Product Positioning in the Market
Each brand must understand the needs of its target audience in order to satisfy them. Product positioning allows companies to create messages that meet the needs and desires of their customers and encourage them to buy.
In this article, we will discuss the importance of product positioning and its benefits, as well as review the most common positioning strategies. But before we move on to this, let's get acquainted with the designation of the term itself.
Product positioning is a marketing tool that determines the position of a new product in the mind of the target audience. You can use market research and focus groups to determine which audience will respond best to your product. To do this, you must answer two questions that your potential clients may ask you.
First, they want to know how the product you are offering them can solve their problems. Second, why should they choose your product over your competitor's? If the answers meet the expectations of customers, they will definitely choose your product.
Benefits of product positioning
1. Development of a successful advertising strategy.
Product positioning helps highlight the benefits that matter to consumers. When such benefits are used in promotional materials, it definitely attracts the attention of consumers.
2. Increasing consumer loyalty.
Systematic product positioning strengthens the reputation of the company and its product. It promotes the brand. A company can build a consistently good reputation and gain customer loyalty.
3. Meeting customer expectations.
With positioning, you can focus on how a product or service and its specific characteristics are able to meet the needs and interests of the target audience. This will help you focus on improving your products.
4. Building a strong competitive position.
Positioning affects how customers perceive your product or service compared to competitors. When you create a positive image of your product/service in the minds of your customers, you are likely to have an ongoing advantage in the marketplace. By doing this, you can claim your position in the competitive environment, which helps you a lot to stay one step ahead.
5. Increase sales.
One of the main goals of any business is to increase sales and revenue. By having a more relevant offer and communicating it more effectively, your company can enter a new market, which will help attract new customers and increase company sales.
There are several different types of product positioning - the one you choose depends on the wants and needs of your target customers.
The most common positioning strategies are:
Price positioning.
The price of a product is a flexible marketing tool that buyers use to compare offers. Cost is an important criterion in both B2B and B2C environments, the price of a product also says a lot about its position in the market.
Price positioning means offering your products at a competitive price in the market. Most often, customers of such products make their choice based on price. The best example of price positioning can be found in the grocery store, where promotions help brands compete for savings.
Positioning by attribute.
Reliability, efficiency, safety, design and novelty - all these characteristics help to create a unique product positioning. Positioning a product based on these characteristics creates a specific brand image for customers based on what your product has to offer. For example, look at how car brands position themselves: Volvo is about safety, Toyota is about reliability, and so on.
Competitive positioning.
Competitive positioning is about determining how you will differentiate your offering and create value for your market. It involves the efforts of the marketing team to make the brand stand out from the competition. This helps to add value to the product, retain customers and increase sales.
Positioning your brand is a useful marketing tool to develop a clear vision for your business and maximize your company's position in the market. Positioning will help take your business to the next level for better achievements.