Market Positioning Research

2105 WordsMar 2, 20139 Pages
What are the five steps required for effective product positioning? 1. Select key criteria that effectively differentiate products or services in the industry. 2. Diagram a two-dimensional product-positioning map with specified criteria on each axis. 3. Plot major competitors ' products or services in the resultant four-quadrant matrix. 4. Identify areas in the positioning map where the company 's products or services could be most competitive in the given target market. Look for vacant areas (niches). 5. Develop a marketing plan to position the company 's products or services appropriately. What is the meaning of product positioning and give examples of product attributes? Product positioning •…show more content…
But it is particularly important for small businesses, which often lack the resources to target large aggregate markets or to maintain a wide range of differentiated products for varied markets. Market segmentation allows a small business to develop a product and a marketing mix that fit a relatively homogenous part of the total market. By focusing its resources on a specific customer base in this way, a small business may be able to carve out a market niche that it can serve better than its larger competitors. In general, customers are willing to pay a premium for a product that meets their needs more specifically than does a competing product. Thus marketers who successfully segment the overall market and adapt their products to the needs of one or more smaller segments stand to gain in terms of increased profit margins and reduced competitive pressures. But the potential gains offered by market segmentation must be measured against the costs, which—in addition to the market research required to segment a market—may include increased production and marketing expenses. In their book The Portable MBA in Marketing, Alexander Hiam and Charles D. Schewe identified Six steps that companies should take in the market segmentation process. 1. The first step is to determine the boundaries of the market. In completing this step,
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