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This answer is based on a paper written by Jerry W Thomas of Decision Analyst Inc. I found the paper via BNet.com and would recommend it. This is the field I work in and found this summary to be to the point! The term 'positioning' used in the context of marketing or a brand is best known through the book 'Positioning' by Jack Trout and Al Reis in the 1970's. Reis and Trout proposed positioning as being 'the basic position in a consumers mind, occupied by a given brand' - the aim being, in an over-communicated society, to occupy a distinct position in the conumers mind to cut through the multitude of messages in the market. The term positioning is often, inaccurately, used to represent marketing strategy. Positioning is an element of the strategy rather than a strategy in itself. I'm embarassed, that re-reading this answer it's clear that I answered the question, without addressing the point! Why does anyone care about positioning? - to make your product stand out from competitors so you can sell it more effectively!

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