Marketing (Repositioning) Essay

There is a wide range of staff offices acting upon organizations which make the need for service move inevitable. The main forces include changing technology and expectations of customers, increased competition and changing nature of economic relations, etc. Today, repositioning of existing service offering becomes a strategy which helps companies to sustain strong market position and resist competition. Following Lovelock and Wirtz (2003) repositioning can be described as changing service characteristics aimed to tally hot market conditions. The main sets of conditions for service repositioning include (1) a market decline, (2) competition and (3) changing customers unavoidably. Therefore, repositioning is roughly the impudent vision of the accompany in the customers minds. It is about earning customers trust to make them willingly follow the company.Market decline is the main reason which forces companies to reposition their service offering to remain profitable. For insta nce, if order of return are below competitive rate it can result in withdrawal from the industry and a decline in activity and competition. In this situation, companies need to reposition their service offering in order to find new markets and new target groups. Repositioning is the best strategy used by companies to enter new markets essential for the opportunities and new competitive positioning. For instance, in order to survive Fast Company created a strategy aimed to reposition the magazine in the minds of advertisersa task that depends on first repositioning in the minds of readersand then executing (Lindsay, 2005).Airline carriers use repositioning strategy to avoid market trouble and decline. (Essential repositioning of the Airline. Luxair, n.d. Europes Winners and Losers, 2001). Also, this industry repositions itself in order to maintain high growth through optimization of a product mix and proficient innovation. Very often, companies reposition their service offering us ing a quality/price strategy. Some airline carriers have positioned their brands selling for twice the price of function 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 seek to change the make out 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 gain market share and position and new approaches to serving customer needs. It is valuable to note that new competitors can have a negative impact 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 attract potential consu mers.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 there is significant increase in the number of rooms, particularly with the Spanish investments (Reposition tourism marketing, 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, international companies like Vodafone mobile operator can face 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 chip in 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 new strategies and directions to deliver customer satisfaction. For instance, the main problems faced by WHO is that Like many 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 social needs, and a smell out 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 argue that managing repositioning effectively is a complex and challenging task. Although firms need to meet expectations of their customers and resist competitors in order to remain profitable. For many organizations, repositioning is measured as profits in one form or anothe r, while for others they may be the achievement 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 Continents slump will change the landscape. 2001. 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 Revive The Business Publication 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. Pre ntice 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)