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Which of the following positioning strategies is inaccurately described?

a. A hospital advertises the fact that, unlike other health care facilities, it offers a natural birthing center. The hospital is positioning based on competitive factors.
b. To succeed with value positioning, a company must offer the lowest price.
c. A car maker who offers the best warranty in the business is positioning based on product attributes.
d. A company can succeed with value positioning despite failing to offer the lowest price.

1 Answer

3 votes

Final answer:

In reality, value can be created through quality, service, or customer experience, not just by being the cheapest. (Options a, c, and d)

Step-by-step explanation:

Among the provided options regarding positioning strategies, the one that is inaccurately described is option b: To succeed with value positioning, a company must offer the lowest price. Value positioning can indeed pertain to offering a low price but is not exclusively about having the lowest price in the market. Value can also be delivered through superior quality, service, or customer experience, which may justify a higher price point relative to competitors. Therefore, a company can succeed with value positioning without offering the lowest price, as they might compete on value-added features or benefits that resonate with consumers.

Competitive factors refer to the unique advantages or benefits a business offers to differentiate itself from competitors. As described in option a, a hospital advertising a natural birthing center is positioning itself against competitors by highlighting a unique service it provides, which is a valid form of competitive positioning.

Option c accurately describes positioning based on product attributes, where a car maker focuses on advertising the best warranty, distinguishing its product based on a specific characteristic it offers.

Finally, option d accurately states that a company can succeed with value positioning without needing to be the price leader. This shows that value is a broader concept than just price and can encompass other aspects important to consumers.

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