Product Positioning

Product PositioningThe efforts a business

makes to identify, place, and

sell its products in the

marketplace

The goal is to set the

product apart from the

competition

Product Positioning StrategiesA number of strategies can be used to position

products in the marketplace

Positioning by price and quality

Positioning by features and benefits

Positioning in relation to the competition

Positioning in relation to other products in the line

Positioning by Price and QualityA company may offer an economy line, a mid-

priced line, and a luxury line

Stresses high price as a symbol of quality or low price as an indication of value

Economy Line

Mid-priced Line Luxury Line

Positioning by Features and BenefitsProducts are often associated with a feature,

attribute, or consumer benefit

Helps people lose weightCleans without harming the environment

Positioning in Relation to CompetitionSome businesses position their products to

compete directly with the products of other companiesV

SVS

Positioning in Relation to Other Products in a Line

Individual products may be positioned in relation to other products in the same line

Review1. What are the focus and goal of product

positioning?

2. How is positioning a product in relation to

competition different from positioning it in

relation to other products in a line?

RepositioningWhen a product reaches the decline

stage of the product life cycle it must be changed – or repositioned

Repositioning – changing the identity or image of a product to redirect or expand the target market

Examples: Pledge

Pledge Commercial

Examples: Cheerios

Cheerios Commercial

PlanogramsA computer developed diagram that shows

retailers how and where products should be displayed on the shelf…maximizing the products potential

AssignmentGet the Orange TextbooksComplete the questions from Chapter 30.2Questions 1-3 on page 647Questions 7, 8, 9, 10, 11 on page

649