The meaning and definition of positioning

Most people have an idea when they hear the word positioning or positioning strategy. What we notice is that the definition of positioning varies greatly from person to person. Differences arise regarding its place in the strategy, its impact, and its form. For some, positioning is a slogan, while for others it is an internally shared message that is communicated to the market.

We also regularly see that highly market-oriented organizations place positioning at the top of their list. Meanwhile, more product-oriented organizations see positioning as only a small aspect of (their) marketing. So it depends on your focus – or that of your organization – what positioning means to you. In this article, we will discuss various aspects of positioning and how you can apply it within your organization.

Positioning is, for us, part of your foundation, together with your raison d’être. To be able to sell your product or service well, it is essential that your organization has a clear positioning in mind and that all efforts are aligned; after all, it must also be consistent. Without a raison d’être and positioning, your organization is probably not destined for a long life.

The core of the various definitions of positioning revolves around communication with the goal: “[to give something] a recognizable place.” The more extensive definitions additionally address the communication target group and the product or service to be positioned. A definition of positioning that makes sense to many is:

Definition of positioning

“The purposeful association of a brand with such a collection of characteristics, associations, and attributes that the brand acquires a unique and distinct place in the mind of the customer relative to the competition.”

A recognizable definition for B2C, but does this also apply to B2B? We know that B2C and B2B differ significantly, for example due to a greater number of decision factors in purchasing, but does this make the concept fundamentally different? Yes, because depending on the orientation of the organization, the desired outcome changes. A product-oriented B2B organization still wants to clearly distinguish its product from the competition, but a market-oriented organization prefers to be the first point of contact for all questions in a particular sector. The product is often not why you stand out in the market!

There are countless ways to categorize different types and orientations of organizations, but we base ours on the following four recognizable types: market, product, process, and organization. Each has a different (ideal) goal for positioning that we will briefly explain. This may seem like stating the obvious, but beware! We frequently encounter organizations that classify themselves under a different type than they actually are or where the organization is split in two and both pursue different goals. The result of this pitfall is positioning like loose sand on which no successful sales or marketing can be built.

For each organization type, an example organization, market approach, and positioning goal:
Market-oriented – Virgin (Richard Branson) – Prefer a market over a mill. This type of organization identifies a need in a market and delivers a product or service for it. Goal: Build a unique brand that the market associates with certain traits and characteristics, not with a product.
Product-oriented – ASML – Das beste oder nichts (Mercedes slogan). A good product sells itself. Goal: Known in the market for having the very best product.
Process-oriented – Amazon – Striving for operational excellence, which is the connection between our products. People are secondary. Goal: Known in the market for exceptionally high efficiency and effectiveness.
Organization-oriented – Google – Not employees but brand workers. The best people in the optimal organization create the most desired product, and then demand follows naturally. Goal: Known as the best employer/organization to work for/with.

Before you start working on your positioning, it is therefore essential that you first consider what goal exists within your organization (not just the marketing or sales department). We often see that this goal is directly connected to the organization’s raison d’être. The next step is then to determine the actual positioning!