Thursday, January 21, 2010

Three Rules of Positioning (Positioning Strategy)

In the previous meeting, the class was taught about what positioning is, good examples of positioning statements, as well as three main rules of positioning.

According to "Marketing: An Introduction" textbook page 185, a product's position is the way the product is defined by consumers on important attributes--the place the product occupies in consumers' minds relative to competing products. Positioning basically is guiding the customers on their perception on the company's products or services. To come up with a good positioning statement and an effective actual position of the company, there are three main rules.

Through this post, I would like to give a good example of a brand that has positioned itself very well in the market. The brand I chose was Olympus Pen Camera (Olympus EP-1).

Let's first know some background on this particular camera brand. Olympus EP-1 is a digital camera with an excellent,high-quality performance combining the still image quality of a digital single lens reflex (DSLR) with the A/V quality of both a High Definition camcorder and high-end audio recorder. It comes in a handy and stylish shape and size, emphasizing on its practical but distinguished characteristics.

Three rules of positioning are:
1. Be Distinct.
With its tagline "Not a compact. Not an SLR. It's a PEN", Olympus has defined itself to be different from other cameras. How different? It offers dozens of advanced and professional features of a virtual full-service imaging studio in one ultra-portable and stylishly retro body.

2. Be Desired.
For a product to be successful in the market, it has to be desirable. A product needs to be both distinct and desirable so that the customers have ample reasons to buy the product. From what Kevin Spacey says in the commercial, the market nowadays doesn't want to be the "camera guy" with 8-pocket camera bag, 15 lenses, 3 tripods. The market demands a durable yet practical camera that can capture "picture wow". Olympus has differentiated itself to be more innovative than its competitors with its ultra convenience yet mega functionality.

3. Be Defined.
Because of all the great features in the camera, Olympus EP-1 costs up to $799.99. This is of course quite expensive for a price of digital camera. However, given all the convenience that Olympus offers, it has positioned itself in a spot where customers would not mind spending $799.99 for a digital camera with a DSLR quality as opposed to purchasing a bigger in size $600 Nikon / Canon with additional lenses.

Clairine B. Runtung (Claire)
Section G

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