Alternative Positiong Strategies

Topics: Marketing, Strategic management, Positioning Pages: 3 (1009 words) Published: October 23, 2010
After the organization has selected its target market, the next stage is to decide how it wants to position itself within that chosen segment. Positioning refers to ‘how organizations want their consumers to see their product’. What message about the product or service is the company trying to put across. The UK car Skoda brand which has been taken over by Volkswagen has been re-positioned as a vehicle which had negative brand associations, to one which regularly wins car of the year awards. The positive comments from the industry and attributes of this vehicle is has changed the perception of consumers about the Skoda brand.

Developing a positioning strategy
Developing a positioning strategy depends much on how competitors position themselves. Do organizations want to develop ‘a me too’ strategy and position themselves close to their competitors so consumers can make a direct comparison when they purchase? Or does the organization want to develop a strategy which positions themselves away from their competitors? Offering a benefit which is superior depends much on the marketing mix strategy the organization adopts. The pricing strategy must reflect the benefit offered and the promotion strategy must communicate this benefit. Ultimately positioning is about how you want consumers to perceive your products and services and what strategies you would adopt to reach this perceptual goal. Positioning is what the customer believes about your product's value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. Positioning is what the customer believes and...
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