Abstract
The current globalization attached to the continuously developing economies, competition among enterprises grows quickly and the market share gets narrower. This situation has propelled organizations to develop approaches aimed at gaining new market; companies are also trying to create superiority over their rivals by positioning new products which are aimed at consumer behavior and perceptions. Under such notion, product positioning strategies in the marketing management has emerged and now companies conduct studies on this strategy. The preceding analysis offers a detailed approach aimed at creating a comprehensive comparison of various positioning strategies for competing products or service.
Introduction
Various terminologies have been presented which are aimed at offering a clear insight on the definition of positioning. A common notion can be derived; however based on integration of various sources to define the positioning as the development of the image of a product directly against the competitor products and other products produced by the company’s own. Based on the stated analysis, it is evident that positioning strategies are approaches and mechanisms that are developed by the company to position their products on the market compared to those of the competitors in the industry. The main purpose that can be traced on positioning is as the management attention by the recipient to certain products such that they differ with other commodities or products or basically services from those of the competitors hence favoring the company. The inventors of the term within the marketing world made a clear insight on the distinction between the common notion on positioning the product as something you do to a product but something you do to the mind of potential customers. The stated analogy offers a clear insight on the fact that the positioning where though termed as product positioning strategy it is basically based on the consumers’ minds.
The various approaches that are based on the assumptions which the product positioning strategy on competing products include; all the goods and brands more or less have objective and subjective characteristics; consumer preferences such characteristics on perceptions; rival product or brand presentation attributes which are assessed in relation to features based on consumers mind. These aspects offer clear insight on the entities on consumer minds that forms baselines on developing product positioning strategies such as; size, large-small, weight, heavy-light strength which should be strong and reliability among other aspects.
Based on the stated analysis, it is evident that consumer perceptions form an essential baseline on developing product positioning strategies. These perceptions are based on the notions that revolve around consumers mind as they choose between rival presentations; they prefer the most advantageous for them which have the most features they expect. Such notions offer a detailed insight on the baselines under which the positioning strategies are based. They present the various entities that the firm or the organization should emphasize on when developing product positioning strategies. These are essential aspects towards developing effective and efficient mechanism in relation to positioning.
Positioning in the marketing strategies falls under the last stages after product and image stages. The product life cycle which offers a various stages under which the product is introduced into the market, matures and declines. These stages are attached to various characteristics on the products. The concept of positioning is based on various entities which enable organizations to position products to a competitive advantage. The market position of a product under this analysis is relative location in the customers mind among the competitor’s products. It is based on the specific features of the product, benefits or the usage of the product or from the major opponent products features.
Product positioning strategies have been receiving tremendous changes based on the trends alternations or changes. The competition falls under such entity where increasing competition plus improving communications. Competition and communication entities are some of the most dynamic aspects limiting or facilitating organizational product advantage is based. The increasing communication volume where the consumers under take the defensive-mind position calls for the need for more strategic approaches to streamline the communication which can only be achieved on developing effective positioning in relation to the issue.
Market segmentation an essential integral on the product positioning strategy which falls within the specifications needed in maintaining a mutual relationship between the organization and the targeted consumers based in the specific product. To be able to clearly define a strategic marketing strategy marketing researchers recommend segmentation of the market. This entails various definitions in relation to various authors understanding. They have proposed various definitions that ought to offer a clear insight on the term segmentation in relation to product positioning strategy. According to Caroline, (1987) this refers to the act of defining heterogeneous markets to small distinctive homogenous markets. The segmentation of these heterogeneous markets to homogeneous market is based on the products or services offered by the firm. The products or service are normally divided into several segments holding some aspects about the market, the product, the consumers and the firm’s objectives. According to Ajzen, (1973), he terms market segmentation as a defined and structured act of dividing an existing market under where the firm operates or aims at operating to distinct group of buyers in relation to their requirements if the products or services or the marketing mixes. This can help determine the level of advertisement, some of the aspects that the firm needs to improve, their service delivery models and their customer services. Evaluation of the market and making a decision to segment can be in relation to various market segmentation aspects. These aspects as analysed in the preceding preview are normally based on the consumer characteristics. There are mainly four bases on characteristics of the consumers that can be used by organizations in their segmentation of the market. They are; Geographic, Demographic, Psychographic and Behavioralistic (Cunningham, 1967). These baselines when held in to account by the firm can offer marginal benefits as stipulated later in the analysis in relation to positioning strategies of products or services.
The positioning strategies where market segments of products which are aimed at placing the product under the consumer’s references frame of product category. The strategy incorporates the preceding approaches such as; positioning objectives, the product positioning statement, the positioning of any featured benefit on target consumers plus understanding of the position in the market. According to researchers, positioning can be defined as representation of a product for the consumers. The markets where the competition and competitors are intense, the consumers are availed with numerous options where they question the various features about the products. According to Kotler, (2006) there are varying notions on the position entities as beyond a simple concept that basically highlights a certain benefit of the product hence an important decision which influences all marketing stages.
Analysis
Based on the stated essentiality of product positioning strategy it is significant to address the various attached entities attached to the strategy. This calls for a detailed analysis on the various product positioning strategies and offering a comprehensive approach on the aspects attached. Every organization wishing to present products within the market and aiming to create a competitive advantage should embrace more strategic positioning entities on the stated notion.
Organizations seeking to indulge in product positions are required to define the various entities that encompass consumer behaviors. This is done in reference to some of the stipulated steps by consumer behaviors. They proffer the following steps.
- Problem recognition
- General need description
- Product specification
- Supplier research
- Proposal solicitation
- Supplier selection
- Order-routine specification
- Performance review
The stipulated steps normally define product positioning strategy and analyzing brand position in their purchasing decisions towards establishing a consumer brand. Identification of the essentiality and composition of each step acts is a guideline for every organization to attract or maintain organizations’ which purchase from them. They are essential in relation to developing an effective marketing strategy aimed at offering competitive products and services to the organization. Creating effective relationship by these organizations is essential for bulk buying hence increasing sales leading to growth and development of the firm.
In conclusion, analysing the behaviors projected by the consumers and organizations is essential in every aspect. Offering satisfactory services in each of the projected behaviors by each of the party can marginally help understand the needs of every consumer. Identification of the needs of these consumers as projected on their purchasing decisions is one of the essential steps that the firm needs to make in relation to growth and development. This not only increases sales but ensures that the business offers products that satisfy their consumer needs through effective positioning of the products. Every firm should formulate mechanisms aimed at ensuring that the influence is tamed, with essential information provided. This can help the firm create a competitive advantage in the market achieving market dominance.
Positioning strategies
There are various positioning strategies that are used to effectively create a competitive advantage as the organization presents and positions their products within the market. This strategy avails the various approaches that organizations select towards positioning their products in the market (Keller, 2006). The preceding analysis offers a detailed insight on the stated strategic approaches. They include;
Price and Quality product positioning strategy
Under this strategy, price-quality features are used to position product by organizations hence achieving a competitive advantage. This strategy is essential and pervasive based on the level of embracement that the organizations and companies under take. The price and quality falls under some of the most significant aspects that defines products within the market. The ability of an organization to embrace this entities and basically deploy them towards increasing effectiveness and efficiency while trying to create a competitive advantage within the market. Price defines various features and performances of the products within the industry. Various researchers advocate for the need of developing a competitive pricing strategy aimed at not only increasing the performance of the product or service within the market but also positioning the commodity in a competitive position within the market especially when there are similar competitor’s products. The quality on the other hands plays an equal or even more essential entity within the organization. This is essential not only towards increasing the sales, increasing or creating consumer royalty but also aiding the organization on the strategic approach under which the brand should be created. Based on the stated preview on the marginal benefits that are attached to the two essential entities within the market, it is evident that every organization that seek to undertake positioning strategies should not only be acquainted on the essentiality of the entities but have a clear insight on the magnitude of the attached aspects on the stated entities.
The existence of various brands within the market that are aimed at offering more consumer based features in terms of service, features or performances. Manufactures dealing with such products tend to manipulate price to send a message on the quality. This is evident in the fact that consumers tend to associate high priced commodities as of high quality compared to the lowly priced commodities, such entities tend to define the position under which the product will be availed within the market.
The most contradicting notion that every organization normally faces is based on the price being the major defining aspect on the quality. The fact that some consumers attach low price to poor quality product with the high priced commodity attached to high quality products, organizations are sometimes faced with the predicament on where to position their products. The fact that lowering the price of a product or service depicts that the quality is low may largely influence the positioning strategy. The analysis above offers a clear insight on some of product positioning strategies used by organizations to position their competitive products or service within the market. The analysis avails the merits attached such as the ability to attract more consumers to the demerits of associating a high quality product with low price as a poor quality product and vice versa.
User or application positioning strategy
This strategy differs with the earlier stated strategy that embraces price and quality as the main entities on positioning framework. Under this approach, organizations are availed with an option where they can use the application or the user entity to determine the most competitive position that the organization can position its products creating a competitive advantage within the industry. Using this approach to communicate to the consumers on the product features aims at advocating on the basic or main use that the specific product is used within the market (Armstrong, 2004). The organization attaches the specific application that the commodity is aimed at within the market to position the commodity towards creating a competitive advantage within the market. Organizations such as soap based company may position its product as the most effective germs remover within the market hence creating a competitive advantage as the best choice when germs related cleaning are needed within the market.
This positioning strategy though competitive as various organizations utilize it to create a competitive advantage within the market, the organization has the advantage of proving to the consumers that the specific features or products value is achieved. However, organizations have to deploy more strategic approaches within the market to curb the attached competitions from similar products within the market offering similar value or benefits.
Product user positioning strategy
Compared to the first analysed positioning strategy offering a clear insight on price and quality as the defining aspect, the product user position strategy differ through shouldn’t be confused with the user or application positioning strategy. This strategy is currently one of the most embraced strategies under the current positioning strategy embraced by organizations. This entity is supported by the fact that organizations are discovering the influence or the impact by the various public figures stretching from musicians, politicians, athletes or sports among other influential icons within the society. This approach is best defined sports companies such as Nike which once associated its products with Michael Jordan among other influential sports figure. Nike still embraces this strategy with other similar companies following the suit. The strategy falls under the currently used approaches by organizations and companies as they seek to position their products or services in a competitive advantage within the market.
Product class positioning strategy
Under this approach more critical aspects are considered in a product or services based on the features and the essentiality to the consumers. Critical positioning decisions made under this strategy the organization may wish to position the product by attaching other product or qualities. Such instance can be traced by being embraced by companies such as Maxim freeze-dried coffee which upon its first entrance in the market attached itself in respect to regular and instant coffee. The strategy requires the targeted product or service within the market have other unique features that sets a certain class.
Cultural positioning strategies
Under this approach, the organizations basically identify the cultural symbols to differentiate their brand from that specific brand of the competitors. This strategy embraces various measures to ensure that the product or service is based on deeply entrenched cultural symbols that set a difference to that of competitors. This is founded by identification of specific meaningful entity to the consumers which other competitors are not familiar with and never associated brand.
Conclusion
The stated detailed analysis offers a clear insight on the various product or services positioning strategy. The quality-price positioning strategy avails the approaches where price and quality are used as the aspects to determine the product position within market. User or application product positioning strategy depicts how organization targets the specific use of the product as the essential entity to position the product. The comprehensive analysis provides the essential aspects that organizations should consider while seeking to select the specific product positioning strategy. Every organization seeking to undertake the product positioning strategy should consider the stated aspects attached on the specific strategy to discover and benefit from the strategies. The essentiality of product positioning strategies is diverse not only towards creating a more consumer based marketing strategy but also creating a competitive advantage within the industry. Considering the competitors and creating an effective communication channel, the organizations should deploy product positioning strategy for the competing products. This is essential towards developing competitive and effective marketing strategies that are based not only on the values of the products but also creating a competitive advantage within the market.
Reference
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Cunningham S. M (1967), Perceived risk and brand loyalty, Risk Taking and Information Handling in Consumer behaviors, Harvard University Press.
Ajzen, I and Fishbein, M. (1973), Attitude and normative variables as predictors of specific behavior, Journal of personality and Social psychology
Hutt, M.D., Speh, T.W. (2004) Business Marketing Management. Hagerstown, MD: South-Western
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