Market positioning

• Product Orientation: business focuses on the production process and the product itself, putting most effort into developing and making products believed to sell well
• Market Orientation: a business that is market-oriented continually identifies, reviews, and analyzes consumers' needs, being led by the market where consumers are central to decision-making
• Market positioning is concerned with the perceptions consumers have about products and often positions a business's products in relation to its competitors based on benefits offered, unique selling points, characteristics, origin, and classification name of the product
• Market mapping: the positioning of a brand is influenced by customer perception rather than those of the business
• Market segmentation involves dividing the market into different sections based on similar needs, including geographic segmentation, demographic segmentation (age, gender, income, social class), psychographic segmentation (attitudes, opinions, lifestyle), and behavioral segmentation (usage rate, loyalty, time and date of consumption)
• Benefits of market segmentation:

  • Businesses can increase revenue by producing different products for different market segments
  • Customers may be more loyal to a business that provides tailored products
  • Businesses can avoid wasting promotion resources by targeting products at customers who want them
  • Some businesses can market a wider range of goods to different customer groups
• Competitive advantage of a product and services: a business is likely to be more successful if it can gain a competitive advantage in the marketplace, which can be achieved through unique features perceived as superior to competitors, such as product design, delivery time, and ethical stance
• Adding value to products and services means providing extra features for the customer that exceed standard expectations, such as customer services, speed of response, packaging, and customization