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Contents 1. Introduction to Positioning. 2. Definition & Concept of Positioning. 3. Positioning Strategies. 4. Differentiation of Services.

1. Introduction to Positioning.:

1. Introduction to Positioning. “Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.” - Al Ries and Jack Trout, 1972 Al Ries Jack Trout

2. Definition & Concept:

2. Definition & Concept “ Positioning is defined as the process of establishing and maintaining a distinctive place in the market for an organization and/or its individuals product offerings.” It involves a company’s products / services creating and occupying a place, in the minds of its customers.

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Marketers should analyze the current position occupied by their firms in the (present & prospective) customer’s minds and take necessary steps to create a distinct and effective position.


Examples “McDonalds” is known for its ‘variety of products, speed, and efficient customer services.’

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“The Ritz Carlton” is considered one of the best hotels around the world for ‘Customer Services.’

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“Jet Airways” in India has received many awards for being the best airline to serve the ‘Economy and Business Class’ travelers.

3. Positioning Strategies:

3. Positioning Strategies According To “PETER DOYLE” , “Positioning Strategy is the choice of the target market segments, which determine where the business competes, and the choice of differential advantage, which dictates how to competes.” Peter Doyle


Strategies A. Attribute Positioning; B. Benefit Positioning; C. Use/Application Positioning; D. User Positioning; E. Competitor Positioning; F. Category Positioning; G. Quality Positioning, and H. Price Positioning.

A. Attribute Positioning:

A. Attribute Positioning A service provider positions itself based on an attribute or a feature. However, positioning based on a feature or an attribute may not too well for some services. Example : “Malayala Manorama” positions itself as the No.1 daily in India with the most number of readers. Example : “Allahabad Bank” positions itself as the oldest bank in India.

B. Benefit Positioning:

B. Benefit Positioning Most service providers resort to benefit positioning as the general psyche of the customer is to analyze the benefit that he derives by using a particular service. Example : “HDFC” bank is providing maximum transaction of Rs. 1 Lakh in one time.

C. Use/Application Positioning:

C. Use/Application Positioning The service is positioned as the best for a certain application. Example : “SBI” positions itself as the best in the business where educational loans are concerned.

D. User Positioning:

D. User Positioning The service is positioned for a specific target group of users. Example : “India” positions itself as the destination for tourists seeking inner peace. Example : “Disney Land” positions itself as a fun place for children And “Goa” positions itself as the destination for fun-loving youth.

E. Competitor Positioning:

E. Competitor Positioning The service is positioned by the provider against a competitor’s service offering. Example : “IIPM” positions itself against the “IIM’s” . Its Ad says, “ Dare TO Think Beyond IIMs.” DARE TO THINK BEYOND IIM’s

F. Category Positioning:

F. Category Positioning The service provider positions itself as the category leader and becomes synonymous with the service. Example : “Essel World” became synonymous with an entertainment park in India .

G. Quality Positioning:

G. Quality Positioning A service is positioned in the market as possessing a certain quality standard. Example : “Oberoi And Hilton” hotels are positioned as higher quality. AND

H. Price Positioning :

H. Price Positioning A service is positioned in the market as possessing a certain price standard. Example : “Nano” is the best example for price positioning. Example : “NOKIA” for lower cost mobile hand sets.

4. Differentiation Of Services:

4. Differentiation Of Services In today’s cut-throat competition, companies should differentiate their products / services from those of their competitors to survive in the market. Example : “A Wildflower Hall” offering a free pick up and drop facility in Mercedes at the airport is differentiating its services.


Example “Sify” is an example of how an Internet service providers has differentiated its services from the rest in the market. It provides high speed internet, coffee and sells cards, books, music tapes, online education, customized software.



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