Take aways from Positioning a New products or Service

According to Positioning a New Product or Service, effective product positioning deals with product or service differentiation that is intended to win customers' hearts and minds in times of marketing new products or services. Moreover, positioning products or services starts, first of all, with defining marketing segmentation and then understanding target market values. Positioning strategy should be focusing on product differentiation. If you can make your product or service unique, better, economical, profitable and differentiable in the market, you will have more competence in the market. The more competence you have, the more profit you will have.Pricing strategy and image building are two of the most important elements as well. Customer determine whether a brand is good or not based on their experience of the products/service. People will base on the price, quality and the image of the product/service to determine whether the brand is worth to trust or not.

There are six steps that the company should take in the marketing segmentation process:

- First step: determine the boundaries of the market. 

- Second step: decide which variables to use in segmenting the market.

- Third step: collect and analyze data, which involves applying market research tools.

- Fourth step: develop a detailed profile of each market segment, which involves selecting those variables that are most closely related to consumers' actual buying behavior.

- Fifth step: decide which segment or segments to serve.

- Sixth step: product positioning which is to develop a product and marketing plan that will appeal to the selected market segment.

There are several positioning options for the marketers to position their products in the market. The first one is called quality emphasis, a zero-defect product with a product design and customer service that meet or exceed customer expectations. Another one is offering unique features or benefits that consumers are unable to find in competing products. According to Urban and Star, “If we develop a unique competitive advantage on a dimension of importance to a significant portion of the market, we can enjoy a substantial share and high margins." Thus, it is very important to consider where you want to position your product/service in the market in order to have a better competitive advantage as well as to differentiate yours from others.