In marketing, positioning is the method used to form a product identity that consumers can recognize. On the other hand, re-positioning seeks to change this identity in relation to those of the company’s competitors.
Positioning can also be viewed as the setting up of a niche in the market for a product or brand. The most important factor is the target market’s perception of the product.
This starts with determining the market in which the product will be placed. This involves a study on the consumers, as well as the dimensions of the space in which the product will be placed.
There are some cases in which repositioning becomes necessary not just for products, but for entire companies as well. When a company changes its specialization, it will be important for the company to take into account the perception and expectations of the public.
Product positioning requires the company to come up with a recognizable and unique brand image. The company could base this on price, quality, benefits, or uses. A product is directed to a specific market for particular needs, and within a specific pricing range.
A good question for companies who are starting to position their product is also who the biggest competitor is. It will be important to distinguish their brand from that of the competitor and introduce a clear difference in benefit. It may also be necessary to test products or services to be positioned, and then gather data on how people respond to them, in order to better understand how the product should be positioned.