In marketing, positioning is the process of, well… positioning your brand in the mind of your customers. Beyond a fancy logo and tagline, positioning is the strategy used to set your business apart from the rest. If you must stay ahead of your competitors, you probably should learn effective positioning strategies that’ll help you reach your target demographic.
What is Positioning Strategy?
A positioning strategy, also known as market or brand positioning, is a type of marketing strategy that focuses on differentiating a company from its competitors. A positioning strategy’s purpose is to affect consumer perception by clearly communicating a brand’s competitive advantage.
Effective positioning strategies take into account the brand’s strengths and shortcomings, customer needs, and the claims of competitors. Product positioning enables a firm or brand to highlight areas where it may beat the competition.
Read How to gain competitive advantage
Components of Effective Product Positioning Strategy
The process of building a reputation and influencing how customers think about a certain brand is one that requires a lot of planning and keen attention to detail. It is essential to the success of your brand to conduct background research and gain insight into the market. Product positioning is an essential part of the branding process and begins well before the creation of the brand identity. The following are the three “C’s” that are commonly considered to be the most important aspects of strategic positioning:
#1. Channel
First, your channel is the means by which consumers engage with your brand. A company’s channel could be its sales force or its marketing department, depending on its structure. Conduct market research to assemble data on consumer wants and needs; use this data to forge a stronger relationship with your clientele.
#2. Customer
Knowing your focus by defining what the buyer wants and needs is essential for effective positioning. Surveys, interviews, and evaluations can be used to determine whether there is an issue that needs to be solved and what needs customers may have. Listening to buyer demands and emphasizing those wants is critical to gaining customer attention and loyalty.
#3. Competition
Paying attention to your competitors and their position is the final step in developing a position. If yours is distinct and easily distinguished from the competition, your positioning statement (your declaration of brand distinctiveness) will be effective. Assess your market position in comparison to your immediate competitors. A positioning map aids in visualizing where your company sits in the minds of clients and can be a valuable tool in guiding your overall business strategy.
5 Positioning Strategy Examples
Positioning strategies can be implemented in a variety of ways. Although a core one is often required, you can employ multiple simultaneously for wider market reach and to inform your clients through several channels. The following are the seven basic types of positioning strategies:
#1. Price positioning strategy
This positioning strategy focuses on the relationship between price and quality, as well as the consumer’s perception of a product’s value. When comparing shoe prices, a customer may believe that a shoe with a higher price is of superior quality. A lower-priced product, on the other hand, will posture for affordability. Because designer jeans are more expensive, they are of higher quality, but department store jeans are more affordable.
#2. Quality-based positioning strategy
Companies use this method to highlight the quality of their product, which typically comes at a high cost. A product’s quality can be demonstrated by great craftsmanship, small-batch production, high-quality materials, and even sustainable measures that increase the cost of manufacture. Evidence of great end results, strong ROI, and glowing client testimonials can demonstrate service quality.
Budget-conscious customers may avoid your brand in favor of a less expensive alternative. However, this is where buyer personas come into play. Your target clients’ money and buying habits will determine whether emphasizing quality is the best option for your business strategy
#3. Social media positioning strategy
This form of positioning is distinct in that it focuses on a set of channels rather than a single technique. And the channels your brand utilizes or doesn’t utilize communicate just as much as your messaging. Your brand does not have to appear on every platform, believe it or not. The key to implementing this method is to select the channels that your target market uses the most. Consider the following aspects when selecting a social media platform for your brand strategy:
- Where and how does your target audience spend their free time?
- Where does your target audience spend their money?
- Where your target audience seeks information and guidance?
#4. Product positioning strategy
The emphasis in this positioning strategy is on quality. It addresses the brand’s trustworthiness, dependability, and flair. For example, mouthwash makers may refer to their product as “refreshing” or “cavity-fighting.” In a market where identical products exist but are differentiated by consistent product attributes, a tagline like “stronger than steel” communicates strength and reliability.
#5. Differentiation positioning strategy
In comparison to traditional rivalry, a differentiation positioning strategy is based on the distinctiveness or innovative traits of the product or brand in general. Tesla is an excellent example. There was no appealing, totally electric automobile available for purchase prior to the Tesla models. It is now the leading technology company in the development of self-driving cars and AI robots.
Consumers that value innovation will be drawn to your brand and product if you adopt this differentiation strategy. One potential limitation is that the lack of prior use may deter the public. If your product is brand new, consider including the research and testing that went into its development. Consumers who are interested in new technologies or products frequently want to know how they work.
Benefits of Positioning Strategy
When done effectively, brand or product positioning can be an extremely effective marketing strategy. Here are four advantages to developing your own brand positioning strategy:
#1. Sales growth
Brand positioning, when done right, can contribute to greater sales. Customers who trust and identify with your brand are more inclined to purchase from you. Customers are more likely to choose your products or services over those of your competitors if you have a strong USP.
#2. Emotional resonance
Another benefit of brand positioning is that it can elicit an emotional response from customers. We all have favorite companies, whether it’s because we grew up with their products or because we like their principles. Customers are more likely to continue doing business with you if you establish a strong emotional connection with them.
#3. Enhanced customer loyalty
Brand positioning has the potential to increase client loyalty. Customers are less inclined to switch to another brand if they trust it and have a positive emotional connection with it, even if its items are less priced. Improving client loyalty is critical since it leads to repeat and referral business.
What is Brand Repositioning?
Repositioning occurs when a brand adjusts its positioning strategy. A shift in consumer preferences, new entrants, or technological advancements might all necessitate the need for a new positioning strategy during a product’s lifecycle.
What Are the 4 Ps of Marketing Positioning?
Product, pricing, place, and promotion are the four Ps of marketing. These are the main elements involved in marketing a product or service. Even while marketing has evolved since the four Ps were formed, the industry’s core elements have not. You can use the marketing mix concepts to develop effective marketing strategies to help you launch and promote your company’s products profitably.
When developing marketing, promotion, advertising, and brand positioning strategies, you consider the four Ps. The four Ps are designed to assist marketers in considering all aspects of a product or service when selecting how to advertise it for their business. Organizing your marketing around the four Ps can assist you learn what the competition is doing and what customers want from you.
What Are the 4 C’s of Successful Positioning in Marketing?
The success of positioning is dependent on four fundamental ideas: clarity, compelling argument, credibility, and contrast. They make it possible for a brand to assess how effectively its positioning plan is working.
#1. Clarity
The concept of clarity refers to the idea that the desired positioning approach should be beyond appealing to the target audience. This principle is predicated on the following question: will the core concept continue to exist as its own entity or will it decay as a result of the actions of individuals throughout time?
#2. Compelling
To be compelling, a brand’s message must take into account the requirements and preferences of its audience. Having a positioning strategy that is properly targeted to the right audience is a beneficial thing to have. It is preferable to be certain about the interests of the audience. The issue that needs to be answered is: Does the intended audience care about it? is a means of putting across a persuasive idea.
#3. Contrast
A brand positioning strategy needs to be in contrast to the positioning strategies used by its competitors. The purpose of the positioning strategy is to highlight the differences between one brand and another that compete in the same market. In this particular instance, Red Bull and Monster. It is essential for brands to demonstrate their individuality, which involves highlighting differences in aspects such as personality, experience, etc.
#4. Credibility
Credibility takes into account the fact that the positioning strategy must align with the company’s mission, beliefs, and identity. Otherwise, the company will lose public trust.
Product Differentiation vs Product Positioning
When it comes to product differentiation, a company must identify the features of its product that set it apart from competitors. This is referred to as a product’s value proposition—what distinguishes it. Knowing a product’s value proposition allows you to highlight the characteristics that consumers find appealing when compared to competing brands. Product differentiation is becoming increasingly crucial as the number of brands grows.
Common differentiation strategies aim to bring buyers’ attention to the product’s value, quality, or originality. A value differentiation strategy, for example, could emphasize how the product provides a superior financial value when compared to competitors. In companies such as insurance or network providers, the differentiation strategy may be more conceptual than value-based.
Following the identification of differences, marketing seeks strategies to position the product positively in the minds of potential customers in comparison to its competitors. The marketing and promotional strategy manipulates symbols, such as those used in displays and packaging, and transmits tailored messages to those who are most likely to value the product being advertised.
Product differentiation is typically product-specific, whereas product positioning is concerned with the audience that marketers are attempting to reach. A brand that wants to sell to a younger Millennial or Gen Z audience, for example, can position itself alongside popular TikTok stars or celebrities to make the brand more trendy. On the other hand, even if a laundry detergent brand is the best on the market, it will fail if it is marketed to younger audiences who do not wash their own laundry.
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