Positioning a company on the market by the usage of brands is defined as the act ofdesigning the supply and its image on the market, so as to occupy a distinct place in the minds of theirtarget audience. The role of positioning in developing marketing strategy to differentiate products andservices involves the selection of attributes that are considered important for consumers. In order togain a strong position on the market the companies must perform a market analysis, an internalanalysis and a competition analysis.positioning; market; company;

Filimon Stremtan

Ruxandra Radoviciu

English

Research Papers in Economics

Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
1072 
 
COMPANIES WITH MARKET POSITIONING BRANDS 
 
 
Ruxandra Radoviciu
1 
Filimon Stremţan
2 
 
 
ABSTRACT: Positioning a company on the market by the usage of brands is defined as the act of 
designing the supply and its image on the market, so as to occupy a distinct place in the minds of 
their  target  audience.  The  role  of  positioning  in  developing  marketing  strategy  to  differentiate 
products  and  services  involves  the  selection  of  attributes  that  are  considered  important  for 
consumers. In order to gain a strong position on the market the companies must perform a market 
analysis, an internal analysis and a competition analysis.  
 
Key words: positioning; market; company; 
 
Jel codes: M31; M37; 
 
 
Introduction 
Positioning  a  company  on  the  market  by  the  usage  of  brands  is  defined  as  the  act  of 
designing the supply and its image on the market, so as to occupy a distinct place in the minds of 
their  target  audience.  Understanding  and  applying  the  principles  of  positioning  is  essential  for 
developing an efficient position against the competitors, so the marketers must find answer to the 
following questions: 
   What is the company’s image in the eyes of our current clients? 
   How is the company’s offer perceived by the potential customers? 
   What are the elements that differentiate the company’s offer against the bids of its main 
competitors? 
   What is the company’s target segment?  
   Which  are  the  necessary  changes  to be made in order  to strengthen the competitive 
position within the aimed market segment/segments? 
 
Developing and communicating a positioning strategy 
For the position of the offer on the market to be recognized by the consumer and creating a 
distinctive image of the company, marketers must achieve a company's positioning strategy based 
on segmentation, targeting and implementation. 
These positioning strategies are particularly important in trying to conquer a market segment 
and therefore they must be developed correctly, otherwise the company’s position on the market 
will not be correctly, the market will be confused, not knowing what to expect. 
 
 
 
 
 
 
                                                 
1 Management – Marketing Department, “1 Decembrie 1918” University of Alba Iulia, 11 13, N. Iorga Street, Alba, 
ruxandra_rdvc@yahoo.com ; 
2 Management – Marketing Department, “1 Decembrie 1918” University of Alba Iulia, 11 13, N. Iorga Street, Alba, 
filimon_stremtan@yahoo.com ; Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
1073 
 
Table no.1 
Examples of strategies for positioning the brands 
Company  Target segment  Advantages   Price   Brand of the 
market 
Transavia 
S.A. 
Consumers of chicken 
meat interested in quality 
Freshness and 
quality 
 
10% above 
market 
 
Transavia – chicken 
meat 
Ella Bella, Papane – 
semi cooked 
products 
Antik 
Pizza 
Pizza lovers primarily 
interested in the 
promptitude of the 
services 
Speed in 
delivery and 
high quality of 
the services 
5% above market  Antik Pizza – 
George pizza  
Source: adapted after a table by Philip Kotler 
 
The word “positioning” was popularized by two advertising professionals, named Al. Ries 
and Jack Trout. In their view the positioning of the brand starts with a product, a company, service 
etc. and it refers to what happens in the mind of the potential buyer. The message transmitted by 
those two was “place the product in the mind of the potential buyers”. 
In order to position a brand on the market you have to establish a membership category – the 
products competing with the brand and those which work as close substitutes. 
 
The role of brand positioning in developing the differentiation strategy 
The role of positioning in developing marketing strategy in order to differentiate products 
and services involves the selection of attributes that are considered important for the consumers. 
These attributes can be those related to: product performance, level of utility, the price and its 
accessibility. 
To enhance the attractiveness of a product for a particular market segment, the brand must 
meet  the  following  qualities:  high  perceptibility  ensured  by  a  legible  and  harmonious  nature, 
uniformity in relation to all media and marketing mix, to be distinctive in relation to other brands, to 
be personalized by the usage of symbols and distinctive elements chosen according to the target 
segment. 
Advertising plays an important role in positioning a company’s brand, but it will probably 
play only a secondary role in consumer’s decision process. 
The link between market analysis, competitors and the company as a whole is achieved by 
positioning the brand on the market through its pivotal role. Depending on the type of business, 
positioning can be developed on various levels. For service companies which have more branch 
offices and more  products will be considered the entire company, a certain branch office or a 
particular service provided by this branch office. It is crucial to have certain adequacy between the 
positioning of various provided services and the same location because one’s image can affect the 
other. For example, if the Staer store from Alba Iulia would not provide guarantee for its products, 
the conflict between service production/sales and warranty service entails the decline of the brand 
on the Alba Iulia market. 
A well developed and implemented brand positioning strategy will help the consumers to 
create an accurate and clear picture of products/services provided by a company on the market. 
To  avoid  the  failure  of  a  brand,  marketers  can  differentiate  brands  through  product, 
personnel, distribution and image. Choosing the target position on the market must be treated with 
great importance because a mistake in its selection implies the development of a marketing plan to 
achieve  and  maintain  this  position.  This  mistake  may  cause  adverse  consequences  in  both  the Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
1074 
 
development of the company and its brand image that is intended to be developed on a market. 
Below, we present some target errors and their consequences: 
   One or more products of a company are driven on a position where they are facing fierce 
competition. 
   The product of the company is designed for a position with a low demand. 
   There is no clearly defined difference between services/products offered by the company 
and its competitors and therefore the situation of confusing the customers may appear. 
   Services/products  provided  by  the  company  were  not  publicized  or  made  known  by 
other  means  of  advertising,  which  entails  an  ignorance  of  it  in  the  minds  of  the 
customers and hence the lack of position on the market. 
 
Internal analysis, the market and competition analysis 
When selecting and developing an effective positioning strategy, marketers need a series of 
researches and analysis of market trends. These researches and analyses aim at transmitting the 
necessary information for creating the value, marking the opportunities and threats which concern 
the company if it faces a competitive market. 
When analyzing the market, specialists take into account factors affecting the demand, its 
level and fluctuations. All these elements are analyzed according to their geographical distribution. 
Here can  be found  questions like: “The demand  increases or decreases?”, “The demand varies 
depending  on  the  location  (regional,  international  ...)?”.  Also  here  should  be  studied  other 
assumptions  of  market  segmentation,  with  the same  title  as: approximate  size and  potential  of 
different  segments  of  the  market.  Depth  research  is  needed  to  identify  customer  needs  and 
preferences within each segment of the market, and also to know how they perceive the company’s 
brand in relation to the marks of the main competitors.   
 
The main uses of brand’s positioning analysis 
Developing  an  analysis  for  positioning  the  brand  on  the  market  finds  its  usefulness  in 
(fig.no.1): 
1.  Defining the relations between products and markets: 
  Distinguishing the differences between the competition’s products and offers on specific 
elements by comparing them; 
  If the performance of the product meets the consumer’s needs and expectations on specific 
performance criteria; 
  What can be the expected consumption level set for the product itself, to a set of features 
proposed for a certain price. 
2.  Identifying market opportunities for:  
a. Introducing new products  
   Which is the chosen target segment? 
   What are the elements proposed to differentiate the brand of our own products against 
the brands of our main competitors? 
b. Repositioning existing products 
   The product is still addressed to the old market segment or the company must find and 
attract other market segments? 
   What elements did not had the desired effect in the process of positioning on the market 
and should therefore be removed or modified? 
   What are the elements that need to be added in order to strengthen the brand’s image on 
the market? 
   What  are  the  specific  characteristics  of  the  product  that  must  be  highlighted  in  the 
advertising process so that they create a direct image of the product and thus a consumer's purchase 
desire? Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
1075 
 
c. Elimination of products  
   What are the products that do not satisfy the consumer’s needs anymore? 
   What  products  are  facing  an  excessive  competition  and  from  this  reason  are  not 
consumer’s favorites anymore? 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fig. no. 1. – The analyze of brand positioning strategy on the market 
Source: adapted after a scheme by Michael R. Pearce 
 
3. Taking other marketing mix decisions to overcome or to respond to certain strategies 
applied by the competition: 
a. Distribution strategies 
   Distribution strategy involves, at first, the existence of locations and the development of a 
certain type of outlets. 
   Distribution strategy is involved in the product’s availability on the market. 
   Which  target  stores  are  easier  to  persuade  that  the  product  provides  a  significant 
competitive advantage in terms of items of importance? 
   What  kind  of  distribution  can  be  used,  direct  or  indirect  distribution?  What  are  the 
advantages/disadvantages of each?  
b. Price strategies 
   The level of the price must be fixed for the products offered on the market. 
MARKET ANALYSIS 
 
 
 
 
 
 
 
Competition analysis 
Internal analysis 
 
Resource  
Reputation 
 Constraints 
 Values 
 
Strengths 
Weaknesses 
Actual position 
Selecting the target 
segments in order to offer 
services 
Aimed 
position on 
the market 
Selecting the qualities 
that will be valued in 
the eyes of customers 
Analyzing the 
possibilities of 
differentiation 
Marketing action 
plan  Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
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   Establish payment and billing procedures that will be used. 
c. Communication strategies   
   What message(s), attributes should be emphasized and what competitors (if any) should 
be retained as a basis of comparison for these items? 
   What media will be used: home sale or the media plan? (Selected for their ability to 
vehicle message to target audience, but also for their ability to enhance the product image). 
 
Competition analysis 
The identification and quantitative (the evolutions of the key figures as part of the market, 
turnovers as in numbers and volume, size and depth of product ranges) and qualitative analyze 
(analysis of competitors mix, competing products and brand perception ...) of competitors will help 
the marketers to evaluate the strengths, weaknesses, opportunities and threats. This will allow them 
to define their potential to differentiate their own brand from those of the main competitors. This 
information will serve  to achieve the internal analyze of the company. This  thing  will  lead to 
knowing the type of differentiation and existing competitive advantages and, therefore, of those to 
be retained and emphasized for each target segment. The analysis must also take into account the 
direct and indirect competition. 
When a company analyzes its competitors the following variables should be monitored: 
1.  Market share – it represents the share owned by the analyzed competitor from the total 
target market. 
2.  Relational  share  –  it  represents  the  percentage  of  customers  who  have  named  the 
competition when it has the same sector of activity. 
3.  Sensitive share – it is represented by the percentage of customers who would prefer to 
buy products from competitors.  
 
Positioning formulation 
The result of these three analysis forms will define the position preferred by the firm on the 
target market. After establishing it, marketers will be able to develop a specific action plan. The 
cost of implementing this plan must be weighed against the financial forecasted consequences. 
Before launching a specific action plan it must be taken into account the fact that one or more 
competitors will target the same position on the market. The best way to predict the position of the 
brand on the market is to identify all its competitors (actual or potential) and develop an internal 
analysis  of  each  of  them.  Analyzing  the  information  obtained  from  the  current  data  and  from 
competitive analysis, marketers will form a solid idea of how competitors are likely to act and will 
know if a reconsideration of the situation is needed. 
Placements  are  rarely  static:  they  evolve  over  time  in  response  to  changes  in  market 
structure,  technology,  competitive  activity  and  the  development  the  company  itself.  Many 
companies adopt a strategy of evolutionary repositioning, adding or removing services and target 
segments. Some companies have reduced the offer and gave up certain activities to remain as much 
as possible with their main activities. Others have extended the offer hoping to increase sales and 
attract new consumers. For example, gas stations have installed small stores with a very practical 
schedule. In parallel, supermarkets and shops have created banking services. Advanced technology 
provides the opportunity to introduce many new services or new delivery systems. 
A company whose brand knows a real success, consumers trust, can extend the position 
based on perceived quality of a particular service on a variety of related services associated under 
the umbrella brand. 
 
 
 
 Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 
 
 
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Conclusions 
The  brand  is  the  essential  element  in  completing  the  decision  making  process  when 
purchasing the products by the consumers. 
To have success on the market a company’s products and offers must be emphasized and 
distinguished  from  competitors.    For  doing  this,  is  necessary  for  the  company  to  realize  the 
positioning of the brand on the target market. 
   For a correct position of a brand on the market it must be elaborated a development of 
extensive marketing studies. These studies analyze the competition over the target segments and 
develop a strategic plan for positioning the brand. 
Any  error  occurring  either  in  the  analysis  processor  or  in  the  elaboration  process  of 
developing positioning strategy implies the decline of the brand in the consumer’s mind. 
 
References: 
1. Balaure V. (coord), 2002. Marketing, Uranus Publishing House, Bucharest. 
2. Cetină I., Brandabur R., Constantinescu M., 2006. Services marketing, Uranus Publishing 
House, Bucharest.  
3. Kotler  Philip,  Keller  Kevin,  2008.  The  management  of  marketing,  Teora  Publishing 
House, Bucharest.  
4. Kotler  Philip,  Armstrong  Gary,  2008.  The  principles  of  marketing,  Teora  Publishing 
House, Bucharest.  
5. Lapert Denis, 2005. Marketing des services, Dunod Publishing House, Paris.  
6. Lovelock Chistopher, Wirtz Jochen, Lapert Denis, 2004. Marketing des services, Pearson 
Education Publishing House, Paris.  
7. Valerică  Olteanu,  2003.  Marketing  of  services  –  a  managerial  approach,  Ecomar 
Publishing House, Bucharest.  

COMPANIES WITH MARKET POSITIONING BRANDS

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