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Topic: Student Questions

Why Positioning Is Important In Marketing Strategy

Posted by Anonymous on 10/29/2004 at 5:39 AM ET 100 Points
hi all, this is the first time i ask a question on here so please bear with me for any mistake i make

My question is : What is the concept of positioning and why is it so important in marketing strategy? Give an example

I understand about the part about concept of positioning, but i can't figure out why is it important and how does it relate to marketing strategy?

All i can think of is when there are changes in the legal or economic environment, a company has to redevelop their positioning strategy and adjust their target market.

Please explain to me the importance of it and also provide some examples if can. Thanks
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  • Posted by Peter (henna gaijin) on 10/29/2004 at 1:29 PM Accepted
    As an example, I am going to simplify positioning to just two categories - quality leader and cost leader - as this may make it easier to see the difference.

    Using cars in the U.S. as the specific example, Mercedes and similar high level cars are considered by most to be quality leaders. A buyer pays a lot for them, but has high expectations for the cars performance, features, etc.

    Cars like Hyundai are positioned as cost leaders. The buyer expects to not pay a lot, but also not get a lot.

    The marketing mix (product, price, place, promotion) would be different for each of these products based on how they are positioned.

    This was using two major different positioning as an example. Positioning is done even at a more fine level, such as how even though Mercedes in general is positioned as a high quality product, it also positions differently each of its different model within this area.
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