Positioning a Firm

I think positioning is defining a company's niche in a market. A position needs to be distinctive and defendable. There are lots of things that feed into positioning. The nature of products and services provided by a company can define the type of customer a firm is going after. For instance, Forever 21, the clothing store, offers fashion forward products at a cheap price. The quality isn't very high and the clothes and accessories aren't likely to last long. This type of product selection positions the company in the tween and 18-24 female apparel space. The product fulfills a purchaser's need to move between styles quickly as trends change. In this case, the product is very central in the positioning of the company.

The company's voice is also important for positioning. Continuing with the example used above, Forever 21 would need to use a communications style that speaks to a younger, female demographic. Also, in advertising efforts, both traditional and new media, the company would need to channel a younger voice and visual impact that resonates with the target market.

A firm's position is a uniting theme that draws all of the different marketing efforts together so that the message and product delivered to the end consumer originates from a common goal. With the positioning statement, a company can be more focused, strategic and efficient with its resources.

One key factor in positioning is that the firm needs to occupy a space in the market that is differentiated from other competitors. When developing this positioning, a firm should consider if the differences between its company and others is a difference that can be easily mimicked or if the positioning represents something that is truly different and can be maintained overtime. Some companies derive their differentiation from a creative and open culture that fosters innovation and other define themselves through the strategic pursuit of a particular segment. Whatever a company uses as its point of differentiation it needs to be something that isn't easily copied by others.

As highlighted by the article, the positioning for a firm needs to be well thought out and well articulated.