- Pen a positioning statement. …
- Critique your identity against competitors. …
- Outline your existing market position. …
- Understand the conditions of the marketplace. …
- Develop a unique market position.
Creating an effective marketing positioning strategy is essential for any business that aspires to gain a competitive edge in today’s market. With rising competition, it is more important than ever to understand the different strategies and tactics used to position a company’s products and services. Knowing how to craft a successful position in the market is essential for any business that wants to stand out and succeed in today’s digital age.
By carefully crafting a unique marketing positioning strategy, businesses can build customer loyalty and trust while gaining credibility and visibility. A successful position should be focused on understanding the needs of the target audience, identifying the right market segments, and building a strong reputation in the market. Additionally, a good position should be able to differentiate the company’s products and services from the competition and maximize the overall value that it can offer to customers.
This blog post will explore the different components of a successful marketing positioning strategy and how businesses can use it to create competitive advantages
How To Create A Brand Positioning Strategy
Elements of a marketing positioning strategy
The following essential elements can be used to create an effective marketing position strategy:
What is a marketing position strategy?
The goal of a marketing position strategy is to increase consumer traffic by using marketing techniques. Such a strategy should provide any team with the clarity it needs to approach marketing development effectively and serve as a reliable road map for maintaining and accelerating growth both internally and externally.
Calculating the appropriate price
Calculate your ideal product pricing strategy using your product definition from above. The cost of your good or service ought to be commensurate with the value that your clients obtain from the transaction. The ideal price is one that attracts a large number of customers without causing you to lose money on each sale.
You can work with a financial accountant to determine the break-even point using the anticipated demand curve for the product. The marketing team is then frequently responsible for determining the best price to position the product or service.
Consider your competitors’ costs
It makes sense to charge more if you have determined that your product or service has more features and advantages than rivals. Additionally, you can charge more if your product or service is significantly simpler, quicker, stronger, or more user-friendly than that of your rivals. In a similar vein, you might aim to be the lowest price and eliminate features to cut costs.
Look at brand perception
Contrary to popular belief, the price a customer will pay has less to do with the cost of production. Consider whether your brand might have a premium attached to the price you could charge. Consider the prices of your company’s additional goods and services as well. Customers frequently perceive extra value or savings if the price you are offering is significantly higher or lower than that.
Creating your strategy
To start, answer the following fundamental inquiries to describe what you are selling.
1. What is the name of the product or service that you are selling?
This refers to both the product’s intended name (“Multi-Widget 3000”) and its literal name (“Multi-use widget”). If you have the option, defer naming the product or service until after you have completed the other steps because the product name itself is a form of marketing positioning strategy.
Creating an unofficial working title will still assist you even if the product or service already has a name that does not clearly describe what it is or if you will not be involved in its naming. To visualize what you are attempting to market is the key.
2. Describe the product or service in one sentence
Convey the main idea without using a lot of detail. Be succinct and clear so that after reading just one sentence, readers will understand what you are selling.
Here is a good example of a service description:
“We provide technical support to companies implementing XYZ software.”
A good example description for a product would be:
“We sell widgets that dry your hair faster.”
Note that the methods for achieving the goal have not yet been mentioned in these explanations. These kinds of details are best left to the marketing message, which is how you tell people about your product or service, as they are typically less important to the positioning strategy. Additionally, they have not yet specified precisely who the product or service would benefit.
3. List the unique features of the product or service
What distinguishes your product or service from those of your main rivals determines its position in the market. List everything special about what you are selling, including size, color, add-on services, and even company values.
This list will include your points of differentiation that clients should consider before choosing to work with you.
4. What benefits does each feature provide to the end-user?
Make sure you can clearly connect each special characteristic to how it benefits your audience. Look at all the features of your product or service, including those that are common among competitors, and describe the advantages for additional research. Explain to the customer why the absence of a feature that competitors’ products/services have is advantageous, even if the response is that the price is lower.
You should reconsider including features in the final offering to the customer if they don’t clearly benefit them, or at the very least, leave them out of the marketing message.
5. What are the drawbacks or flaws in the product?
Additionally, explaining to potential customers why certain elements are necessary for performance but they may not be enjoyable is a component of the positioning strategy. For instance, a new software program may offer many customer benefits but come with a steep learning curve due to its novel platform. In that case, providing a free trial period would assist in overcoming the disadvantage. Before a potential customer tries to make a purchase, acknowledge any restrictions on shipping that may apply in some regions. Recognize your limitations and be honest with them in a constructive manner.
6. Repeat Steps 1-5 for each of your main competitors
Positioning is relative, so review this list for each of your main rivals. You should emphasize your product or service’s distinctive and differentiating qualities the most in your positioning strategy.
Determine the places where you want to sell
It takes more than just having great features and benefits at an affordable price to convince customers to buy a product. Specifically, it must be positioned in both physical and virtual locations where your customers will look for it. You should determine whether you want to sell offline, online, or both as your first question.
When people consider how to sell offline, they typically picture a physical shop, office, or store. This can be your own establishment with your company’s or brand on the sign, a store owned by another person that also buys and sells other people’s products, or a consignment store where you receive a cut of each sale.
You may provide services from your own office, a shared office, a co-working space, or other public meeting places like a library or coffee shop.
In the current market, permanent stores are just one option for offline sales. Pop-up stores, festivals, tradeshow booths, expos, bazaars, networking groups, and special events are additional options. Before choosing any offline sales channel, carefully take into account your brand, event attendees, people who live or work nearby, other vendors, and tenants.
The three main types of online sales channels are your own website, a seller’s website, and social media websites. You have complete control over the channel, description, and images when you sell on your own website. Additionally, you can avoid paying a commission to a third party when you sell on a website that belongs to a different person.
The drawback of selling on your own website is that you might have to spend more money on advertising or search engine optimization because customers may not know how to find the site in the first place. Due to the numerous competitors on a seller’s website, you will need to be even more specific about who will benefit from your product and why they should choose you over them. You’ll probably also need to spend money on advertising and give the website owner a portion of every sale.
Pick how to reach your customers
The marketing positioning strategy’s final component is promoting your good or service. Think about where your target customers congregate online and offline. Here are some examples of questions to ask yourself:
Review as much information as you can, such as the demographics of your target market for the product(s) or service(s) you sell. Some example questions to get you thinking:
Sum up your marketing positioning strategy
You now have a strategy after completing these steps and gathering as much information as you can to support your choices.
In order to increase profitability, execute your strategy as planned, keep analyzing the data, and make any necessary revisions. The four Ps—product, price, place, and promotion—form the basis of a sound strategy, which should be updated as new information becomes available.
What are the 5 positioning strategies?
- Characteristics-based positioning.
- Pricing-based positioning.
- Use or application-based positioning.
- Quality or prestige-based positioning.
- Competitor-based positioning.
What are the three 3 marketing positioning strategies?
A computer company that concentrates on offering cutting edge technology at premium prices before their competitors would make a great example of a positioning strategy. Another illustration of positioning strategy would be a large chain store that prioritizes offering well-liked products to lots of people at affordable prices.
What are the six steps in a positioning strategy?
Comparative, differentiating, and segmenting are the three common types of product positioning strategies that brands should take into account.