Introduction
Market positioning is an effort by the company to influence the consumers’ perception in regard to a product or the company’s brand relative to their perception in regard to the competitors’ products and brands in the market. The function of market positioning is ensure that the company’s product and brand occur the minds of the consumers’ in the market in a clear, unique and in an advantageous manner. The concept outlines the efforts which should be adopted by an organization in order attract the customers in the target market. While positioning, the organizations normally establishes images of its products and brand based on the nature of the target market (Mirkel, 2014). The big image of product and brand positioning in the target market is normally created through the use of promotion, product, place and price marketing strategies. Despite the fact that the company’s situations might be different, there are common criteria for determining an organization success in winning and reaching a market. Nonetheless, whether an organization is centered upon business service, packed products or emerging technology organization shall depend on: brand, product, pricing and competitive positioning strategies to position on the target market.
Branding management
Position the organization brand is the critical aspect for any given business and organization. The first step towards brand position is determining the dimension of the critical brand positioning. Brand is basically determined depending on the target customers the company intends to serve. The marketing department in an organization must put into consideration the current position of its brand in the market (Peter, 2011). The kind of analysis is normally conducted in order to understand the gaps of the organization in positioning itself on the market and taking advantage of the potential opportunities of where the organization intend to position itself on the market. By analyzing the position of the organization brand in the market assists the organization to identify the products or the brand with high demand and hence going ahead to offer the customers’ demands on the brand. Understanding the highly attractive brand dimension in the target market the organization shall be in position to deliver a brand that shall successfully position itself in the market and at the mind of the customers.
Product positioning strategy
Successful product positioning in the market demands the organization to understand the product externally and internally. Once the organization or a business is properly position in the target market, it would be easier for the organization to position its products and services. Organizations must understand that when they diverges their product and brand offering into different directions they eventually dilute the value of the product and eventually confuse the customers. Therefore, there is need for each and every organization in the market to successfully differentiate its product against those of the competitors (Steve, 2012). The product to be positioned in the by an organization must meet the differentiation, relevance and functionality principle in order to capture the customers. It is the role of the organization to keep on differentiating their products and services according to the modern new technology in order to remain competitive in the market.
Competitive pricing strategy
Pricing strategy is normally based on the competitive positioning. Whenever an organization produces high quality products and services and come up with a reputable brand, there is a high chance for the organization to command high or premium prices for the products of brand. Nonetheless, there is need for the organization management to put into consideration the customers’ sensitivity to price. The uniqueness and quality of the products and services offered in the target market justify the high prices for the product (Mirkel, 2014). Understanding the customers pricing sensitivity will basically will allow the marketing department within the organization to establish appropriate pricing strategies which shall optimize the organization’s market trend predictability, margin and volume. The pricing strategy to be adopted by an organization shall create opportunities in the market for the organization and create a concrete relationship between the consumers and the organization. The pricing strategy enables the organization to dig broader and deeper in ensure a balanced perspective which puts into consideration the demands of both the organization and the customers.
Competitive positioning strategy
Marketing positioning as a whole demands the organization to understand how better it offer the brand, product and services in a unique and differentiated manner in comparison to the competitors who produce similar products and services. When the products and services differences for the organization are identified, supported and appropriately merchandised, the organization shall be at a compelling and accurate aspect of comparing them with those of the competitors. It is always fundamental for the organization to understand the brand and products it offers to the market rather than defining the brand and the products within the grounds of the competitors (Lauren, 2015). Nevertheless, an organization should never make a mistake of over position because it would eventually result into organization failure in the target market. Therefore, given the differentiation, relevance and functionality of the product and brand, the organization should put more emphasis of differentiation strategy. The consumers are so much concerned with what is offered in the market and it is the role of the organizations’ to fulfilling the demands and needs of the consumers in the market through the various aspects of market positioning. In conclusion, market position is a fundamental principle that should always guide the functionality and operation of the organization in a competitive nature of market.
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