Product Mix and Positioning Formula

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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).