Product Positioning: 4 Factors & Examples - Essay Sample

Introduction

The different perspectives or factors for locating products in the most appropriate location in a consumer’s mind in product positioning include the superiority position, preemptive position, value position, and psychological position. A critical analysis of these positioning factors is essential for building a coherent understanding of product positioning. Thus, the paper examines product positioning based on these factors and with relevant examples of products and services.

Superiority Position

Superiority position in product positioning entails the classification of the products to realize strategic advantage benefits as a result of the difference in the ability of the product to meet customer’s demands. It uses the superior quality of the product as a way of conquering the markets. An excellent example of the application of this form of product positioning is in the case of Hero Honda, and Ferrari in the automobile manufacturing industry, and Apple in the manufacturing of technological gadgets (Fayvishenko, 2018). Superiority positioning mostly works best with organizations that are the market leaders.

Preemptive Position

In preemptive positioning, organizations use a special or unique feature that competitors cannot easily copy or imitate. The possession of an essential ingredient in the manufacture of a product, having royalty rights, or having the essential technological advantage in the market are some of the factors that enable this form of product positioning. Thus, organizations that have the best and high-level technology will dominate the industry since it is hard for competitors to come up with copycats of the products. Examples of the application of a preemptive position are the service provided by the Walgreen’s, which is a market giant in the provision of drug services. High-tech services provided by organizations like Huawei and Apple employs the use of preemptive position.

Value Position

Value position is the product positioning strategy that heavily relies on the deliverables of the organization. It entails the provision of outstanding services. Organizations that provide services that are highly differentiated benefit from strategic advantages. The company promises the market and customers value for every penny that they spend on the products and services. It is the reason that makes clients prefer one service or products over another. Some of the areas that value position explores include the benefits to the customer, the improvements the organization makes, and why customers should forego competitors for the organization. An excellent application of the position is in the service industry where restaurants such as Chick-fil-A and McDonald’s offer clients added advantages such as ample space, security, customer-tailored experiences as well as a variety under one roof (Iyer et al. 2019).

Psychological Position

The psychological position entails the actions that an organization takes in altering the beliefs of the consumers on the products offered by the company. It is an effective strategy, particularly where clients oppose the products or services terming them as inferior in quality. Nonetheless, an established organization can also use the approach by focusing on the positive sides of the company that makes them appealing to the customers. Companies such as the Fly Emirates have been in the international space for ages as a result of the psychological position (Zaware, 2019). Clients see the company as most reliable based on their extended stay in the industry, as well as the measure that the organization takes to safeguard the interests of its customers.

References

Fayvishenko, D. (2018). Formation of brand positioning strategy. Baltic Journal of Economic Studies, 4(2), 245-248.

Iyer, P., Davari, A., Zolfagharian, M., & Paswan, A. (2019). Market orientation, positioning strategy, and brand performance. Industrial Marketing Management, 81, 16-29.

Zaware, N. (2019). A Theoretical Study of Product Positioning.