Wednesday, July 28, 2010
Market Positioning-the Five Ps of Marketing but they Start with Positioning
Understanding your position in the market goes a long ways to determining the rest of the marketing decisions you must make. The five Ps in marketing are
If you’re going to be the low-cost provider in a niche market, then that will dictate the product must provide the basic value and not much more. Promotion will focus on low-cost and good-value functions. The price must be the lowest and the place will be those marketing channels that cost little or nothing. The place or channel to promote/sell the product must be trafficked by bargain hunters.
On the other hand if you’re going to pursue a product differentiation strategy and you want to position your product as a highly differentiated one, then the product must have additional features, the price can be set at the upper end of the range that customers will pay for it and the promotion will focus on the unique features offered. The place or channel must be trafficked by premium buyers.
By determining your position in the market, the other decisions become clearer.