Having segmented the market, determined the size and potential of market segments,
and selected specific target markets, the third part of the STP process is to
position a brand within the target market(s). Positioning is important because it
is the means by which goods and services can be differentiated from one another
and so give consumers a reason to buy. Positioning encompasses two fundamental
elements. The first concerns the physical attributes, the functionality
and capability that a brand offers.