While gaining visibility for a brand is the ultimate goal of any business, many steps need to be taken to achieve a fully effective business strategy. A company’s marketing positioning strategy focuses on future marketing and advertising efforts that can turn prospects into customers and customers into advocates.
To establish themselves as experts in their industry, companies need to create quality content and provide solutions for their target audience’s problems. By creating an effective marketing positioning strategy, companies can build a positive brand image for themselves.
In this article, we will look at:
1) What is Marketing Positioning?
2) How to determine the best market positioning strategy
3) How to create an effective market positioning strategy
What is Marketing Positioning?
Market Positioning is the consumer’s perception of a brand or product compared to competitors in the industry. It is the process of building a positive and memorable brand image. Positioning defines how unique a brand is, as well as the distinct benefit this brand offers customers. An effective market positioning strategy is crucial to any business’s brand development and sets successful companies apart from their competition.
It is true that perception is that it can vary from person to person. Even so, many PR and marketing professionals use strategic positioning in a way that benefits companies. A good marketing positioning strategy can result in:
- Heightened awareness
- Premium pricing
- Helping companies bounce back from crisis
- Increased brand equity
How to determine the best market positioning strategy
Before a company or marketing professional creates a strategy, they need to determine which one is best suited to their needs. A successful positioning strategy relies heavily on having a deep understanding of the marketplace.
Customers appreciate a clear positioning strategy which presents a distinct goal. In order for a brand to build a good reputation, they must deliver on the promises they make in their positioning. For this reason, there needs to be a cohesive effort between a company’s business strategy, and its sales and marketing tactics.
1) Positioning based on product characteristics
Products and services are usually created to meet consumers’ needs, which means that a positioning based solely on a company explaining the features of a product or service is not good enough. By talking about product characteristics or benefits, brands can highlight elements which are beneficial to their target audience.
2) Positioning based on price
By using price positioning, brands are associating themselves with competitive prices in their target market. With this strategy, brands aim to be the cheapest or one of the most affordable among their competition, and value becomes their position.
Fashion brands like Shein and Wish are prime examples of companies that choose pricing as their positioning strategy by providing consumers with fashion items that are very affordable in price but may lack quality.
3) Positioning based on quality
In the mind of a consumer, high prices should be associated with high quality. Combining both aspects, products positioned in this way are focus on high quality rather than price. To create a burning desire to obtain the products, brands will often withhold information like price point so that high quality and prestige is the main topic of conversation.
4) Positioning based on product use or application
In the current economic climate, consumer behaviour has changed as people try to save money. This means that companies need to use their best effort to prove to consumers their product or service is worth buying and there is an actual use for it.
5) Positioning based on competition
By doing prior research and understanding their competition, companies can highlight the critical difference between their product/service and other offerings in the marketplace.
How to create an effective marketing positioning strategy
To create an effective market positioning strategy, companies must first identify what makes them different from their competitors. They need to do the appropriate research and gain insight into the current market. To do that, they need to determine how their brand is currently positioning itself, identify their direct competitors, understand how each competitor is positioning their brand, develop a distinct and value-based positioning strategy, and craft a compelling brand positioning statement test the efficiency of their message.
1) Find the current market position
For companies that have already existed in the market for quite some time, they may need to focus on “repositioning” themselves. Rather than moving forward without understanding their current positioning, they need to gain valuable insight to position themselves higher than their competition.
They need to go back to their original message and make sure they know what their brand stands for, who their target consumers are, their mission and mission, what makes them stand out, and their target customers’ pain points so that they can solve their problems.
Companies should also look at previous content to see what keywords appeal to their target audience. They can take note of what content worked and what didn’t to create content that resonates more with consumers. If companies are not sure about how to create appealing content, they can reach out to PR and marketing professionals who can guide them through the process.
PR agencies like Pressfarm help startups, entrepreneurs, and existing companies create new content or revamp their original message. By writing articles with a creative spin and crafting the perfect email pitches, Pressfarm’s PR professionals and writers work with companies to create a memorable brand image. With an extensive database of over 75,000 journalists, Pressfarm can also help you find your perfect media match. They also have experience helping companies increase online visibility by optimizing branded content to show up on relevant search results.
2) Analyze competitors
After understanding their positioning, companies need to analyze their competition by performing competitor analysis. It is vital to see what they are up against to know what they can do to better position themselves.
Companies can conduct market research by using relevant keywords. Alternatively, they can use customer feedback to ask consumers which brands they would consider shopping from. They can also search online communities and forums to see what their target audience says about them and their competitors.
3) Develop a unique position
Once a company has decided on the ideal market position for their brand, they need make sure it will help them stand out from competitors. This process gives companies the ability to outline who they are as a company and who they aren’t.
While conducting market research, companies will see strong and weak points in every business; what may be a weakness for one may be the strength of another.
4) Drafting a market positioning statement
Not mistaken for a company tagline or slogan, a market positioning statement is a declaration that a company makes to communicate its unique value to the customers.
The four essential elements of any effective positioning statement include; target customer, market definition, brand promise, and reason to believe. The statement should provide a concise summary of target customers’ descriptions, clearly place a brand in a specific category, have a compelling benefit to the company’s target audience, and provide evidence that the brand will deliver on its brand promise.
5) Testing the effectiveness of brand positioning
Once a company has developed a marketing positioning statement, the final step is to test it out within its target audience and industry. By running a full analysis that features all forms of research, from focus groups and in-depth interviews to surveys and polls, a company can collect enough data to strengthen their market positioning strategy.
Regardless of a company’s expectations, having a compelling market positioning strategy is essential for its overall business success. Positioning in the market determines where a brand stands relative to its competition. It is crucial for brands to actively seek out their unique strengths and emphasize these with their marketing in a highly saturated landscape. Either by themselves or with PR and marketing professionals’ help, companies can change their positioning and use their past failures to drive their future success.