Companies that have been around before the Internet age have likely adapted to many traditional marketing strategies that also work well in the digital marketing space as well. Marketing tactics such as building a product positioning strategy are one of those areas that easily transitioned into the digital marketing environment. But in order to have real success in the digital marketing environment, you must implement very savvy marketing techniques to successfully pull this off. They require a lot of planning, making strategies, and forethought.
Below is more information about what a product positioning strategy is and how it can help you land more clients.
What Is a Product Positioning Strategy?
A product positioning strategy plays a very significant role in the overall marketing plan. It consists of the process of determining how to best communicate the key attributes of a business’ products or services to their targeted audience. This positioning involves addressing the needs of their customers by utilizing the best marketing channels. It is possible by carefully crafting out quality marketing messages and identifying the competition’s role in the marketplace.
A good product positioning strategy also involves creating the proper perceived value of a product or service in the minds of your market niche; particularly, a strategy that meets the needs of a customer by using marketing messages that resonate with them. It’s basically the process of determining where your product or service fits in the mind of your target audience based on the overall marketplace. In fact, positioning is also a subtle way to place marketing messages into the marketplace.
Businesses That Have Used a Product Positioning Strategy
Although a product positioning strategy can be applied to both products and services, many retailers of high-volume products are typically those known to implement an effective product positioning strategy.
- For example, 7-Up positioned itself as the Uncola while targeting customers who did not consume Colas.
- Another example consists of Hyundai who positioned itself as a brand that consistently adds value to an already competitive automotive industry.
- Starbucks coffee has also positioned themselves as the premium coffee company. Moreover, they branded themselves as the company that provides the overall coffee shop experience.
They have found ways to develop valuable marketing messages. Consequently, the messages resonated well with their current customer base as well as their perspective customers.
The use of a product positioning strategy is helpful when business owners are performing their jobs. It helps them to better identify how their product or service differs and is perceived when placed in the marketplace.
Ways in Which Product Positioning Can Help Your Business
Since, according to Yankelovich, a marketing research firm, the average consumer sees anywhere between 3,000 and 20,000 marketing messages on various media outlets per day. That means that each business who places their product or service into the marketplace needs to be concerned about how it is positioned and received by their market niche.
The implementation of an effective product positioning strategy can help your business by providing exposure, addressing the needs of your target audience and your market niche. It allows other businesses to recognize your position as it relates to the competitors who are already in the marketplace. Moreover, it helps companies to implement branding strategies as well as the ability to test the effectiveness of their company’s overall product positioning strategy. Some examples include the following:
- Being the first in the market lends itself to the successful launching of a new product positioning strategy.
- Leveraging your expertise establishes leadership, as your company is perceived as the industry expert and the go-to company for answers and advice.
- Offer new and improved products to further increase your product positioning strategy.
- Monitor and study your competitors to become more aware of their tactics and their product positioning strategy.
For more ideas, consult with an industry expert.
5 Most Effective Product Positioning Strategies
There are multiple product positioning strategies that business owners can implement in an attempt to influence buyers and enhance their perceived value of a business’ product or service. However, there are some strategies that are more effective than others. Some are more basic than others and often need to be implemented in a certain order. Some of the top five product positioning strategies include the following:
- Perform an analysis and an assessment of your industry’s top competitors. This product positioning strategy is important to do as early in the strategic planning process as possible. It provides a model for other (less established) businesses to follow – especially if the top competitors have already proven success in this area. This approach alone can add a lot of mileage to a business’ product positioning strategy.
- Identify alternate purchasing positions. This approach includes making a list of all relevant product features along with any corresponding benefits that the product or service provides to the customer.
- Perform the necessary research to properly identify your target audience. This will help you keep up with the demand as well as monitor the needs and wants of your actual targeted audience on an on-going basis. This also allows you to explore the buying habits and other spending behavior patterns of the proper target audience as well.
- Create clear messaging and positioning statements. This method further drives a perceived value of your product or service into the minds of your prospects. Your messaging should also include the problems you solve as well as the needs that you meet within your designated marketplace.
- Assess and adjust your product positioning strategy. Perform this area on needed basis to identify any shifts that have taken place in your industry.
To the Start
Coming up with an effective product positioning strategy is no easy task. It requires years of experience and expertise to properly develop and implement such a strategy. The right product positioning strategy should effectively position businesses in the marketplace.
Have you made an attempt to implement a product positioning strategy in the past? If so, what were your results? Please feel free to share this information by posting a comment. Join us to discuss this issue further!
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