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My Introspective

by Laurus Nobilis
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Marketing Management

Market Positioning Strategy (I)

Market Positioning Strategy

 

 

What is necessary for good market positioning approach? How to choose appropriate market positioning strategy?

 

Posted: Dec 2011


The Market Positioning Strategy is core pillar for every successful company. Every company must thoroughly assess the market, competition, consumer demands, own capacities and capabilities prior to launching a new product or new set of portfolio.

Every new launch need a careful preparation, data gathering, analysis, planning, contingency planning, execution, promotion and follow up with corrective action. Market positioning is complex activity that requires that development of process sequence is well calculated and balanced.

 

Market Positioning Procedure

Procedure of product positioning should be respected when launching a new product. Any rush or blind decision is bringing a considerable risk. Product launch that is not carefully planned is the most probably destined to failure. Competitive market with dense and versatile competition leave very little or no space for blind try. Even the most prepared campaign is difficult to be deployed in condition of strong competition. Therefore, careful Ready-Aim-Fire approach is necessary.

  • First task is to define market segment at specific market space.

  • Decide what will be targeted segment within the market.

  • Assess the consumer needs in specific market segment. It is necessary to understand what is that consumers expect and what do they consider to be a good shopping opportunity.

  • Develop the product that will satisfy their needs and expectation. Also, price sensitivity study should be conducted, since products can have different price elasticity.

  • Assess the completion, their products and the consumer perception of competitor’s products. It is necessary to take competition into account, since saturated market can slow down the penetration.

  • Shopping OccasionChoose the marketing mix that will give the unique image and distinctive look. There should be the balance between chosen image and consumer’s expectation regarding their need.

  • Assure that distribution is done to the targeted level of the market. Product distribution is important activity, since poor distribution and availability can cause campaign to fail.

  • Conduct the informative marketing  campaign to the relevant segment of consumers. Use appropriate above the line and below the line marketing activities.

 



Positioning Strategy

Procedure of product positioning should be respected when launching a new product. Any rush or blind decision is bringing a considerable risk. Product launch that is not carefully planned is the most probably destined to failure. Competitive market with dense and versatile competition leave very little or no space for blind try.



The positioning strategy of particular product should be aligned with the company strategy. Positioning can be achieved through appropriate pricing, but also through marketing approach, product distribution and positioning within sales outlet:

The positioning strategy can be obtained through some of the following strategies:

  • Market Leader Strategy is the most preferable, due to volume, revenue and profit, but is also the most difficult. Usually market leader of product A can choose to be the market leader of newly launched product B that is creating the whole new category. Position of market leader requires huge investment, medium to high risks, but can bring considerable sales and profit.

  • Challenging Strategy has the intention to capture the leading position from established competitor. This is very demanding strategy with high risks.

  • Follower Strategy is the common choice for small and medium companies. They are aware that they can not turn the market. Still, they recognize that there is still space left in the market for their product.

  • Tampon Strategy is focused in using the small niches left after larger companies.

Every strategy has benefits and drawbacks. It is possible to combine different strategies for different product. For example, company that is the leader in category A is using market leader strategy for that category of product, but for product B they are using follower strategy, in order not to increase marketing costs and not to open war with competitor that lead the category, where B product belongs.

 

 

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