In positioning the product is differentiated based on 2 things to achieve competitive advantage: -
POPs: Points of parity
PODs: Points of difference
Example: - Product positioning graph for laptop, i-pod, netbook and kindle
Positioning is a concept followed by marketers to create an image in the mind of customers about their product, brand, service or organization. In marketing, the positioning concept is followed after the segmentation of the market and creating a target group for their product, which is collectively known as STP. After selecting a niche market, positioning helps to create an impression in the customers mind.
Positioning is broadly classified into three:
• Functional Positioning: This is used when the products provide solutions to problems and provide benefits to customers.
• Symbolic Positioning: This is useful for creating a brand image which helps create brand equity, a sense of social belongingness and ego-identification.
• Experiential Positioning: This creates sensory and cognitive simulation in the minds of the customer.
If a company decides to change the way people perceive a brand, then they revamp the logo, slogan etc of that brand. This process is known as repositioning of the brand, which helps create a different image of the brand.