3.4.7 Product Positioning
Positioning is the process of creating distinctive image on the consumers‘
mind. Marketing literatures argue that marketing is the battle of perception
where the battle can only be won by getting larger mind share of consumers.
In doing this, the marketing strategist states to customers what the product
means and how it differs from current and potential competing products
(Wilson & Gilligan, 2005). Similarly, Kotler and Armstrong (2012) argue that
a product‘s position is the way the product is defined by consumers on
important attributes and the place the product occupies in consumers‘
minds relative to competing products. Such a claim implies that products
are made in factories but brands happen in the minds of consumers. The
end result of positioning is the successful creation of a customer-focused
value proposition about the product which in turn will result in greater
mind and wallet share.
In general, a well-positioned brand should appeal to the particular needs of
a customer segment because a differential advantage/value proposition is
created (Fuches & Diamantopoulos, 2010). Thus, the decision of selecting
the most effective positioning strategy constitutes a main challenge for
marketers in modern days because it is central to consumers‘ perceptions
and preferences at the same time. Such challenge has increased over the
last decades when consumers are overloaded with bulk of information to the
extent they may not be in a position to distinguish some and retain them
and to filter out the others which are less or unimportant to them (Wilson &
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Gilligan, 2005). From the researcher‘s point of view, while the segmentation
and targeting of marketing strategy formulation part constitute the skeleton
and framework of the strategy, positioning and differentiation instills life
and spirit to the process. Hence, for effective marketing strategy formulation
both the skeleton and spirit should be integrated and designed in similar
way at the same time.
Despite the importance of brand positioning, however, limited empirical
attention has been paid to the question whether the use of certain
positioning strategies results in more superiorly positioned brands than the
application of other strategies (Keller & Lehmann, 2006). The study of
marketing strategy will therefore be incomplete if it does not include
positioning for reasons that a poorly positioned product is highly unlikely to
be sold and liked. In this regard, what constitutes effective of good
positioning remains a critical question and a significant strategy exercise for
marketing strategists. From the researcher‘s perspective, a good product
positioning helps guide marketing strategy by clarifying the brand's essence,
what goals it helps the consumer achieve, and how it does so in a unique
way (Keller & Lehmann, 2006). The result of positioning is the successful
creation of a customer-focused value proposition, a cogent reason which
justifies why the target market should buy the product.
According to Kotler and Armstrong (2012), once the competitive frame of
reference for positioning has been fixed by defining the customer target
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market and nature of competition, marketers can define the appropriate
strategies to position in terms of points-of-difference and points-of-parity
associations (Keller & Lehmann, 2006). The points-of-difference are
attributes or benefits consumers strongly associate with a brand, positively
evaluate, and believe that they could not find to the same extent with a
competitive brand (Keller & Lehmann, 2006). Such positive and favorable
perceptions will increase consumer‘ need for the product and their
willingness to search for it, instead of easily substituting with competing
products (Blankson & Kalafatis, 2004). Besides favorable and unique brand
associations could be achieved through the products‘ perceived attribute or
benefit by consumers and how well the product performs to the expectations
of consumers as per the communicated message.
Points-of-parity on the other hand, are associations that are not necessarily
unique to the brand but may in fact be shared with other brands which may
come in two basic forms of either category or competitive parity (Kotler &
Armstrong, 2012). Category points-of-parity are associations‘ consumers
view as essential to be a legitimate and credible offering within a certain
product or service category. As a result, consumers might not consider a
product truly a product unless it is able to deliver the promised or expected
benefits (Blankson & Kalafatis, 2004). Such consumer expectation may
change through time as there are changes due to technological advances,
legal developments, or consumer trends which in effect may change category
points-of-parity (Blankson & Kalafatis, 2004). On the other hand,
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competitive points-of-parity are associations designed to negate competitors‘
point of difference. Making such a competitive difference on the consumers‘
minds in such a way that the product is unique and offers better
performance than even their expectations will make the brand strong and
unbeaten which ultimately enhance strong competitive position in the
market and ensures sustainability.
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