Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Although there are different definitions of Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies. Also positioning is defined as the way by which the marketers create impression in the customers mind. Effective product positioning is a key ingredient of successful marketing today, as many emerging growth companies struggle with how to position their companies and communicate what they stand for. If one does not apply it right, the market does not know whether to buy from you, whether you have the knowhow it seeks, or whether you will follow through and meet its needs. Local Position provides the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segments.
It’s the act of designing your company’s offer and image so it occupies a distinct and valued place in the targeted customer’s mind. The main benefit of clear positioning is that it controls how the market perceives you and helps make your products and/or services more attractive. Often companies tell that their target customers are anyone who’s willing to buy what they sell but this approach conveys desperation and a lack of focus. Targeting refers to identifying attractive market segments and tailoring the marketing mix to match the needs of target consumers. A target market must be large enough to be profitable and the members must have disposable income to purchase the products offered.
As this process gives a product; a clear, distinctive and desirable place in the minds of target consumers compared with competing products. Local Position plans the positions that distinguish their client’s product from competing brands and give them the greatest strategic advantage in their target markets. In positioning its product, the company first identifies possible competitive advantages upon which to build the position and to gain competitive advantage. The company always offer greater value to chosen target segments, either by charging lower prices than competitors or by offering more benefits to justify higher prices. In the present competitive business environment, organizations that develop and implement effective marketing strategies can create more value for their customers. An effective marketing strategy provides direction, improves the brand image, helps in developing the right goals and enhances the overall performance of an organization.