Answer to Question #244536 in Marketing for ###M

Question

Discuss the first three steps in the product positioning process.

Answer 1

Discussion

Product positioning is the process of deciding and communicating how a person/ an organization wants their market to think and feel about their product. Successful product positioning requires a team to articulate: How the product can solve their customer's problem. Why it is a better solution than its competitors.

The process is important to be identified and followed by any organization which wants to implement its marketing strategy soundly. It is a difficult task to identify and select a positioning strategy and thereby the correct positioning process for an organization. The below are the steps of product-positioning process;

1. Identifying Potential Competitive Advantages

Product is positioned by highlighting product advantages. The primary task is to identify which are the potential competitive advantages that a company can offer. Company can differentiate its product by competitive advantages. Competitive advantages consist of advantages relating to product, service, personnel, channel, and image. Such advantages include product features or distinctive characteristics, product qualities that is (durability, reliability, design/style and reparability), and product performance.

2. Developing Positioning Strategy or Choosing Competitive Advantages

A company must carefully select certain basic competitive advantages. Choosing competitive advantages calls for dealing with two questions – one is, related with number of competitive advantages, and the second is, which competitive advantages should be selected for positioning purpose?

The first question relates to the number of competitive advantages. It is very crucial decision in product positioning. Since all the competitive advantages are not equally important, a company has to select a few distinct advantages. Advantages a company wants to promote should be adequate and clear. The list should be reasonable to convince the customers the superiority of the product.

The second important question relates to selection of promising competitive advantages. Each advantage has its value. Only valued, impressive, distinctive, and novel advantages should be selected. Only those advantages making difference from competitors’ offerings must be given priority. The decision of selecting of competitive advantages depends on type of product, types of competitors’ products, and type of customers.

3. Communicating the Company’s (Competitive Advantages) Positioning

This step is also known as signalizing the competitive advantages. Once the company has decided on what and how many competitive advantages are to be emphasized for product positioning, the next step is to communicate them effectively to position them in the mind of consumers.

Appropriate physical signs and cues should be used to make consumers judge different advantages. For each of the advantages to position, different methods should be used. Consumers must be explained and convinced the competitive advantages the product can offer. All the promotional tools like advertising, personal selling, sales promotion, and publicity are used for the purpose.

Effective market communication is an essential condition to reach the mind of people and convey the message how differently and in superior way the product meet their expectations. Competitive advantages, if not successfully communicated, cannot be positioned, and are of no use.

Reference

Ostasevičiūtė, R., & Šliburytė, L. (2008). Theoretical aspects of product positioning in the market. Engineering Economics, 56(1).