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Discuss the benefits of product positioning.

      

Discuss the benefits of product positioning.

  

Answers


Lellah
1. Premium prices: Good positioning cements the product in the customer's awareness. It gives the customer information about the product in unique way that resonates and states their mind forever. If executed correctly, positing creates value, ensuring that customer will pay more for the product because they understand and agree with the product's position. This execution requires using advertising to explain to consumers the similarities and differences between the product and competing products so that customers understand why they should pay a premium.
2. Branding: Brands that customers see as positive command premium prices. Brands can extend their market position to new products that the parent company introduces. This an advantage over companies who don't have brand positioning because unbranded new offerings can't command a premium.
3. Category Claims: Marketers use advertising to makes claims about the category that the product belongs to and describe the product's position in the category. Category claims describe how the product is better than competitors. For example, an advertisement for a pen could make the category claim that it runs out of ink less often than other pens. Category claims help define and strengthen the product position and overall brand
4. Differentiation competitive advantage . If customers see enough positive differences between a product position and its competitors position the product becomes differentiated. This means that the product has the competitive advantage and many customers believe that the product performs better and in ways that competing products cannot perform. The customer may feel that they have an advantage over other people who don't use the product.
5. Facilitates word of mouth communication. Customers who tell others about this advantage further differentiate by making word-of-mouth category claims, enhancing the product's position and spreading favorable information about the brand.
6. Facilitates targeting strategy. Market target is a group of consumers with high potential to buy its brand that share demographic characteristics such as age and sex etc . The brand's positioning is tailored to the needs and wants of those consumers.
7. Competitiveness . A product's positioning aims at establishing a superior position relative to competition by focusing on points of differentiation especially on attributes.

Lellah answered the question on November 5, 2021 at 08:41


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