Whether you realize it or not, your brand and products already have a positioning in the market. So, what is positioning?
This is what ensures you have a strategy that differentiates your brand and products from others. If it doesn’t stand out, it means you don’t have a positioning strategy.
So, What Is Positioning?
A positioning strategy is a series of actions and processes designed to enhance the image and visibility of a brand, company, or product.
Positioning in the marketing world is necessary to make an impression on the target market and convince them to view your product or brand in a certain way.
Nowadays almost all brands use positioning to build a brand identity or image to differentiate them from their competitors.
So, positioning isn’t about the activities a company undertakes with its product. Rather, it’s about the activities a company undertakes to shape consumer perceptions of the product.
Types of Positioning
1. Market Positioning
This type of positioning is used to build a brand or product image in the minds of consumers. This is achieved through the 4Ps:
- Promotion
- Price
- Place
- Product
What is the purpose of market positioning? To make customers see your product and brand as a leader in the market. If positioning is executed well, this will open up significant opportunities to connect with customers.
Examples of market positioning are as follows:
- Women’s shoe companies position their shoe products as a status symbol for women.
- Fast food companies that have sandwich menus position their products and brands as healthier fast food options.
- The car company positions itself as the safest car choice for families.
2. Brand Positioning
This is how a company positions its brand in the minds of its customers. There are three types of brand positioning:
- Comparative Positioning or Comparative Position
This positioning is done by comparing the product or service with the alternatives available to its target demographic.
This strategy helps build a Unique Selling Proposition (USP) and highlights the product’s value compared to other products in the market.
- Differentiation Positioning or Difference Position
If you want to focus on product features that cannot be copied by market competitors, then use this strategy to ‘differentiate’ yourself from competitors.
- Segmentation Positioning or Segmentation Position
If a company targets more than one target audience, determining segmentation positioning can be useful because it helps meet the specific needs of each group.
Some examples of brand positioning are:
- Pepsi vs Coca-Cola
- Netflix vs Apple TV
- Zoom vs Microsoft Teams
3. Product Positioning
What is product positioning? It’s a method used to find a place for a product or service in the market.
Positioning defines what makes your product different from others in the market so you can focus on delivering effective messaging to explain its value to potential customers.
There are four main components of product positioning, namely:
- Target
It is important to set targets before starting to work on marketing activities, which are based on important criteria, including demographics, geography, psychographics, pain points, customer needs, and so on.
- Categories
You need to be able to identify which category your brand or product will compete in. Is it technology, fashion, or something else? Providing clarity on this will help build brand relevance with customers.
- Differentiation
When creating your positioning, include one differentiation of your own and explain in detail why you have that difference. Also, make sure the differentiator is from a customer perspective, not a business perspective.
- Rewards
This part of positioning ties differentiation to the needs or goals of the target market. Therefore, it’s important to communicate with your target market so they know exactly how your differentiated product will meet their needs.
So, product success depends heavily on a deep understanding of the target market. Any understanding should be based on solid market research, never relying on assumptions.
Examples of product positioning include Bumble and Tinder. Did you know that Bumble is positioned as a dating app for women? This is because its founders had negative experiences with several men on Tinder.
After designing the app with a system where only female users could initiate the first contact, Bumble has now also become a dating app that can also be used to find friendship or professional connections.
How to Create a Positioning Strategy
1. Identify Goals
Start by clarifying your objectives for creating a positioning strategy. What do you want to achieve? For example, increasing market share, targeting new customer segments, or rebranding your business.
Having a clear goal will guide the positioning strategy you want to create.
2. Study Your Competitors
A thorough competitor analysis is essential. Identify competitors and study their market position.
Additionally, understand how they communicate their unique value proposition and what sets them apart. This will help you identify opportunities to differentiate your brand from competitors.
3. Create a Perceptual Map
This is a visual representation of how consumers perceive your brand in the marketplace. It will help you understand where your brand stands among competitors.
Create a flow or sequence of your brand and competitors’ brands on a map to identify gaps and opportunities for positioning.
4. Create a Timeline
Develop a timeline outlining benchmarks and deadlines for implementing your positioning strategy. This timeline should include tasks such as market research, branding updates, content creation, and promotional campaigns.
By having a well-structured timeline, you keep your strategy on track.
5. Find a Theme or Topic
Identify niches or topics within a specific market segment that align with your brand’s strengths and unique offerings. By focusing on these niches, you can become an expert in that area and connect more deeply with your target audience.
That explains what positioning is, along with its types, examples, and steps for implementing it. If you still need help managing your business, you can use the Labamu app.
Whatever your business industry, from culinary and fashion to services to handicrafts and agriculture, there are various features that can help. For example, QR Menu, Order Management, and Invoicing features.
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