Benefits of Product Positioning,Market segmentation - Principles of Marketing | Principles of Marketing - B Com PDF Download

Benefits of Product Positioning
Following benefits of product positioning imply its importance or utility in marketing:

1. To Make Entire Organisation Market-oriented:
Product positioning is a part of the broader marketing philosophy. It concerns with identifying superior aspects of product and matching them with consumers more effectively than competitions. This philosophy makes the entire organisation market oriented.

2. To Cope with Market Changes:
Once the product is positioned successfully doesn’t mean the task of manager is over. He has to constantly watch the market. As per new developments in the market place, new competitive advantages should be identified, discovered or developed to suit the changing expectations of the market. It makes the manager active, alert and dynamic.

3. To Meet Expectation of Buyers:
Generally, the advantages to be communicated are decided on the basis of expectations of the target buyers. So, product positioning can help realize consumers’ expectations.

4. To Promote Consumer Goodwill and Loyalty:
Systematic product positioning reinforces the company’s name, its product and brand. It popularizes the brand. The company can create goodwill and can win customer loyalty.

5. To Design Promotional Strategy:
More meaningful promotional programme can be designed. Based on what advantages are to be communicated, appropriate means are selected to promote the product.

6. To Win Attention and Interest of Consumers:
Product positioning signifies those advantages that are significant to consumers. When such benefits are promoted through suitable means of advertising, it definitely catches the interest and attention of consumers.

7. To Attract Different Types of Consumers:
Consumers differ in terms of their expectations from the product. Some want durability; some want unique features; some want novelty; some wants safety; some want low price; and so on. A company, by promoting different types of competitive advantages, can attract different types of buyers.

8. To Face Competition:
This is the fundamental use of product positioning. Company can respond strongly to the competitors. It can improve its competitive strength.

9. To Introduce New Product Successfully:
Product positioning can assist a company in introducing a new product in the market. It can position new and superior advantages of the product and can penetrate the market easily.

10. To Communicate New and Varied Feature Added Later on:
When a company changes qualities and/or features of the existing products, such improvements can be positioned against products offered by the competitors. Product positioning improves competitive strength of a company. Normally, consumers consider product advantages before they buy it. So, product positioning proves superiority of company’s offers over competitors. It may also help consumers in choosing the right product.