An awareness of Spatial Relations is important for recognizing words.
Spatial Relations, is similar to position in space, but slightly more complex. This is the ability to discriminate the position in space of things relative to other things as the center point in space. I may know that John is to my right but not be sure who is to his right or left.
In the symbolic world, for a child with problems in Spatial Relations, words like "dab" and "bad" might look the same, even if he can distinguish the "d's" from the "b's".
The development of Position in Space and Spatial Relations can be facilitated in young children by providing them with opportunities to play with objects, like blocks and puzzles dolls, tea sets etc, which can be manipulated in different orders.
Simple group games are excellent too, in which children place themselves in various positions around other children. For example, the Nursery Rhyme, "Looby Loo" has kids moving together in a circle.