My answer would be "no" based on most of the companies I’ve worked for and with over the years. What is your gut response before reading this article?
All marketers learn about the original "Four Ps" of marketing and use them in all aspects of marketing strategy, planning, development and execution:
- Product – deals with the dimensions of the product being marketed. This applies to all types of 'product' – whether it’s tangible, intangible, service, practice, etc. The product dimension addresses characteristics such as the branding, functionality, design, quality, safety, packaging, warranty, etc.
- Price – deals with the dimensions of pricing decisions such as pricing strategy, suggested selling price, discounting, wholesale pricing, seasonal pricing, bundling, flexibility, price discrimination, etc.
- Place – deals with the dimensions about how the product reaches the customer. Marketing decisions on place include distribution channels, coverage, channel members, inventory strategy, order processing, logistics, etc.
- Promotion – deals with the dimensions of promoting the product including decisions on promotional strategy, advertising, campaigns, promotions, selling, public relations, publicity, marketing communications, etc.
So why is positioning most important?
Positioning deals with what you want to do in the mind of the prospect – i.e. how do you want prospects and customers to uniquely perceive your product in their minds regardless of exposure or familiarity with other similar or competing products – e.g. "safe vehicle" = "Volvo". Positioning is the promise of the value you create for your customers. Positioning cuts across the other 4 Ps and determines how you develop the specific dimensions of the other 4 Ps within the overriding positioning.
Positioning dictates what you do with a product and/or how you develop a product. Pricing decisions must support the positioning. Place is determined from positioning to define how to take a product to market. Promotion is how you consistently communicate the positioning to the mind of the prospect. If any of the 5 Ps are out of sync, your marketing strategy and execution will not produce good results.
According Philip Kotler of the Kellogg School of Management, all good marketing planning starts with Research, which reveals potential customer Segments, which determines the Targeting of specific segment(s) a company can serve better than anyone else. The next step from this process is Positioning which must be done before considering Product, Price, Place & Promotion of marketing planning and execution.
A previous article discusses why positioning should take precedence over branding.
Where does Positioning fit in your business planning and marketing process? Do senior management and other functional areas in your company understand and appreciate the importance of positioning before everyone runs off to build, market and sell product? Your comments are always welcome.
Copyright © 2010 The Marketing Mélange and Ingistics LLC. http://marketing.infocat.com
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