What is Positioning Matrix? Definition of Positioning Matrix, Positioning Matrix Meaning and Concept
The positioning matrix is a fundamental tool to develop strategies for a brand.
The positioning matrix is one of the most important tools for the success of the company when it comes to selling its product or service.
Any strategy that seeks to achieve success must be provided with information for decision-making based on several parameters ( competitive advantage, the degree of attractiveness of the sector, the financial strength and the stability of the environment). In this way, a matrix is formed with which the company or company can plan its objective.
How to define a company's strategy
Taking into account this base or model to follow, there are four options that can define the strategy to be taken by the company:
- Aggressive: Its purpose is to improve the position or image of the company.
- Defensive: Maintaining the status achieved is the main task.
- Conservative: Similar to the previous one, the strategy is to preserve the market share acquired by taking advantage of the pull that the company has in the market.
- Competitive: Despite the drawbacks, this action seeks to maintain and even increase its competitive position.
Far from standardization, the positioning matrix offers a broader and more sophisticated analysis of the labor market, since it covers four dimensions. But, on the contrary, it gives a partial vision of the company by assessing only its financial solvency and does not assess how other areas of the company are interrelated to design its marketing strategy.
The BCG matrix
A good option is to take the BCG matrix as a model . Developed by the Boston Consulting Group in the 1970s, it proposes a strategic analysis that the company or brand should adopt based on two factors: the market growth rate and market share.
It is of great help in making decisions and in focusing the marketing plan to follow. For example, it tells us in which business areas you can invest and in which it is not recommended. The Mckinsey matrix is another of the benchmarks as to what type of more appropriate competitive marketing strategies we should take. Analyze the business areas that have the greatest strengths to invest in them in order to grow and obtain benefits.
It also exposes those other weaker sectors and where it is not advisable to direct efforts. Given this scenario, it is recommended to diversify and prioritize investment in different products based on their profitability. It is a very visual matrix that greatly helps the company or company to sell its product or service. Paves the way