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The success of the company lies in its ability to sell its products and services at a premium on an ongoing basis. The company’s brand plays a key role in defining the degree of acceptance of the products and services in the people. Brand positioning aims at capturing the potential customers’ attention to the positive aspects of the product in relation to that of the competitor.

Before positioning the product in the market, the company should identify the key elements in the product that makes it stand apart from that of the competitor. By conducting a market study, the company can identify the needs of the people and develop the product in such a way that it incorporates the new demands along with the existing favourable elements. Market segmentation helps to divide the market by bringing the people with similar demands together. Grouping the target audience is a major step in brand positioning as brand positioning aims at capturing a place in the hearts of the target audience.

Brand positioning is generally based on consumer perceptions. The company is to decide on the type of customer base they want to address. The product may be an economy product aimed at the market across different economic sections, or a luxury product aimed at the top segment of the market. The target customer may be classified geographically, demographically and through economic segments of the society. The company should implement its brand positioning strategy accordingly. For example, Rolex clearly positions its brand attracting the top economic section of the society; and as a consequence finds advertising avenues and promotional events where its target customer participate (e.g. Golf tournaments, Yachting, etc.). Targeting the different demographic segments of the society is another way of positioning the brand. For instance, Pepsi used to position itself as the favoured drink of the younger generation through its “Generation Next” campaign. Similarly, the ways and means of attracting the kids vary from that of the adults. These days the companies come up with innovative ideas to attract the market lot. Placing a toys shelf next to a section of diapers and similar child products can enjoy the advantage of drawing the attention of children. Placing of vending machines at petrol pumps with products that are reasonably priced can experience a sudden spurt in the sales. These methods of capturing the market can succeed in an increased brand image and a competitive advantage.

The nature, customs, and beliefs of the potential customers must be studied well in advance before the introduction of the product. For example, fast food chains like KFC, MacDonald’s and Pizza Hut make it a point to advertise in India that their products do not contain beef or pork so as to ensure that they do not miss out customers from different religious communities.

The money circulated within the target audience is another deciding factor. Studies reveal that in places like Bangalore, the un-circulated money with the people after meeting all their demands is considerable. So luxury and branded products have a high potential to wipe a big share of the target market. The geographical limits of the product must also be analysed after a careful study on the type of topography, the demographical content, etc.

Brand positioning lay the foundation for advertising and marketing the product. The mode of advertisement varies with the brand image enjoyed by the company, the demographic content and the product. It also determines the budgetary measures for strategic planning. If the specific product is what that comes into the minds of the people when they think of it, and it induces them to buy the product, it can be said that market is rightly positioned.

Comments Listing
Posted: 21/01/2012 09:05:54

very clear information
thank you very much


Posted: 12/10/2011 02:14:09

thanks


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