- 1 How to use product positioning in business
- 1.1 1. Understand the customer
- 1.2 2. Market analysis
- 1.3 3. Product value
- 1.4 4. Create a product positioning statement
- 1.5 5. Create a customer-centric tagline
- 1.6 6. Use advertising channels
Product positioning or brand positioning is a marketing strategy that presents the benefits of your product to your target audience. It also shows where your product fits into its market and influences the rest of your marketing plan.
You can apply product positioning in both existing and newly established markets. In new markets, the focus becomes on convincing the customer to satisfy an unknown or undiscovered need.
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Companies can develop more than one product position for the same item or service for primary and secondary target audiences. Product placement may affect or be affected by:
- Brand essence: The main attribute you want customers to associate with your product and company
- Company and product differentiator: The characteristics that make your company unique or add value to a particular product
- Customer challenges: Why your customers might need your product
- Market categories: Markets where you sell your products and markets where consumers shop for similar items
- Mission : Plan to execute your product vision
- Tagline: A phrase or slogan that you use to market your product to consumers
- Vision : The overall goal you have for marketing and selling your product
Use these steps to learn how to implement a product positioning strategy in your business:
1. Understand the customer
Start by identifying your target customers and audience . Describe the attributes of your ideal consumer, such as their demographic and behavioral, psychological, and geographic details.
Create a persona profile to share with others in your team or organization. You can also see what problems customers are trying to solve or what areas of life they are trying to improve.
You can try to predict how your target customers will move from their current behavior and product to alternative methods or products by looking at factors that influence decision making such as:
- Push: An element that consumers dislike about a product or service they already use
- Pull: The customer’s tendency or reason to try something new
- Anxiety: Consumers’ personal fears about changing their routine or lifestyle
- Habits: Consumers’ decisions if a new product or service disrupts or enhances their routine
Study the alternatives consumers have for your product to help determine what makes it unique.
Research both direct and indirect competitors and take notes about the products they offer, the features that these products have, their prices and marketing tactics.
You can also determine the market maturity of your product. A product with many similar competitors is in a mature market. A product with few or no direct competitors may be in a new niche market.
Understanding the maturity level of the market can help you decide whether you need to convince consumers of their need for an innovative product or whether they should choose a new one among the crowd.
3. Product value
Use the data you’ve gathered about your target audience, your market, and competitors to determine what makes it unique. You can run a SWOT analysis —successes, weaknesses, opportunities, and threats—on the product to see what is working well and where you can make improvements.
Focus on elements such as unique features and other factors such as packaging or product price. This analysis ensures that your marketing, branding and messaging align with the user experience.
It also helps customers make informed purchasing decisions.
4. Create a product positioning statement
After collecting all your data, create a product positioning statement. This one-sentence summary explains your target audience, what sets your product apart from the rest and why consumers should care about it.
Consider this statement as a promotion of your product, or how you will present the product to potential investors. A product positioning statement template might look something like:
For [specific target audience] who [need/want], [general type of product or service] is [certain product/solution] that accomplishes this with [customer benefit reasons].
5. Create a customer-centric tagline
Use your product positioning statement to create a customer-focused tagline that explains what the product does and why they need it.
You can use more colorful or colloquial language like slang or idioms, depending on your target audience.
6. Use advertising channels
Use product positioning analysis and customer-focused taglines to advertise your product across channels such as social media, television networks, print publications, and other places.
This can test to see if your product positioning analysis is accurate and allow you to change your marketing strategy if necessary.