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3.analysis of Case Study 3.1 Introduction of Market Positioning

Market positioning involves determining how a product is perceived relative to competitors to occupy a clear and desirable place in customers' minds. There are several advantages to effective positioning, including creating a strong competitive position, improving sales, defining a clearer target market, making more effective decisions, and connecting to customer needs. Researchers have found that positioning is determined mainly by product/service quality and relationship factors. There are five common types of positioning: pricing, quality, differentiation, convenience, and customer service.

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111 views

3.analysis of Case Study 3.1 Introduction of Market Positioning

Market positioning involves determining how a product is perceived relative to competitors to occupy a clear and desirable place in customers' minds. There are several advantages to effective positioning, including creating a strong competitive position, improving sales, defining a clearer target market, making more effective decisions, and connecting to customer needs. Researchers have found that positioning is determined mainly by product/service quality and relationship factors. There are five common types of positioning: pricing, quality, differentiation, convenience, and customer service.

Uploaded by

Yamunah Jai
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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3.

Analysis of Case Study


3.1 Introduction of Market Positioning
Market positioning involves arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers, which is
accomplished through formulating competitive positioning for a product and a detailed
marketing mix. In simpler words, a product’s competitive position in the market is referred to
as the product’s position. It is found by measuring buyers’ perceptions and preferences in
relation to competitors. The first question always asked by the customer is: “What are the
determinant attributes that play a central role in the buying decision?”
There are a number of reasons why an organization should consider making
positioning part of their marketing strategy. With the right positioning tactic, the organization
can create better marketing messages, shape better services and structure pricing plans so that
the organization remain competitive. The advantages of positioning are:
a) Create strong competitive position
Proper positioning influences how customers perceive the product or service relative to the
competition. When create a positive image of the product or service in the customers’ minds,
the organization likely to enjoy an ongoing market advantage. By doing this, the organization
can claim their position in the competitive landscape, which helps them a lot to stay ahead of
the curve.
b) Improve sales
One of the main goals of any business is to improve sales and revenue. By having a more
relevant offering and communicating it more effectively, the organization may be able to
penetrate a new market, which can translate into new clients and additional sales.
c) Define a clearer target market
Positioning in marketing allows the organization to claim a specific feature or benefit and
focus their products or services accordingly so that they appear as an expert in the services.
As a result, the organization value to prospects will increase significantly.
d) Make more effective decisions
Once the organization have the core message that ensures successful positioning strategies,
they will be in a position to make more effective decisions throughout the process. Clear
positioning in marketing also drives effective communication, provides healthier and stronger
relationships with customers.
e) Connect to consumer needs
Through positioning in marketing, companies have an opportunity to communicate the
critical benefits that their product/ service offers. It not only helps to energize the product but
also connects it to the specific customer that needs it.
Researchers in the Journal of Business & Industrial Marketing discovered that positioning
in marketing is predominantly determined by hard criteria (e.g., quality of product/ service)
and relationship-building factors (e.g., personal contact). Other considerations, such as
company structures (i.e., geographical coverage), degree of integration, and breadth of
offerings (i.e., location in the distribution chain), also play a vital part. The study also noted
that the level of familiarity with a brand is a contributing factor to perceptions of the pursued
positioning in marketing strategies. There are 5 common types of positioning in marketing:
a) Pricing
Pricing is an essential factor that impacts the decisions of most customers. Companies with
the lowest-priced products at a reasonable level of quality usually wins in many product
areas.
b) Quality
Quality can help rebuff most pricing wars. In some markets, such as luxury cosmetics or cars,
quality can define who the competitors are.
c) Differentiation
Differentiation is what sets the product or service apart from the crowd. If the organization
product or service is dramatically different, rivals may not pose as much of a threat.
d) Convenience
Convenience creates an easier life for customers. From location to usability, convenience
could incorporate something like free returns and E-commerce.
e) Customer Service
Customer service emphasizes creating helpful and friendly interactions. This can be
especially critical in specific industries, such as restaurants and banking areas.

3.2 Market Positioning by Jointwell

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