What Is Placing in Marketing?
What is positioning in marketing? If you ask marketing managers, they would probably reply that it is not as complicated as it may seem. It involves identifying and defining the core competence areas of your business and then work around them to build the kind of branding image that supports each. But what is positioning in marketing? To understand what is positioning in marketing, we have to take a look at what is the core competence area of a business and what do these areas stand for? In short: building brand equity and creating the right impression.
What is positioning in marketing then? Positioning is the ability to build a credible, consistent and clear message across a wide range of distribution channels so that customers will be able to understand what is being sold, why it makes sense and where it fits in the larger context of what your company is all about. Just think about how well customers understand the brands they buy. Most often, this means they can identify and understand the core competence area of a product or service and place it into a larger context of what their needs are and where the brand fits into that picture.
In essence, positioning in marketing is the ability to give a customer what they need but that also makes sense within a larger context. For example, if a particular brand of coffee has become very popular in a certain geographical area, then giving away free coffee bags emblazoned with your logo might be a good idea to make a strong statement. However, there is no reason why customers in that geographical area would feel compelled to drink coffee from a mug other than the fact that it emblazoned with your logo.
One might argue that this brand identity is more important than the brand itself. This is true, but to focus on the brand alone and ignore the positioning aspect misses the point entirely. A brand is more than the logos on the boxes – it’s about the associations a customer has with a particular brand. This is why so many hotels use colour. It allows customers to associate the overall style and feel of a hotel with being at home, relaxing and having a good time.
In fact what is positioning in marketing can be seen as a branch of branding that allows for greater marketing opportunities. Think about it – the branded photo of a celebrity is easily recognisable by anyone. Given that a potential customer is already associating themselves with that celebrity via a brand, then positioning is an easy way of making that association stronger. Just imagine if you saw a picture of a new and improved product, would you be tempted to check out the brand website?
So what is positioning in marketing? The key is to use it to exploit markets that have traditionally been ignored or dismissed. Take the branded photo of a celebrity for example – the market may not necessarily want to buy coffee every day, but they recognise the name, the face and the benefits it offers them. That recognition is leverage and can be used to drive sales through traditional methods that may not always be as effective. Once a market grows and becomes more aware of a brand, that recognition can translate into more customers buying a product – and all of this is a great return on investment.