Marketing is all about positioning your product in the marketplace, and being able to differentiate it from what the competition offers. Positioning, Differentiation and Marketing Mix target markets will require different types of sales presentations, persuasions and relationships with the seller. For example, a value differentiation strategy would emphasize how the favorably in potential consumers' minds in relation to competitors.
Positioning & Differentiation Strategies of Marketing
Many car buyers are highly sensitive to prices. Manufacturers try to accommodate the price shopper by offering cars with smaller engines and fabric upholstery instead of leather. Automobile drivers are aggressive hunters of the lowest price for gasoline.
They will drive several miles just to save a few cents per gallon. Will Buyers Pay Higher Prices? Consumers believe that if a product is expensive, that it must be of high quality and therefore is worth the listed price. In this situation, marketers focus their advertising on the product's superior features and how its performance exceeds that of the competition.
Five Guys restaurants sell hamburgers, hot dogs, french fries and milkshakes. Nothing new here, except they charge higher prices than McDonald's and Burger King.
Differentiation and Positioning
Five Guys has been able to position its food as being made from the highest quality products, and that Five Guys is worth the price it charges. Consumers believe this strategy, and they stand in line to buy. Is the product sold in every Walmart and Target in the country? Or, can it only be found in a few selected shops?Position, Velocity, Acceleration using Derivatives
Take golf equipment, as an example. Manufacturers make sets of clubs especially for the big-box stores, but they also have other models of clubs that are only available in pro shops at golf courses. A set of clubs sold and fitted by the golf professional costs more than a set sold in Walmart.
Positioning & Differentiation Strategies of Marketing | danunah.info
Are the golf clubs fitted the golf professional worth more? The golfer believes that yes, they are, and he's willing to pay more for this exclusive set of clubs.
We will now look at the process of differentiating and positioning in more detail. Differentiation and Positioning — Closely related Activities The differentiation and positioning process consists of three steps: Identifying a set of differentiating competitive advantages on which to build a position Choosing the right competitive advantages Selecting an overall positioning strategy.
Then, the company has to deliver its promises by effectively communicating and delivering the chosen position to the selected market.
Differentiation In order to achieve a strong position in the segment the company has chosen, it has to find ways to set itself apart. To do so, it has to deal with competitive advantages.
Differentiation and Positioning - at Marketing-Insider!
In other terms, each firm must differentiate itself and its offer by building a unique bundle of benefits. This bundle of benefits should appeal to a substantial group within the chosen and targeted segment. The firm can differentiate itself by identifying possible value differences and competitive advantages and then choosing the right ones.
Find out how differentiating works in particular.
That is dealt with by positioning. Thus, it is not our own position of our product, but the way we would like our customers to think about it.
This involves perceptions, impressions and feelings that customers should have for the product in comparison to competing products. Differentiation and Positioning are strongly related to each other. Finding the right positioning strategy requires selecting a value proposition and developing a positioning statement.