Summary
Highlights
The video clarifies that the correct term is 'positioning' or 'brand positioning,' not 'product positioning.' It addresses common misunderstandings marketers face, emphasizing that the concept is often misunderstood, hard to apply, and requires a 'marketing sense' rather than common sense.
The concept of positioning was coined by marketing gurus Al Ries and Jack Trout. They define positioning as creating a specific perception of a brand in a consumer's mind within a specific category. For instance, Volvo is positioned as the safest car.
When competitors try to occupy the same positioning, differentiation becomes key. Positioning is built through perception, and competitors are engaged through differentiation. Therefore, positioning involves differentiating a brand in the consumer's mind, meaning the perception of a competitor's brand must be distinct from our own. Examples include Volvo for safety, Ferrari for speed, BMW for driving, and Lexus for luxury.
The video concludes with two main takeaways: positioning is what you do to the consumer's mind, not to the product itself, and it is a process to cope with major competitors.