Market Positioning

Market Positioning

– process of determining the place of a business in the

industry.
– Refers to the process of arranging the product to occupy
a clear, distinct, and desirable place in relation to other
competing products in the mindset of the target
consumer.
Differentiating Market Positions

1. The entrepreneur determines the market position of the product is distinct

from others;
2. The entrepreneur evaluates the advantages or benefits of every possible
market position;
3. The entrepreneur decides on the market position.
Positioning or Perceptual Map

– Shows the position of similar products competing in the

market as perceived by the customers.
– The different products are presented in the form of
circles and are plotted on the perceptual map as low or
high in terms of price and quality.
– The size of the circle represents the market share of the
product
Evaluating the benefits of
Market Position
1. Identifiable – the benefit or attribute is easily associated with the product. The
customers should be able to easily identify any benefit that can be derived
from the product.
2. Beneficial – the attributes should provide valuable benefits to the target of the
consumers
3. Distinctive Advantage – the attribute is distinct to the product and can hardly
be copied by the competitors.
4. Efficient and rewarding – the cost in attaching the attribute or value to the
product is not higher than the expected benefits in terms of profit.
Deciding on the Market
Positioning
1. Will the product be sold at a higher price due to its attributes and benefits?
2. Will the product be sold at the same price as the competitor’s price in spite of
its benefits?
3. Will the product be sold at the same price as the competitor’s because they
have similar benefits?
4. Will the product be sold at a lower price because it offers less benefits?
5. Will the product be sold at a higher price even if it offers less benefits?