Consider this: there are thousands of firms out there, many of which sell identical products, promise comparable results, and are often positioned in the market in the same way. So, what makes a buyer prefer one company over another? Why choose the first option over the second if they both lead to the same type of firm that sells the same thing? The solution is simple: no one wants to buy a product or service that can do everything; rather, they want something that can do something. That is what market positioning entails. This guide will provide all you need to know about market positioning strategy, the statement, types of positioning in marketing, and an example.
What Do You Mean by Market Positioning?
Market positioning, also known as brand positioning or product positioning, is a marketing strategy that focuses on creating a distinct identity that distinguishes a company from its competitors in the minds of consumers. The purpose of a market positioning strategy is to influence how the target market perceives the brand and to clearly express how the brand has a competitive advantage in the market.
A car business, for example, may want its customers to see their vehicles as a high-end luxury status symbol. With this new positioning, they may be able to charge higher costs than their competitors. Alternatively, a fast-food restaurant may wish to be regarded as inexpensive in order to attract customers who will choose them because of their low cost.
Determining Market Positioning
Companies can use algorithms or models to assess their existing market position and determine how to reposition themselves to capture new markets. Perceptual mapping, for example, is a sort of positioning map that illustrates customers’ impressions of brands and goods in relation to others based on data acquired from focus groups. This information can be used to help guide a firm’s market positioning statement or brand positioning plan in order to identify the distinguishing characteristics that define them as a company.
Why Is Market Positioning Important?
By incorporating positioning methods into your market positioning strategy, you may improve the impact of promotional messaging, establish pricing plans accordingly, and tailor your services to the needs of your target audience. The following are some of the most common advantages of establishing a marketing positioning strategy:
#1. Creates a positive image of your brand or product
In marketing, positioning allows you to influence how people perceive your product. Customers may associate you with the product if you generate materials that portray it in a positive light, which can lead to more purchases.
#2. Increases product sales
You may significantly improve revenue and attract new consumers by providing interesting and relevant offerings to a segmented target group.
#3. Directs the product’s value to specific audiences’ preferences and needs
Marketing positioning allows you to focus on how a product or service and its individual features match or surpass the needs and interests of the target audience while also providing value to them.
#4. Allows you to make more informed decisions
Having a clearly defined positioning plan guarantees that you have the essential knowledge from your research to make informed decisions that are likely to result in great results and solid customer relationships.
Types of Positioning in Marketing
There are numerous market positioning tactics that a firm may employ to establish its distinct position in the marketplace in comparison to its competitors. Consider the strategic marketing methods listed below to provide your organization with a compelling value proposition and an effective market positioning plan.
#1. Availability
Sometimes the most significant feature of a product is its sheer availability. When a product or service is available in a specific geographical area, on specified days of the week, or at specific times of day that competitor products are not, it has an inherent advantage. A product can leapfrog marketing and pricing rivalry by just being available when a buyer needs it.
#2. Durability
While consumers may prefer low-cost things, you can leverage durability as a selling factor. For example, if someone can possess your product for a longer period of time before needing to replace it, your organization might argue that it is more cost-effective in the long term due to its durability. Essentially, you are providing them with years of trouble-free ownership.
#3. Messaging
Aim for innovative marketing and product placement based on rigorous market research to stand out among essentially comparable offerings. A hilarious or sentimental advertisement can link your audience to your goods and make them choose you over competitors that offer functionally identical items.
#4. Novelty
Some buyers discover value in new products that are distinctive or unusual. A product that is functionally similar to many others but is designed in a unique and original way may attract new buyers.
#5. Price range
Low prices can aid in gaining a larger market share because the product falls into the price ranges of more potential buyers. Some consumers may believe that a greater price equates to higher quality, therefore promoting the convenience and accessibility of your product can help you obtain a competitive market share.
How to Develop Your Marketing Positioning Strategy
Take the time to develop a market positioning strategy that fits your audience’s tastes as well as the company’s aims. You may go through various tests and efforts until you find the positioning technique that works best for you. To create an effective market positioning strategy, follow these steps:
#1. Analyze your competitors
Investigate your competitors’ products to identify any important distinctions between them and the ones you sell. It can assist you in identifying your company’s strengths and the advantages your items have over theirs.
Knowing your competitors’ efforts and outcomes allows you to determine how to differentiate your brand from the competition. When investigating your competition, consider the following factors:
- Growth rate
- Market share
- Cultural factors
- Engagement
- Past marketing efforts and campaigns
- Engagement
- Marketing materials competitors released
- Audience engagement
#2. Create factors that differentiate your products
Knowing your competitors allows you to gain a better understanding of your company’s status, how it fits into the current competitive environment, and which positive aspects you may emphasize.
Consider distinct aspects that show what makes the company or its products stand out from the crowd. Try to use your study to compare and contrast your company with theirs. This assists you in identifying the strengths that other businesses may lack.
You can also establish a role that represents the brand values or mission statement of the organization. When you align the product position with other components of the brand, you may develop a comprehensive brand message, which can be successful if your company sells numerous goods.
#3. Develop a market positioning statement
Meet with your team to develop a market positioning statement, which describes how you want your target audience to recognize and interpret the brand. The market positioning statement is similar to a mission statement in that it identifies the brand and its goals.
You can also discuss the target audience, any obstacles your audience may encounter at work or in their personal lives, and how the product or service will efficiently solve those problems.
A marketing team, for example, may opt to pitch a new face cream as the most effective treatment for sun damage in older individuals.
The incidence of sun-related skin problems in the target group may be mentioned in their market positioning statement, as well as the elements in the cream that make it helpful in decreasing damage. They may distribute the market positioning statement to the company’s leadership team and other stakeholders for comment.
#4. Create a tagline
Create a simple slogan based on your market positioning statement. A tagline is a brief and concise term that describes a brand’s purpose and value to the audience. In your marketing messaging and other promotional materials, you can employ an engaging and captivating slogan. It’s a quick and easy approach for customers to recognize and comprehend your brand.
#5. Launch your positioning in your marketing materials
Once you’ve created a market positioning statement and strategy, you can start working on launching it. Include in your marketing materials a value statement, design, and language that communicates your marketing stance and what makes the firm or product more valuable than the competition. To help you stand out, consider employing resources and content that other organizations aren’t currently using, such as films or webinars.
Try to release things that directly benefit and relate to your target audience. This allows you to appeal to your target audience and helps them visualize themselves utilizing the product or service.
#6. Test the success of your marketing positioning
Test possibilities after you’ve settled on prospective concepts to include in your marketing materials. Examine and analyze the results of each marketing item to see which is producing the best results, such as high revenue statistics and consumer engagement rates.
Take note of the most effective campaigns and think about incorporating these efforts and adjustments into future marketing materials. Try to test your ideas on a frequent basis to ensure that you are continually appealing to your target audience.
Example of Market Positioning
We have added an example section to help you understand the market positioning strategy and its application in the brand. To get you started, here are some outstanding examples of huge brand marketing positioning strategies:
#1. Tesla
Tesla excludes pricing from its branding and instead emphasizes vehicle quality. As a result, Tesla is a luxury brand that is more expensive than its rivals. Tesla vehicles are also long-range, environmentally sustainable, and electric.
Because of its exceptional quality, Tesla distinguishes itself from rival gas-powered luxury and standard electric automobiles. The corporation created a unique market for itself and a memorable brand to go with it. Elon Musk has even portrayed himself as a Tony Stark-type character, and the corporation touts its distinctiveness through advertisements and eccentric features like “Ludicrous Mode.”
#2. Starbucks
Coffee consumption in the United States has been declining since the 1960s. As a result, Starbucks was extremely cautious in selecting its target market. Starbucks targeted office professionals with intermediate to upper incomes who wanted to buy premium products.
The company aspires to be the “Third Place” – a space between home and work where clients can gather, rest, and communicate with one another. To match the high demands, they were strict with quality control.
#3. Nike
Nike began their company with a focus on performance and innovation. The business invented the waffle shoe and marketed it to serious athletes. Their product line has expanded beyond shoes to include athletic apparel that improves performance.
#4. Apple
Apple is a textbook example of a successful commercial positioning strategy. The company creates beautifully designed and inventive equipment that is unlike anything else you’ve seen before and markets it to resonate with its customers.
Apple’s branding statement emphasizes the same traits in their customers as they do in their products: being an Apple person means being imaginative, innovative, and creative.
What Are the 5 Types of Market Positioning Strategies?
Market positioning, product positioning, brand positioning, pricing positioning, and competitor-based positioning are the five different positioning tactics you should consider for your organization. Understanding how these techniques interact with one another is critical to the success of your brand.
What Is an Example of Market Positioning?
A car manufacturer, for example, may market itself as a luxury status symbol. A battery manufacturer, on the other hand, may position its batteries as the most dependable and long-lasting.
What Is an Example of a Positioning Strategy?
A fantastic example of a positioning strategy is a computer corporation that focuses on supplying cutting-edge technology at premium prices before its competitors. A huge chain store that focuses on supplying popular goods to a large number of customers at a low cost is another example of a positioning strategy.
What Are Three Market Positioning Concepts?
Comparative, differentiation, and segmentation are the three sorts of positioning tactics.
Conclusion
Marketing positioning is not an easy task; it takes effort, attention, and even the courage to say “no” to some things. However, it is crucial, especially if you are trying to generate consistent revenue streams, attract new clients, and keep existing ones.
It’s a method of attracting prospects, talent, and influencers to your organization, which you absolutely have time for. Hopefully, our advice on developing an effective positioning strategy will assist you in dealing with this!
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