Market Positioning

Market Positioning

By Juliana Onwuachumba

MEANING OF MARKET POSITIONING

It is putting in the minds of the customers, a brand unique benefits and differences in relation to competing brands. It simply means the type of image a firm wants to portray in the customers' mind against the competing products.

It could be done through: best service, quality, lowest price, best value, advanced technology, safest and so on. ​

​KEYS TO SUCCESSFUL POSITIONING

There are four keys to successful positioning:

1. Clarity

2. Consistency

3. Credibility

4. Competitiveness

CLARITY: It means that the positioning idea must be very clear in terms of differentiated advantage and target market. For example, good typing works cost less at Buz Enterprises Kuje Abuja. 

CONSISTENCY: The positioning message must be consistent because customers are bombarded with different messages daily. Example, if you are using quality of service, use it for a longer time before changing it.

CREDIBILITY: The differentiated advantage chosen by the firm should be credible and worthy.

COMPETITIVENESS: Firms should offer consumers greater value, either through lower prices or by providing more benefits that justify the higher prices

Open Ended

Define the term Market positioning, list and explain two keys to successful market positioning

APPROACHES/STRATEGY TO POSITIONING  

1. Product-User Approach: Firms keep in mind a specific user or a class of product users. For example, cosmetics brands position themselves targeting fashion-conscious women.

2. Product Characteristics or customer benefits approach: Firms use product features or customer benefits to position their products. Examples of customer benefits from a product may include hunger satisfying, thirst quenching, harmless to the skin etc. 

​3. Competitor approach: Firms position their products to be better than competitors products, by following competitive trends. For example, let's take Colgate and Pepsodent toothpaste as a case study. The time Colgate was introduced into the market the company focused on family protection, but when Pepsodent entered into the same market, the company focused on 24 hours protection basically for kids. With this position expressed by Pepsodent, Colgate changed its focus from family protection to kids teeth protection. 

4. Cultural Symbol Approach: Firms use deep cultural symbols to differentiate its brands from competitors. For example, Using photograph of children who prostrate to greet elders in a hotel situated in one of the Yoruba states in Nigeria 

5. Price-Quality Approach: Firms use price-quality relationships to position their products. To offer premium products firms deliberately offer more services, features, performance etc to cover for it. 

MARKET COMPETITIVE POSITIONS

It includes the following:

1. Market leader 2. Market challenger 3. Market Follower

4. Market Nicher

​MARKET LEADER

A market leader is a firm that has the largest market share in an industry. The strategies for market leader are:

1. Expands Total Market: By developing new users, promoting new uses for the products and encouraging more usage of its products.

2. Protects Market Share: By protecting its existing market share against the competitors' attack. 

3. Expands Market Shares: By increasing their current market share further. 

MARKET CHALLENGER

A market challenger is a runner up firm that is fighting hard to increase its market share in an industry. 

The strategies for market challenger are:

1. Full frontal Attack: This is done by matching the competitors' product, advertising, price and distribution efforts. The challenger must have resources before embarking on this strategy.

2. Indirect Attack: The challenger attacks the competitor's weaknesses or takes advantage of the gaps in the competitor's market coverage. Example: serving the overlooked market by the market leader. Used when the challenger has little resources.

MARKET FOLLOWER

This is a runner-up firm that wants to maintain its share in an industry and never fight the leading firm.

​The strategies for market follower are

1. Follow Closely: Firms follow the lead closely in order to win some customers

2. Follow at a distance: Firms follow the leader at a distance to avoid retaliation from the leading firm. 

MARKET NICHER

This refers to a firm that serves small segments that the other firms in industry overlook. They are leaders in a small market that is of little to the larger companies. They have limited resources. 

The strategies for market nicher are: 

1. By customer: Nicher focuses on one or few specific customers and sells all their products to them.​

2. By Geographic market: They sell only in a certain locality, region or area of the world.

3. By Quality-Price: Nichers operate at the low or high end of the market. For example, using high-quality, high-price ends.

4. By Service: The firm provides services not available by other firms. For example, where a bank accepts loan requests over the phone and delivers by hand to the customers.

5. By Multi-Niching: This is where a firm develops two or more niches to increase chances for survival. 

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​MARKET SHARE

Market share refers to the proportion of the total market that a particular firm or product enjoys.

MARKET SHARE = TOTAL SALES OF A BUSINESS OR PRODUCT / TOTAL      

SALES IN THE WHOLE MARKET