes to positioning. It also thinks
about the kinds of people it wants to buy the product. For example, a luxury
car manufacturer might be less interested in promoting reliability, and more
interested in promoting drivability, appealing to people who are looking for
high-end cars which are enjoyable and exciting to drive. Conversely, a company
making mouthwash might want to go for the bottom end of the market with an
appealing low price, accompanied by claims asking consumers to “compare to the
leading brand” so that they can see that the product contains the same active
ingredients as a famous brand, at a much lower price.
Market positioning is a tricky process.
Companies need to see how consumers perceive their product, and how differences
in presentation can impact perception. Periodically, companies may reposition,
trying to adjust their perception among the public. For example, a company
might redesign product packaging, start a new ad campaign, or engage in similar
activities to capture a new share of the market.
Companies also engage in depositioning, in which they
attempt to alter the perception of other brands. While outright attacks on
rival brands are frowned upon and may be illegal unless they are framed very
carefully, companies can use language like “compared to the leading brand” or
“we're not like those other brands.” A television ad,
for example, might contrast two paper towels: the brand being advertised, and a
“generic” with a package which looks suspiciously similar to a popular brand of
paper towels, but isn't quite identical.
Developing a market positioning strategy is an
important part of the research
and development process. The marketing department may
provide notes during product development which are designed to enhance the
product's position, and they also determine the price, where the product should
be sold, and how it should be advertised. Every aspect of the product's
presentation will be carefully calculated to maximize its position, with the
goal of market positioning being domination.