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Market Differentiation And Positioning Pdf

market differentiation and positioning pdf

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Marketing Success Through Differentiation—of Anything

What is market position? Market positioning refers to the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way. For example, a car maker may position itself as a luxury status symbol. Whereas a battery maker may position its batteries as the most reliable and long-lasting. And a fast-food restaurant chain may position itself as a provider of cheap and quick standardized meals. A coffee company may position itself as a source of premium upscale coffee beverages.

Then a retailer might position itself as a place to buy household necessities at low prices. And a computer company may position itself as offering hip, innovative, and use-friendly technology products. The positioning of a brand or product is a strategic process that involves marketing the brand or product in a certain way to create and establish an image or identity within the minds of the consumers in the target market. Market positioning of a brand or product must be maintained over the life of the brand or product.

For example, if a premium luxury car maker suddenly slashed the prices of its vehicles and began selling them at the same prices as cheaper brand-name vehicles, consumers would no longer perceive the vehicles made by the luxury car maker as prestigious status symbols, even though the car features may remain unchanged. There are two broad categories of market position: cost leadership and differentiation. Cost leadership and differentiation market positioning strategies are applicable to any business and any industry.

A business can choose to position itself using a cost leader strategy or a differentiation business strategy. A company using a cost leader strategy attempts to position itself in the minds of the consumers as a company that provides products the consumers want at a price that is lower than competing products available in the marketplace. Consumers expect basic products with no bells and whistles from a company using a cost leader strategy. Instead, consumers just expect the products to meet their needs and nothing more or less.

A company using a differentiation business strategy attempts to position itself in the minds of the consumers as a company that provides unique products that consumers will pay more for because they cannot find comparable products or product features anywhere else in the marketplace. Consumers expect more from a differentiated product and therefore are willing to pay a premium for a differentiated product.

This is true as long as the unique features of the product add some value to the product that makes it more valuable to the consumer, whether a functional feature or an aspect of image or prestige that enhances the perception of the product. The step-by-step plan to set your prices to maximize profits.

Not a Lab Member? Positioning of a Brand The positioning of a brand or product is a strategic process that involves marketing the brand or product in a certain way to create and establish an image or identity within the minds of the consumers in the target market. Cost Leadership and Differentiation There are two broad categories of market position: cost leadership and differentiation. Cost Leader Strategy A company using a cost leader strategy attempts to position itself in the minds of the consumers as a company that provides products the consumers want at a price that is lower than competing products available in the marketplace.

Differentiation Business Strategy A company using a differentiation business strategy attempts to position itself in the minds of the consumers as a company that provides unique products that consumers will pay more for because they cannot find comparable products or product features anywhere else in the marketplace.

Market Positioning Definition

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors and different from the concept of brand awareness. In order to position products or brands, companies may emphasize the distinguishing features of their brand what it is, what it does and how, etc. Once a brand has achieved a strong position, it can become difficult to reposition it. Positioning is one of the most powerful marketing concepts. Originally, positioning focused on the product and with Al Ries and Jack Trout grew to include building a product's reputation and ranking among competitor's products. Schaefer and Kuehlwein extend the concept beyond material and rational aspects to include 'meaning' carried by a brand's mission or myth. A national positioning strategy can often be used, or modified slightly, as a tool to accommodate entering into foreign markets.

When you position a product or service, you answer these questions:. Perhaps one of the following positions appeals to you : Volvo, for example, positions itself as a family of premium vehicles that are well designed for performance, innovation, and safety. Kia strives to position itself as delivering practical, utilitarian vehicles that offer high quality and value for the price. Differentiation is closely related to positioning. Ideally these qualities are things that 1 customers value when they are evaluating choices in a purchasing decision, and 2 competitors cannot easily copy. When both conditions exist, the offering is more attractive to target customers. Is it because of the taste?


Identify the continum along which product differentiation takes place. • Identify the major service differentiators. • Describe how a company can differentiate its offer​.


Differentiation and Positioning Strategy: A Toss of the Same Coin

Positioning (marketing)

Positioning and differentiating the market offering (Marketing Management)

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads.

Differentiation and positioning considerations are relevant to each element of the marketing mix as well as to onground and online marketplaces. The small business should be working toward a competitive advantage The ability to perform in one or more ways that competitors cannot or will not match. Differentiation, setting yourself apart from the competition, is one of the most important and effective marketing tools available to small business owners. Effective differentiation can put a business or a brand in the top position among the competition, but an ineffective differentiation strategy can leave a business buried in the middle or at the bottom of the pack. Kim T. A successful differentiation strategy cannot be imitated by competitors—but it can bring you great success with consumers.

The Role of Management

Differentiation and positioning considerations are significant components of the marketing which makes company's product and services unique in competitive market place. Differentiation is used when describing the individual product and positioning while explaining the brand, but both expressions basically represent rising above competition by highlighting the characteristic features of company product or brand. Theorist, Tan stated that differentiating and positioning strategy for the market offering is a new stage for a marketing plan after the concept of consumer orientation-marketing plan Other researchers affirmed that Differentiation and positioning are closely related strategies and employed with alignment of each other. Differentiation: In differentiation, the attempt is to endow the product offer with certain distinct qualities which in turn offer some special value to customer. Companies attempt to bring about differentiation in their products to give better value to their consumers.

On television we see product differentiation all the time, whether the subject of the commercial is a distinguishable good like an automobile or an indistinguishable good like laundry detergent. These are packaged products. How does the marketer differentiate a so-called commodity like isopropyl alcohol, strip steel, commercial bank services, or even legal counsel? The author […]. The author describes the attributes of products that give the marketer opportunity to win the customer from the competition and, having won him, to keep him. Finally, the author describes the alert, imaginative state of mind that characterizes good management of product differentiation. There is no such thing as a commodity.

When there are a hundred other companies in your community that do what you do, all trying to get the attention of your customer, trying to stand out from the crowd can be difficult. This is where differentiation strategies help craft messages to consumers, which convey that you can fulfill their needs in a way that's better than what everyone else out there can do for you. As with any business strategy, there are pros and cons to consider before you spend valuable resources on implementation. Digital marketing makes it easy to focus marketing efforts on a very specific niche. For example, you may have an off-leash, dog-training program that can help anyone enjoy more time outdoors with the family dog. However, if you were to focus your niche on families with children between the ages of five and 12, you could differentiate yourself as the dog-training program that teaches kids to be better dog owners. Now, you are appealing to the parents' desire to have a child who is more responsible and who also want to keep the dog safe and happy.

What is market position? Market positioning refers to the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way. For example, a car maker may position itself as a luxury status symbol. Whereas a battery maker may position its batteries as the most reliable and long-lasting. And a fast-food restaurant chain may position itself as a provider of cheap and quick standardized meals.

Product differentiation is what makes your product or service stand out to your target audience. Focusing on your customers is a good start to successful product differentiation. What do they want?

How do you drive margin when the market seems to be buying on price? How do you really establish a differentiated position? The result — a customer-first approach that is increasing margins and win-rate in target customers. By listening to their customers, our client learned that they are being commoditized because there is very little differentiation between them and their competitors.

Product Differentiation Is Important in Today's Financial Climate

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Pros & Cons of Differentiation Strategy

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