Brand positioning is defined as the act of developing the firm’s offering (s) to hold a distinct place in the thoughts of customers (Kotler, 2003). Positioning is defined by Porter (2008) as “doing distinct activities than rivals or executing comparable activities in different ways” (p. 5). A positioning advantage is a valuable competitive asset that is inimitable and non-substitutable (Barney, 1991; Hunt & Morgan, 1996) that can lead to a sustainable competitive advantage and improve company performance. According to Kalafatis et al. (2000), the topic of positioning has been limited to advertising and analytics-related activities.
The scope of positioning should be broad enough to include the organizational processes essential to building and communicating a company’s identity to its clients (Kalafatis et al., 2000). According to Arnott (1993), Kalafatis et al. (2000) define 3 dimensions of discussions on positioning: concept, operations, and strategy.
Mühlbacher, Dreher, and Gabriel-Ritter (1994) suggest developing and managing the organization’s positioning practice in a process-oriented manner, and comprehending brand positioning as a wide concept that encompasses behaviors capable of establishing actual or perceived benefits for firms in the minds of potential customers. Positioning, in other words, is a market-based organizational capacity that may give organizations a competitive edge in the marketplace (Iyera, Davarib, Zolfagharianc, & Paswand, 2019).
References
Arnott, D. C. (1993). Positioning: Redefining the concept. University of Warwick, Warwick
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Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
Management, 17(1), 99–120
Hunt, S. D., & Morgan, R. M. (1996). The resource-advantage theory of competition:
Dynamics, path dependencies, and evolutionary dimensions. Journal of Marketing,
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Iyera, P., Davarib, A., Zolfagharianc, M., & Paswand, A. (2019). Market orientation, positioning strategy and brand performance. Industrial Marketing Management 81, 16–29.
Kalafatis, S. P., Tsogas, M. H., & Blankson, C. (2000). Positioning strategies in business
markets. Journal of Business & Industrial Marketing, 15(6), 416–437
Kotler, P. (1971). Marketing decision making: A model building approach. NewYork: Holt,
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Mühlbacher, H., Dreher, A., & Gabriel-Ritter, A. (1994). MIPS—Managing industrial
positioning strategies. Industrial Marketing Management, 23(4), 287–297.
Porter, M. E. (2008). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
