http://tenonline.org/art/mm1/9305.html

Positioning is a perceptual location. It's where your product or service fits into the marketplace. Effective positioning puts you first in line in the minds of potential customers.
As individuals, we continually position ourselves. The responsible older sibling, the class clown, a number cruncher, a super genius are all examples of positioning. These identifiers help us define ourselves and distinguish our abilities as unique and different from other people.
Positioning is a powerful tool that allows you to create an image. And image is the outward representation of being who you want to be, doing what you want to do, and having what you want to have. Positioning yourself can lead to personal fulfillment. Being positioned by someone else restricts your choices and limits your opportunities.
That's why it's so important for entrepreneurs to transform their passion into a market position. If you don't define your product or service, a competitor will do it for you. Your position in the market place evolves from the defining characteristics of your product. The primary elements of positioning are: * Pricing. Is your product a luxury item, somewhere in the middle, or cheap, cheap, cheap. * Quality. Total quality is a much used and abused phrase. But is your product well produced? What controls are in place to assure consistency? Do you back your quality claim with customer-friendly guarantees, warranties, and return policies? * Service. Do you offer the added value of customer service and support? Is your product customized and personalized? * Distribution. How do customers obtain your product? The channel or distribution is part of positioning. * Packaging. Packaging makes a strong statement. Make sure it's delivering the message you intend.
Positioning is your