Positioning system is a marketing strategy that uses a company’s resources and physical location to their advantage. It creates the impression that a firm is in reach, has better pricing and more availability. Positioning system has been used for decades but is still effective today because people are still looking for quality products and increased accessibility.
Benefits of Positioning system
1. Increase Sales
Since positioning system allows the company to be positioned in front of the consumer’s mind, it allows them to increase sales, as opposed to having their market share remain stagnant.
On the other hand, if a company does not have a positioning system in place, competition can knock them out of business because they will not be able to compete with the quality and price that are offered by their competitors.
2. Increase Customer Loyalty
By establishing a good or healthy relationship with potential customers and existing ones, it has been shown that companies are less likely to lose business. This is because the customers will continue to come back to the company after they have been pleased with the product or service.
If a customer is not satisfied with what he or she has received purchase, it is unlikely that the customer will continue to use or make purchases from a company for another reason.
3. Lower Cost of Innovation
Since there are many strategic goals that can be achieved through marketing companies have to invest time and money in researching, planning, creating and/or implementing their branding systems. Therefore, by investing in positioning system companies are able to reduce their overall cost of innovation because they do not have to spend unnecessary amounts of money that might not be invested into products and services.
4. Eliminate Failures
By placing a company in a good strategic location, it eliminates the possibility of failure because the consumers and business owners are able to determine that the company is good and reliable. This will either encourage them to continue using products and services or they will be so impressed that they will use it without hesitation.
5. Increase Brand Recognition
When companies use positioning system, consumers are able to identify their brand easily by having their company’s logo in front of their minds all the time. If a customer goes into a place and sees their brand anywhere, it will automatically make them feel more comfortable because they know who they might be dealing with.