In market positioning, the second phase of the positioning process, the marketplace reacts to the new product. The company finds out wheyher its product positioning is working. Winning a quick endorsement from the market us critical to success. Once a product wins reviews, it picks up momentum in the marketplace. Success builds on itself. The product develops a positive image, and customers flock to it. On the other hand, once the market sticks a product with a “loser”, the product has a tough time recovering.
Clearly, companies have much less direct control over this stage of the positioning process. Market positioning is determined largely by the perceptions of the marketplace. Customers build a certain image of the product, and no one can argue with their decision.
It is possible, however, to influence the market-positioning process. By understanding the workings of the market, companies can influence the perception of their products. They can take steps to make themselves and their products seem more credible.
