Professor Musadiq A. Sahaf

The Business School

University of Kashmir
Sahaf 2011 1

Intended Outcome
 To examine the concept and nature of

positioning;  To identify and examine the issues involved in positioning; and  To study the process of formulating the positioning strategy.

Sahaf 2011


Positioning: Conceptual Context
The image that a brand occupies in the customer's mind on important attributes relative to rival brands.
The concept of positioning stems from a consideration of how a service provider desires his users to view his offering in comparison to his competitors.
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Positioning: Conceptual Context
Positioning is concerned with identification, development and communication of differential advantage that makes the services of a service provider perceived as superior and distinctive to those of his competitors in the mind of target users.

Sahaf 2011


Positioning Errors
 Under-positioning – customers have only vague

ideas about the company and do not perceive anything distinctive about it  Over-positioning – Customers have too narrow an understanding of the company, product, or brand  Confused positioning – Frequent changes and contradictory messages confuse customers  Doubtful positioning – claims made for the product or brand are not regarded as credible

Sahaf 2011


Positioning Strategy
Deciding the desired perception by market target users…and designing the marketing program to meet (and exceed) users’ value requirements.

Sahaf 2011


How Positioning Works
 Objective Match the organization’s distinctive capabilities with the user value requirements for the market target (How do we want to be perceived by targeted users?)
 Desired result Gain a relevant, distinct, and enduring position by the targeted users that they consider important.  Actions by the organization Design and implement the positioning strategy (marketing program) for the market target.

Sahaf 2011


Market Analysis:
•Size •Location •Trends

Definition and analysis of market segments

Selection of most appropriate target market segments to serve Internal Corporate Analysis:
•Resource •Constraints •Values


Articulation of desired position in the marketplace

Marketing Action Plan

Selection of which benefits to emphasize to users Competitive Analysis:
•Strengths •Weaknesses •Current Position (as Perceived by users Analysis of possibilities for effective Sahaf 2011 differentiation against competitors


Questions associated with the Formulation of Positioning Strategy
 What would the scope of a positioning

strategy-an industry, a firm, a group of product or an item of product mix?  What attributes are used by the consumers to form the perception about the market offering?  How the positioning options are evaluated?
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Steps in Developing a Positioning Strategy
 Determining levels of Positioning
 Identification of key attributes of importance to

selected segments  Location of attributes on a positioning map  Evaluating positioning options  Implementing positioning

Sahaf 2009


Determining levels of Positioning

Industry Positioning

Organizational Positioning The Levels of Positioning Product Group Positioning

Product Positioning

Sahaf 2009


Identifying and selecting Key Attributes
Attributes represent the major factors that influence the buying behaviour of the consumers.
 Price  quality  Convenience  Value  Prestige

Sahaf 2011


Location of Attributes on Positioning Map
 The measurement and display of consumers’

perception (on the attributes) through perceptual map which is a graphic representation of a consumer's perception of a firm's offering on specific service attributes relative to other competing brands.
 Map is usually confined to two dimensional

model where consumer’s perception is demonstrated across two attributes of a firm’s marketing offering.
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Location of Attributes on Positioning Map
High Quality

Service D

Service B Service G Less Expensive

Service F Expensive Service A

Service C

Service H

Service E

Low Quality

Sahaf 2011


Evaluating Positioning Options
 By attributes/benefits
 By price/quality  By use/application

 By competitor
 By product user  By product class

Sahaf 2011


Implementing Positioning
 Every constituent of the service

organization must strengthen the desired position in the market.  The organization’s employees, policies, system and communication need to facilitate in the execution of positioning strategy

Sahaf 2011


Sahaf 2009


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