Repositioning

Definition

Repositioning is the strategic process of changing the perception of a brand or product in relation to competitors in the market. This often involves altering the target market, modifying the product, or adjusting marketing strategies to better meet consumer needs and preferences. The aim is to create a distinct and favorable position in the minds of consumers, thus enhancing the brand's value proposition.

5 Must Know Facts For Your Next Test

1. Repositioning can be driven by changes in consumer behavior, market trends, or competitive dynamics that necessitate a shift in strategy.
2. Successful repositioning often requires comprehensive research to understand consumer perceptions and identify gaps in the current positioning.
3. The process may involve rebranding, which could include changing the brand name, logo, or visual identity to support the new positioning.
4. Repositioning strategies may include targeting new customer segments or focusing on different product attributes that resonate more with consumers.
5. The ultimate goal of repositioning is to achieve a stronger competitive advantage and improve market share by resonating more effectively with the target audience.

Review Questions

• How does repositioning differ from brand positioning in terms of strategy and execution?
  • Repositioning is focused on changing the existing perception of a brand within the market, while brand positioning is about establishing that perception from the outset. Repositioning often involves analyzing current consumer perceptions, identifying weaknesses, and implementing changes that may include adjusting target markets or modifying products. Brand positioning lays the groundwork for how a brand intends to be perceived, whereas repositioning is a corrective measure taken when a brand's current position no longer aligns with market demands or competitive landscapes.
• What role does consumer research play in the success of a repositioning strategy?
  • Consumer research is critical in repositioning as it provides insights into how target audiences currently perceive a brand and its competitors. By gathering data on consumer preferences, behaviors, and attitudes, marketers can identify gaps in the existing positioning and areas for improvement. This information helps shape effective messaging and marketing strategies that resonate with the new target audience, ensuring that the repositioned brand aligns with their expectations and enhances its value proposition.
• Evaluate the potential risks and rewards associated with implementing a repositioning strategy for an established brand.
  • Implementing a repositioning strategy carries both risks and rewards. On one hand, successful repositioning can revitalize an established brand, attract new customers, and increase market share, leading to significant long-term growth. On the other hand, if not executed carefully, it can alienate existing customers who are loyal to the original positioning, resulting in lost sales and negative brand perception. Brands must weigh these factors carefully by conducting thorough market analysis and developing strategic communication plans to minimize risks while maximizing potential rewards.

Related terms

Brand Positioning:

The process of positioning a brand in the marketplace to establish its identity and differentiate it from competitors.

Value Proposition:

A statement that explains how a product or service solves customers' problems or improves their situation, delivering specific benefits.

Market Segmentation:

The practice of dividing a broader target market into subsets of consumers with common needs or characteristics to tailor marketing efforts.