Product Positioning Process
1. Understand target market
Positioning is defined as the way by which the marketers attempt to create a distinct impression in the customer’s mind. Therefore, a firm should understand the market segment. The marketer should understand the needs, wants, and problems of the customers and their socio-cultural, economic, and demographic status. Generating this information typically requires primary research. If gathering data directly from the target audience is not feasible, it is important to consult with the sales force and industry experts to generate best-guess assumptions.
2. Understand competition
Product positioning is a marketing technique intended to present products in the best possible light to differentiate them from competitors in the eyes of target audiences. To differentiate it from customers, organizations should find out the core activities competitors have done in their product and their characteristics. So, for a successful positioning, marketers should understand the several aspects of competitors and their products.
3. Develop buying criteria against competitive positioning
Consumers buy products with certain motives and several attributes of the product can meet their motive. So, marketers should survey and find out why consumers buy any product’ what they desire in the product. Some customers desire aesthetics, some wish quality, some seek brand reputation. Therefore, the marketers should find out the buying criteria like design’ quality, brand, features, services, warranties, etc.
Buying Criteria in the car market of Nepal
Price: It is no surprise that Nepal is a price-conscious market.
Mileage: With the petrol and diesel prices at Rs. 135 and Rs. 105 respectively, topped with the frequent fuel shortages and price hikes, mileage is an important factor.
Diesel versus Petrol: Diesel vehicles, especially SUVs, are popular for commercial use and travel that require a long journey. But for city driving, it is still petrol.
Ground Clearance: With all the potholes and roads without blacktop, buyers often look under cars before buying them to check the clearance.
Sturdiness: Warranty, brand loyalty, comfort, and safety features are also important.
Looks: This is quite subjective, but most buyers are looking for a car that looks like a new model.
Resale value: Car buyers also consider whether their car still fetches a good price after years of use.
4. Assess product’s strength against the buying criteria
The marketers should then find out the relative strengths of the product against the buying criteria. Marketers should find out what the customers seek and develop the strong aspects of the product compare to their buying criteria. The market share leader is strongly positioned within the top prioritized buying criteria
5. Analyze the gaps and positioning
There may be several spaces that are not filled between customers’ needs and available products and the competitors. These gaps should be well analyzed and develop positioning symbol and message manipulation, including displays and packaging.
