The Importance for Service Companies To Consider Their Positioning

Introduction

A service provider’s positioning is very important because it’s critical for business promotion. This is primarily explained by the fact that accessibility encourages increased sales and improves advertisement when customers can easily observe the built-in business structure. A company’s place in the market will not be beneficial to its growth if it is too limited, and it is simple for customers’ perceptions to get clouded. In light of this, the company’s positioning should be clear and precise, and its depth and breadth should be appreciated.

According to Marušić (2019), the correct positioning is a critical way to acquire significant competitive advantages, which can enable service firms to occupy larger market shares in distinct operations. This is why it is crucial for service organizations to consider their positioning in the competitive market(Marušić, 2019). Under market segmentation, positioning also reflects the survival strategy of businesses, which requires them to concentrate their strengths, resources, and efforts in order to acquire a competitive edge.

Karadeniz’s (2009) work supports the aspect of positioning by claiming that Target consumers, service disparities, and competition are the three key factors that should be taken into account. As far as target consumers are concerned, service companies that have done a good job of market positioning must now analyze consumer groups (Karadeniz, 2009).in order to comprehend their needs and pain points in order to be able to offer services that will meet those needs, solve problems for consumers, build a strong brand, and gain market share.

Sahib’s (2020) work shades more light on business positioning by claiming that It is crucial to carry out the expansion of the territory in accordance with the positioning theory, which can assist to modify the company strategy, if service firms want to occupy greater market shares and achieve competitive advantages in the competitive business environment. The importance of positioning lies not just in meeting consumer wants, but in doing better than competitors in the same industry, in order to surpass customer expectations, acquire customers’ trust, and create a trust bridge with customers.

According to Thanseer et al., (2022). Market segmentation is a crucial component of marketing strategy, and it is best to combine market positioning, market segmentation, and target market choice. The service businesses can first split the various market segments through market segmentation, and then through evaluation and analysis, choose from the market segments. Service businesses can enter the market and utilize marketing tools to establish their place in the industry (Thanseer et al., 2022). Through the diversification of production and service, STP (Segmentation, Targeting, Positioning) enables service organizations to avoid intense rivalry and has an effect on certain consumer groups. (Market positioning, market segmentation, and target market selection are typically coupled.

Bondarenko’s et al., (2020) work also support the aspect of business position by claiming that Strategic positioning begins with market segmentation. Understanding consumer types, categories, and potential target demographics can benefit service companies. For appropriate market positioning, accurate population segmentation research serves as the foundation and key. The ultimate goal of positioning is to take the initiative of market competition to create differences (Bondarenko’s et al., 2020). Service businesses can do this through positioning, actively implement active behavior, and strengthen customers’ high recognition of the enterprise brand. Positioning is a key component of marketing strategy.

Supplemental Services to Build Customer Value and Competitive Advantage

Customer satisfaction is very important in any organization therefore offering supplementary services are very essential. This is supported by the fact that it will help in taming customers who will help in promoting the business. Cambra-Fierro et al., (2018) supports the aspect of building customer value using supplementary services by claiming that supplementary services are crucial because they boost the value and attractiveness of core services, help an organization execute differentiated strategic options for core services, and assist develop customer value and competitive advantage.

Mahajan’s (2020), work supports this idea by claiming that In order to better build customer value, enterprises can implement differentiated management of customers, which is a necessary prerequisite for customer relationship management. From the perspective of enterprises, customers’ profit contribution is different, so it is important to treat different customers differently, so that limited resources can be efficiently allocated and high output can be achieved. Finally according to Rintamäki & Saarijärvi (2021), the value of customers can help enterprises divide customers into four categories: strategic customers, profit customers, potential customers and ordinary customers. The customer value of strategic customers is high, and the strategic matching degree with the enterprise is also high.

Conclusion

Therefore, it is obvious that an organization’s strategic posture is essential to its success. Offering customers the highest quality services necessitates proper positioning. When clients are respected, it directly encourages dependable support and subsequently promotes the success of the firm.

References

Bondarenko, A. F., Zakharkina, L. S., Syhyda, L. O., & Saher, L. Y. (2020). The economic and marketing attractiveness of countries: Measurement and positioning in terms of economic security.

Cambra-Fierro, J., Melero-Polo, I., & Sese, F. J. (2018). Customer value co-creation over the relationship life cycle. Journal of Service Theory and Practice.

Karadeniz, M. (2009). Product positioning strategy in marketing management. Journal of Naval Science and Engineering, 5(2), 98-110.

Mahajan, G. (2020). What is customer value and how can you create it?. Journal of Creating Value, 6(1), 119-121.

Marušić, T. (2019). Importance of marketing mix in successful positioning of products and services on the market. Ekonomska misao i praksa, (1), 431-446.

Rintamäki, T., & Saarijärvi, H. (2021). An integrative framework for managing customer value propositions. Journal of Business Research, 134, 754-764.

Saqib, N. (2020). Positioning–a literature review. PSU Research Review.

Thanseer, M. A., Riyas, M. M., Mariappan, M. J., & Edassery, M. J. R. (2022). Importance Of Marketing Mix In Successful Positioning Of Products And Their Services On The Market. Journal of Positive School Psychology, 6(8), 7711-7721.