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Positioning - 4 P's of Marketing

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  1. 1. Name - Pratik Gandhi Positioning through various Parameters Positioning: “The expectation of the unique value that customers in a market segment would receive from a vendor that is relative to, and unique from, competitors is called as Positioning.” A company must provide a specific vision, as well as evidence of its own ability to lead the market toward the vision. Product positioning involves tailoring an entire marketing program—including product attributes, image, and price, as well as packaging, distribution, and service—to best meet the needs of consumers within a particular market segment. The key to product positioning understands the dimensions consumers use to evaluate competing marketing programs and make purchase decisions. It may be helpful for small business managers to create a graph in order to map consumer perceptions along several different dimensions. •It includes the process of creating an image in the mind of a customer •The activity directed towards creating and maintaining an intended product concept and image in the minds of Targeted customers •Arranging for a brand or a product to occupy a clear and distinctive place in the minds of target customers relative to competing products and brands. The important parameters used for positioning the products are, Product, Price, Place, Promotion/Image: In broader terms it can be also implied towards Marketing Mix. However, the application of Positioning through these points will be discussed below: Product: This refers to how you want your customers to perceive your product within the context of the overall market, their other product options and themselves. Your ultimate goal is to identify positions in the market that represent unmet need. If your product fills those needs better than any other product, you will be naturally differentiated from the competition. The example of which will be: 1. KitKat: It is positioned to link in with tea or coffee breaks- “Have a Break, Have a KitKat” 2. HP 3. Johnson and Johnson Baby Soap
  2. 2. Price: Market demands and factors of supply and demand have got a real pressure on price. However, there are brands, trade marks and product quality and integrity which has some connotation to social position, e.g. clothes worn by celebrity is well sort after at higher price. As for a small business, it has to do with the bottom line - profit margin, competitions and market value of the product. The price structure has got very much to do with the stage of development of the business, but as businesses grow, like any other corporation, the cost increases along with the number of staffs, the salary increase, and increasing redundancy. That is the life-cycle of business, which has very much to do with the life- cycle of the product. The example of which will be: 1. Big Bazaar: It positions itself as a Brand which in terms of price as “Sabse Sasta Din” The direct image of any customer falls on the price of the product which is positioned. 2. Low Frills Airlines as Air Deccan (now Kingfisher Red), EasyJet, JetBlue 3. Budget Rent-a-Car Place: Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. The distribution system performs transactional, logistical and facilitating functions. In Positioning, Place is taken in terms of convenience for the customers for whom the products are to be distributed. The example of which will be: 1. Maruti Service Centre: It’s placed in a way that people are assured that there is always a Service Centre for them, on their desired place. 2. SBI Bank ATM 3. Pizza Hut Promotion/ Image: Image Positioning is an often overlooked, but effective strategy. Placing a brand in a channel that is not used by competitors can effectively differentiate it and establish a unique identity. Being the first product of its kind sold in a channel of distribution can cause people to perceive it differently. The importance of a strong brand position is not to be underestimated. It can last for years, even, as in the case of Ivory, for over a century. The example of which will be: 1. Honda: “We make it simple” campaign that helped position Honda, says that positioning occurs when a “truth in the product” is connected to a “need of the consumer” by compelling communications. Every product has certain “truths” about it. Not every product has unique truths or truths that are very different from competition. 2. Phillips 3. Mercedes Benz