Product positioning is a way for a company to differentiate their product from that of a competitor's. It is important for companies to be able to explain why their product will offer an advantage when compared to other products available in the market. Effectively communicating this message is the most important part of a marketing strategy.
Positioning Primer
When positioning your product, there are a couple of different strategies that you can use. One of the most common methods used by companies is to position their product against that of a competitor's. However, in order to successfully do this, you will need to make some sort of claim or guarantee emphasizing that your product is superior to that of your competitor's. However, you can also differentiate your product from that of your competitor's by emphasizing how it is unique and unlike any product currently offered in the market. For example, with a slogan such as “Not your typical cola”, you are claiming superiority by uniqueness.
However, there are also less cut throat strategies that make no mention of competitors or products currently offered in the marketplace. For example, you can base your advertising campaign solely on specific features that are offered by your product. For example, if your product contains a unique feature such as longevity or even affordability, that can be the bait to use in your advertisement.
Focusing your advertising campaign on specific users is also an effective way to market your product. For example, if you are marketing a line of cookbooks, targeting them towards beginners or new learners in your advertising campaign is an excellent way to attract this demographic.
Steps to Success
The key to successfully positioning your product is to have a very sound knowledge of your target market. This is simply the consumers that you would like to offer your product to. Knowing their characteristics is key to successfully positioning your product. This includes things such as personal tastes and spending behavior. However, this is not the only piece of knowledge you must have. In addition, it is important to have a thorough understanding of similar products that are offered by your competitors. It is important to not only understand the product features, but also the strengths and weaknesses of competing companies. This will help you identify where you have an advantage over your competitors. Emphasizing these advantages is key to successfully positioning your product.
You should also have an understanding of your competitor's business model. This includes identifying any efficiencies and inefficiencies in their production process. You should also be able to identify what segments your competitors are utilizing in their marketing campaigns. For example, are they putting a lot of emphasis on durability or affordability?
By having an understanding of your company inside and out, you will be able to not only position yourself against your competitors, but find any gaps where the market is currently underserviced. This can be important in markets that are oversaturated, such as running shoes or cosmetics. This may sound like common sense but understanding your product means knowing about things that make it unique and superior. However, you must also have a good understanding of its shortcomings. Because your competitors may attack your weaknesses in advertising campaigns, it is important to be able to deflect the criticism and minimize the negative exposure. This can only happen if you have a good understanding of your product or service's weaknesses and areas where improvement are required.
