Why Market Positioning Matters & How To Build Your Positioning Strategy
Successful market positioning requires a deep understanding of the target market and the ability to differentiate a brand from competitors in a meaningful way. That may be a lot of work, but effective market positioning can help a brand establish a strong reputation, build customer loyalty, and drive sales and revenue growth. Let's explore why market positioning matters and how to build a positioning strategy that will help your business grow.
Read also: How to measure brand loyalty
What Is Positioning & Why Do You Need It
Market positioning refers to the process of creating an image or identity in the minds of consumers for a brand, product, or service. It involves identifying unique features and benefits that distinguish a brand from its competitors and communicating those features to target customers in a way that resonates with them. The goal of market positioning is to make a brand stand out in the minds of consumers and occupy a specific "position" or niche in the market.
Market positioning is the process of researching the market and competitors, identifying target customers and their needs and preferences, and creating a unique value proposition for the brand. The process also includes developing a brand strategy, creating a unique brand identity, and communicating the brand's positioning through various marketing channels, such as advertising, promotions, public relations, and product packaging.
The goal of positioning is to make a brand stand out in the minds of consumers and occupy a specific "position" or niche in the market. By doing so, you automatically increase the chances of every product or service that brand offers succeeding. It's a great strategy because it can greatly help your promotional efforts and marketing campaigns by leveraging the brand's position on the market and in the minds of your target audience. A great example of product positioning is Nike's Jordan line of products which appeals to a very specific target market that associates Jordan's name with success and greatness. This is just one of many successful positioning strategies that shows how powerful market positioning can be as part of your marketing strategy.
How To Develop Your Positioning Strategy
Let's get down to what you really wanted to know - how to use this "magic" to grow your business and brand. Marketing positioning is a complex subject but as with most modern marketing strategies - it all comes down to knowing your market, audience, their needs and core values.
Conduct Market Research
The first step in building a market positioning strategy is to conduct thorough market research and conduct competitor research. This research should include analyzing the competitive landscape, identifying target customers, and understanding their needs and preferences. This information will help you to identify opportunities for positioning your brand, product or service in a way that resonates with target customers and sets it apart from competitors.
Read also: Increase marketshare with brand research
Define Your Target Audience
Based on your market research, define your target audience and segment them based on their needs and preferences. This will help you to tailor your positioning strategy to the specific needs and preferences of your target customers. Segmenting your target demographic is crucial if you want to appeal to their values and get an in-depth understanding of how customers perceive your brand as well as your main competitors.
Determine Your Unique Value Proposition & Positioning Statement
Based on your market research and understanding of your target audience, determine what makes your brand or product unique and what value it provides to customers. This is your unique value proposition and should be the foundation of your brand positioning strategy as well as your marketing strategy. A crucial element is creating a compelling positioning statement that will summarise your brand's unique value to potential customers.
A positioning statement is a crucial element of an effective positioning strategy because it helps you stay focused and guides your marketing efforts to be more customer-centric. Here's some examples of positioning statements from brands who have successfully positioned themselves for reference:
- Apple: Apple provides cutting-edge technology for tech-savvy consumers who want the top of line laptops, computers, and mobile devices. Apple promotes inclusion and accessibility for all and takes responsibility for its employees in addition to committing itself to sourcing the highest quality materials and products.
- Starbucks: Starbucks offers the best coffee and espresso drinks for consumers who want premium ingredients and perfection every time. Starbucks not only values every interaction, making each one unique, but the brand commits itself to the highest quality coffee in the world.
- Nike: For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike's commitment to innovation and investment in the latest technologies.We'll get into it more below, but your positioning statement, as any part of your marketing positioning, should be monitored and adjusted as needed. Chances are, you're not going to get it right on the first try and that's perfectly normal. Being aware of the power of positioning is the first step and once you take it, you can work on continuously improving your branding as you go.
Communicate Your Brand's Values
Once you've come up with a positioning statement and defined and segmented your target market, it's time to start communicating this very positioning statement to the world. Your market positioning strategy needs to be part of your overall marketing strategy as well as sales process. It's not enough to have a positioning statement - your marketing campaigns, the customer journey and all brand-related assets need to align with it.
Read also: The secrets behind brandbuilding
Monitor & Adjust
Regularly monitor and evaluate the effectiveness of your positioning strategy and make adjustments as needed. This may involve adjusting your marketing mix or refining your positioning strategy or positioning statement based on changes in the market or customer feedback. It's important to make sure you're asking your customers or potential customers about how they perceive your new brand positioning efforts, the message you're communicating and the channels you're using to do so.
Get Started With Brand Positioning
Every customer-centric company should consider positioning an important part of their overall strategy. And besides conducting competitor analysis, researching your market position, conducting focus groups or interviews, you can also get a brandr Index report - it's a 360 evaluation of your entire brand both from the outside and inside perspective. After the evaluation, you'll receive a thorough report complete with actionable insights you can start implementing right away.
If you're ready to level up your brand - contact us and let's get started on your brandr report!
Dr. Fridrik Larsen is the inventor of brandr Index, he has a diverse background in business, psychology and economics, both from an academia and his professional life. Fridrik holds a phd in branding and writes about most things relevant to that area. However, he has a specific interest in helping others to leverage the power of branding to increase the bottom line. Therefore a lot of his writing focuses on why we should care about branding and why it should be a strategic concept talked about in boardrooms.