Market Positioning Strategies. Market positioning is the strategic differentiation of a product to make it more valuable in the minds of consumers. A strong market positioning strategy will identify a clear value proposition and have a strong marketing strategy for building and communicating a brand’s identity.
What Is Market Positioning?
Market positioning, also called brand positioning or product positioning, is a marketing strategy focused on building a unique identity that differentiates a company from its competitors in consumers’ minds. The goal of a market positioning strategy is to make the target market view the brand in a distinct way and to clearly communicate how the brand has a competitive advantage in the market.
For example, a car company might want their customers to perceive their cars as a high-end luxury status symbol. This new positioning might allow them to charge higher prices than their competitors. Alternatively a fast-food restaurant may want to be perceived as cheap so that customers will choose them for their low cost.
Determining Market Positioning
Companies can use algorithms or models to try to evaluate their current position in the current market and determine how they can reposition to capture new markets. For example, perceptual mapping is a type of positioning map that displays consumer’s perceptions of brands and products in relation to others based on the results of data gathered from focus groups. This data can help inform a company’s positioning statement or brand positioning strategy for finding their unique features that define them as a company.
Why Is Marketing Positioning Important?
Market positioning has many benefits to companies that want to reach their target audience and have an advantage over their competitors. The following are just a few of the advantages of using a competitive positioning strategy in your marketing plan:
- It creates market differentiation. A great market position promotes why your brand is unique, helping you to capture a larger market share from your competitors. By successfully conveying that your product has more desirable features or better addresses a customers’ needs, you are creating buzz around your brand.
- It drives marketing efforts. Without a clear and convincing market position, you cannot effectively market your product. You won’t be able to show customers what makes your brand stand out, and this is especially troublesome if you are in a crowded industry. However, once you nail down your place in the market, you can tailor your message to your target demographic.
- It increases customer loyalty. Once consumers trust your brand name and your products, they’re likely to become repeat customers. In addition, strong market positioning incentivizes customers to skip the product research process and go directly to your brand to fulfill their needs.
- It prioritizes value over price. Price becomes less of an obstacle when brands can show why they have a higher value than their competitors. Consumers willingly pay more for items they know provide a better value than a cheaper alternative.
Types of Market Positioning Strategies
There many types of market positioning strategies a company can use to find their unique position in the marketplace compared to their competitors. Consider the following strategic marketing tactics that can give your company a strong value proposition and an effective market positioning strategy.
Sometimes the most important product characteristic is sheer availability. A product or service will have an inherent advantage when it is available in a specific geographical area, on specific days of the week, or at specific times of day that competitor products are not. By simply being available when a customer needs it, a product can leapfrog over the hurdles of marketing and price competitions.
While consumers might gravitate toward the lowest-priced items, you can use durability as a selling point. For example, if someone can own your product for a longer time without having to replace it, your company can make the case that your product is more cost-effective in the long run because of its durability. Essentially, you are offering them years of hassle-free ownership.
To stand out among nearly identical products, aim for clever messaging and product positioning based on careful market research. A funny or sentimental ad can connect your audience to your product and help them choose you over competitors that offer items that are functionally the same.
Some customers see value in new products that represent something different or innovative. A product that is functionally the same as many others but designed in a fresh, innovative way may also attract new customers.
5. Price point
Low prices can help win a wider market share as the product falls into more potential customers’ price range. Some consumers might automatically think that a higher price means higher quality, so if you can also promote the convenience and accessibility of your product, it can allow you to gain a competitive market share.