The last element of the STP model. Positioning in its simplest definition embodies how a product or brand is represented in relation to its category and to other products in that category. It is a relative concept in that it relies on a frame of reference within the consumer’s mind. The classic treatise on Positioning is a book by Al Ries and Jack Trout entitled, Positioning: The Battle for your Mind. In it they stress that the goal of positioning is to cut through the clutter and information overload that consumers are exposed to and to ultimately carve out a space in their minds that leaves a clear impression and simplified message about the product, service, or brand. What is important however is the perception within the consumers’ minds rather than the reality of the product.
As the third step in the STP process, positioning is critical because it enables a marketer to tailor his/her brand to one or more segments identified in the targeting step. If a marketer truly understands the consumer target groups then he/she can develop or highlight attributes and benefits that appeal to those consumers.
Some of the key points made by Ries and Trout are:
Importance of being first (first mover advantage)
being the first brand to occupy space in a consumers mind is ideal because it provides a big advantage in terms of memorability. If being first is not possible, however, it is important to reframe the mind space in reference to the leading brand and establish unique positioning. Examples include:
Avis is only No. 2 in rental cars, so why go with us? We try harder.
7-Up moving away from direct competition with Coke and Pepsi to become the “Uncola” and spawning an alternative category to the traditional colas.