Positioning is how the product or service is to be perceived by a target market with respect to the competition. It answers the question "Why will someone in the target market(s) buy my product or service instead of the competitions?". Alternatively: "What should be the perceived value of my offering compared to the competitions?". Related positioning questions are:

* What the unique features differentiating characteristics of my products or services as //perceived// by the customers in the target segment?

The italics in //perceived// are to illustrate that the ''job is not done until the targetted people actually //perceive// the differences between their product and competition.''. Most humans can only perceive two or three differentiating attributes at a time. It is important that these attributes are easy to remember.

A big mistake is to position based on //features//. ''//Customers don't buy features they buy perceived benefits//''
* Features: High-quality technical features are not enough – typically, only tech enthusiasts are interested in the technology itself.
* Benefits: Customers look for benefits, not features.
* Perceived: Not the real benefit matters for the purchasing decision, but the perceived benefit. (Of course, the real benefit must not be such that
customers are disappointed after purchase.)

Part of [[M6-S7 - Reading - Lodish - Positioning, Targeting and Segmentation]]
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Sat, 20 Nov 2010 13:50:59 GMT
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Sat, 20 Nov 2010 13:50:59 GMT
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