Positioning a New Product or Service

The most important takeaways out of this reading include the concept of product positioning, the six steps that  companies should take in the market segmentation process, and the different positioning options available to marketers. These information provide valuable insights for companies to be able to differentiate themselves in the marketplace by having a proper product positioning as well as to be better of in their market segmentation process.

According to Djamel E. Laouisset, product positioning is one of several components of the broad process of market segmentation. However, it requires a narrowing of focus, which involves tailoring a whole marketing program (product attributes, image, price, packaging, distribution, and service) so as to best meet the needs of consumers in a particular market segment. He points out how a positioning strategy should focus on and align with the product differentiation strategy where the product or service needs to be distinctive and unique for the market. He further added Glen L. Urban and Steven H. Star's distinct definition of product positioning and segmentation analysis to explain the concept better in which they state, "Product positioning takes place within a target market segment and tells us how we can compete most effectively in that market segment. Segmentation analysis tells us how the market is defined and allows us to target one or more opportunities.”

Alexander Hiam and Charles Schewe identify six steps that can help organizations improve their market segmentation process. Here are the following:

1. Determine the boundaries of the market.
2. Decide which variables to use in segmenting the market.
3. Collecting and analyzing data.
4. Develop a detailed profile of each market segment.
5. Decide which segment or segments to serve.
6. Product positioning.

Djamel points out that identifying the attributes that are most important to consumers in the market segment then  developing an overall marketing strategy that will attract consumers' attention are two critical actions that an organization needs to take to position its product effectively. He further added that marketers actually have several positioning options available to them. The following are the options:

1. Offering quality emphasis, a zero-defect product with a product design and customer service that meet or exceed customer expectations.
2. Offering unique features or benefits that consumers are unable to find in competing products, enabling companies to have competitive advantage in the marketplace.

It is important to note that good product positioning will make it easy for the intended customers to define why they want to buy a product. Companies need to emphasize their product plan on differentiation and positioning strategies in which the strategies need to focus on delivering a valued and distinctive product to a specific market and delivering it in a way that customers can accept.