Which two statements are true of product positioning?
Multiple select question.
It exists in the mind of the consumer.
It requires consideration of the price of the product.
Once established, it is permanent.
It is in relation to competitive products.
The correct answer and explanation is:
The two correct statements about product positioning are:
- It exists in the mind of the consumer.
- It is in relation to competitive products.
Explanation :
Product positioning refers to the process of creating a distinct image and perception of a product in the minds of the target consumers. This perception determines how consumers view the product in comparison to competitors. Here’s why the two selected statements are true:
- It exists in the mind of the consumer.
Product positioning is ultimately about how consumers perceive the product. It focuses on shaping the mental associations people have with a brand or product based on factors like quality, benefits, pricing, and unique features. For instance, Apple is positioned as a premium, innovative technology brand in consumers’ minds, which influences their purchasing decisions. Marketers use messaging, advertising, and branding to align the product’s identity with the desired consumer perception. However, once consumers form an opinion, changing it requires significant effort. - It is in relation to competitive products.
Positioning inherently involves comparison to competitors because consumers evaluate products in a relative context. Marketers strategically highlight their product’s unique value proposition (UVP) to differentiate it from similar offerings in the market. For example, Volvo is positioned as a safety-first automobile brand, setting it apart from competitors like BMW, which focuses on performance. This differentiation allows the product to occupy a unique space in the market and attract a specific segment of consumers.
Why the Other Options Are Incorrect:
- “It requires consideration of the price of the product”: While price can influence positioning, positioning encompasses broader elements such as quality, features, and brand image.
- “Once established, it is permanent”: Positioning can evolve as market trends, consumer preferences, and competitive landscapes change. For example, brands often reposition themselves to remain relevant.
In summary, product positioning is about consumer perception and competitive differentiation, both of which are critical to creating a strong brand identity.