May 23, 2011
Product Positioning: Stand Out From the Crowd
Take Toyota and Lexus for example, which are both car brands of Toyota Motor Corporation with very different positioning strategies. A Toyota Camry and a Lexus IS may be comparable in shape and size, but the two models are designed and marketed to reach two different consumer groups. The Camry is for consumers wanting reliability and economy, and the IS is for high-end consumers wanting prestige and luxury.
When you take a proactive approach to your product positioning, you can influence the market on how they perceive your product. Failure to actively promote and position your product will inevitably result in the market doing it for you, and this can be detrimental to your company’s ability to gain a strong competitive position.
So how do you position your product?
First, you need to select the target market that will be most receptive to your product’s positioning. Segmentation decisions are instrumental in developing your company’s product positioning strategy.
Knowing your target market allows you to effectively position your product to meet the needs of that specific market. With this in mind, you are then able to develop and implement more cost-effective and efficient marketing strategies.
Once you have determined your target market and their needs, you need to formulate a positioning strategy that will appeal to the targeted demographic. You must decide how you want to position your product in the minds of your targeted customers.
A solid understanding of your market and your competitors will assist in being better able to position your product. Comparing your product’s features to that of your competitors and identifying your unique selling points is a good way to determine what differentiates your product.
Revision of your positioning should be an on-going process to help refine your position according to changes in the market. Environmental changes or shifting consumer preferences often force firms to rethink their positioning strategy.
How do you communicate your product positioning?
There are a host of resources available to assist you in communicating your positioning statement to your target market.
Social media is an important modern day marketing channel that, if utilised correctly, can give a company valuable, market-specific exposure and vital product related feedback. A social media presence backed by a solid following creates an environment for open discussion on your product.
There are many innovative marketing tools available today to assist companies in achieving their positioning strategies. Different tools will suit different products, but the key to success is choosing the right mix to match your product and the goals of your company.
So, if it has been a while since you last thought about your product’s positioning, now would be the time to do so.