Does Positioning Get the Attention it Deserves at Your Company?

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:

1. 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.
2. 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.
3. 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.
4. Promotion – deals with the dimensions of promoting the product including decisions on promotional strategy, advertising, campaigns, promotions, selling, public relations, publicity, marketing communications, etc.

Al Ries and Jack Trout introduced the concept of Positioning as a key marketing strategy during the 1970’s and popularized Positioning as a core marketing discipline with their seminal book; Positioning: The Battle for Your Mind.  Since then many marketing practitioners and academics have included Positioning as the 5th P of marketing.  However, doing some quick checking around while writing this article, I was surprised to see many recently published materials, some from reputable sources, still referring to the original "Four Ps" without mentioning Positioning.  In spite of these surprising omissions, it does appear that most university curricula do include Positioning as one of the updated "Five Ps" of marketing.

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.
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