Building an incredible product isn’t the only factor that will make your product your customers’ first choice or drive sales through the roof. Product positioning is the reason customers will choose your products over competitors.
Product positioning is how you get customers to see your product’s value and uniqueness. It helps you identify the most effective way to market and sell your product.
Let’s find out why product positioning can make or break your sales and how to do it properly.
Product positioning is identifying where your product fits in the market, its unique attributes, and why it’s better than your competitors.
Successful product positioning allows you to manage customer expectations and leave a positive impression on them. It enables you to differentiate your product and makes customers desire it.
As a result, it is always best to take a user-centric approach, when developing a product positioning strategy. First, determine your target market’s needs and desires, and then make your product the solution.
For example, Customers perceive your competitors’ brand tone to be very formal. You can position your brand as an approachable and friendly alternative.
Product positioning helps you plan how you want to launch your product and how you approach the target market for your product. This guides your product and marketing teams in developing successful product launch strategies.
It asks and helps you answer important questions about your product and target audience. Here are some examples:
The answers to these questions will enable you to effectively channel your marketing and product development efforts. It positions your product to be well-received by your target market and outperform your competitors.
Product positioning enables you to identify people who need your product, customize its features, and market it to them effectively.
When you focus on your target market, you will increase customer satisfaction, which will lead to increased customer loyalty and, eventually, brand equity.
Today’s market is so fiercely competitive that customers can drop your product in the blink of an eye; there are so many substitutes and alternatives.
Product positioning allows you to differentiate your brand from competitors and offer superior product value.
Product positioning enables you to understand what your customers want and ensures that your brand delivers. It helps you meet and even exceed customer expectations. This reduces the likelihood of customer dissatisfaction with your products.
Product positioning provides you with a better understanding of your target audience’s needs and provides you with creative ways to meet them. This allows customers to associate your brand with specific products and services.
For example, the first product that comes to people’s minds when they think of online searches is “Google”.
Also, building products that solve customers’ problems helps you develop a relationship with your customers. This increases the likelihood of them sticking with your brand because of their emotional attachment and satisfaction.
Product positioning allows you to identify your target market’s pain points, which you can then use to solve their problems. You can use this information to identify product gaps and new features to add to your existing products.
This type of positioning uses price as the differentiating factor. This strategy positions the product favorably with the target market by making it the most affordable option available.
Price-based positioning is typically used for products that people do not have a strong loyalty to, such as pens, foot mats, etc. However, this strategy isn’t always sustainable; customers may continue to expect you to lower your prices, reducing your sales profit.
The lifestyle-based positioning selects its target audience based on their lifestyle preferences, values, and interests. To pull off this positioning, you must have a unique brand image with values that reflect your target audience’s lifestyle preferences.
For example, if your typical customer is vegan and values sustainability. Your brand should be eco-friendly and promote cruelty-free products.
The goal of characteristics-based positioning is to create a unique product image in your target audience’s minds. It uses your product’s features to position it favorably in the market.
Characteristics-based positioning highlights the benefits and values of your product features. This automatically distinguishes your products from competitors and makes you the more appealing choice for customers with specific needs.
This strategy helps you position your product as the premium quality in the market. This is an excellent positioning strategy if your target audience values quality over price.
Quality-based positioning positions your product as the superior option, with high-quality attributes such as incredible performance, superior craftsmanship, durability, etc.
For this strategy to work, you have to build your reputation and image as a premium brand. Exclusivity and uniqueness are key factors that make people willing to pay more for your products.
You can achieve this by using high-quality materials, creating unique designs, or limiting the availability of your products.
Determine and understand your target audience. You can start by listing your product features and creating user personas for people who need them.
Perform a competitor analysis to learn how your competitors position their products. It will help you identify their strengths and weaknesses.
You can also use it as a guide to improve your products and win over your target audience.
Identify what differentiates your product from the competition and capitalize on it. Knowing your competitive advantage allows you to focus your product development and promotional content on these attributes and their benefits.
Develop a plan for your product positioning research. Plan the method you will use, the questions you will ask, and who you will solicit feedback from.
Product positioning is based on presenting your product in a way that resonates with your customers. So you need to know what they want, you can use surveys, social listening, and trend research.
Aside from getting feedback on what they want, you should also learn how customers see you. You can do this with brand and product perception surveys.
Instead of simply listing your product’s impressive features, back it up with a compelling story. Brand storytelling forges an emotional bond between your company and its customers.
Make sure your story pinpoints the problem that your target audience is facing and highlights your product as a solution.
After identifying your target audience’s preferences and how to position your product for them. Next, create a positioning statement that differentiates your product from the competition and highlights its unique selling point.
Your positioning statement should be short, simple, and deeply resonate with your target audience.
First, test your product positioning strategy on a small group to see how they react. You can do this with surveys, focus groups, interviews, and polls.
After testing your positioning, analyze the results to determine its strengths and weaknesses. If you notice flaws in your positioning strategy, modify it to reflect customers’ demands.
A product positioning survey helps you find out how customers see your product in comparison to competitors. It helps you figure out how to differentiate your product from the competition and make it more appealing to customers.
It typically asks questions about your product’s quality, benefits, pricing, and overall value from customers. It also assesses their awareness and recognition of the product in comparison to its competitor.
For example, if a respondent indicates that they would not recommend your products, you can ask them why. If they would recommend it, they move to another question.
Successful product positioning allows you to outperform your competitors and gain a larger market share. It helps you appeal to customers by identifying their needs and positioning your product as a solution.
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