When the business organization determines which segment of market it will serve. The next step is what position it requires to hold in the selected segment.
The way in which product is specified by the consumers on significant features is regarded as position of that product.
In other words, the spot the product resides in the brains of consumer’s comparative to competing products is referred to as position of that product.
The implantation of unique advantages and variation in the mind of consumers is known as market positioning.
What is Market Positioning
Market positioning is a strategic exercise through we create a positive image in the mind of customers and the way the business achieve this market positioning is known as market positioning strategy.
Read More: Types of Market Segmentation
Positions should be planned by the marketers that would provide their products the highest gain in chosen target market along with the designing of marketing mixes in order to produce these planned positions.
Choosing an Effective Market Positioning Strategy
It is easier for many business organizations to select their positioning strategy. For example a business organization that is famous for providing quality in particular segments can move to new segment in which there are enough purchaser that are searching for quality products.
But in several situations, two or more business organizations chase the same position. Then each one must figure out the methods to make it unique. Unique bundle of benefits are developed by each business organization appealing to potential group inside the segment.
There are three steps which are included in the positioning task. The business organization then properly communicates and delivers the selected position in the market. These steps are as follow.
Identifying Possible Competitive Advantages
To understand the needs and buying processes of purchasers more effectively than the competitors along with the provision of more value to the customers is the key to win and maintain the customers.
The business organization obtains competitive advantage to the extent it can position itself by delivering more value to the chosen target market. But empty promises do not provide basis for solid positioning.
If the business organization positions its products as potential enough to provide service and quality, then it should provide the promised service and quality.
By differentiating the marketing offering of business organization, positioning starts and these marketing offerings delivers superior value to the customers as compared to the offerings of competitors.
The complete experience of the customer regarding products or services of the business organization should be considered by the marketer in order to determine points of differentiation.
An effective business organization can determine manners to differentiate itself at each spot where it may with customers.
The business organization differentiates its offerings through changing its lines or services, products, people, channels or image.
Read More: Steps in Marketing Research Process
Through people differentiation, business organizations get a potential competitive advantage by training and hiring efficient people than their competitors perform.
Selecting the Right Competitive Advantage
Let’s a business organization is fortunate enough to find many competitive advantages. It should now select the ones upon which it develops its positioning strategy. It should determine that how many variations to be encouraged and which ones.
How Many Differences to Encouraged
It is considered by many marketers that only one benefit should be encouraged by the business organization for target market.
A single characteristic should be picked by every brand and advertise itself as best on that characteristic.
The business organization will probably become best known and remembered for longer period by hammering away at one of these positions and continuously provides on it.
Other marketers considers that more than one differentiating component should be used for positioning their products.
This may be essential if two or more business organizations present themselves as efficient on the similar characteristic.
Business organizations are struggling to widen their positioning strategies to become attractive to more segments, as recently the mass market is dividing into smaller segments.
Generally three main positioning errors should be avoided by the business organizations. Under Positioning is the first one which means that not properly position the business organization.
Some business organizations find that the purchasers have just an obscure thought of the business organization or the purchaser does not have extra ordinary kind of information about it.
Over Positioning is the second error in which business organization provides too narrow picture to purchasers about itself.
Which Differences to Promote
All brands are not worthwhile or meaningful. In other words, not each variation becomes efficient differentiator.
Both costs of business organization and customer benefits are produced by the every variation that has potential for this.
Read More: Different Stages of Buyer Decision Making Process
Different manners should be carefully chosen by the business organizations to distinguish them from competitors. Following criteria should provide the basis for the effectiveness of the differentiation.
Important: The increased valued benefit is provided by difference to target purchasers.
Distinctive: The business organization can offer the difference in more typical manner as compared to its competitors.
Superior: The difference is superior to other manners that purchasers might get the similar gain.
Communicable: The variation is visible and communicable to the purchasers.
Preemptive: The difference cannot easily copied by the competitors.
Affordable: The difference can be affordable to the purchasers.
Profitable: Difference can be introduced profitably
Several business organizations have present variations that are unsuccessful that failed one or more of these tests.
Choosing an Overall Market Positioning Strategy
The products or services that provide highest value to the consumers are selected by them. Thus marketers try to position their products on the basis of unique benefits that they offer comparative to the products of competitors.
The brand’s value proposition is known as complete positioning of a brand. In other words, the brand is positioned on the basis of complete mix of benefits.
Communicating and Providing the Selected Position
Solid steps must be taken by the business organizations to provide and communicate the desired position to the target customers, once the business organizations have selected a position.
The positioning strategy should be supported by all marketing mix struggles of the business organization. Solid action is required by the business organization rather than only talk.
The desired position should be provided first, when a business organization determines to develop a position in increased quality and service.
Operating out the tactical details of the positioning strategy is surely included in the designing of marketing mix (Product, Price, Place and Promotion).
Thus a business organization that grab a position of “for more” understands that it should generate efficient quality products, charge increased price, deliver through efficient quality traders, and make advertisement in enhanced quality media.
More service people should be trained and hired by the business organization along with searching highly reputed retailers and build advertising & sales messages that transmit its potential service.
In order to develop believe able and consistent “more for more” position, this is the only manner.
In most cases it is simple to come up a better positioning strategy found by the business organizations as compared to its implementation.
Usually it takes long time to build position or change the position. A position can rapidly be lost when it takes several years to develop, in contrast.
Through consistent performance and communication, the business organization carefully maintains the desired position after developing it effectively.
Read More: Levels of Market Segmentation
The position should be closely supervised and adapted over time by the business organization in order to meet alteration of the competitors and needs of consumers.
Abrupt changes must be prevented by the business organization that can make consumers confused.
Instead, the position of a product should be progress slowly and continuously as it adjusts to the continuously changing environment.
