Marketing (Repositioning) Essay

There is a wide track down of forces acting upon organizations which make the guide for good move inevitable. The main forces take on changing technology and expectations of customers, increased competition and changing nature of frugal relations, etc. Today, reposition of existing service religious offering becomes a dodge which helps companies to sustain strong securities industry position and resist competition. Following Lovelock and Wirtz (2003) move outhouse be described as changing service characteristics aimed to take care impertinently market conditions. The main answers of conditions for service move include (1) a market eliminate, (2) competition and (3) changing customers necessitate. Therefore, repositioning is about the impudently mental imagery of the company in the customers minds. It is about earning customers trust to make them willingly describe the company.Market decline is the main reason which forces companies to reposition their service off ering to remain profitable. For instance, if strays of return are below competitive rate it can result in withdrawal from the perseverance and a decline in activity and competition. In this situation, companies motivating to reposition their service offering in nightclub to find impertinent(a) markets and new target groups. reposition is the best strategy used by companies to enter new markets immanent for the opportunities and new competitive positioning. For instance, in order to survive Fast federation created a strategy aimed to reposition the magazine in the minds of advertisersa project that depends on first repositioning in the minds of readersand then executing (Lind adduce, 2005). airline business carriers use repositioning strategy to avoid market failure and decline. (Essential repositioning of the Airline. Luxair, n.d. Europes Winners and Losers, 2001). Also, this industry repositions itself in order to maintain eminent growth through optimization of a product mix and technological innovation. Very often, companies reposition their service offering using a t atomic number 53/ terms strategy. Some airline carriers have positioned their filths selling for twice the price of services emphasizing their national origins, demonstrating how quality and price can be reinforced (Essential repositioning of the Airline. Luxair, n.d.). It is possible to say that airline carriers try to change the experience of buying and using a service (the service benefit) to prove a price position (Lovelock and Wirtz, 2003).Increased competition and new market entrants can force companies to reposition their service offerings. On the one hand, new entrants to an industry bring new capacity, a desire to get along market share and position and new approaches to serving customer necessitate. It is burning(prenominal) to none that new competitors can have a negative continue on prices. Their strategy can result in reduced industry profitability (Lovelock and Wirtz, 2003). In this case, repositioning their service offering, companies try to find new service benefits to earn potential consumers.For instance, tourism market in Jamaica needs a reposition in order to compete on the market and remain competitive. Golding, a leader of Jamaica Labour Party, says that the industry is running a risk right now because thither is significant increase in the number of rooms, particularly with the Spanish investments (Reposition tourism trade, 2006). Also, Golding admits that There is a need for a whole new approach to attraction development because there are so little offerings for the tourists, particularly at nights (Reposition tourism marketing, 2006). On the other hand, multinational companies like Vodafone mobile operator can governing body a threat of service adaptation and can become a victim of global competitors (Calling for a rethink, 2006).In some cases, the companies need repositioning strategy to relocate the brand in consumers minds creating a competitive advantage. This repositioning strategy ensures the customers credibly (Lovelock and Wirtz, 2003). Repositioning helps companies to establish trustworthiness, confidence, and competence for customers. It is possible to say that repositioning becomes the best strategy to keep the companys identity and personality in the customers minds. The company can force customers to buy their products creating new image of the brand. In the era of globalization, repositioning strategy can help to differentiate the brand image from competitors proposing distinct features of the service offering. So, repositioning is not just about persuading and creating new image in the consumers minds, it is about earning consumers trust (Calling for a rethink, 2006).Another set of conditions under which it is appropriate to reposition an existing service offerings deals with future needs and wants of the customers and their changing expectations. Customers needs and wants have changed ov er time. These causes require companies to find new strategies and directions to deliver customer satisfaction. For instance, the main problems faced by WHO is that Like many another(prenominal) middle-aged organizations, a lot of the WHOs problems stem from the fact that it has not changed with the times (Repositioning the WHO, 1998).In this case, repositioning is needed to provide satisfaction of members societal needs, and a sense of personal identity. Also, WHO organizations regard government action as automatically good, profit as automatically evil, and intellectual property as theft (Repositioning the WHO, 1998). Advances in technology and innovations require new positioning strategies to attract potential customers around the world. In this situation, repositioning becomes a response to the need of customers and increased market competition.It is possible to conclude that managing repositioning effectively is a complex and challenging task. Although firms need to meet expe ctations of their customers and resist competitors in order to remain profitable. For many organizations, repositioning is measured as profits in one form or another, while for others they may be the movement of social needs. Today, repositioning strategy is one of the most important elements of marketing which helps companies to respond effectively to changing demands and new economic environment.ReferencesCalling for a rethink. 2006. The Economist. http//www.economist.com/business/displaystory.cfm?story_id=5444969 (accessed 19 August 2006)Essential repositioning of the Airline. Luxair. n.d. http//www.luxair.lu/luxair/jsp/polopoly.jsp?d=642&a=6662&l=en (accessed 19 August 2006).Europes Winners and Losers. The incorrupts slump will change the landscape. 2001. Business Week. October 15. http//www.businessweek.com/magazine/ national/01_42/b3753136.htm (accessed 19 August 2006)Lindsay, J. 2005. Super Service How to Revive The Business event You Just Bought for $35 Million. June 26. http//www.mediabistro.com/articles/cache/a4669.asp (accessed 19 August 2006)Lovelock, Ch., Wirtz, J. 2003. Services Marketing, People, Technology, Strategy. scholar Hall 5 ed.Reposition tourism marketing, says Golding. 2006. August 15. http//www.jamaicaobserver.com/news/hypertext markup language/20060812T210000-0500_111077_OBS_REPOSITION_TOURISM_MARKETING__SAYS_GOLDING_.asp (accessed 19 August 2006)Repositioning the WHO. 1998. The Economist. http//www.economist.com/research/backgrounders/displaystory.cfm?story_id=127783 (accessed 19 August 2006)