Have you ever wondered why some companies or business entities are easily able to find a customer base whilst other brands struggle to achieve the same thing? Or why some brands are more easily recognized whilst others never see the light of the day when it comes to face value? Many factors influence whether or not a business would be able to reach their target market. One of the most crucial factors that determine the perception of the brand is market positioning.
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Positioning Strategies and How It Grows Your Business
The Idea Behind It: Market Positioning
What exactly is market positioning? Market positioning is a marketing strategy followed to manipulate the consumer perception of the brand or product by a particular company. It determined how a brand or a product is perceived by its consumers and how the product separates itself from its competitors.
For example, a fast-food chain restaurant may boast to its customers about providing cheaper meals and discount prices. Thus, the restaurant becomes a symbol of low-cost reliable food to its customers. Market positioning connects the customer with the business emotionally. Thus, it makes the business unique to him or her when choosing a product that does not differ by much from its competitors.
The process of market positioning is much more lengthy and twisted than it usually seems. Usually, the process is divided into three parts: segmentation, targeting and, positioning. Segmentation is the process of dividing a broad consumer base consisting of existing and potential customers into sub-groups called segments.
A particular segment is then selected, on which the focus of the company or the business will be driven. This step is known as targeting. Lastly, a strategy is determined for the brand to occupy a distinct position in the mind of a consumer, which is termed as positioning.
The Ways Into a Customer’s Heart
For a product to achieve a particular brand value, it must take a unique and explicit place in all potential and existing customers’ hearts. It must also differ from its competitors. Through the research of customer perceptions and rival activities. Companies develop several positioning strategies that help them achieve the brand value they have been looking for.
Some of the positioning strategies focus on customers’ needs and perceptions of the company, whilst others advertise lower prices and higher quality to catch the market interest. Firms also advertise customer convenience and better service to establish themselves as a stronger player in the market.
Once the strategies have been established, consumer perception can be influenced in several ways. Preemptive positioning deals with the claim of being the first company in the business to have a particular feature. Superlative positioning focuses simply on being the best in the business, whereas exclusive positioning boasts the privilege of being part of an exclusive group such as a Fortune 500 company.
Companies also boast benefits, usage, and traits of a particular product to drive up customer interest and thus end up with a strong perception in the market. Companies can also advertise either their cheaper or premium prices to grab customer interest. Some companies stand out by targeting a very specific customer group or user base, such as Adobe targeting graphic designers. Companies can also try to represent a particular culture or nation to motivate consumers.
What Positioning Means For You
However, when choosing a particular strategy on market positioning, the business would need to keep track of several factors. A positioning strategy must have several characteristics for it to be executed successfully. The strategy must be relevant, as the customer will not take into account irrelevant information when making a purchase. The strategy must also be clear, as obscure information will not help the customer, rather deter them from buying the product.
The feature or the product must also unique and desirable as that would motivate a customer to be attracted to it. Product must also have some form of exclusivity that would set itself aside from the rest of its competitors. Lastly, considerable research would have to be done beforehand to ensure that the strategy is valid and accepted by customers. As otherwise, all the other traits of the product will be for not.
The Execution: Determining Your Strategy
To establish a good market positioning strategy, several steps would need to be followed. Firstly an outline should structure the positioning statement of the company, which would determine the identity of the business. Next, it is important to compare and contrast the differences between the company’s positioning strategy across all channels with that of competitors. Which would allow the company to find gaps and loopholes.
The current market position of the company must be assessed to determine the changes that need to be made. Compete for market share and grab the customer’s attention. Along with this, the company must also be aware of the conditions in the marketplace and the economy so that it has a clear picture of the situation before jumping into a particular strategy.
Having done that, it is now time to execute the market positioning strategy developed and put it to use. However, this is not enough – there is still more to do. The positioning strategy will need to be validated by qualitative and quantitative means. This can be done through interviews, surveys, and polls.
With the responses recorded and analyzed, a company can establish how effective its positioning strategies are. Based on the responses, the company can then decide to stick to the same positioning strategy, or shift to new target groups and new positioning strategies – the latter often being termed as repositioning.
In conclusion, it can be seen that market positioning can be of immense importance to a business and its affiliates. As it drives the customer base and sets the brand image for a particular product or company. Using strategies regarding positioning wisely to curb sales and advertise efficiently can easily turn potential prospects into customers. And customers into promoters of the brand, enabling the business to become a giant in its economic empire.