Identifying possible competitive advantage

Date: 2015-10-07; view: 362.

Positioning

Choosing Target Market Strategy

Companies need to consider many factors when choosing a market-targeting strategy. The best strategy also depends on the degree of product variability. Undifferentiated marketing is more suited for uniform products, such as grapefruit or steel. Products that can vary in design, such as cameras and cars, are more suited to differentiation or concentration. The product's life-cycle stage also must be considered. When a firm introduces a new product, it may be practical to launch one version only, and undifferentiated marketing or concentrated marketing may make the most sense. In the mature stage of the product life cycle (PLC), however, differentiated marketing often makes more sense.

Positioning refers to some plans and strategies to locate the business in certain place of market. In order to aspire a certain position, a company develops a strategic plan, which is the result of an established vision, a mission, and clearly defined objectives To choose proper Positioning strategies, these steps are considered as 1) identifying possible competitive advantage, 2) choosing the right competitive advantage, 3) selecting an overall positioning strategy.

Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower price or by providing more benefits that justify higher price. To find points of differentiation, marketers must think through the customer's entire experience with the company's product or service. Through product differentiation, brands can be differentiated on features, performance, or style and design. For example, by gaining the approval of the American Heart Association as an approach to a healthy lifestyle, Subway differentiates itself as the healthy fast-food choice.