Product Mix and Positioning Formula
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This document discusses the positioning strategy and marketing mix strategies used by organizations to increase their concentration strategy in the business environment. It explains how the positioning strategy helps in identifying the right type of people and initiating marketing strategies to attract them. The document also explores the four P's of marketing mix (product, price, place, and promotion) and how they contribute to the organization's efficiency and growth in the target market. The importance of positioning strategy is illustrated through the example of two competitor organizations, Colgate and Pepsodent.
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‘Product Mix and Positioning Formula’
Positioning or concentration strategy refers to the market strategy of the company that helps the
management to become a dominant player in the market by concentrating on one segment in the
target market. The positioning strategy of the company helps in identifying the right type of
people and initiating marketing strategies to attract them and gain their trust as well. The
positioning strategy for the company is conducted using various attributes of the business in the
external environment. This strategy of the company helps the customers to identify the
differentiated products and services offered by the company and purchase the products
accordingly (Sharp 2016).
Further, the marketing mix strategies are used by the organization to increase their concentration
strategy in the business environment. The four P’s of marketing mix that are product, price, place
and promotion help the organizations in increasing their efficiency and growing in the target
market. The combination of concentration strategy along with marketing mix helps the
organization to deliver value in the products in such a way that sales of the product and service is
increased in the environment (Andaleeb 2016). With the help of positioning strategy, the
organization make use of marketing strategy in the following ways:
Product: The company use the product strategy in such a way by focusing on the product and
creating it according to the requirement of the customers. For instance, if the customers are okay
with low quality but prices also needs to be less, then the companies should manufacture the
products according to their requirement.
Price: based on the income level of customers and the value that they derive from the products in
the target market, the company should create the pricing strategy accordingly. If there are high-
income level customers present in the market, the management should then set optimum prices
of the products to show that it is of high value.
Place: based on the areas where the company need to promote its product, they should place the
products accordingly. The distribution strategy of the company should align to the image that the
company wants to create about the product in the market. Based on that image, they should
promote the products at the specific location (Rossiter, Percy, and Bergkvist 2018).
‘Product Mix and Positioning Formula’
Positioning or concentration strategy refers to the market strategy of the company that helps the
management to become a dominant player in the market by concentrating on one segment in the
target market. The positioning strategy of the company helps in identifying the right type of
people and initiating marketing strategies to attract them and gain their trust as well. The
positioning strategy for the company is conducted using various attributes of the business in the
external environment. This strategy of the company helps the customers to identify the
differentiated products and services offered by the company and purchase the products
accordingly (Sharp 2016).
Further, the marketing mix strategies are used by the organization to increase their concentration
strategy in the business environment. The four P’s of marketing mix that are product, price, place
and promotion help the organizations in increasing their efficiency and growing in the target
market. The combination of concentration strategy along with marketing mix helps the
organization to deliver value in the products in such a way that sales of the product and service is
increased in the environment (Andaleeb 2016). With the help of positioning strategy, the
organization make use of marketing strategy in the following ways:
Product: The company use the product strategy in such a way by focusing on the product and
creating it according to the requirement of the customers. For instance, if the customers are okay
with low quality but prices also needs to be less, then the companies should manufacture the
products according to their requirement.
Price: based on the income level of customers and the value that they derive from the products in
the target market, the company should create the pricing strategy accordingly. If there are high-
income level customers present in the market, the management should then set optimum prices
of the products to show that it is of high value.
Place: based on the areas where the company need to promote its product, they should place the
products accordingly. The distribution strategy of the company should align to the image that the
company wants to create about the product in the market. Based on that image, they should
promote the products at the specific location (Rossiter, Percy, and Bergkvist 2018).
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Promotion: Lastly, the promotion mix of the marketing strategy majorly aligns with the
positioning strategy of the company. With the help of this type of strategy, the management
develops the promotional strategy accordingly. This strategy helps the customers in
concentrating on the main specifications of the company and then initiates sales accordingly.
Thus, in this way, the positioning strategy and marketing mix strategy align to produce benefits
for the company in the target market. Analysing the positioning strategy of the company with
respect to example of two organization, it should be noted that Colgate and Pepsodent are
competitor organizations but I prefer using Colgate product in the target market (De Mooij
2018).
Colgate is the product that I usually purchase in the market, while Pepsodent is the toothpaste
brand that is competitor of Colgate but I do not prefer buying it in the market. There are several
reasons for making a buying decision for a specific product in the environment. These decisions
are affected by services that the company provide to the customers in the market and the
concentration strategy of the product as well (Dawes 2017). Positioning formula of the Colgate
brand is customer centric due to which customer easily attracted towards the company. While on
the other hand, the positioning strategy of the company is ineffective and less likely to attract the
customers due to which less sales is initiated in the market. Talking about the positioning
strategy of the company Colgate, it should be noted that Colgate majorly focuses on the issues of
the customers and ensure that their problems are easily resolved by using the products. Products
offered by Colgate are diversified and the company develop effective promotion strategies in the
market (Rosenbaum-Elliott, Percy, and Pervan 2015).
The promotion strategies of the company focuses on the need and expectation of the customers
in the market and then let the customers concentrate on the products accordingly. Further, it
should be noted that as toothpaste is a FMCG product so the company develop the pricing mix in
an effective manner so that all the customers present in the market could purchase it. The
company offer different products based on different specifications and each product is promoted
differently. Resulting to which, Colgate get to target wide range of customer base in the target
market. Lastly, it should be noted that the company understands the expectations of customers
and place the products at a position that is easily approachable by all customers in the market.
Promotion: Lastly, the promotion mix of the marketing strategy majorly aligns with the
positioning strategy of the company. With the help of this type of strategy, the management
develops the promotional strategy accordingly. This strategy helps the customers in
concentrating on the main specifications of the company and then initiates sales accordingly.
Thus, in this way, the positioning strategy and marketing mix strategy align to produce benefits
for the company in the target market. Analysing the positioning strategy of the company with
respect to example of two organization, it should be noted that Colgate and Pepsodent are
competitor organizations but I prefer using Colgate product in the target market (De Mooij
2018).
Colgate is the product that I usually purchase in the market, while Pepsodent is the toothpaste
brand that is competitor of Colgate but I do not prefer buying it in the market. There are several
reasons for making a buying decision for a specific product in the environment. These decisions
are affected by services that the company provide to the customers in the market and the
concentration strategy of the product as well (Dawes 2017). Positioning formula of the Colgate
brand is customer centric due to which customer easily attracted towards the company. While on
the other hand, the positioning strategy of the company is ineffective and less likely to attract the
customers due to which less sales is initiated in the market. Talking about the positioning
strategy of the company Colgate, it should be noted that Colgate majorly focuses on the issues of
the customers and ensure that their problems are easily resolved by using the products. Products
offered by Colgate are diversified and the company develop effective promotion strategies in the
market (Rosenbaum-Elliott, Percy, and Pervan 2015).
The promotion strategies of the company focuses on the need and expectation of the customers
in the market and then let the customers concentrate on the products accordingly. Further, it
should be noted that as toothpaste is a FMCG product so the company develop the pricing mix in
an effective manner so that all the customers present in the market could purchase it. The
company offer different products based on different specifications and each product is promoted
differently. Resulting to which, Colgate get to target wide range of customer base in the target
market. Lastly, it should be noted that the company understands the expectations of customers
and place the products at a position that is easily approachable by all customers in the market.
B207A 3
Also, the products are largely available in all the markets due to which customers can easily
purchase them (Krystallis 2015).
While on the other hand, talking about the positioning strategy of the company Pepsodent, it
should be noted that the products of the organization are diversified by they are not all time
available in the market. The customers purchase the products that they see on a regular basis.
Secondly, it should be noted that the company focuses on their products rather than the
expectation of customers in the market. Resulting in which, they fail to meet the needs of clients
that subsequently reduces the sales. It is important for the company to position the product in
such a way that it is approachable and the position should reflect the product specifications as
well (Tocquer 2017). Thus, it should be noted that I do not prefer buying Pepsodent because the
positioning strategy of the company is not appealing and attractive to the customers. Secondly,
the product quality does not match with the price of the product in the market. Thus, the fact
should be noted that the paper defines the importance of positioning strategy and its relation with
marketing mix as well.
Also, the products are largely available in all the markets due to which customers can easily
purchase them (Krystallis 2015).
While on the other hand, talking about the positioning strategy of the company Pepsodent, it
should be noted that the products of the organization are diversified by they are not all time
available in the market. The customers purchase the products that they see on a regular basis.
Secondly, it should be noted that the company focuses on their products rather than the
expectation of customers in the market. Resulting in which, they fail to meet the needs of clients
that subsequently reduces the sales. It is important for the company to position the product in
such a way that it is approachable and the position should reflect the product specifications as
well (Tocquer 2017). Thus, it should be noted that I do not prefer buying Pepsodent because the
positioning strategy of the company is not appealing and attractive to the customers. Secondly,
the product quality does not match with the price of the product in the market. Thus, the fact
should be noted that the paper defines the importance of positioning strategy and its relation with
marketing mix as well.
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B207A 4
References
Andaleeb, S.S., 2016. Market segmentation, targeting, and positioning. In Strategic marketing
management in Asia: case studies and lessons across industries (pp. 179-207). Emerald Group
Publishing Limited.
Dawes, J., 2017. Three Discussion Points on the Route to Brand Growth: Acquiring More
Buyers vs. Higher Loyalty, Brand Positioning, and Building Brand Equity. Higher Loyalty,
Brand Positioning, and Building Brand Equity (September 25, 2017).
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Krystallis, A., 2015. Motivation and cognitive structures of store versus manufacturer brand
consumers. Journal of Consumer Behaviour, 14(4), pp.270-284.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Rossiter, J.R., Percy, L. and Bergkvist, L., 2018. Marketing communications: Objectives,
strategy, tactics. Sage.
Sharp, B., 2016. How brands grow. Oxford University Press.
Tocquer, G., 2017. Pepsodent: marketing strategy at the bottom of the pyramid. Emerald
Emerging Markets Case Studies, 7(4), pp.1-16.
References
Andaleeb, S.S., 2016. Market segmentation, targeting, and positioning. In Strategic marketing
management in Asia: case studies and lessons across industries (pp. 179-207). Emerald Group
Publishing Limited.
Dawes, J., 2017. Three Discussion Points on the Route to Brand Growth: Acquiring More
Buyers vs. Higher Loyalty, Brand Positioning, and Building Brand Equity. Higher Loyalty,
Brand Positioning, and Building Brand Equity (September 25, 2017).
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Krystallis, A., 2015. Motivation and cognitive structures of store versus manufacturer brand
consumers. Journal of Consumer Behaviour, 14(4), pp.270-284.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Rossiter, J.R., Percy, L. and Bergkvist, L., 2018. Marketing communications: Objectives,
strategy, tactics. Sage.
Sharp, B., 2016. How brands grow. Oxford University Press.
Tocquer, G., 2017. Pepsodent: marketing strategy at the bottom of the pyramid. Emerald
Emerging Markets Case Studies, 7(4), pp.1-16.
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