The Positioning School

27 01 2010

How will you position your company?

Businesses need to ask the question, “What image does the consumer have about the product or service that we provide?”

It is important to build a positive opinion in the eye of the consumer. Many people look at a company’s position to distinguish what benefit they will receive from purchasing a particular item from their organization. Some companies try to distinguish themselves from their competitors by promoting dependability and honesty, but consumers are expecting all organizations to be fair or they will not waste their time with the business. Companies must meet customer expectations and provide additional value to have a chance at being successful. They can achieve this goal by positioning their company to be perceived in a positive light.

Some common positions that Michael Porter noted are cost leadership, differentiation, and focus on a particular market segment. These are generic strategies that are important to consumers and define the Positioning School. There is a greater emphasis on the importance and content of strategies in this school instead of the process that was the focus in the Design and Planning Schools. As a result, companies hire a consultant to analyze data in order to find the best strategy. The company will then implement the suggested strategy.

This is a great concept but does it encourage innovation when any company can use the same generic strategy? The role of positioning is to support the strategy formulation process instead of restricting a company’s vision for the future. As a result, this school is more of a framework of competitive analysis for businesses to build on to create value for consumers.

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