Answered by AI, Verified by Human Experts
Product positioning is primarily a function of product differentiation, which focuses on making a product unique and less comparable to competitors. It involves highlighting non-price factors and unique characteristics, thereby effectively targeting specific market segments.Product differentiation is the process of distinguishing a product or service from others to make it more attractive to a target market. Product positioning is largely a function of product differentiation. The objective of differentiation is to develop a position where potential customers perceive the product as unique. It serves as a strategy to reduce direct competition, as differentiated products are harder to categorize and draw fewer comparisons with competing products. In essence, this strategic approach aims to transition a product's competitive basis from primarily price to a focus on non-price factors. These can include product characteristics, distribution strategy, promotional variables, and other unique selling propositions.A successful product differentiation strategy entails making a product distinct through various means such as its physical aspects, the location it is sold, its intangible aspects, or the customer's perception of it. Such a strategy has the effect of altering the competitive landscape, creating market segments that value the unique aspects of the product, thus allowing the company to target those segments more effectively with its marketing and distribution efforts....