Journal of Naval Science and Engineering

2009, Vol. 5 , No 2, pp. 98-110

PRODUCT POSITIONING STRATEGY IN

MARKETING MANAGEMENT
Ph.D. Mustafa KARADENIZ, Nav. Cdr.
Turkish Naval Academy
Director of Naval Science and Engineering Institute
Tuzla, Istanbul, Turkiye
mkaradeniz@dho.edu.tr

Abstract
In today’s globalizing and continuously developing economies, the competition
among enterprises grows quickly, the market share gets narrower; and in order to gain
new markets, companies are trying to create superiority over their rivals by positioning
new products aimed at consumer behaviors and perceptions. In this sense, product
positioning strategy in marketing management has emerged and now companies conduct
studies on this strategy. In this research, product positioning strategy is emphasized and
related examples are given.

PAZARLAMA YÖNETİMİNDE ÜRÜN KONUMLADIRMA

STRATEJİSİ

Özetçe
Küreselleşen ve sürekli gelişen günümüz ekonomilerinde işletmeler arasında rekabet
hızla artmakta Pazar payı daralmakta ve şirketler yeni pazarlar elde etmek için tüketici
davranış ve algılamalarına yönelik yeni ürünler konumlandırarak rakiplerine üstünlük ve
farkındalık yaratmaya çalışmaktadırlar. Bu kapsamda, pazarlama yönetiminde ürün
konumlandırma stratejisi ortaya çıkmış olup halen şirketler bu strateji üzerine çalışmalar
yapmaktadırlar. Bu araştırmada ürün konumlandırma stratejisi üzerinde durulmuş ve
konuya ilişkin örnekler verilmiştir.

Keywords : Marketing, Product Positioning, Brand

Anahtar Kelimeler : Pazarlama, Ürün Konumlandırma, Marka

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1. INTRODUCTION

Positioning shows the place where existing or to be issued products

are put in the market place by the costomers. Positioning is the development
of the image of a product directly against to the competitor products and
other products produced by the company's own. The purpose is
management's attention by the recipient to a certain product and to differ
that product in favor of the company, compared with similar products.[1]

‘Positioning’ has entered into marketing language in 1982, when

“Positioning: The Battle for Your Mind” was written by Al Ries and Jack
Trout. In fact, the word was used, previously, as the product’s place in the
shop. However, they brought up a new understanding of the term:
‘Positioning is not something you do to a product. Positioning is something
you do to the mind of potential customers.’ Volvo says ‘we produce the
most secure car’; BMV 'is the last point in cars', and Porsche is 'world's best
small sport car’.[2]

Whether in the consumer market or in the industrial market, after

selection of a specific section, enterprises should also specify which position
they want to be. It is not only the product to position, but also all the staff
focused around it. This approach is based on some assumptions: all the
goods and brands more or less have objective and subjective characteristics;
consumer preferences include one or more characteristic in mind; rival
product or brand presentation attributes are assessed according to that
characteristics; in other words, that is entirely within the consumer's mind.
Examples of objective criteria, size: large-small; weight: heavy-light;
strength: be strong-weak; for subjective criteria fashion: fashionable-old-
fashioned; reliability: reliable-not reliable. Consumer perceptions are very
important here, because when consumers choose between rival
presentations, they prefer the most advantageous for them which have the
most the important features they expect.[3]

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2. HISTORY OF PRODUCT POSITIONING

Positioning is percieved by some researchers as the last stage, after

product and image stages, in the historical development of marketing
communications. According to this view, the product cycle is more
dominant in late 1950’s and early 60's, the basic features of this stage are
being less competitive, and each product is seen as almost a discovery. At
this some stage 'unique sales proposal' (USP) strategy had complete
domination. In USP strategy the product features and benefits become the
most important stuff in communications themes. Period of image is known
to emerge when ‘me too’ products are developed against the powerful
market-leading brands. These new entrant to the market products strived to
hold with the market with their image, the company's image is placed on the
focus of communication efforts.[4]

Some examples about market positioning or product position in the

market can be given: ‘Vakko is fashion'; 'Dress from Beymen, and you will
be noticed'; Avis, one of the world's famous U.S. rental companies, applied
a positioning against its larger rival Hertz, 'in this field we are the second,
therefore, we exert more efforts’, in such a market that giant cola beverage
manufacturers prevail, '7-UP ' firm of the United States, presents itself as ‘7
-UP, un-cola beverage’ (highlights its discrepant aspect).[3]

The concept of positioning / perspective was firstly appointed to

the marketing communication agenda by Ries and Trout (1972-1978). In
1972 Jack Trout and Al Ries released their articles describing the basic
positioning approach in Advertising Age. In 1978 they published an article
about 10-year assessment of their approach. Based on these two articles, the
concept of positioning features can be summarized under these headings.[4]

Market position of a product in this case, is its relative location in

customer's mind among opponent products. Positioning can be formed
according to the specific features, benefits or the usage of the product, and
also a positioning can be developed as directly against the major opponent
or as being different from the opponent. [3]

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Strategies that worked in the past have lost validity. Competition is

increasing and with improving communication and the increasing, noise
communication has become ineffective. In this ambiance, which Ries and
Trout call comunication jungle, one must be selective and, head towards
narrowed goals.

• With increased communication volume, consumers took a

defensive-mind position. Lots of information presented are being denied by
customers which makes communication ineffective. In general, the
consumer mind uses the information which match previous knowledge and
experience.

• Positioning, as a new approach, creates a full change of the mind

of consumers, so that it brings the acception of what is configured in the
consumer's mind and work on this stuff.

• The ‘factual expression’ in advertising text strategy has lost

validity. In 70’s, this sense of creativity had no meaning. A basic
positioning description must be defined clearly with a poetic and artistic
style. 'In positioning period, the key to success is avoiding the wrath of
creativity for simple and clear positioning statements. '

• In positioning phase, the importance of the company's and its

product’s name (brand) will increase even more. The ensured position for
the brand is to be protected. [4]

To determine the positioning strategy, first, it is necessary to

identify the properties and the images of each of the major rivals completely
and correctly. Then, the business will determine its position for its products,
at this point, it must put forward the combination of the benefits of
customers that are not offered by competitors but are desired by the target
market. So, customers will be affected by emphasizing the advantage of
buying their company’s products, not the opponents’. of them the that why
opponents of the customers, not products, to buy their products that are
highlighted for their benefit, they will be affected. In other words, in the

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beginning, for the goods or services to be presented to the market, it must be

determined by the management that ‘what kind of differences and
superiorities they would have’, 'why they should be preferred’ against
competitors, systematically and as a strategy planning.[3]

Ries and Trout's positioning approach, explains the role of

competitors with resembling marketing and war each other. Ries and Trout
indicate that without taking competitors into consideration the war of
marketing cannot be won. They developed this concept in books (
'Marketing Warfare', 'Battle of Your Mind'), and recommended marketers to
read war history and famous commanders. Another important assumption of
the positioning approach is that many products are perceived/evaluated with
others-competitors. At the same time as a result of developing
communication, the impact of communication is reduced for the consumers
under the bombardment of messages. Additionally, it will not be realistic to
tend to consumers who do not demand much information. As a result of all
these assumptions, real differences of a product will be revealed with
positioning.[4]

The concept of positioning, with its emergence has been a great

interest. Today, in marketing communication applications and in academic
circles it still has a an importance maintaining its freshness. Ries and
Trout’s basic approach to positioning has been basis for later developed
definitions and approaches and has changed very little.

This general framework of positioning approach is also the

messenger of the important position of the brand today. Positioning as a
process making marketing functions easy, is a strategic tool that can be
applied at macro and micro levels. Positioning is a process that tries to
identify consumers' perceptions, attitudes and product use patterns in order
to determine the best place for product or organization from the point of
ompetitive conditions and company opportunities.[4]

Because product or market positioning is dependent on the attitudes

of the target market, marketing management, either tries to change product

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specifications according to that attitudes, or tries to change the attitudes of

the market. In general, changing goods is easier and cheaper than changing
consumers. But sometimes the attitude of the market is so negative that the
product may be required to re-position. For example, for Czech "Skoda"
brand cars, it was hard to break the impression that they have former
Eastern European origin, the company did not want the “bad workmanship”
and “unreliable” perception of 'Yugo', 'Lada', and 'Poliski Fiat' cars. Skoda
makes so much effort for its customers to realize that Volkswagen bought
its company and its cars are very much like of Volkswagen's.[3]

Positioning, especially with the market segment of products, can be

defined as placing the product into the consumers’ reference frame of
product category. Ideally, it is accepted that all marketing / communication
plans should include a positioning strategy. This strategy includes,

(a) Positioning objectives,

(b) The product's positioning statement
(c) The positioning of any featured benefit on the target
consumers,
(d) An understanding of this position in the market.

Positioning tries to obtain new positions in the minds of consumers

and to move the products into new positions. Thus, developing a superiority
over competitors is intended. This is especially important in high
competitive conditions and in markets with mobility barriers.[4]

In 1983, when Swatch company of Switzerland produced very

colorful, and everyone can buy watches, it changed the concept of “what the
customers see” when they look at watches. The company positioned
watches as "fashion accessory” and brought up an innovation in the
distribution through segmented and high in quality strores. Swatch's success
led Timex, Seiko and other firms search on consumer preferences more. For
example, in 1996, Timex launched Indiglo watches which have lighted dials
in Turkey.[1]

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Positioning is the definition of what the products represent for the

customers. In markets where competition and competitors are intense,
consumers have more options and are more questioning about products.
Berkman and Gilson (1987) argues that positioning is beyond a simple
concept which highlights a certain benefits of the product, it is an important
decision that affects all marketing stages.[4]

3. PRODUCT POSITIONING STRATEGY

A company might claim that it is better from any other company in

many ways: We are faster, we’re more secure, we are cheaper, we are more
comfortable, we are more stable, we are more intimate, we have higher
quality, we have better value ... and the list continues. Ries and Trout,
however, emphasized the requirement of selecting one of them. Thus, that
single point, will be able to stay in the recipient’s mind. Ries and Trout
considered positioning primarily as a communications application. A
product must be identified in the best way to express a sense as for a group
of customers. Otherwise it will be positioned poorly and will not be
remembered sufficiently. What we remember are the first or the best
products tapering.[2]

A positioning strategy consists of 3 steps: to reveal possible

competitive advantages to create a positioning, to select the right
competitive advantages and to choose a comprehensive positioning strategy.
Later, the company should provide effective communication and
distribution to market regarding the selected position.[5]

But positioning is not arbitrary. We would not make people believe

Hyundai is the last point in cars. In fact, the product should be designed
with a planned position in mind; positioning should be decided before
production. One of the biggest errors in General Motors’ Car Service, is that
cars are designed without a distinguishing position. After producing the car,
GM, tries to decide how to position the car.

Some companies, instead of a single position, prefer to create a

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multi positioning. The pharmaceutical company, could call its medicine, the
fastest and most reliable medicine in the market. But then, another
competitor could have selected 'the cheapest' position. It can be seen clearly
that, if a company is to claim too many superior qualities, it will not be
remembered or will not be credible. However, this could work from time to
time, like Aquafresh toothpaste, claiming to offer trio benefits: fights with
decays, whitens teeth, and provides a cleaner breathing.[2]

Kotler indicates that positioning contains communication actions

regarding the development of images of the brands that companies offer.
Pre-requisite of creating a successful and a strong brand is ‘being different’
from competitors. Creating desirable brand image in the minds of
consumers requires a coherent and integrated planning of course. According
to this assessment, brand positioning can be described as an effort to create
an distinctive merit compatible with brand identity elements.[4]

Michael Treacy and Fred Wiersema divided positioning into three

main headings (which they call 'merit disciplines'): product leadership,
operational superiority and customer intimacy. Some customers prefer the
company offering the best product of its class, others prefer the most
productive company, and many others likes the company which offers the
best solution for their needs. Treacy and Wiersema recommends companies
to have a leader position in one of the merits and to have a sufficient level
for the other two. For a company to be the best in all three discipline might
be more difficult and expensive. Fred Garford and Rayn Mathews proposed
five possible positioning: product, price, ease of access, added-value
services and customer experience. Based on the studies about successful
companies, they concluded that a good company sould be leader in one of
the mentioned positions, be over the average in another and cope with other
companies for the rest positions. Crawford and Mathews believes that a
company falls below the optimum value if it tries to be the best in more than
two of the positions.[2]

Brand positioning, brand a competitive advantage in the minds of

the targeted audience into a position which is the purpose. In this sense,

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brand positioning, brand promise of offering the consumer and represents

the sum of the features.

A successful brand positioning is the development of the 'added

value' which is improved through a remarkable differentiation from
competitors. It is extremely important for the ‘added value’ created by
brands to make a sense for consumers. In this sense, positioning is the
creation and the presentation of ‘added value’ based on brand
associations.[4]

The most successful positioning can be seen on companies who

know how to be unique and very difficult to be imitated. No one could
successfully imitate IKEA, Harley Davidson, South West Airlines or
Neutrogena. These companies has developed hundreds of custom processes
to conduct their businesses. Their external images can be imitated, but not
their internal functioning.

The companies which lack a nonpareil positioning, sometimes, may

apply to 'number two' strategy. Avis is remembered with these words: 'We
are number two. We work harder.' And 7-UP is remembered with 'un-Cola'
strategy.[2]

If brand positioning is a strategic approach, it takes a full

organization liability. How successful product and identification we get, if
we do not position correctly, we can not reach brand value and being a
brand ends in failure. For this purpose;

• Different,

• Striking,

• Creative

positioning is required. If you do not have a difference why should you be

preferred? From another point of view, positioning is being different due to

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its essence. The basic thought is to develop a peculiar, unique approach. An

object peculiar to itself is, of course, is different from others. Institutions
have hundreds of chances to be different. In a striking and impressive way,
it is possible to create a irresistible urge to purchase on consumers.

Ferrari produces its cars by taking the body size of customers just
like a dressmaker. Seat is measured for customers’ hips, pedal distance is
for longness of legs, the ceiling is calculated by the neck. Thus, on the one
hand, a production order was therefore carried out with zero inventory, on
the other hand, its prestige was risen by postulating customers not to sell the
car in a month.[6]

No positioning will last forever. As long as there is a change in

consumers, competitors, technology and economy, companies are to re-
evaluate their main brand’s positioning. Some brands may need to re-
position their market share. This must be done carefully. Re-creating your
brand may gain new customers but it can also cause the loss of current
customers enjoying your brand with its old style. For example, if Volvo
emphasizes safety the less and cool style the more, this situation can
negatively affect the Volvo enthusiasts with practical intelligence.[2]

Positioning strategy, in general, can be expressed as applications of

defining a product and brand to customers and obtaining a specific location
against competitors in consumers mind. In marketing management,
positioning strategies have an significiant place. Because it is only the
perception in consumer’s mind which is exposed by continuous
communication efforts, that defines a brand and makes it different.[7]

Alternatively, a company may claim that it is a member of elite

club of its industry's summit companies: Three major car companies, five
major accounting firms. They profit from being inside the leadership circle
which offer better quality products and services from outsider companies.[2]

This positioning strategy emerges as a result of the modern

mentality. Trout and Ries's positioning strategy is based on the view that,

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depending on the fast development of technology in the 1970s, especially in

advertising strategies, offering different sales promises and creating brand
image is inadequate. Brand strategies aim to make the brand take a specific
place in the mind of the consumer. There are five basic points for brand
strategies:

a. It is a process which makes marketing functions easy.

b. Both macro and micro level marketing can be applied

c. The percieved position for a particular product by consumer can

be based on the product’s real and physical character, or on image created
by the company having no physical presence.

d. Positioning should be oriented to the consumer.

e. Positioning will be successful only if it is based on good

research. On research, consumer needs to be detected, it should start with
the attitudes and the way consumers use products, and must end with
revealing how consumers react to a certain position.

Positioning is a form of expression how a certain product or brand

is percieved by customers. It is not how products are presented or what is
presented. However, for the success of brands, positioning and brand
identity must be put forward clearly. Because the brand position and identity
are connected in an intricate way in order to quote the differences.
Therefore, positioning, a brand component, can be defined as identifying
potential competitors, and identity, another brand component, seperates
brand from others. In short, positioning strategies are used as a promise
transfer agent to consumers via brand.[7]

4. TEN MAJOR RULES IN PRODUCT POSITIONING

a. Establish a definition of positioning,

b. Keep it simple,

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c. Make it unique,
d. Excavate product benefits and market needs,
e. Construct a credible position,
f. Ensure strong support by starting early,
g. Follow the market dynamics,
h. Make positioning visible in all communications,
i. Quantitavely test alternative positioning options,
j. Do not test the positioning statement itself.[8]

5. CONCLUSION

Companies developing their positioning strategies should first

determine attributes and images of competitor companies exactly and
accurately. Then they must designate a positioning strategy for their own
produced product. The main purpose is to head towards products that are not
produced by competitor companies but are desired by consumers and carry
out a positioning strategy in this way. What kind of differences products and
services offered to target market have from rival products, their superiorities
and preference reasons must be planned thoroughly in the beginning.
Because the market share is too narrow and products are abundantly offered
to target market, it should be always kept in mind that an arduous
competition ambiance would arise and a strategic plan should be put in
force accordingly and also brands which had lost their market share must be
repositioned.
In further studies, it is thought that it will be proper to make research on
brand positioning strategies and example applications.
REFERENCES:
[1] Tek, Ö.B., 1999. Pazarlama İlkeleri , 8. Baskı, Beta Yayınları,İstanbul, P.332.
[2] Kotler, P., 2005. A’dan Z’ ye Pazarlama, 1.Baskı, MediaCat Yayınları,İstanbul.
P.68-71.
[3] Mucuk, İ. 2004. Pazarlama İlkeleri, 14. Baskı,Türkmen Kitabevi, İstanbul. P.113-115.
[4] Uztuğ, F.,2003. Markan Kadar Konuş, 3. Baskı,MediaCat Yayınları, İstanbul.
P.71-75.
[5] Kotler, P., Armstrong, G., 2006. Principles Of Marketing, 11 Edition , Prentice Hall,
USA. P. 218.
[6] Elitok, B., 2003. Hadi Markalaşalım, 1. Baskı, Sistem Yayıncılık, İstanbul. P. 63-64.

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[7] Aktuğlu, I. K., 2004. Marka Yönetimi, 1. Baskı, İletişim Yayınları, İstanbul.
P.122-124.
[8] Robertson, B., May 2005. Ten Rules Of Product Positioning, Medical Marketing &
Media, ,Vol.40, Issue 5, P.52-58.

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