Entry #13_ St. ID: 20500297

Power of Positioning*

How to distinguish yourself from the competition

to be sure you have a preferred place in your target customer's mind-

　　　　　　　　　　　　　　　　　　　　

I. Positioning? Distinguising!

Many companies have difficulty in positioning. Positioning is very significant step in business because through this, the market would recognize your company, buy products from your company, and decide whether to maintain a relationship with your company. This acticle emphasizes the importance of positioning, defined as "the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segment." It's more like act of designing company's offer and image so that it can occupy a valued place in the targeted customer's mind.

The main benefit of clear positioning; it controls how the market perceives you and helps make your products and/or service more attractive.
　　　　　　　　　　　　　　　　　　　　


II. 5 Steps to improving positioning

1) Assess where you are right now: This is the first step of right positioning. You may ask your customers, or even competitiors and journalists how they describe your company, products, and overall images. Knwoing yourself is always the first thing to get finished in order to make some change.

2) Determing how you want to be perceived: It's an intentional act, the author says. Once you get to know where your company is, then you need to decide how you want to be thought of by your customers. Think of meaningful differences between you and your competitors.

3) Select your target customer: We usually define 'target customers' as anyone willing to buy that people sell. However, it's not true. You need to craft a strategy taking into account there questions: "How do those people choose among vendors?", "How does your target market define value?"... Focus on 'HOW' rather than 'WHAT'!

4) Factor in current trends: Figure out trends that are on the way that might tie in with your company. Which should you distance yourself from?

5) Formulate your four levels: "Your business objective drives your business strategy which drives your market strategy which drives your positioning strategy." If your business objective is to have fewer customers who spend more per sale, your business strategy must reflect this in the products or services you will be offering. Your market strategy will consist of how to find those new customers and how to communicate with them. Your positioning strategy will determine the messages you communicate to your target customer to drive sales of your more costly product line. (quoted) You're not happy with how people perceive your company? Or do you want to stretch to the next level? Then that's the time of REPOTISIONING!
　　　　　　　　　　　　　　　　　　　　


III. Personal Opinions

STP ANALYSIS*

Most of us have already heard of STP analysis. STP stands for segmentation, targeting, and positioning. All these three steps are important and need to be considered thoroughly, but probably positioning step is especially significant because it's the step where you can finally define your company's BRAND image and where you actually approach to your real customers. More importantly, positioning of products or brands in the CONSUMER'S MIND determines whether you would be able to maintain your relationship with them. Firms position their products and services according to several criteria, such as offering's value, (customers get a lot for what the product or service costs), symbols, or important attributes.


　　　　　　　　　　　　　　　　　　　　
As I have started studying business strategy since the beginning of this semester, I found out that reading consumer's mind is a key thing of success in business. It's like ALWAYS. You should, even more 'must' know what consumers want and need. It's interesting that business objectives, business strategy, market strategy, and positioning strategy are all inter-related, which means that how you start determines your end.
　　　　　　　　　　　　　　　　　　　　

Annotation: Christine Comaford-Lynch, The Power of Positioning, Journal (Businessweek.com) June 2, 2008