Question

What is product positioning? Describe the approaches that marketers use to create product positions. GIVE ANSWERS IN 400 WORDS

Answer 1

Product Positioning

Product positioning refers to communicating products benefits to a specific target market. Production positioning is strategically done to establish product unique features for target customers. Product positioning is done to differentiate product offerings from competitors and allure customers.

Approaches to product positioning

Product benefit or characteristic approach

One approach is using benefit for customer or product characteristic. In this approach, marketer promotes benefits of product to a target customer or unique characteristics of product. Physical product characteristic for example strength of product can be used in this positioning. Benefits are also promoted for example; a cold drink offering benefits such as quenching thirst is used by marketer under this positioning approach. Another example is a steel company selling products by communicating benefits of rust free steel products.

Approach of price and quality

This positioning approach is adopted when a marketer sells premium products by adding more features in it. The price quality approach is used to market a mass product as well where price is kept competitive and quality is maintained at minimum required level. For example, Luxury products with high quality are sold on higher prices such as premium sofas, customized cars, etc. such approach is adopted because certain customers are willing to pay higher prices for high quality and customized products. The marketers charge high price to communicate that the product is of high quality.

Application or use approach

The use or application approach is also used by marketer such as ointment used for itching purpose. Here the application of ointment is for itching purpose.

Product user approach

Such approach is used by marketer while considering specific users for a product. Examples of cosmetics companies’ products are based on this approach.

Product class approach

Some marketers adopt this approach such as coffee companies producing instant coffees.

Cultural symbol approach

Some of marketers use this approach to associate products with cultural symbols.

Competitor approach

This positioning approach is used with reference to competitors. Many competitors build good reputation over the years and comparing with them and showing distinct advantages over them boosts a company reputation. Newspapers companies often use this approach to demonstrate their circulation against their competitors. They also use this approach to demonstrate the reach of newspaper over other competitors’ newspapers to build loyalty among target customers.

Thus there are various product positioning approaches are used for different purposes by a marketer and to shoe distinct features of product.