Table of Contents

• What is market positioning?

Basic marketing concept which has discussed since 1960s is what we call it as STP.  STP stands for Segmenting, Targeting, and Positioning.

You can see my previous article discussing market targeting basic concept for beginner before you continue reading in this marketing positioning theory. So, you will get comprehensive understanding about marketing process start from market segmenting to positioning marketing.

In this article, I will focus on positioning. I recommend you to read my previous article about segmenting, and then targeting to get comprehensive understanding.

What is market positioning?

Market positioning definition is : the association between your effort to put a good image / good perception and your target audience’s perception to you ( product or service ).

Let me repeat for better understanding and see the picture below.

From above picture, you see that there are two things. They are:

1. Your desire to put a good image or good perception in your consumer’s mind.

2. Your actual consumer’s perception about you ( with comparison with their perception about your competitor ).

So, market positioning is the relationship between these two things.

The closer the level of those things the better. It means you have performed the best effort to put good image to consumers, and consumers have a good perception about you ( you have a better image than your competitor ).

You can see a longer explanation in http://www.boldhorizon.co.nz/market-positioning.php

Positioning is a key in marketing strategy

Market positioning is substance of marketing strategy. Positioning inspires all marketing activities start from product creation, market the product, up to product has been delivered to consumer.

For example:

a. Once you define your positioning, at the product creation phase you can exactly modify your product that match to your target segment, and design a packaging based on your target segment’s interest.

b. At the pricing stage, you can clearly and easily decide what is the proper pricing to your target segment. Because you have defined it before whether your positioning is giving lower price than your competitor or you target segment is a less price sensitive consumer.

And there are many samples showing that positioning is a foundation in your business. The main point is, if you have defined your positioning strategy, your business activities must be aligned to it like R&D, product development, financial thing, etc.

Market positioning basic steps

1. Planning and producing the competitive advantages.

The fundamental thing to concern is to get insight your target market’s need. After that, you have to know their behavior and buying process.

See what are the competitor values which are delivered to the same target market.

You have to modify and improve the values more than your competitor.

2. Delivering your message to your target audience.

In this step, manage your product or service then deliver your message and creating a good image to your target audiences. Persistently put this image in your target audience’s mind.

Align your marketing-mix with your positioning strategy. Make sure your product, price, place, and promotion strategy are match with their desire to create an image in their mind that your product makes their life easier.

Basically, great positioning drives a great result. I remind you the classic theory:

“ Good positioning results good perceived”.

This perception encourage consumer to buy your product. This is the reason why consumer buy your product.

3. Be adaptable.

In this phase, you have to monitor the result of your market positioning strategy. Check your KPI, is it OK or not.

You have to adapt or adjust from time to time, because anything may change. For example: you may find the regulation changes, buying process alters, consumer behavior changes, consumer’s need changes, your competitor’s strategies transform, and so on.