Why do some companies and businesses find a customer base easily whilst other companies do not? How do some brands end up having a greater face value than others? This depends on how a brand or a business can reach to target market and sell their products to consumers. This is achieved by numerous strategies, and the strategies followed to set the brand apart from its competitors in the market are called product positioning.
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Product Positioning: Making Your Products Find Their Home
How a Business Sells Its Products
Product positioning allows the business to control and influence how its various customers view the business and its products, and how it stands out from its rival businesses. Using strong product positioning strategies creates a bond between the customers with the product or service offered by the company. Causing them to choose this particular company rather than its competitors, although they offer the same commodity.
For example, a handbag manufacturer can boast of authentic leather products or unique mechanisms. That’d distinguish it from its rivals thus making it more distinct in the eye of its consumers.
Several steps should have to be followed to establish a good and effective product positioning strategy. Firstly, an outline would need to determine that’d tell the business where it currently stands and how consumers perceive it. Next, by comparison, and contrast with rival companies, the business would be able to define what makes it stand out from its competitors.
Then, by analyzing the current position of the company’s products and services, the marketplace and the economy. The company will be able to make strong decisions that would allow the products to catch the target consumers’ interest and boost up sales.
If everything is good so far, the product positioning strategy is then implemented. After implementation, the positioning strategy must still be kept in check. By qualitative and quantitative analysis, it must be ensured that the strategy is being effective. Once responses are received, the business can then determine how the consumers are perceiving the products and services offered, and what necessary changes should be made. Once that is determined and if the strategy is found to be ineffective, the company must take necessary steps to “reposition” its products, and the process repeats all over again.
What the Product Means
When choosing a particular strategy on market positioning, a business must keep several things in mind about the strategy to be followed. A market positioning strategy must exhibit several qualities which would allow the strategy to succeed. The advertisement displayed by the company sends a clear message to its customers. So that they can make up their mind easily when choosing the product whereas an unclear message would only clutter their decision.
There must be something unique about the product, which would make the product desirable to the consumer. The product must be of relevance to the target market as irrelevant information about the product will not affect the customer’s purchasing decision. In addition, it is important to research the strategies undertaken beforehand to ensure that all of the above factors would influence a customer to purchase the product, using polls, surveys, and questionnaires. If a generally negative response is obtained, the business would be wise to change its strategy.
Firms take on several strategies through case studies and market research to determine its worth to customers and their rivals. As established, the positioning strategies on its products and services should be such that it takes on a unique position in customers’ hearts and separates itself from its rivals.
This can be done in several ways. Positioning strategies can take that boast cheaper prices and better grade products or promotes convenience for customers such as warranties and free customer services. Products can also use to meet customers’ needs and wants, and influence their perception by connecting to them on an emotional level.
How the Products Find Their Market
The perception of consumers can influence in several different ways, and they can term differently. Companies come up with advertising advantageous uses and attributes of their products and services to catch the customers’ interests. Some companies claim to be the “first” to have a particular feature or attribute. Which is often describing as preemptive positioning. Companies also boast being the “best” in the business or having the “best” products, which are termed as superlative positioning.
Exclusive positioning makes the customers feel special by making them exclusive members or handing them exclusive traits to be a part of the company, such as describing themselves as a Fortune 500 company or a tech giant. Targeting particular customer groups such as offering student discounts or student versions of software is another way companies can make their products stand out from their rivals. Pricing policies can also use to position products and services. Companies can raise prices to make the product more “worthwhile” or lower their prices to change consumer perception of it.
The process of product positioning divides into several important parts: segmentation, targeting, and positioning. At first, the products’ existing customer base is identified, and broken down into several subgroups termed segments. This process is called segmentation. A particular segment, or target customer group, is then selected on whom the positioning strategies will be focused on. This is known as targeting. Finally, a strategy is determined to catch the customers’ attention and affect their perception of the product. Making them prefer this product over others, a term defined as positioning,
In summary, product positioning strategies and techniques can be crucial to develop a business image. And using it effectively can make the difference between making a business flourish or fall into ashes. However, a business must consider all internal and external factors affecting the product. Then decides how to make its products stand out from its competitors so as to make them more willing to choose this product over others.