Positioning is an essential part of launching your product and company in the market. The term “positioning”
should be viewed both as a verb and a noun.
As a verb, it can be
defined as deploying a set of tools and processes used to influence and control
the market’s perception of your product or company in relation to any competing
alternatives. As a noun, it can be defined as an attribute or condition
associated with your product.
Nevertheless,
positioning is not what your company physically does to a product—it is what
your company does to a customer’s mind. It provides an effective answer to the question, “What
do you do?” Keep in mind that the question has to be answered from the
customer’s point of view and clearly state what the product does for the
customer.
Customers develop
opinions about companies and products, and the positioning of each in the mind
of the customer always occurs in relation to the competition or the customer’s other alternatives (which may include doing
nothing).
While marketing communications play a part in developing the desired
position, it’s worth noting that in reality customers make up their minds based
on a wider range of factors, including packaging, pricing, product performance, references and media recommendations.
Positioning
fundamentals:
·
Positioning is the
single greatest influence on a customer’s buying decision.
·
Each customer
evaluates products in the market according to their mental map of the market.
·
Positioning exists in
customers’ minds, not in positioning statements.
·
People do not easily
or willingly change their minds about a product’s positioning.
·
Positioning must first
demonstrate a product’s relevance, using supportable, credible, and factual
terms.
·
Making the product
easier to buy through effective positioning makes the product easier to sell.
Mapping
the market
Mapping the market
involves identifying and staking out the most relevant customer segments. It enables you to establish and potentially control how your
product is viewed in terms of benefit and differentiation.
Benefit: The advantage conveyed by the product to the
target customer based on his compelling reason to buy.
Differentiation: The singling out of the one element that
creates your benefit and makes you unique in the marketplace, at the same time
bearing relevance to the customer.
Positioning
template
The positioning
template can help you to express the fundamental value proposition that your
product provides to a target customer and the market. It must identify the:
·
target customer or
market
·
compelling reason to
buy
·
product’s placement
within a new or existing category
·
key benefit that
directly addresses the compelling reason to buy
·
primary alternative
source (i.e., competitor) of the same benefit
·
key difference or
point of differentiation
Positioning
statement
The positioning
template enables you to create a positioning statement, which explains who you
are, what you offer, whom it is for, and why it is important and compelling.
The positioning
statement should meet several key criteria:
·
It effectively
identifies the target customer or segment, and makes the situation clear and
understandable.
·
It makes your claim
(and related benefit) concise, singular and compelling, and supports it by
credible evidence.
·
It makes the
differentiation statement concise, singular, compelling, and supportable, and
it reflects the target customer’s attributes and environment.
·
It passes the
“elevator test” (i.e., it can be explained in a few words).
Using the template, a
positioning statement can be structured like this:
·
For (target
customer or market)…
·
Who (have a compelling
reason to buy)….
·
Our product is a (product’s placement within a new or existing category)….
·
That provides (key benefit that
directly addresses the compelling reason to buy)
·
Unlike (primary
alternative source (i.e., competitor) of the same benefit)
·
Our product (key difference or
point of differentiation in relation to the specific target customer)
In a new market, you
must define the market and your company’s place within it. This involves
positioning your company to visionary buyers as a thought leader within an
emerging, highly promising market category. You must also demonstrate your
product’s benefit or competitive advantage against existing products and the
status quo.
In an existing market,
the positioning changes. Here, it must demonstrate to economic buyers and
end-users that your product and application are the most credible and
comprehensive option for the customers’ needs. In order to achieve the desired
positioning, your communication must clearly articulate your unique points of
differentiation.
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