Differentiation and Positioning of Product

Differentiation and Positioning of Product

Beyond deciding which segments of the market it will target, the company must decide on a value proposition—on how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

Product Position

The way the product is defined by consumers on important attributes—the place the product occupies in consumers minds relative to competing products.

“Products are created in the factory, but brands are created in the mind, “says a positioning expert.

Consumers are overloaded with information about products and services. They cannot reevaluate products every time they make a buying decision. To simplify the buying process, consumers organize products, services, and companies into categories and “position” them in their minds. A product’s position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products.

Consumers position products with or without the help of marketers. But marketers do not that o leave their products positions to chance. They must plan positions that will give the products the greatest advantage in selected target markets, and they must design marketing mixes to create these planned positions.