Key Terms
Positioning
The place a product or service occupies in the customer's mind relative to competitors. It answers one question: What do
Differentiation
The process of identifying what makes your product different and better in ways that matter to customers — and in ways c
Repositioning
Changing how a product or brand is perceived in the target customer's mind. This happens when the current position is no
Alienating existing customers
If loyal buyers defined the brand one way, repositioning can feel like a betrayal.
Credibility gap
The new position may not be believable given what customers already know about the brand. A budget brand claiming luxury
Inconsistency during the transition
Marketing, product, and operations have to all shift at the same time. If they don't, the message is incoherent.
Unclear destination
Repositioning toward a vague new position is worse than the original. You have to know exactly where you're going before