Introduction

Positioning is the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market. The concept was popularized by Al Ries and Jack Trout in their 1981 book "Positioning: The Battle for Your Mind."

The goal is not to create something new and different, but to manipulate what's already in the prospect's mind—to retie the connections that already exist.


What is Positioning?

Positioning is about:

  • Creating a distinct image in customers' minds
  • Differentiating from competitors
  • Communicating the unique value you offer
  • Occupying a "position" in the mental landscape
Key Insight: Positioning is not what you do to the product. It's what you do to the mind of the prospect. The product is positioned in the mind of the prospect.

Positioning Strategies

StrategyDescriptionExample
AttributePosition on specific featureVolvo = Safety
BenefitPosition on customer benefitSensodyne = No sensitivity pain
Use/ApplicationPosition for specific useGatorade = Sports performance
UserPosition for specific user typeApple = Creative professionals
CompetitorPosition against competitorAvis = "We try harder" (vs Hertz)
CategoryPosition as category leaderBand-Aid = Adhesive bandages
Quality/PricePosition on value propositionRolex = Luxury, Dmart = Value

The Positioning Statement

Template:

For [target customer] who [statement of need], [brand] is [product category] that [key benefit]. Unlike [competitors], we [key differentiator].

Example: Slack

For teams who need better communication, Slack is a collaboration hub that makes work simpler, more pleasant, and more productive. Unlike email, we bring all your communication together in one place.

Requirements for Good Positioning

  • Relevant: Matters to target customers
  • Distinctive: Different from competitors
  • Credible: Believable claim
  • Sustainable: Defensible over time
  • Profitable: Can be delivered profitably

Perceptual Mapping

Perceptual maps (positioning maps) visually display where brands are positioned in customers' minds, typically on two dimensions.

Steps to Create

  1. Identify key attributes customers use to evaluate
  2. Select two most important dimensions
  3. Survey customers on perceptions of brands
  4. Plot brands on the map
  5. Identify gaps and opportunities

Uses

  • Identify competitive positioning
  • Find unoccupied positions (gaps)
  • Track positioning changes over time
  • Guide repositioning strategy

Common Positioning Mistakes

  • Under-positioning: Vague, no clear position
  • Over-positioning: Too narrow, limits market
  • Confused positioning: Inconsistent messages
  • Doubtful positioning: Claims not credible
  • Irrelevant positioning: Doesn't matter to customers

Conclusion

Key Takeaways

  • Positioning is about the customer's mind, not the product
  • Goal: Occupy a distinctive, valuable position
  • Strategies include attribute, benefit, user, competitor positioning
  • Positioning statement articulates target, category, benefit, differentiator
  • Perceptual maps visualize competitive positions
  • Avoid under-, over-, confused, or doubtful positioning
  • Positioning must be relevant, distinctive, credible, sustainable