How To Develop A Positioning Strategy
Getting “shelf space” in the prospect’s mind is becoming more complex and competitive.
Today you can make that a global marketplace. So what are positioning strategies, and how do they work?
Potential buyers have a vast array of companies and products. The internet makes it quick and easy to access this marketplace.
Consequently, setting your company and brand apart from your competition is critical
for long-term success. According to Jeff Bezos, on hingemarketing.com”Your brand is what other people say about you when you are not in the room.”
One excellent solution to this problem is a positioning strategy that will help you
establish your company or product “position” in the minds of your target audience.
t can enable an instantly positive impression of your offer and its value.
Plus, it offers a way to differentiate your proposal from your competitors,
And it doesn’t matter if you are a B2B or B2C or offer unique professional expertise; it works for everyone.
What is A Positioning Strategy
Paulwriter.com states that a positioning strategy is a marketing plan that determines where your business stands
in the overall market and how you should be positioned to attract more customers.
The net result of your project is a statement (written or visual) that sets your company and product apart
from your competition and offers extraordinary value.A successful positioning strategy helps companies become
an authority in their field, distinguish themselves from competitors for better brand recognition,
or even create new markets by identifying unmet needs among consumers.
More specifically, businesses may use this approach when going up against
established players who have been around longer and those with a more incredible distribution channel.
Positioning influences what customers think of your company, brand, or product.
Still, it will not convince someone of a concept they don’t agree with or believe.
Therefore, your positioning must align with the already-established beliefs of your customers and your strategy constructed around this.
The Three Key Elements Of A Positioning Strategy
Market Positioning is the ability to influence a consumer’s perception of your brand or product relative to competitors.
Market positioning creates a designed brand or identity based on your strategy.
Channel
Your channel is how customers interact with your brand. Depending on your business model,
your channel may be your sales or marketing team. Use this research information to help you
to collect data on how to reach and deliver your products.
Customer
Every successful positioning strategy must fully grasp the target market and customer needs.
Knowing your target demographic will help you guide decision-making. This information is necessary to create the right pricing strategy.
Competition
Evaluate your market position relative to your competitors.
A visual positioning map or tool (you can even use the business model canvas for each competitor)
helps visualize where your company stands in customers’ minds to help you see the overall market strategies.
According to corporatefinanceinstitute.comThese three market positioning elements give you the information you need
to get an overall perception of your brand or product relative to competitors.
This perception should enable you to establish a clear objective and establish the brand
or product’s image or identity, so consumers perceive it in a way that makes sense.
So, what are positioning strategies?
Product price
A reliable differentiation strategy links your product with a competitive price point.
This positioning strategy focuses on the relationship between price, quality,
and the consumer’s perception of the product value. In comparing costs, a buyer might assume that one product is higher in price
and, therefore, is higher in quality. Conversely, a lower-priced product is positioned to be more affordable,
Unique value proposition
What is your product’s unique value proposition? Highlight the features and benefits
of your product as uniquely equipped to meet the specific needs of your targeted customer.
Product Quality
Customers are accustomed to paying more for perceived higher product quality.
This strategy is incredibly successful in the luxury market, where high quality,
limited availability, and famous brand ambassadors influence purchase decisions.
Competitive Positioning
Two strategies from indeed.com directly compare your product with your competitors
to show how yours is better or unique. This positioning strategy focuses on differentiating your product
from the competitor’s products. Based on that differentiation, you may also price the product higher or lower than the competition.
Positioning Based On Function
Positioning should be based on its use or function. For example, different services
for the product in different seasons. Or other uses for the product for different kinds of jobs.
Expanding the use may change the targeted customer.
Influentials and ambassadors
Influentials and ambassadors This is when a brand is associated with a celebrity
and can be a compelling endorsement. Think Michael Jorden for Nike or Tom Cruise.
Depending on your budget, key influentials can be local or national.
Why Is Positioning Important
Positioning is about much more than just your content marketing strategy or
the design of your website. Done with care and a well-crafted position, it can help you:
Build brand awareness and reach new customers
Build brand loyalty among your existing customers
Create a stronger value proposition
Be more consistent in your messaging across marketing, sales, customer service, Etc.
Conclusion
Market or brand positioning allows a company to differentiate itself from competitors.
This differentiation helps your business increase brand awareness, communicate value, and justify pricing, impacting your bottom line.
Your positioning strategy is a marketing plan that determines where your business stands in the overall market and how
you should be positioned to attract more customers. A successful positioning strategy helps
companies become an authority in their field, distinguish themselves from competitors for better brand recognition,
or even create new markets by identifying unmet needs among consumers.
Positioning influences what customers think of your company, brand, or product.
Still, it will not convince someone of a concept they don’t agree with or believe.
Therefore, your positioning must align with the already-established beliefs of your customers and your strategy constructed around this.
Cheers, Jim Zitek
P.S. I think you will find these interesting also: “How to get a creative solution to a difficult problem?”
Also, “Why business strategies are important”
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