Question

The process of establishing a product in the minds of target customer is called as 

• A. Product positioning
• B. Product differentiation
• C. Product targeting
• D. Market segmentation

Answer 1

The Correct Option is A

The process of establishing a product in the minds of target customers is known as Product Positioning. This term refers to strategizing how to present a product to consumers, emphasizing its key benefits and differentiators compared to competitors. The objective is to create a perception of the product in the customers' minds that aligns with the company’s marketing strategy.

Let’s examine each option to understand why 'Product Positioning' is the correct answer:

1. Product Positioning: This involves tailoring marketing strategies to shape how the product is perceived in the competitive landscape. It focuses on highlighting the product's unique features and advantages to occupy a distinctive place in the minds of the target audience. Therefore, 'Product Positioning' is indeed the correct answer.
2. Product Differentiation: This strategy focuses on distinguishing a product from its competitors by emphasizing unique characteristics. While differentiation can support positioning, it is not synonymous with the psychological process of establishing the product image in the consumer's mind.
3. Product Targeting: This refers to the process of selecting specific market segments to serve with a company’s product offerings. While targeting is a crucial step in marketing, it deals with 'whom' to sell rather than 'how' to be perceived.
4. Market Segmentation: This involves dividing the broad consumer or business market into sub-groups based on shared characteristics, like demographics or behaviors. Segmentation supports targeting and positioning but focuses more on identifying key groups rather than perception management.

In summary, 'Product Positioning' involves tactical strategies to embed a product's image and value proposition in consumers' minds to optimize the product's appeal and competitive standing.