Competitive positioning

Competitive positioning is a multidimensional category, determined by a set of factors such as market share, core market segments, scale of activity, scope of impact on the market, applied technologies and technical skills and adaptation skills.Consist of all activities that aim to create positive associations on the market, how the company is perceived by customers and what positive features make it stand out from the competition. Skilful positioning is aimed at bringing about a well-known brand that will have loyal customers. A tool helpful in positioning the product are so-called product perception maps show graphic perception of various product brands by their buyers, are built on the basis of research and facilitate planning. They allow you to designate the features of the most desirable product.On the basis of this, opportunities and threats arise. The importance of this competition can be determined on the basis of an enterprise or based on a group of clients.

Competitive positioning factors

Competitive positioning include factors such as:

• brand and its distinctive features,
• image of the company,
• functionality of products and benefits of using the product by customers,
• creation myths and history of company.

Competitive advantage

Competitive advantage is associated with:

• uncomplished position of the company on the market, proposing identical products at prices of significantly lower or differentiated products at higher prices, at a price that will be accepted by consumers. Achieving this position is determined by external factors in relation to a given company,
• company's competence-competences, which distinguish it from the competition and give it an advantage over it. In this model, the enterprise is a collection of tangible and intangible assets. In this model, the advantage is related to the company's external capabilities to exploit opportunities and counteract threats.

International competitive position

It is connected with the ability to sell and produce goods by a given country on foreign markets, which may show a lower price or are better quality than those offered by other countries. When it comes to international competitiveness, its main measure is labor productivity, and this performance depends on how quickly technical progress in a given country develops. Analyzing this position, the shaping of shares as well as the structure of its participation in the international division of labor, taking into account the causal relations accompanying the development of the external economic ties of this country, are taken into account. This is a position that is variable over time. This position gains strength as the country increases its share in the export of goods, services, capital and technical knowledge.

Strategic action in the competitive position

There are:

• all participant of the market game - an entity that does not take into account its position and market share. He adapts his strategies to new ones. A passive market participant,
• aggressive market participant - the participant is active on the market, strives for his position and market share,
• market leader - creates new strategies, is active as evidenced by the fact that he tries to search and create new needs, his market position is strong by gaining new markets, increases demand, takes care of acquiring new customers.

Examples of Competitive positioning

• Differentiation: This type of competitive positioning involves creating a product or service that stands out from the competition by focusing on a unique feature, function, or design that provides a superior benefit to the customer. For example, Apple's iPod was able to differentiate itself from other MP3 players by its user-friendly interface and sleek design.
• Price: This type of competitive positioning involves creating a product or service that is priced lower than the competition while still providing enough value to remain attractive to customers. For example, Walmart has been able to successfully position itself as a low-cost leader in the retail market.
• Quality: This type of competitive positioning involves creating a product or service that is perceived to have higher quality than the competition. For example, Mercedes-Benz is able to position itself as a premium luxury car brand due to its superior quality and attention to detail.
• Branding: This type of competitive positioning involves creating a strong and recognizable brand that stands out from the competition. For example, Coca-Cola has been able to establish itself as the leading soft drink brand due to its strong branding and widespread recognition.

Limitations of Competitive positioning

Competitive positioning has several limitations which include:

• It is limited by the scope of the market or industry; it does not consider external factors that can have an impact on the positioning.
• It is time-consuming and difficult to make accurate and precise positioning decisions, since market information tends to be dynamic and ever-changing.
• It is difficult to measure the effectiveness of the positioning, due to the variety of factors that can influence it.
• It is difficult to maintain the positioning, since it is subject to changes in customer needs and preferences.
• It is difficult to differentiate the product from competitors, since the market is often saturated with similar products.
• It is difficult to obtain accurate information about the competition, since they may be operating under different strategies.

Competitive positioning — recommended articles

Competitive position — Strategic position — Competitive rivalry — Competitor — International marketing mix strategy — Mobility barriers — Marketing innovation — Beachhead market — Focus strategy

References

• Hooley, G., Piercy, F.,N., & Nicoulaud, B., (2008). Marketing Strategy and Competitive Positioning Pearson Education Limited,pp.1-278
• Hooley, G., Greenley, G., Fahy, J., & Cadogan, J. (2001). Market-focused resources, competitive positioning and firm performance. Journal of marketing Management, vol. 17, no. 5-6,
• Porter E., M. (2008). Competitive Advantage: Creating and Sustaining Superior Performance Schuster Inc. , pp.1-592
• Canavari, M., Cantore, M., Castellini, A., Pignatti, E., & Spadoni, E. (2009). International Marketing and Trade of Quality Food Products Wageninge Academic Publishers, pp.1-332
• Berger Ch., (2008). The 4 types of market competitive positioning and its key strategies International and Strategic Marketing., pp.1-11
• Keegan, J., W. & Schlegelmich B.,B. (2001). Global Marketing Management: A European Perspective Prentice Hall, pp.1-464

Footnotes

Author: Anna Śliwa