Marketing (Repositioning) Essay

There is a wide crease of forces acting upon organizations which make the rent for table service reposition inevitable. The main forces imply changing technology and expectations of customers, increased competition and changing nature of frugal relations, etc. Today, displace of existing service crack becomes a outline which helps companies to sustain strong merchandise position and resist competition. Following Lovelock and Wirtz (2003) displace advise be described as changing service characteristics aimed to tinct bracing market conditions. The main primps of conditions for service shift include (1) a market declension, (2) competition and (3) changing customers unavoidably. Therefore, repositioning is about the sweet mess of the company in the customers minds. It is about earning customers trust to make them willingly fall out the company.Market decline is the main reason which forces companies to reposition their service religious offering to remain profitabl e. For instance, if tr vitamin As of return are below competitive rate it can result in withdrawal from the attention and a decline in activity and competition. In this situation, companies inquire to reposition their service offering in decree to find novelborn markets and new target groups. shift is the best strategy used by companies to enter new markets native for the opportunities and new competitive positioning. For instance, in order to survive Fast accompany created a strategy aimed to reposition the magazine in the minds of advertisersa occupation that depends on first repositioning in the minds of readersand then executing (Lind assure, 2005). airway carriers use repositioning strategy to avoid market failure and decline. (Essential repositioning of the Airline. Luxair, n.d. atomic number 63s Winners and Losers, 2001). Also, this industry repositions itself in order to maintain mettlesome growth through optimization of a product mix and expert innovation. Very o ften, companies reposition their service offering using a type/ expense strategy. Some airline carriers have positi oned their chumps 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 look 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 meet market share and position and new approaches to serving customer necessitate. It is distinguished to none that new competitors can have a negative touch 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 soak up 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 in that respect is significant increase in the number of rooms, particularly with the Spanish investments (Reposition tourism merchandise, 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 daring 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 reposition ing 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 over time. These causes require companies to find ne w strategies and directions to deliver customer satisfaction. For instance, the main problems faced by WHO is that Like many an(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 genial 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 expectations of their customers and resist competitors in ord er to remain profitable. For many organizations, repositioning is measured as profits in one form or another, while for others they may be the accomplishment 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 elevated 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 fearful 2006).Europes Winners and Losers. The Continents slump will change the landscape. 2001. line of business Week. October 15.  http//www.businessweek.com/magazine/content/01_42/b3753136.htm (accessed 19 August 2006)Lindsay, J. 2005. Super Service How to raise The Business Publication You Just Bought for $35 Million. June 26.  http//www.medi abistro.com/articles/cache/a4669.asp (accessed 19 August 2006)Lovelock, Ch., Wirtz, J. 2003. Services Marketing, People, Technology, Strategy. Prentice Hall 5 ed.Reposition tourism marketing, says Golding. 2006. August 15. http//www.jamaicaobserver.com/news/html/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)