Frequently Asked Marketing Question

My company has an innovative new product that doesn't fit neatly into any one product category. Is this a problem?


Answer: We can illustrate the problem you face by trying to answer the following real-life questions: Can Sony position the Playstation 2 as a computer, with game characteristics, rather than position it in a traditional way as a game?

By thinking about this question, we can explore more closely the issue of positioning, which seems to be central to your question. Specifically, you need to understand how consumers "categorize" your product.

In marketing, we know that the knowledge consumer's possess is structured in their minds. In particular, knowledge (say, about products) is structured into categories (actually, there is a fancy name known as "taxonomic categories"). What does this mean? Well, things like products are in the same category if they share similar features, and the features they share are different from the features in other categories. Using the Sony example, a category member (Playstation) has maximal similarities with members of its own category (other game machines) and minimal similarity with members of other categories (say, computers).

Obviously there is a continuum of similarity because the Playstation and computers are not maximally different. In fact, they can be considered as members of an even higher category - say consumer electronics. Nonetheless, consumers may have separate categories for computers and games. In fact, the Playstation may have attained the status as a "prototype" (i.e., the best example) for the game category. Other examples of prototypical brands and categories include Kodak (Film), Starkist (Tuna Fish), Jell-O (Gelatin), and Kleenex (Tissue).

So the problem from a consumer's perspective might be this. If consumers categorize the Sony Playstation as a game, it may be very difficult for it to be repositioned as a computer. So the question you need to think about is how customers will categorize your product. You need to help them cateogize it correctly or they will categorize based on the principles we just mentioned. They will look at your product and its features and look for categories that are similar. You might not want them to put you in those categories, but unless you help them sort it out, they'll do it anyway.

More resources related to Products

  • The role of a product manager is challenging, complex and often misunderstood. But properly defining and structuring the roles and responsibilities of the product management team enables the team members to be more efficient and productive, leading to better revenues and higher-quality products that meet customer needs.

  • Are you able to make sure you're properly resourcing your new-product portfolio? And do you have the tracking tools you need to make sure those products launch on time?

  • Google is fast on its way to becoming a "mobile first" company: Within a year, mobile will become the primary way users access Google. So what does Google's mobile portfolio look like? And how does it profit from those products?

  • Students are most interested in buying laptops, fridges, and large televisions to take with them as they begin college life. Also, though college tech needs are shifting overall—toward products that provide mobility and convenience—the tech items viewed as most essential to college life are still the basics: laptops and printers.

  • Nearly six in ten (56%) Facebook users who "like" brands on the social networking site say they are more likely to recommend a brand to friends after becoming a fan, compared with one-third (36%) of brand fans who say they're not likely to do so, according to a study by Constant Contact and Chadwick Martin Bailey.

  • People who follow brands on Twitter say they are more likely to buy products from the brands they follow and more likely to recommend those brands to friends, according to a new study by Constant Contact and Chadwick Martin Bailey.

  • You have a good product and great branding, but how do you get the buyers of large retailers to notice your brand? Here are four effective ways to be resourceful when trying to get your product on store shelves.

  • What are the top-rated marketing automation products for small businesses, mid-market companies, and large enterprises?

  • How can you make sure your new product programs have the right kinds of competitive advantage? You need to think big—and "outside the box." So follow these steps for a greater probability of success.

  • The use of the most popular and highly rated digital analytics products varies by business size—with larger enterprises relying heavily on paid products and small businesses using primarily free tools—according to a recent report from TrustRadius.

  • Internet memes—images overlaid with text—are a popular way for brands to reach audiences. As followers and fans share the images, your products, logo, and brand spread to people you wouldn't reach otherwise.

  • Which tactics, channels, and content types do B2B technology companies use most to market products?

  • What are the most popular sales and marketing customer relationship management (CRM) software products on the market?

  • Which International Consumer Electronics Show (CES) product categories, companies, and attendees were talked about most at this year's event?

  • The appeal of some products is obvious; they practically sell themselves. Other, "boring" products? Not so much... There is hope, though. Here are 11 powerful ways to market products that, on the face of it, seem totally unsexy.

  • Developing new products and services in today's economy requires adaptive innovation—an ability to adjust to the fast-changing needs of target markets. Three fundamental steps are necessary to support that process.

  • SurveyMonkey creates the best-liked B2B software products among Silicon Valley tech companies, according to recent research from G2 Crowd.

  • Marketing complex products and services is a challenge. This week, add your two cents to: What methods work well for marketing technical services and solutions? Also this week, read your answers to last week's dilemma: What do you do when you are stuck with a no-name moniker and no brand?

  • This week: Many businesses have succeeded in selling products online in the form of e-books, e-reports and other downloadable content. Of course, it's not as simple as posting the product on your Web site and hoping buyers will come. The challenge comes in getting potential customers to your site in the first place.

  • Since marketers first entered the boardroom as CMOs, companies have recognized the strategic value of marketing. Often, sadly, that recognition has not been translated into quantifiable business success. But there is a way to magnify the strategic value of marketing and simplify marketers' jobs in the process. All it requires is that marketing take an early and active role in defining the company's product portfolio.