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positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. In other words, it is the act of fixing the locus of the product offer in the minds of customers. In this, the firm decides how and around what parameters, the product has to be placed before the target consumers.

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Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their bestseller book " Positioning - The battle for your mind". They say that Positioning is what you do to the mind of prospect. They iterate that any brand is valued by the perception it carries in the prospect or customer's mind. Each brand has thus to be 'Positioned' in a particular class or segment. For example, Mercedes is positioned as a luxury brand, and Volvo is positioned for safety.

What locus in consumers mind does the product try to secure? Where do we want our product to be lodged in the consumers mind? As what should our product be seen and considered by the consumer? How to ensure that the proposed product is viewed as a superior/distinct offer? etc.

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A product cant be everything to everyone. It connects product offering with target market. It is the means of putting the product in a predetermined orbit. Consumers mind a geometric perceptual space; the product seeks a locus in the space. It helps to study about competitors products position.

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Where is the new offer going to compete? Which product function/customer need is it trying to meet? What other product categories serve this need? Where is the real gap, where is such new offer most welcome and wanted by the market? What are the companys competencies to fight here?

PERCEPTUAL MAPPING

Perceptual mapping is a graphics technique used by marketers that attempts to visually display the perceptions of customers or potential customers about the product, product line, brand, or company . A Perceptual map is a visual representation of how target customers view the competing alternatives which represents the market. A perceptual map is the output to multidimensional scaling. Perceptual mapping will help you find out how your brand is positioned as compared to your competitors.

To gain competitive advantage, a firm must correctly position itself, its products, or services against competitive offerings. Need to develop a Mental Map of how our product is perceived by consumers relative to the different competing products in the marketplace. Perceptual maps can have any number of dimensions but the most common is two dimensions. Any more is a challenge to draw and confusing to interpret.

Deciding on which areas to go into? MAP. Do a PERCEPTUAL MAP

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Step 1: Choose 2 of the most important qualities you think should be in the business youre doing. (e.g. if its selling bananas at a store, I will choose Color and Price.) Step 2: Put Color on one axis, and Price in the other. The two ends of one axis represents the two extremes of the quality. Step 3: Plot where your competitors are. Ask what consumers think of these brands with respect to these two qualities. Bigger the circle, bigger the brand. Step 4: Pick a spot. If you choose to go somewhere where its already filled up, then those will be your direct competitors. If you choose somewhere empty but looks promising, you will need to focus on some branding too. and youll have competition coming at you later on.

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It is also known as Positioning Analysis. It has been used as a strategic management tool for about thirty years now. Perceptual mapping helps to communicate the relationship between competitors and the criteria used by your consumers while making purchase decisions.

Perceptual Mapping also helps firms to answer such questions as:

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Based on customer perceptions, which target segments are the most attractive? How should we position our new products with respect to our existing products? How do our customers view our brand? Which brands do our target segments see as our closest competitors? What product attributes are responsible for the perceived differences between products? How would changes in a product's perceived attributes alter the product's market share?

INNOVATION, DIFFUSION & ADOPTION

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It is the process by which an innovation is communicated through certain channels over time among the members of a social system. It is the S-shaped curve process. Due to different factors, it takes time to diffuse the innovations and adopted by consumers.

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Innovators Early adopters Early Majorities Late Majority Laggards

Stages of adoption: Awareness - the individual is exposed to the innovation but lacks complete information about it Interest - the individual becomes interested in the new idea and seeks additional information about it Evaluation - individual mentally applies the innovation to his present and anticipated future situation, and then decides whether or not to try it Trial - the individual makes full use of the innovation Adoption - the individual decides to continue the full use of the innovation

Innovation characteristics Individual characteristics Social network characteristics Others