Explain the purpose of positioning. How does a global positioning strategy assist firms participating in international business? What benefit does a global positioning strategy offer?

What will be an ideal response?

A key objective in pursuing global market segments is to create a unique position in the minds of target customers. Positioning is a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings. In the theme park business, Disney positions itself as standing for family values and "good, clean fun" to attract families around the world. Starbucks positions its products at customers with sophisticated tastes who do not mind paying several dollars for a cup of coffee.
Positioning may also evoke the specific attributes that consumers associate with a product. Diet Coke elicits an image of someone who wants to lose or maintain weight. When Coca-Cola first entered Japan, research revealed that Japanese women do not like products labeled "diet," nor is the population considered overweight. Thus, management altered the product's positioning in Japan by changing the name to Coke Light.
Internationalizing firms aim for a global positioning strategy, which positions the offering similarly in the minds of targeted buyers worldwide. Starbucks, Volvo, and Sony successfully use this approach. Consumers worldwide view these strong brands in the same way. Global positioning strategy reduces international marketing costs by addressing the shared expectations of a global customer market segment.