ABSTRACT

This chapter describes the importance of competitive positioning of the organization. It discusses the different ways an organization can position. Competitive positioning requires management to make choices that ensure that there is a fit between an organization's resources and the chosen target market. Positioning can be based on price, quality, and service, a differentiation on benefits, innovation, or corporate citizenship. Price positioning can be very successful when there is a price-sensitive target market. To be successful, high price positioning should be accompanied by high quality, prestigious branding, good reputations, and exclusive images. Quality positioning requires organizations to have strict quality control, technical competence, and skilled employees. Organizations that choose benefit positioning strategy need to segment their markets based on benefits valued by consumers. Organizations that adopt corporate citizenship positioning usually make strong statements on social or ethical issues, implement environmentally friendly policies, and have strong corporate social responsibility programs.