Final answer:
Product positioning includes key strategies such as the physical aspects of the product, the strategic location of sales, and understanding market structure to differentiate products effectively in the marketplace.
Step-by-step explanation:
Key points involved in product positioning refer to the strategic decisions and factors that a firm considers in order to distinguish its products from those of competitors and to make it appealing to a specific target market. These include the physical aspects of the product, such as features and designs that are highlighted in advertisements. In addition, the location from which a product is sold can significantly impact its popularity and sales volume, like the advantage a gas station would have being placed at a busy intersection or a supplier's proximity to a manufacturing plant. Firms must also consider market structure and differentiate their products at various levels, such as tangible differences, intangible aspects, and consumer perceptions.
There are several strategies to consider:
- Differentiated products may include unique features, such as an 'unbreakable bottle' or a 'nonstick surface', that provide functional benefits to the customers.
- Location strategy could leverage a high-traffic area to increase visibility and accessibility.
- Understanding the market structure is crucial to know how much market power the firm has, how its products differ from competitors, and how challenging it is for new firms to enter the market.