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Positioning in Marketing: Importance and Strategies

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Added on  2023-01-05

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This document provides insights into the concept of positioning in marketing. It explains the importance of positioning and the strategies involved, such as identifying the target audience, analyzing competitors, and promoting the brand effectively. It also discusses the concept of perceptual maps and their role in positioning. Additionally, it covers topics like the differences between goods and services, the significance of branding, the process of new product development, the stages of the product life cycle, pricing strategies, and the role of distribution channels in marketing.

Positioning in Marketing: Importance and Strategies

   Added on 2023-01-05

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Chapter 5- Positioning
What is Positioning?

Basically, it is about your Brand Identity that

answers “Who your brand or company is in the

market” and by market meaning in contrary to

your competitors (Vis-a-vis competition) and to

the perception of your customer (In the eyes of

the consumer).

Positioning comprises much of a marketer's

responsibilities (involves 4Ps of Marketing)

Designing a product that target
segment will Value (How do you want

your customers to think about your


Pricing your product so it's profitable,
yet seen as valuable (How high a price

can you command for your brand?)

Building distributor relationship (Where
do customers go to find your brand?)

Communicating all of these to the
customer thru ad & promo

Positioning via Perceptual Maps

Marketers and senior managers like to see

graphical depictions of where their brands are

and where their competitors are, in the minds of

their customers.

Perceptual maps provide pictures that
help us envision how customers think

about our brand (in terms of the brands

strengths, weakness, and competitors)

Steps in positing

In positioning Identify the audience
Spot out the unique features
Identify your competitors
Identify best promoting Techniques
Perceptual Map:
(examples: Yoga Studio)
1 First identify your audience (yogis) 2 then

identify your strengths (accommodating staff)

then analyze:

Yoga studio is not very conveniently located, but

people don't seem to care about that attribute

(so we won't get hurt too much for that). The

staff is seen as a strength, but here, too, people

don't seem to care (so we won't get bonus points

for that). More problematic is that the number

and variety of morning classes isn't huge (time

and space are constrained of course), and that's

rather important to the yogis. Hence, the

considered strengths of the business is not

appealing to the customers.

3 Then identify your competitors in order to

know your position in the minds of your target


4 then now as a marketer you need to identify

best promoting techniques or service/product

alteration or enhancement (you can use

positioning matrix)
Positioning in Marketing: Importance and Strategies_1
The Positioning Matrix
If a company promotes broadly and heavily,

they're probably looking to move a lot of

merchandise, and so it would be smart to make

the goods widely available. It would seem

counterproductive if they made their goods

available only through selective channels.

Similarly, if a brand has a relatively exclusive

image and distribution chain, it would make

better sense not to overly promote it as if it were

common, available to the masses.
So, the heavy
promotions and wide distribution pairing and

the lighter promotions and exclusive

distribution pairing make more sense than the

other options.

Some other combinations are more or
less sensible.

If low price, a large need volume of sales to be

profitable, thus eliminating “low price and

exclusive distribution- kasi pag exclusive ontil

lng bebentahan mo.

Bawal ka magovercharge ng customers if low

quality lng din kasi high possibility na di siya


we eliminate the heavy-promotions and

exclusive-distribution combinations kasi if you

heavily advertise isang bagay “Go buy our stuff”

tas di naman siya available lagi or anywhere

exclusive lng edi ma frufrustrate lng mga

customers mo kasi di din nila mahahanap yang

prinopromote mo.
Positioning in Marketing: Importance and Strategies_2
Hard to sustain
Inactive strategy-
kasi the brand is available, but,
with light promotion, baka di mapansin yung

product (the company is paying the brand little

attention) This strategy can be characteristic of

mature brands that customers buy habitually

we've simplified this positioning matrix to

essentially the two strategies:

• Low price, low quality, widely available, heavy

promotions (Mass/pang masa)

• And high price, high quality, exclusive

availability, light promotion (high end)

The advantage of these simplifying assumptions

is that these two extremes give us very clear

goals to work toward. If we have reason to

modify one of the Ps in the given strategies it

not be wise, but we can try it

three basic corporate strategies to creating

value and achieving market stature:

1. Operational excellence
: These companies are
good at production, delivery, price, and

convenience, such as FedEx, McDonald's,

Southwest Airlines.

2. Product leadership
: These companies pride
themselves on quality and innovation, such as

Apple, BMW, Mont Blanc.

3. Customer intimacy
: These companies are
willing to tailor their products to their particular

customer needs, which can be expensive but is

expected to pay off in long-term loyalty and

enhanced customer lifetime value, such as

Amazon, IBM, Verizon.


Once a company has decided on its

positioning, either for the corporation as a whole

or for one of its brands, it must be able to

communicate succinctly the parameters of that

position to a number of different audiences (to

customers, employees, shareholders, general

public, etc.). A positioning statement is that

communication, and it takes a pretty standard


1. Who are you trying to persuade?

2.Who are you competing with?

3.What is your major product category? What

frame of reference will customers use in making


4. How are you better? What is your USP?

5.What are the reasons for your customer to

Positioning in Marketing: Importance and Strategies_3

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