Article Review - Products Positioning on a Heterogeneous Market

Products Positioning on a Heterogeneous Market

Summary

The article “Products Positioning on a Heterogeneous Market”, main objective is to build a positioning model that firms should apply to success business position by emphasizing on the different divisions of market segmentation and process of positioning strategy. However, in order to achieve this model, the study of article tries to point out the need of particular buyers segment, relation between segment process with positioning strategy and implementing the positioning strategies model.

Initially, authors give a clear picture of the product differentiation strategy and product positioning strategy. The product differentiation strategy which authors believe that creating something perceive as unique, company manages to create monopoly of the product and gains its competitive advantage through its image, conception, function and services that products realized cannot be found in other competitors. On the other hand, the product positioning strategy adheres to serve product based on a segment. Although, firm cannot satisfy the entire request which composed of various segments but positioning strategy is best defined when listen to the comprehensive of request and its component segments and knowing competitor products. Besides, authors locate that positioning strategy supposes to follow three successive implementation phases: market segmentation, selection of target market and market positioning by serving best action toward the request segment and desired.

From methodology of position, several models are proposed in order to succeed the positioning strategy. First model is market heterogeneity and market structuring solutions which market is classified into two coordinates: the homogeneity- heterogeneity axis and level of diffusion- grouping the customer. In homogenous markets customers share same desire, yet the firm needs to find the standard consumption classes namely customers classes. Heterogeneous market consist of large number of segments require firm to identify as position on the market. Furthermore, diffuse markets consist of multitude of needs of customers which firms have to identify the customers categories and try to provide them the offer. Also, firms need to focus the grouped markets which are homogeneous namely buyers group. Second model is consumption segments, personal desires and cultural values. The firm products are influenced by specific or personal desire and if firm fails to observe customer needs, it reduces the value and products become unnecessary.  Likewise, a well-defined segment undergo with different segments to satisfy customers based on sociocultural patterns. As in the article states, “segments can be defined in rapport with certain desires from the cultural mixture of populations, meanwhile buyer categories are dependent on individual values, the consumption classes are generated by group values.”p116. However, to indicate market segments firms are supposed to realize on three phases accordingly, obtaining information, analyze the result of requiring and define the request segments.