Positioning

The process of creating an image of a product in the minds of the consumers is called as positioning. Positioning helps to create first impression of brands in the minds of target audience. In simpler words positioning helps in creating a perception of a product or service amongst the consumers.
Example
The brand “Bisleri” stands for purity.
The brand “Ceat Tyre” stands for better grip.

Steps to product Positioning

Marketers with the positioning process try to create a unique identity of a product amongst the customers.
  1. Know your target audience well
    It is essential for the marketers to first identify the target audience and then understand their needs and preferences. Every individual has varied interests, needs and preferences. No two individuals can think on the same lines.
    Know what your customers expect out of you.
    The products must fulfill the demands of the individuals.
  2. Identify the product features
    The marketers themselves must be well aware of the features and benefits of the products. It is rightly said you can’t sell something unless and until you yourself are convinced of it.
    A marketer selling Nokia phones should himself also use a Nokia handset for the customers to believe him.
  3. Unique selling Propositions
    Every product should have USPs; at least some features which are unique. The organizations must create USPs of their brands and effectively communicate the same to the target audience.
    The marketers must themselves know what best their product can do.
    Find out how the products can be useful to the end-users ?
    Why do people use “Anti Dandruff Shampoo?”
    Anti Dandruff Shampoos are meant to get rid of dandruff. This is how the product is positioned in the minds of the individuals.
    Individuals purchase “Dabur Chyawanprash “to strengthen their body’s internal defense mechanism and fight against germs, infections and stress. That’s the image of Dabur Chyawanprash in the minds of consumers.
    USP of a Nokia Handset - Better battery backup.
    USP of Horlicks Foodles - Healthy snack
    Communicate the USPs to the target audience through effective ways of advertising. Use banners, slogans, inserts and hoardings.
    Let individuals know what your brand offers for them to decide what is best for them.
  4. Know your competitors
    • A marketer must be aware of the competitor’s offerings. Let the individuals know how your product is better than the competitors?
    • Never underestimate your competitors.
    • Let the target audience know how your product is better than others.
    • The marketers must always strive hard to have an edge over their competitors.
  5. Ways to promote brands
    • Choose the right theme for the advertisement.
    • Use catchy taglines.
    • The advertisement must not confuse people.
    • The marketer must highlight the benefits of the products.
  6. Maintain the position of the brand
    • For an effective positioning it is essential for the marketers to continue to live up to the expectations of the end - users.
    • Never compromise on quality.
    • Don’t drastically reduce the price of your products.
    • A Mercedes car would not be the same if its price is reduced below a certain level.
    • A Rado watch would lose its charm if its price is equal to a Sonata or a Maxima Watch.

Difference between Market Segmentation, Targeting and Positioning

A market refers to a set up where two or more parties are involved in transaction of goods and services in exchange of money. The two parties here are known as sellers and buyers.
It is the responsibility of the marketers to create awareness of their products amongst the consumers. It is essential for the individuals to be aware of the brand’s existence. The USPs of the brands must be communicated well to the end-users.
An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not every individual has the same requirement and demand.
The marketers thus came with the concept of STP.
STP stands for:
S - Segmentation
T - Targeting
P - Positioning
The first step in the process of product promotion is Segmentation
The division of a broad market into small segments comprising of individuals who think on the same lines and show inclination towards similar products and brands is called Market Segmentation.
Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests.
The individuals in a particular segment respond to similar market fluctuations and require identical products.
In simpler words market segmentation can also be called as Grouping.
Kids form one segment; males can be part of a similar segment while females form another segment. Students belong to a particular segment whereas professionals and office goers can be kept in one segment.

Targeting

Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called targeting. Once market segments are created, organization then targets them.
Targeting is the second stage and is done once the markets have been segmented.
Organizations with the help of various marketing plans and schemes target their products amongst the various segments.
Nokia offers handsets for almost all the segments. They understand their target audience well and each of their handsets fulfils the needs and expectations of the target market.
Tata Motors launched Tata Nano especially for the lower income group.

Positioning

Positioning is the last stage in the Segmentation Targeting Positioning Cycle.
Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning.
Positioning helps organizations to create a perception of the products in the minds of target audience.
Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses target the middle income group. Ray Ban sunglasses have no takers amongst the lower income group.
Garnier offers wide range of merchandise for both men and women.
Each of their brands has been targeted well amongst the specific market segments. (Men, women, teenagers as well as older generation)
Men - Sunscreen lotions, Deodorant
Women - Daily skin care products, hair care products
Teenagers - Hair colour products, Garnier Light (Fairness cream)
Older Generation - Cream to fight signs of ageing, wrinkles
A female would never purchase a sunscreen lotion meant for men and vice a versa. That’s brand positioning.

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