POSITIONING -

POSITIONING 

  MBA / BBA MARKETING MANAGEMENT QUESTION PAPER 2020 PUNE UNIVERSITY

- DETAILED ANALYSIS / ALL YOU NEED TO KNOW/ FAQ/ 

FACTS / ALL ABOUT POSITIONING - EXPLAIN WITH EXAMPLES

Definition

Market Positioning Meaning & Definition Positioning means the activity of making position or image in the minds of customers. Positioning is the process of portraying a picture of company’s product and its customer relation in the minds of customers. “Positioning is the act of designing the company’s offering and image to occupy a distinct place in the target’s mind.” --Philip Kotler—

the positioning statement of Volvo: “For upscale American families, Volvo is the family automobile that offers maximum safety.”

Intoduction

Positioning is not what you do to the product - Positioning is what you do to the mind of the prospect - Customer does the Positioning - A product may have many distinctions. Which are most important to the customers?

Positioning, therefore, starts with our understanding or 'mapping' of a prospect consumer's mental perceptions of products.

What is Market Positioning?

Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.

For example:

A handbag maker may position itself as a luxury status symbol

A TV maker may position its TV as the most innovative and cutting-edge

A fast-food restaurant chain may position itself as the provider of cheap meals

 

 

Examples-

Tesla and Audi position themselves as a luxury status symbol

Starbucks positions itself as a trusted source of upscale quality coffee and beverage

McDonald’s positions itself as a place to get quick and cheap meals

Microsoft and Apple position themselves as a tech company that offers innovative and user-friendly products.

 

Mountain Dew- cold Drink-

To (target group and need) our (brand) is (concept) that (point-of-difference) Example: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.

Crest toothpaste

Promotes its anti-cavity protection

Mercedes

Promotes its great engineering

BMW

Ultimate driving machine

 

What is Image?

 Image is the picture of an organization and its products & services perceived by target group, Images are of following types:

Types of Images •

Current Image: The way that a company is being seen by customer. •

Mirror Image: The way that a company think it is being seen by customers •

Wish Image: The way that a company would like to be seen by customers.

 

 

WHY POSITIONING IS REQUIRED

Let’s think about it: there are thousands of companies out there, many of which offer the same products, promise similar results, and are generally positioned the same in the market.

So, why would a customer choose one company over another? Why take the first option, rather than the second one, if both lead you to the same type of business that sells the same thing?

The answer is simple: Noone wants to buy a product or service because it can do everything, but rather because it can do something.

And that’s what positioning in marketing implies. A clear positioning statement is at the core of every marketing strategy, which drives the look and feel, words, and phrases of your brand system.

Positioning requires focus and a commitment to a specific niche, idea, or target audience. Your brand and marketing strategy won’t work if you are trying to be all things to all people.

Why Positioning?

(1)To create a distinct place of product& service or corporate in the minds of customers.

(2) To provide a competitive edge to a product or an attempt to convey attractiveness of the product to the target market.

(3) To give the target market reason of buying our product/service and then formulation of all strategies according to the customer perception.

 

Errors of positioning

 

There are some common errors of positioning which is committed by firms due to in effective marketing programmes. These errors are as follows:

(1)        Under Positioning: This errors occurs when marketers take little steps for promotion of product due to which buyers are very less aware about the brand and its product’s performance & popularity. This error is done by those company’s either do not have capacity to promote their product or do not have marketing caliber of performing such roles. e.g: “ASUS Laptop” Errors in Positioning

Under positioning Seen as just another entry in a crowded market Pepsi introduces its clear crystal Pepsi 1993 Customer not impressed “Clarity” not seen as an important benefit Positioning in the market place

This refers to the state where consumers are unable to look at the advantage, and feel the USP of the product e.g.Vanilla Coke

(2)          Over Positioning: It refers to the error when firm position itself for some specific group but due to over positioning that particular groups believe that it is not for their class, it is for some higher class customer group. e.g: “Aquaguard introduced Aquasure, People start believing due to over positioning that it is made for upper class, where as the product was priced only at Rs 1600/-“

Maruti Baleno - Trying to widen - Customer do not accept this - Maruti Baleno • Customers think Maruti can make cars up to 5 lacs • Not higher end • Image issue • Poor sales Positioning in the market place

This could be giving the buyers too narrow a picture of the company. For e.g. if the consumers assumes that Steuben glass company makes only fine art glass costing Rs.1,000 whereas it could also make a glass Rs.50.

(3)  Confused Positioning: Some time buyers may have confused image of the brand. This may occur as a result of frequent changes in the positioning statement.

Milkmaid  - Confused Positioning Company making too many claims Milkmaid Started as Tea Whitener Did not click As a topping on pudding Did not click Finally clicked as base for dessert Positioning in the market place

Confused Positioning: Here the buyers have a confused image of the company. E.g.Next computers

(4)  Doubtful Positioning:This error occurs when doubt arises in the minds of buyer regarding the company’s claims of benefits through the product. Customer have doubt whether firm can fulfill their promises or not. e.g: “Hair Gain Oil” & “Weight Loss medicines” Under Positioning Over Positioning Confused Positioning Doubtful Positioning Errors in Positioning

Maruti 1000  - Doubtful Positioning Find it to difficult believe in what company claims Maruti 1000 - Launches in ’89 - Positioned as ‘ultimate in luxury’ - Only luxury car - Launch of Esteem

in ’94 - More luxurious than Maruti 1000 - Is it now ‘Ultimate in luxury - Sales dipped - Customer confused - Repositioned as ‘Affordable luxury’

Buyers find hard to believe the brand claims e.g. Fair and Handsome cream

 

Positioning Strategies

Attribute Positioning

Benefit Positioning

Use or Application Positioning

User Positioning

Competitor Positioning

Value Positioning

 

 

Types of Positioning Strategies

There are several types of positioning strategies. A few examples are positioning by:

Product attributes and benefits: Associating your brand/product with certain characteristics or with certain beneficial value

Product price: Associating your brand/product with competitive pricing

Product quality: Associating your brand/product with high quality

Product use and application: Associating your brand/product with a specific use

Competitors: Making consumers think that your brand/product is better than that of your competitors

 

Positioning Strategies

(1)Attribute Positioning: A company position itself on the basis of an attribute which creates their separate identity such as size, no. of years of existence etc. e.g: “Raymonds Since 1925”

Positioning on attribute  Size  No of years in existence  Culture

Disneyland Positioned as the largest manmade park in the world

Dove soap Contains moisturizing cream Positioning in the market place

Attributes based positioning: This type of positioning is seen with technical products. E.g. The Ericsons EH237 mobile phone is its Low weight and has a number of features a. Physical characteristics: • These can be measured in physical scale like the temperature, color intensity, distance, strength of fragrance etc. b. Pseudo-physical characteristics: • These show the physical properties which are not easily measured. The examples are type of fragrance, creaminess etc.

 

(2)Benefit Positioning: Corporate may position itself as a leader in a certain benefit which they provides to their customers. e.g: “ Maruti---Service Station”

Positioned as a leader in certain benefit

McDonald’s Positioned as a family restaurant (QSCV) Honda Economy and reliability

BMW Ultimate driving machine

Volvo Safety and Durability. Positioning in the market place

 

This is based on the needs fulfilled by the products e.g.

Crest toothpaste reduces cavities. • Usage occasions based positioning: The same can be seen in products

 like Mentadent Night Action toothpaste positioned for evening use.

Another example is Itch Guard skin ointment which has been positioned as an Over. The Counter (OTC) medicine.

 

(3)Use or Application Positioning: Positioning can be done on the basis of use or application of the product. Corporate position their product as best for some use like café coffee day position itself for discussion & meeting point. e.g: “Café Coffe Day—a lot can happen over a coffee”

USE / APPLICATION POSITIONING. Positioning for some use or application

Nestle ‘Maggi Noodles’ – Positioned as a snack item – Between meals – Fast to cook, good to eat

Nestle Milkmaid – Positioned as a base for dessert preparation. Positioning in the market place

 

(4)User Positioning: When firm position itself and its products as best suited for a particular user class is called user positioning e.g: “Johnson & Johnson----for babies”

USER POSITIONING Positioning the product as best for some user group.

‘Red and white’ cigarettes Positioned for people who are bold and brave Give ‘bravery’ awards.

User group

This type of positioning targets a particular group of users and explains why the company’s offerings are directly applicable and relevant to this group.

 

For instance, Johnson’s vs. Axe. While Johnson’s baby shampoo positions itself as gentle for children, Axe body spray targets men.

 

 

(5)Competitor Positioning: In this category firm claims to be better in some product or service than a well-known competitor. e.g: “Thums up against Pepsi”

COMPETITOR POSITIONING Product claims to have better performance than competitors Brooke Bond Taj Mahal Tea Endorsed by Zakir Hussain “If you find a better tea than Taj Mahal, then Zakir Hussain will stop playing Tabla. Directly or indirectly refer competitors.

 

E.g Compaq has been directly compared to the competitor products like IBM personal computers.

• Product Class: E.g. of this positioning is Van Den Bergh's “I Can't Believe It's Not Butter” which is positioning the product against butter. Another example is Nescafe Bru positioned itself as instant coffee Types of Positioning

 

(6)Value Positioning: This strategy focuses on company’s positioning as offering the best product at lower price or we can say best valued product. e.g: “McDonald Burger @ Rs 25 only/”

 

7) Product category

PRODUCT CATEGORY POSITIONING Positioning as a leader in certain category.

Maruti 1000 Launched in 1990 Only luxury car in India Positioned as ‘ultimate in luxury’

Hero Honda Four Stroke, fuel efficiency Claimed as the leader in fuel efficiency Fill it, shut it, forget it

Livon After hair wash oil Smooth and silky hair Positioning in the market place

 

 

8) QUALITY OR PRICE POSITIONING

 Positioning as offering the best scooters Bajaj Scooters – Lowest prices – You just cannot beat a Bajaj – Repositioned as ‘Hamara Bajaj’

Quality Positioning: Here the product is positioned on the basis of quality e.g.Sony •

Quality

Quality can help rebuff most pricing wars. In some markets, such as luxury cosmetics or cars, quality can define who the competitors are.

 

For instance, Chipotle vs. Taco Bell. Ranked 14th in the top 50 fast-food restaurants in America by QSR Magazine, Chipotle has grabbed a significant market share over the years by focusing on quality instead of price.

 

9) Price Positioning: Positioning could also be done on the basis of price of the product e.g. Akai and Tata products are always cheapest in their segment.

 

Pricing

Pricing is an essential factor that impacts the decisions of most customers. Companies with the lowest-priced products at a reasonable level of quality usually wins in many product areas.

 

For example, Gillette vs. Dollar Shave Club. Lower-priced alternatives to some high-quality brands like Gillette have changed the landscape of razors and refill blades. The Washington Post reported on Gillette’s decreasing market share due to Dollar Shave Club’s low prices. The cheapest refill razor cartridge of Dollar Shave Club was 20 cents, compared to $2 to $6 a cartridge for Gillette.

 

 

10) The cultural symbol approach:

Some companies use strong cultural symbols to differentiate their brands .

For example the Brand name Gattu by Asian Paints helps them to position

 itself as a brand that is always ready to help, quick in decision-making and very much young and contemporary.

 

11) Differentiation

Differentiation is what sets your product or service apart from the crowd. If your product or service is dramatically different, rivals may not pose as much of a threat.

 

For example, Toyota vs. Tesla. Tesla entered the electric vehicle market with a luxury sports model, rapidly sidestepping economy cars like the Toyota Prius. Tesla actually targeted the high-end market with the Model S.

 

12) Convenience

Convenience creates an easier life for customers. From location to usability, convenience could incorporate something like free returns and E-commerce.

 

For example, Simple vs. Bank of America. Some traditional banks have been slow to create mobile apps, but online-only banks like Simple have invested in this to appeal to younger and more technical-savvy customers. The company even charges no fees and has convenient built-in budgeting and savings tools.

 

13) Customer service

Customer service emphasizes creating helpful and friendly interactions. This can be especially critical in specific industries, such as restaurants and banking areas.

 

For example, Allstate vs. State Farm. Both insurance companies recognize the importance of customer service in this industry, where contact with customers is indispensable. They use customer service-based messages in their marketing to focus on this position.

 

Positioning is How do you differentiate your product from competitors –

Differentiation, which is •

1.      Important •

2.      Distinctive •

3.      Superior •

4.      Not easily copied or Unique. •

5.      Affordable

 

 

 

 

Nestle Maggi noodles-  Right Positioning  DILEMA

 

 Right Positioning is Critical Make or break the organization Nestle Maggi noodles launched in 1983 Noodles a new concept in Indian households Two options for Nestle 1.As a dinner item 2.As a snack item Targeted at children Positioning in the market place

 As a Lunch or Dinner Housewives / Mothers take decisions Noodles as lunch or dinner item Replacing current lunch items Housewives want to serve children ‘nutritious’ food Would noodles provide nutrition and replace tradition food? Positioning in the market place

  As a ‘Snack Item ‘ Between lunch and dinner Children play Spend energy Want to eat something Quick preparation and delicious Variety of flavors Filing Will mothers accept this as a ‘snack Item’ Positioning in the market place

 Which Positioning – Maggi - Which Positioning platform is acceptable - Careful study of mothers and children behavior - Nestle found that as a snack item would be more acceptable - Sales picked up - As a lunch / dinner would have been disaster. Right positioning was critical for the success of Maggi noodles. Positioning in the market place

 

 

Points on which differentatiotion is possible for POSITIONING-

 

Differentiation: products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

Differentiation criteria: Important Distinctive Superior Preemptive Affordable Profitable Unique

Differentiation Form- Repairability Performance Style Features Reliability Design Durability Conformance ProductProduct DifferentiationDifferentiation ToolsTools

 Differentiation-  Miscellaneous Services Differentiation Tools Installation Maintenance and repair Ordering ease Delivery Customer training Customer consulting

 Courtesy Reliability Positioning and Differentiation Personnel Differentiation Tools Credibility Communication Competence Responsiveness

-Coverage Expertise Performance Channel Differentiation Tools Symbols Media Atmosphere Events Image Differentiation Tools

 

 

 

PRODUCT POSITIONING PROCESS

1. Define the Market where the product will compete

 2. Identify the attributes to find product space

3. Collecting information about customers and other attributes

4.Determine each products share and mind

5. Determine other products situation in the market

6. Determine the target market preferred combination of attributes

7. Examine the fit between the product and New market

 

 

Brand benefits & Attributes

 

Attributes are simple characterstics of a particular product.Attributes are simple characterstics of a particular product. Benefits are a approach about how a brand meets a consumer need.Benefits are a approach about how a brand meets a consumer need. Benefits rather than attributes is more powerful in motivating consumers.Benefits rather than attributes is more powerful in motivating consumers. Attribute: Sugarfree is low on caloriesAttribute: Sugarfree is low on calories Benefits: Helps you feel good about yourself.Benefits: Helps you feel good about yourself.

 

Imp. Supporting points

 

Product positioning is the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer  Needs, Competitive pressures, Available communication channels and Carefully crafted key messages.

Organizations can communicate all the good things about a brand but how the consumers perceive the brand depends upon a number of variables including the customers own experience with the brand.

The unique place the brand occupies in the minds of the customers is positioning.

A brand cannot be successful if it is not well positioned in the mind of the consumers.

Positioning a product is therefore integral to the success of a brand.

The brand perceptions impact the business customer relationships in the long term and are therefore of strategic importance.

 

 

Importance of Positioning

Positioning is how the brand is unique and relevant for consumers

It is how the brand is different from the other brands in the product category.

It gives a raison d'être to the customers to buy the product.

For services organizations, positioning also helps to overcome the concept of intangibility.

Further how the firm positions products also acts as a guiding hand in the development of the marketing mixes.

 

 

 

 

Positioning statement

Positioning statement is ‘the message that communicates brand image to consumers… it conveys to consumers how one firm’s offering are differentiated from a competitors’ and signals how the firm wishes to be seen or perceived. A strong and consistent positioning statement is necessary to stand out against competitors and should help sharpen and strengthen the brand identity’

 

 

The template of choice of the positioning statement was authored by Geoffrey Moore (cited in The Beaupre Buzz, 2003) and is as follows:

For (target customers)

Who (have the following problem)

Our product is a (describe the product or solution)

That provides (cite the breakthrough capability)

Unlike (reference competition),

Our product/solution (describe the key point of competitive differentiation)

Nirula’s positioning statement “Nirula's is warm, contemporary, accessible, eating place for families including children and young adults, serving the widest variety of Indian and International food, beverages and desserts, at affordable prices. “

 

 

 

A Perceptual Map in Market Positioning

A perceptual map is used to show consumer perception of certain brands. The map allows you to identify how competitors are positioned relative to you and to identify opportunities in the marketplace.

 

 

What is Market Repositioning?

Market repositioning is when a company changes its existing brand or product status in the marketplace. Repositioning is usually done due to declining performance or major shifts in the environment.

 

Many companies, instead of repositioning, choose to launch a new product or brand because of the high cost and effort required to successfully reposition a brand or product.

 

 Example of Market Repositioning

The example below describes Coca-Cola’s repositioning of Mother Energy Drinks:

The Coca-Cola Company launched Mother Energy Drinks in 2006 into the Australian market. The launch campaign was professionally executed, and Coca-Cola was able to leverage its distribution channels to get the product into major retailers. However, the taste of Mother Energy Drink was subpar and repeat purchases were very low. Coca-Cola was faced with a decision: to improve and reposition the product or withdraw it and introduce a new brand and product. The company ultimately decided to reposition the product due to already high brand awareness. The biggest challenge faced by Coca-Cola was to persuade consumers to try the product again. The company changed the packaging, increased the size of the can, and improved the taste of the product. The relaunch of the product featured a new phrase – “New Mother, tastes nothing like the old one.” Ultimately, Coca-Cola was able to successfully reposition Mother Energy Drinks and the brand today competes with the two leading energy drinks in the market – V and Red Bull.

 

 

 

Brand values

A brand has to compete at various levels in a given market. The task is to develop a distinctive image that leads to competitive advantage for the brand.

The characteristics of the brand that are highlighted (by the organization while positioning) leads the consumer to develop various attributes specific to a particular brand.

Over a period of time as the brands evolve and expand across categories the core brand values help to define the five to ten most important elements of the brand and what the brand stands for.

The core brand values for a brand can be mapped by asking the customers for ‘their top-of-mind brand associations’.

These are then grouped into categories and each category description then acts as a core brand value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How to Create an Effective Market Positioning Strategy?

Create a positioning statement that will serve to identify your business and how you want the brand to be perceived by consumers.

 

For example, the positioning statement of Volvo: “For upscale American families, Volvo is the family automobile that offers maximum safety.”

 

 

 

1. Determine company uniqueness by comparing to competitors

Compare and contrast differences between your company and competitors to identify opportunities. Focus on your strengths and how they can exploit these opportunities.

 

 

 

2. Identify current market position

Identify your existing market position and how the new positioning will be beneficial in setting you apart from competitors.

 

 

 

3. Competitor positioning analysis

Identify the conditions of the marketplace and the amount of influence each competitor can have on each other.

 

 

 

4. Develop a positioning strategy

Through the preceding steps, you should achieve an understanding of what your company is, how your company is different from competitors, the conditions of the marketplace, opportunities in the marketplace, and how your company can position itself.

 

 

Benefits of positioning in marketing

There are a number of reasons why you should consider making positioning part of your marketing strategy. With the right positioning tactic, you can create better marketing messages, shape your services better, and structure pricing plans so that you remain competitive.

 

Here are 5 advantages of positioning in marketing:

 

Create a strong competitive position

Proper positioning influences how customers perceive your product or service relative to the competition. When you create a positive image of your product/ service in the customers’ minds, you’re likely to enjoy an ongoing market advantage. By doing this, you can claim your position in the competitive landscape, which helps you a lot to stay ahead of the curve.

 

Improve sales

One of the main goals of any business is to improve sales and revenue. By having a more relevant offering and communicating it more effectively, your company may be able to penetrate a new market, which can translate into new clients and additional sales.

 

Define a clearer target market

Positioning in marketing allows you to claim a specific feature or benefit and focus your products/ services accordingly so that you appear as an expert in the services. As a result, your value to prospects will increase significantly.

 

Positioning in marketing helps define a clearer target market

Make more effective decisions

Once you have the core message that ensures successful positioning strategies, you’ll be in a position to make more effective decisions throughout the process. Clear positioning in marketing also drives effective communication, provides healthier and stronger relationships with customers.

 

Connect to consumer needs

Through positioning in marketing, companies have an opportunity to communicate the critical benefits that their product/ service offers. It not only helps to energize the product but also connects it to the specific customer that needs it.

 

 

5 Examples of Positioning in Marketing

Tesla

Tesla leaves price out of its branding and instead focuses on the quality of their vehicles. Therefore, Tesla is a luxury brand that is more expensive than its competitors. In addition, Tesla automobiles are long-range, eco-friendly, and electric.

 

Tesla

Tesla

Tesla differentiates itself from other gas-powered luxury and standard electric vehicles because of its high quality. The company established a niche market for itself and a fun brand to match it. CEO Elon Musk has even built himself up as a Tony Stark-like character, and the company promotes its uniqueness through ads and quirky features, such as “Ludicrous Mode.”

 

Starbucks

Coffee consumption in the U.S has been witnessing a downward trend since the 1960’s. Hence, Starbucks was extremely cautious in choosing its target market. Starbucks targeted office workers, from the middle to high incomes, who desired to purchase premium products.

 

The company wants to make itself the “Third Place” - the place between home and work, where customers could gather, relax, and interact with each other. So, they were vigilant about their quality control to meet the high expectations.

 

In most of their advertising campaigns, they often highlight their identity by showing the following value proposition statements:

 

The best coffee

The finest milk used

Rich & smooth flavors

Natural & clean

100% recycled paper use

 

 

All of these statements in the ad give a sense to potential customers that they will undoubtedly receive high quality, clean, and upscale beverages they’ll love. With such a successful positioning in marketing strategy like that, it’s no surprise when Starbucks for years has been the top coffee provider in America. People can’t get enough!

 

Dollar Shave Club

Its name alone demonstrates one of the main aspects of Dollar Shave Club’s marketing positioning: its low cost. The company has focused its positioning on convenience and affordability, creating a relatable brand for the average consumer.

 

Dollar Shave Club

Dollar Shave Club

Even though their biggest competitor, Gillette, has a very masculine tone to their messaging and branding, Dollar Shave Club is more casual and cheeky. While Gillette has a sleek look and features guys who look like models and actors, Dollar Shave Club features average-looking people across different ages, who are more relatable to consumers.

 

Nike

Nike started their business with a focus on performance and innovation. The company invented the waffle shoe and built their brand targeting serious athletes. Their offerings have now moved beyond shoes, and they offer athletic attire that promotes performance.

 

Nike

Nike

From their “Just Do It” tagline to the namesake, the Greek Goddess of Victory, the company has positioned itself as the market leader of sports equipment widely, providing high quality and innovative technology.

 

Apple

Apple is literally a textbook example of a strong marketing position strategy. The company builds beautifully-designed and innovative equipment that is different from anything else you’ve experienced and markets them to resonate with their consumers.

 

Apple

Apple

Apple’s branding message highlights the same qualities in their customers that they do in their products: if you’re an Apple person, you’re also imaginative, innovative, and creative.

 

Like Tesla, instead of price, Apple chooses to invest more in the value their products offer and form connections with their customers.

 

 

6 Steps to create an effective positioning strategy

Step 1. Find your current position

Are you currently marketing your own product or service just like another item on the market, or are you marketing it as something distinctive?

 

Your current position in the market gives you essential insight into where to go next. You should understand your current position to analyze your competition further.

 

Think about the following few questions to state your current position in the market:

 

What does your brand stand for?

Who are your target consumers?

What are your mission and vision?

What makes you stand out from the rest of the market?

What customers’ pain points that your brand can solve?

Keep in mind that we all love connecting with brands that sound and feel authentic to us. Instead of setting up a complicated lingo that no one can understand, just talk human. Begin with researching who your existing and ideal audience is, and use their language.

 

Related topic: Define your Customer Before Marketing

 

Step 2. Analyze your competitors

After understanding yourself, it’s vital to analyze your competition by performing competitor analysis. Why?

 

Because you need to see who you are up against to conduct competitor research. It will help you decide what you can do better to gain an edge.

 

There are many methods for determining your competition, including:

 

Conduct market research. Do a quick search using relevant keywords and see which companies are listed. Or, you can ask your sales team what rivals come up during the sales process.

 

Use customer feedback. Ask your consumers which businesses or products make them consider before choosing yours.

 

Take advantage of social media channels. Many free platforms allow users to ask questions about products and services. Search these communities and forums to explore competitors in your niche.

 

Once you have identified who your competitors are, it’s high time to do in-depth competitor research. The ultimate goal is to see how your competition is positioning their brand. So, your research should include:

 

Products or services your competitors offer

Their strengths and weaknesses

Marketing strategies they are using successfully

Their position in the current market

Step 3. Develop your unique position

Building a unique position is all about determining what makes you different and what works best for your business.

 

Chances are, after conducting competitor research, you’ll begin to see something. You can realize some businesses that have the same strong and weak points. When you compare your product or service to theirs, you might find one of their weaknesses is your strength.

 

Develop your unique position

Develop your unique position

This is exactly what makes your position unique, and it becomes the perfect starting point for positioning your brand in the market. Remember to note your unique offerings as you compare and dive deep to see what you do better than anyone else.

 

Step 4. Create a positioning statement

A positioning statement is necessary because this one-or-two-sentence statement declares your brand’s uniqueness to your customers in relation to your main competitors.

 

Some experts recommend answering these questions before creating your positioning statement:

 

Who is your target audience?

What is your product or service category?

What is the greatest benefit of your product or service?

What is the proof of that benefit?

For example, let’s look at Amazon’s positioning statement: “Our vision is to be the earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.”

 

Amazon sells a wide range of products for everyone, although incredibly broad, which is their greatest benefit. And what about the proof? It’s all online.

 

Step 5. Create your tagline

Once you craft a strong positioning statement, you can create a tagline, or better known as a slogan, for using externally for potential customer messaging. Instead of the positioning statement, it is a shorter and more condensed version of what you want your customers to know.

 

For instance, here are some well-known taglines for your reference:

 

L’Oreal: “Because you’re worth it.”

Nike: “Just do it.”

Target: “Expect more. Pay less.”

Home Depot: “You can do it. We can help.”

Southwest Airlines: “The short-haul, no-frills, and low-priced airline.”

By doing that, you can easily use it in other marketing efforts to get your business point across, much more effectively than a longer and detailed positioning statement.

 

Step 6. Test your marketing positioning

Nothing should be left to chance, especially when it comes to your positioning statement. Once it is created, you should spend time testing, experimenting, and gathering feedback from your consumers on whether or not your positioning achieves its goal.

 

Testings should feature a blend of quantitative and qualitative research, from surveys and polls to focus groups and in-depth interviews. Based on these tests’ findings, you can finally solidify your positioning in marketing and adjust your marketing efforts, if necessary!

 

Positioning map: The power of perception

If you want to clearly see how your business compares to others in consumers’ perceptions, a brand positioning map can help.

 

A brand positioning map consists of different attributes that are essential to your target audience. To do mapping right, it’s best to create multiple versions of the map based on different sets of attributes. By placing your brand and competitors on the map, you can see who’s more competitive in a particular area over the rest.

 

The attributes used in the positioning map come directly from the values your customers interested in. The perception of your product/ service is directly linked to those values. For example, take a look at the below positioning map, what’ll you see?

 

Positioning map example

Positioning map example

It’s easy to see that Domino Sugar is the dominant player that is tastier and more natural among its competitors.

 

The bottom line

Positioning in marketing is no easy feat; it requires time, dedication, and even the courage to say “no” to some things. However, it’s critical, especially when you’re struggling to create consistent revenue streams, bring in new customers, and retain your current ones.

 

It’s a way to attract prospects, talent, and influencers to your company, and that is something you definitely have time for. Hopefully, our guide to creating an effective positioning strategy can help you deal with that!