Positioning is a Psychological Location in the Customer's Mind

Positioning is the act of establishing a clear psychological location in the consumer's mind for a company, product, or service, relative to its competition. It is the customer's perception of what you stand for.

The Principles of Positioning:

1. It's Deliberate: A company must have a clear idea of how it wants to be perceived. This desired position should be based on things that are most valuable to its target customers.
2. It Must Be Based on Reality: The world will not see a company as a technology leader if it cannot demonstrate that capability. The position must reflect both reality and reasonable aspirations.
3. If You Don't Do It, Someone Else Will: If a company makes no attempt to position itself, it will be positioned by the competition or the press. This is rarely a favorable position.
4. There is Limited Space: In any given market, only one company can be "the technology leader" or "the service leader." Once a competitor owns a position, it is no longer available.
5. It is the Foundation of Promotion: A clear position provides the focus and the core message for all promotional activities.

The process starts by determining the most desirable perception a customer can have, ensuring the company can realistically own that position, and then consistently communicating it through every point of contact.