Culture based competitive positioning of consumer products in global markets.

ABSTRACT

This paper makes a case for designing culturally responsive product positioning strategies in global markets to gain competitive advantage. It recognizes the role of cultural complexity in global marketing and the implications of cultural frameworks on product positioning

strategies. It examines on how uncertainty avoidance, power distance, masculine versus feminine value systems and individual versus collective orientations may affect product positioning in culturally diverse global markets. A product classification based on the degrees of cultural congruence that products and services possess can be used as a strategic tool to enhance positioning effectiveness.

INTRODUCTION

A review of literature on product positioning in the global context indicates that there is not much conceptual or empirical work done directly on product positioning driven by culture. Most writings essentially extend the domestic product positioning concepts and strategies to the international markets. Al Ries and Jack Trout refer to positioning as "not what you do to a product, positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect"(Ries and Trout 2000). Product positioning is the process of establishing the image of a product or service as being unique and different from the competition in the mind of consumers. Most common criteria of positioning are product attribute or characteristics (Aaker 1991). Firms typically identify unique and or special attributes that are desired by the target markets and are communicated to them and position the products or services to meet these expectations (Evans and Berman 2000). Jain summarizes the most common criteria used as the basis for positioning into six major categories. They are positioning by attribute, by price/quality, by use or application, by the type of users, or by product class and by competitors (Jain 1993).

Traditional approaches for positioning have been developed mainly for the domestic markets and do not involve the use of culture as a driver for positioning. Use of culture as a separate and distinct criterion is a valuable tool in formulating product or service positioning strategies, particularly in culturally diverse global markets. It is understandable that in a domestic environment where all competitors as well as consumers belong to the same culture, the strategists may take it for granted. However, this is clearly not valid in a global setting and ignoring culture as a factor in product positioning strategy may become a major cause for blunders.