Strategic Market Positioning and Product Management Essentials

Market Positioning Strategy

We must first conduct market research to determine which strategies will effectively position the company within the market. Positioning is defined as the perception consumers have regarding the attributes of our product in relation to competing brands or ideals.

The Positioning Process

To successfully position a product, follow this process:

• Identify existing segments and the placement of competitor products.
• Analyze direct competitors.
• Establish criteria for determining the market position.
• Analyze and evaluate how consumers perceive the company versus the competition.
• Create a graphical representation of the company and competitors using a positioning map.
• Determine the strategic positioning of the company.

Brand Identity and Licensing

BRAND: A name, term, sign, symbol, or combination thereof that identifies the goods or services of a vendor or group of sellers, distinguishing them from the competition. The purpose of a brand is to build company capital based on repeat purchases and the creation of a broad, solid base of loyal customers.

LICENSING: An agreement where a company that owns the rights to a mark or image (the licensor) temporarily transfers them to another company (the licensee) to use as support for their products.

Product Lifecycle and Portfolio

LIFE CYCLE: An accepted theory that the evolution of product sales over time follows a series of stages with defined and distinct characteristics.

PIPELINE: The set of product lines and references that a firm possesses in total.

• Product Line: A set of products within a portfolio, grouped by a common characteristic.
• Reference: A product within a line distinguished from others by size, price, or packaging.

Product Dimensions

• COMMODITIES: Products that meet the basic and primary function.
• EXPANDED PRODUCT: The dimension of a product that covers accessory needs in addition to its basic function.
• TOTAL PRODUCT: The dimension that includes the basic function, accessories, aesthetics, and individual psychological or social expression. This is the ideal dimension to achieve effective positioning and differentiation.