Download Research on Category Criteria for Different Positioning Concepts in Product Marketing

Research on Category Criteria for Different Positioning Concepts in
Product Marketing
HE Yunjing1, LI Min2
Institute of Economy and Management, Taiyuan University of Science and Technology, Taiyuan,
030024, China
1. [email protected] 2. [email protected]
Abstract: Nowadays, positioning has been applied extensively in marketing since American advertising
expert named Jack Trout took off it from 1969. However, the explanations of different positioning
concepts are dissimilar, especially in marketing positioning, competition positioning, product
positioning and brand positioning. Somebody thinks these four positioning concepts are same concept of
different names, but another believes the four positioning concepts are unlike wholly. In the four
positioning concepts, the same point is the final target of positioning that take up a special place in
customers’ hearts. The differentia is positioning object and positioning variable. The distinction of
positioning concepts is not only in final target, but more important in object and variable. This article
puts forward a general model of positioning and main positioning and process in marketing. The author
maintains that positioning should fix on the relative place of the certain thing accurately and it should be
an accurate decision-making concept.
Keywords: Market Positioning, Competition Positioning, Product Positioning, Brand Positioning,
Market Mix Positioning
The positioning theory is an important theory in marketing, and its importance is presented day by
day: There are more than 1,000,000,000 pieces of positioning records with google Search Engineer on
19th, December, 2007. The number is 500,000,000 with baidu Search Engineer. There are more than
6000 pieces of articles which have been published in core periodical with exact searching in whole
Chinese periodical database in 2007. These articles are about government positioning, district
positioning, organization positioning, vocation positioning, mentality positioning, product positioning,
function positioning, image positioning, brand positioning, guide positioning, world positioning,
satellite positioning and so on. Thus, the positioning theory is been used wide, frequently and paid more
attention by scholars.
In 2001, The American Marketing Association appraised the most influential concept to it beyond
the memory of men. The result was not the USP theory of Rosser Reeves, nor the brand image theory of
David Ogilvy, nor the marketing management theory and value-delivery theory of Philip Kotler, nor the
competition value chain theory of Michael Porter. It was the positioning theory of Jack Trout and Al
Ries.
1 The Emergence of the positioning theory in marketing
In 1969, the American advertising expert named Jack Trout and Al Ries put forward the position
theory at first. He thought that positioning was a certain place of merchandise in the market, and let the
merchandise has a suitable position and keep a special image, in potential customers’ mentality [1]. In
1972, he published a series of articles named positioning ages with Al Ries in Advertisement
ages in the USA. It spoke in the articles: We got into an importance ages of product and corporation
image. It was most important that we created a position in customers’ mind according to their potential
demands. It was the same as product was positioned in your future potential customers’ mentality.
Positioning was an image design to existing product. It researched on name, rice, and packing of product.
Not changing the core part of product, it figured a brilliance image in customer’s mind with some
factors, such as design and communication. They believed that positioning was a piece of merchandise,
a service, a corporation, an organization, even a person, maybe yourself[2].
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In 1996, Jack Trout published a book named New positioning which included his last 25 years
work –experiences. Its core ides was still the positioning theory which they took of in 1972. The
engendering of positioning theory brought forward the crowded disseminative channel of various human
information and eyeballs of missing. It could be sum up the special business operating principle of
information exploding ages. The most significant contribution of the positioning theory was to point out
that the marketing competition was mentality competition of customer, not others competition.
2 The Explanation of Positioning Concept in Chinese Representative Teaching
Material
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At present, there are two famous marketing teaching materials. One is The marketing compiled by
professor Jianan Wu. The other is The general dissertation of marketing compiled by professor
Guoqing Guo.
There are two chief positioning concepts in The general dissertation of marketing compiled by
professor Guoqing Guo. The first one is the market positioning: “In order to get a steady market of the
product produced or sold by the corporation, the corporation needs to give the certain feature to product
from each aspect. Then it should set up a distinct market image of product. Finally it could form a stable
recognition and a special favoritism in customers’ hearts”. [3] The second one is brand positioning:
“Brand positioning means establishing a special brand progress about satisfying target market
demand……Brand positioning is to find its location in selected target market, and to get a certain place
in customers’ minds. So somebody says ‘positioning is not in product itself, but in customers’ hearts’.” [4]
In despite of the targets and the variables of two positioning concepts are dissimilar, their final objects
are same: “Take up a special place in customers’ hearts”. Brand positioning is “special brand image”,
which is as same as positioning concept put forward by Jack Trout and Al Ries. Market positioning is
“give the certain feature to product from each aspect”, including brand positioning. It is a
comprehensive positioning concept in marketing.
In The marketing , professor Wu thinks that market positioning is to establish the unique
character or image of company’s product and deliver to object customers, according to the place which
the competitors’ existing product occupied in the subdivide market and customers’ recognition degree to
some product’s attributes. It makes the product have strongly competitive place in segmental
market”.[5]Brand positioning is a result that make sure and build up a special brand image activity aimed
at object market. It is a progress or activity which can be occupied a unique valuable place in object
customers’ hearts, judging by the design of the whole company’s brand image.”[6]
Two professors' definitions to brand positioning are similar, but have differentiation to the
definition of market positioning. The key point is that the number of market positioning variable is
different: professor Guo argues that market positioning variable is “each aspect of product”, but
professor Wu maintains it’s “some attributes of product”.
Base on introducing market positioning and brand positioning, two professors deeply talked about
the relationship of two positioning concepts. Professor Wu believed “the essence of market positioning
was brand positioning” [6]. “Market positioning was also called product positioning or competition
positioning”.[5] In other words, they are different names but similar essence about market positioning,
brand positioning, competition positioning and product positioning. However, professor Guo didn’t
agree on. He thought “both brand positioning and product positioning founded on trenchancy
competition leading, but they also have some differences. It added association and value on the
product. ”[4] Professor Guo also introduced seven sorts of tactics of brand positioning: attributes
positioning tactic, benefits positioning tactic, purpose positioning tactic, user positioning tactic,
competitor positioning tactic, quality and value combination positioning tactic and life manner
positioning tactic. These seven brand positioning tactics let brand positioning equal market positioning,
but know from product positioning and competition positioning.
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3 Author’s Explanation to Position Concept
Positioning target spoke by Jack Trout and Al Ries can be a piece of merchandise, a service, a
corporation, an organization, even a person. Positioning object is “Taking up a special place in
customers’ hearts”. Positioning variables are some factors aimed at customers’ mental communication
without changing positioning target itself. Because Jack Trout and Al Ries are advertising experts, and
major in advertising design about existing product, they believe “positioning is not in product itself, but
in customers’ hearts.”
There are three pieces of explanation about positioning in Modern Chinese Dictionary (recension
1999). The first one is measuring the position of the object with some instruments. The second one is the
position made sure after measuring. The third one is putting a suitable place to something and gibing a
certain appreciation. These are abstract positioning concepts. All of these can be generalize for:
confirming a appropriate place of the object according to target and object after measuring. Positioning
concept includes two key verbs. One is “find”, the other is “set”. The positioning progress is a progress
of finding place and setting target correctly. It concerns positioning target, positioning object,
positioning instrument, positioning technique, positioning method, positioning result and so on (see
figure 1). So it should be a concept of accurate decision-making. Nowadays, the above model is applied
extensively in marketing and other academics region.
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positioning target
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positioning instrument
positioning variable
positioning
result
positioning technique
positioning object
positioning method
implement
Figure 1. General position model
Positioning in advertising is a progress putting the existing product into the customers’ mind.
Positioning in marketing is a progress putting the business enterprise into the target market and
capturing it. The contents and scope of positioning in marketing are more extensive than in advertising.
It involves each aspect in marketing. In figure 2, there are major positioning concepts and progress in
marketing.
implement
business enterprise and
competition positioning
product mix positioning
target market positioning
price mix positioning
marketing strategy positioning
marketing mix positioning
place mix positioning
certain mental
position
promotion mix
Figure 2. Major positioning concepts and progress in marketing
It should be deeply explained that there are eight distinct concepts about market positioning,
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marketing strategy positioning, product positioning, price positioning, channel positioning, promotion
positioning, brand positioning and competition positioning (see table 1). The differential standard of
positioning concept is not only the result, but also the positioning object and positioning variable.
Table 1. Positioning object and positioning variable of different positioning concepts
Positioning Concept
Positioning Object
Market positioning
Target market
Positioning Variable
The appetency of demand variable (population, purchasing power,
appetency)
Marketing strategy positioning
Marketing strategy
Core competition power, investment mix, pullulation, value chain,
benefit relative
Product positioning
Product mix
marke
ting
mix
positi
oning
Core product, form product, function and benefit of augmented
product
Price positioning
Price mix
Price level, price composing, benefit level of channel members
Place positioning
Place mix
Channel length, width, progress and relationship
Promotion positioning
Promotion mix
personnel, advertising, sales promotion and public relations
Brand positioning
Brand image
Attributes, benefits, values, culture, personality, association
There isn’t competition positioning in table 1, because competition positioning is the basic
direction of above seven positionings. Competition positioning means positioning the marketing
controllable variables aimed at the competition. The former seven positionings are the variables of the
competition positioning. Another word, all of positioning in marketing is according competition. If there
were not the competition position, there won’t be the other positionings. Competition positioning is the
positioning aimed at competitors.
4 Conclusion
Positioning concept is applied extensively. The application in marketing is far from the initial
category put forward by Jack Trout and Al Ries. Specific expressions are in positioning beginning,
positioning target, positioning variable and so on. Nevertheless, the final result of each positioning is
“getting a certain place in customers’ hearts”. The differences of positioning concepts are not only in
final result, but also weather positioning target and variable are same. The origin of positioning is
market competition and competitor is the positioning reference, so the competition is a direction concept,
not a concept which need concretely operate. Positioning need correctly male sure the relative place of
object, so it can be a concept of exact determination.
Reference
[1] Xiuming He, Modern Advertising, sixth edition, Shanghai: Fudan University Publisher, 2005, p.29.
[2] Jack Trout and Al Ries, Brand Positioning, Beijing: Chinese Friendship Publisher, 1991, p.2.
[3] Guoqing Guo, The general dissertation of marketing, second editions, Beijing: People University
of China Publisher, 2003, p.165-166.
[4] Guoqing Guo, The general dissertation of marketing, second edition, Beijing: People University of
China Publisher, 2003, p.193.
[5] Jianan Wu, The Marketing, third edition, Beijing: Higher Education Publisher, 2007, p.211.
[6] Jianan Wu, The Marketing, third edition, Beijing: Higher Education Publisher, 2007, p.288.
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