Positioning a Product or Brand

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2.5 Positioning options

The main ways of positioning a product or brand are:
 By product attribute – This positioning focus on few of the benefits or characteristic of the product.
 By product class – Looking for a leadership position of the product in the market.
 By user – This approach focus on the ideal consumer. Suggesting that the product is perfect for that type of person and even is contributing for the social identity.
 Against competition – Here the company use comparison against the competitors.
 By quality/value – positioning of the product based on high quality. Also can be claimed that the product have high value.
 By application- The product or the brand are positioned as the best solution for a particular task or
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These costs less for the customer, the purchase are delivered faster, the possibility of damaged package or product is minimal.

3.3 How prices are set to reflect an organization’s objectives and market conditions

For reflecting the company’s objectives and market conditions pricing strategies needs to be applied. Market conditions, competition, quality of the product, market place are the factors that influence of the product pricing. If the company has chosen a good pricing strategy for their products they will have good profit and good company positioning on the market in return. For setting the prices for products the Pricing strategy matrix can be used.

Pricing Strategies Matrix

 Penetration. With this strategy the price of the products and services are low for increasing sales and market shares.
 Skimming strategy were the company sets high price for start and after the price is lowered. The purpose is to make profits from all the layers of the market.
 Premium also called Image pricing is the strategy where the price is kept high in order to attract certain segment of the market.
 Economy pricing is a method of pricing that keeps the price of the products or services low. Commonly used in the retail food business.
 Competitive pricing is based on the prices of the competitors.
 Product line pricing is separating the goods on cost categories by creating different levels of quality for the same range of products in
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