Choosing a Differentiation and Positioning Strategy for Product

Choosing a Differentiation and Positioning Strategy for Product

Some firms find it easy to choose a differentiation and their positioning strategy. For example, a firm well known for quality in certain segments will go for this position in a new segment if there are enough buyers seeking quality. But in many cased, two or more firms will go after the same position. Then, each will have to find other ways to set itself apart. Each firm must differentiate its offer by building a unique bundle of benefits that appeal to a substantial group within the segment.

The differentiation and positioning a task consists of three steps: identifying a set of possible customer value differences that provide competitive advantages upon which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market.