Brand positioning as the basic factor of
competitiveness provision
The
modern stage of economic intercourse is characterized by the high level of
competition among economic market agents. Competition is becoming more and more
intense and tough in most consumers’ as well as business markets, and the
problem of retention of market share is becoming more and more essential. The
companies expand serious effort to affect the consumers and motivate them to
buy. The current companies’ demand to retain their market share is becoming the
departure of searching the most advantageous strategy of positioning.
Positioning is one of the long-term factors of enterprise development and its
competitive growth.
It
was first announced about positioning by Jack Trout and Al Ries in 1981 when
their book “Positioning: The battle for
your mind” was published. Since that time a lot of research studies have been
devoted to the concept of positioning and to its areas, methods and models. The
theory of positioning takes the considerable place in foreign marketing
literature. The importance of positioning of trade names is accentuated in the
works of such well-known marketing specialists as D.A. Aaker, P. Kotler, J.J.
Lamben, F. Le Pla, T. Nilson, L.M. Parker, L. Persy, M. Porter, A. Ries, S.
Rivkin, J.R. Rossiter, P. Temporal, J.
Trout and others. Problems concerning positioning of trade names are also
discussed in the works of domestic specialists. Among them should be mentioned
the works of V.V. Bakaeva, V.N. Domnin, M.N. Dymschitsa, M.O. Makashev, A.
Nadein, J.K. Pirogova, V.V. Saliya, V.M. Tereschenko, E.V. Tunukova and other
authors.
“Position”
is the main concept in positioning. Jack Trout understands it as “a rightful
place in consumers’ mind” (1), that is the steady stereotype and therefore
stable and unattainable for competitors. Philip Kotler understands position as
the “place in consumers’ mind taken by the given goods in comparison with like
competitive goods”(2). Thus the position of goods is formed in consumers’ mind.
In such a case it must be significantly different from the competitors’ position,
only in this instance the consumers will single the enterprise and its goods
out of a big number of analogous ones in the market.
The
search of the vacant position, its capturing, retention and forming in the
target consumers’ mind is virtually the process of positioning. In this regard
it’s necessary to mark out a problem most companies face – that is how to
reveal the company’s goods differences from the competitors’ goods for specific customer attraction and more
full satisfaction of the certain fraction of market’s needs and requirements.
To answer the given question the companies must determine the direction of
positioning.
Positioning
can have different directions in the enterprise marketing activity – the
tradable, the pricing, the service, the marketing, the advertising. There’re
following kinds of positioning the brand depending on the object view:
•
positioning on the goods usage (here the basic characteristics of the given
tradename’s goods or substandard usage of standard goods are accentuated);
•
positioning on the goods’ specifics (it is used when the new goods different
from the analogous ones by their qualitative characteristics are introduced to the market);
•
positioning on the profit (it is performed on the basis of promises of specific
interest and benefit given to the consumer):
•
positioning on the consumers (it considers sociodemographic situation in the
society and is performed on the basis of segmentation of the market by
geographical, sociodemographical and psychological features);
•
positioning on distribution (is based on the electivity of channel of
distribution and sales promotion);
•
price positioning (it uses substandard overpricing and undercharging for the
particular goods in comparison with the price for the usual goods)(3).
J.Trout
and A. Reise offer some other successful variants of brand positioning:
•
contraction of the target audience’ focus of attention;
•
creation of the new product category;
•
leading in the category;
•
brand history or legacy;
•
peculiarities of the product vision;
•
preference;
•
recent development (4).
Inspite
of the great choice of positioning brand variants there is a stable view point
that when the goods are positioned to the target market only one of their
difference-characteristics should be marked. Customers tend to memorize exactly
the statements about number one especially in the society suffering from
information oversupply. The real practical necessity in the goods positioning
on several differences in the market is about to happen with the complicacy of
the market environment. This method is effective in the cases when two or more
companies are laying the claim to the lead in the selected pointer. The object
of positioning is to find a special niche in the target segment. In case of
choosing the wrong direction of positioning the company doesn’t only suffer
losses of resources (financial, timing, labour), omissions of fortune of market
environment but also the extension of risk probability of business activity.
Goods
positioning on two differences in the market is effective in the cases when two
or more companies are laying the claim to the lead in the selected pointer. The
object of positioning is to find a special niche in the target segment.
The
Volvo company positions its automobiles in the Russian market as the safest and
the most timeproof - as these two
pointers are compatible, this is because the consumer can reasonably suppose
that a safe automobile will also be a very timeproof one.
Different
tendencies in the choice of positioning strategy are showing up depending on
the market of goods and services. The tendency of language educational
institutions positioning on the goods specifics and pricing positioning has
been shown up due to the data of the author’s undertaken study of educational
services market in the teaching English language curriculum. Language schools
in the English-speaking countries offer more and more new programs, trying to
stand out among the analogous competitors. For example programs that offer
English language with in-depth study of medicine, business, and sport have
appeared in the Canadian language schools market. Different winter and summer
camps for teenagers have also appeared in the market. Every language school
tries to position itself as the school that offers programs for the specific
target audience and to stand out among
the other language schools.
Success
in the market of everyday goods depends on the production range positioning,
width, length and depth of the business product offering. The original creation
of the recognizable and qualitative product brand in the consumer group gives a
great support in this case.
The
high level of consumer incomes and expenditures in postindustrial economics
assumes the potentiality for the whole company’s production range offtake in
the international market. To this effect it’s necessary to create the extra
demand in the market on account of forming consumers’ beliefs in the necessity
of shopping. The basic object of positioning in the conditions of modern high
competitive struggle in the goods and services market is to make the goods
noticeable for consumers and to show them up among the great range of
substitute products. This essentially rises prospects of the goods’ success and
consequently the company’s success in the market.
List of reference
1. Marketing [Text]: translation from English. – 2nd Europ. ed.
– Moscow: Williams Publishing house, 2006. – p. 17.
2.
Gary Armstrong. "Marketing:
Introduction/ G. Armstrong, P. Kptler. - 5th ed. – Moscow:
Williams, 2000. - p. 423.
3. Marketing while playing: text edition/ E.G. Popkova, O.E. Akimova, T.N.
Mitrahovich [etc.]. – Moscow: KNORUS, 2011. – p. 128-129.
4. Marketing while playing: text edition/ E.G. Popkova, O.E. Akimova, T.N.
Mitrahovich [etc.]. – Moscow: KNORUS, 2011. – p. 129.
5. Bun, L. Modern marketing/ L. Bun, D. Kurts. – Moscow: UNITI-ANA, 2005. –
p. 531-534