Product Positioning—In a Competitive Marketplace

  1. 7.1 Describe positioning as a product-selling strategy

Long-term success in today’s dynamic global economy requires the continuous positioning and repositioning of products.2 Positioning involves those decisions and activities intended to create and maintain a certain concept of the product in the customer’s mind. It requires developing a sales and marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to the competition.3 In a market that has been flooded with various types of sport-utility vehicles (SUVs), Land Rover has been positioned as a dependable vehicle that can climb a steep, rock-covered hillside with ease. Every effort has been made to create the perception of safety, durability, and security. To give sales representatives increased knowledge to share with clients to effectively position the Land Rover against it competitors, the company has arranged plant tours and the opportunity to observe actual testing of the Land Rover vehicles under extremely demanding conditions.

Good positioning means that the product’s name, reputation, and niche are well recognized and respected. However, an effective positioning strategy cannot be accomplished solely by the company. The positioning process must be continually configured and custom fitted by the salesperson to match each customer’s specific wants and needs.4

Essentials of Product Positioning

Most salespeople use a combination of marketing and sales strategies to position their products, based on the unique needs of each of their customers. Therefore, every salesperson needs a good understanding of the fundamental practices that contribute to product positioning. The chapter begins with a brief introduction to the concept of product differentiation. This is followed by an explanation of how products have been redefined in the age of information. The remainder of the chapter is devoted to three product-selling strategies that can be used to position a product. Emphasis is placed on positioning your product with a value-added strategy. In the age of information, salespeople who cannot add value to the products they sell will diminish in number and influence.

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