Strong market position of your product will going to benefit you in terms of financial gain. Market positioning is a way of presenting your product to customers that makes a strong perception and believes among them regarding quality and uniqueness of your product. While positioning your product, you compare it with competitors and give a confidence that you are better in terms of quality, durability as well as pricing. Market position will increase customer`s loyalty, pursuing them to prefer your product at the given price. By having increased number of customers, you can be at better position even you are charging low price as compared to your competitors. Your low price will invite more number of customers which on average give your more turnovers as compared to those who are charging double price than you.
More number of customers, increase turn over will definitely raise financial gains provided there are sound control procedures to ensure standardized quality by maintaining cost minimization.
Most of us perceive that more market share means definitely more financial return in shape of rising profitability. Few examples show that, in order to gain a strong market share, ample financial consumption will be made before we expect to gain return. Additional to this, as per changing customer demands and development in consumer`s taste, there is a constant need for product up gradation. Changing packaging, designing and features as per change in market dynamics. Adding more features in your product in order to keep it “competitive” is always resulted in shape of more financial consumption. Economic buying nevertheless is a wise solution available to keep cost of sale at constant level by increasing revenue. Few analysts are convinced on the believe that, gaining heavy financial return in longer term is not really achievable as same amount of cost may need to be incurred to gain that much market share first of all. In real life, the demand for product is not dependent only on the efforts of producer. There are a lot of other factors that influence level of demand and market share. There may be more than expected level of demand in both lower and higher demands terms in practice.
A very true thing, while playing in the market, you are not playing alone. As you grown, change and develop your product the counter party is also adding and improving. If you see from customer`s point of view, customers are becoming more persuasive and knowledgeable to assess the real difference that you or any other producer is providing.
So fighting for more financial return by making efforts on market position and market share as a result is not a one way process. This process has many opposing forces. Inflation, government funding and taxation as well as market trends all together need to be accommodated in a way that your cost of effort, time and finance is counter balanced by more income and profitability return. Some time what you are presenting may be same as the other presenting or it may not be up to the desire of customers.
Diversifying, adding and modifying your product by maintaining the image of best quality producer is a business and marketing strategy that can generate steady levels of returns.