Positionierung
Strategy

What is Positioning? (And How to Do It Right)

Philipp S.
Last updated on October 19, 2022

If there’s one thing that all business owners know, it’s that you need to put your best foot forward when it comes to marketing your company. You need to find a way to make your brand stand out from the rest and influence consumers’ perceptions of what you offer. One of the most effective ways to do this is through positioning.

By taking a strategic approach to how you present your brand, you can create a lasting impression in the minds of consumers. In this post, we’ll explore the power of positioning and share some tips on how you can use it to your advantage. So read on for more insights into this powerful marketing tool!

What is Market Positioning?

Marketing positioning describes the ability to influence consumer perceptions about a company or its competitor. Market positioning aims to establish a brand’s identity and make consumers see it a certain way. To do this, businesses use positioning strategies to stand out from the competition and create a unique selling proposition.

There are many different ways to position a brand. But ultimately, the goal is to influence how consumers perceive the brand in relation to its competitors. If done correctly, market positioning can be a powerful tool for driving sales and growth.

There are many factors to consider when developing a market positioning strategy. But some of the most important include:

  • Creating an emotional connection with consumers
  • Reinforcing a brand’s existing image
  • Attracting a new audience
  • Filling a void in the market

A company’s position in the market can be weak or strong. A weak position means the company is not differentiated from its competitors and is therefore disadvantaged. A strong position, on the other hand, gives the company a competitive edge.

Why is market positioning important?

Market positioning is important because it helps companies communicate the unique benefits of their products or services to their target markets. Without a clear and compelling position, companies risk being lost in the noise of the marketplace.

Differentiation and Positioning: What is the difference?

Both differentiation and positioning are important aspects of a company’s marketing strategy. However, they are not the same thing. Differentiation is about creating a unique offering that separates a company’s products or services from its competitors. Positioning is about communicating the amazing benefits of a company’s products or services to its target market.

Differentiation is a necessary but not sufficient condition for success. A company can have a unique offering, but if it cannot communicate the benefits of that offering to its target market, it will not be successful. Similarly, positioning is also necessary but not sufficient condition for success. A company can have the best position in the market, but if it does not have a differentiated offering, it will not be successful.

A company’s position in the market is determined by its marketing mix, which includes factors such as price, product features, and promotion. The most successful companies are those that find the sweet spot where all of these factors come together to create a unique and appealing offering.

The Positioning Strategies You Can Implement

To be successful in a certain market, a product must have a clear, distinct, and appropriate place in the thoughts of previous and potential consumers. This is usually achieved by a combination of strategies. Here are the popular positioning strategies that your business may employ:

Preemtive Positioning

Preemptive positioning is all about being the first to market with a new product or service. It’s the “if you build it, they will come” approach. The idea is that by being first, you’ll be able to establish your product or service in the minds of consumers before your competitors have a chance to get their foot in the door. This can be a very effective strategy, but it’s also a high-risk/high-reward one.

Comparative strategies

This type of positioning strategy is all about comparisons. You compare your product or service to your competitors’, and position yourself in the minds of consumers as being better, faster, cheaper, etc. This is a very common approach, but it can be dangerous if you’re not careful. After all, if your competitor is bigger and more established than you are, they may be able to turn the tables and use the comparison against you.

Exclusive positioning

This is the polar opposite of the comparative approach. Rather than trying to position yourself in relation to your competitors, you focus on positioning yourself as the only option. This can be done in a number of ways, but one common approach is to focus on a niche market that your competitors don’t serve. Another is to offer something that nobody else does, like a unique product or service.

The advantage of exclusive positioning is that it can be very effective in helping you stand out from the crowd. The downside, however, is that it can be difficult to pull off and usually requires a lot of investment to get right.

Superlative positioning

Superlative positioning is all about claiming to be the best at what you do. This is often done by making comparisons to your competitors, or simply making bold statements about your own superiority. The advantage of this approach is that it can be very persuasive, particularly if you can back up your claims with evidence.

Positioning according to product benefit(s)

This approach involves focusing on the benefits that your product or service offers, and then making these the key selling points in your marketing. For example, if you offer a product that is more environmentally friendly than others on the market, you would focus on this in your marketing messages.

Price positioning strategy

This is where you focus on your pricing in relation to competitors’ prices, or in relation to the perceived value of your product or service. For example, you might position yourself as a ‘budget’ option in comparison to more expensive rivals, or as a premium option with a higher price tag but also superior quality.

Positioning for a specific user or user group

This is where you target your marketing messages at a specific audience or demographic. For example, you might produce marketing materials aimed specifically at young people, or working mothers or baby products that focus on safety and health.

Positioning by competitor strategy

You can also think about how you want to position your product or service in relation to your competitors. For example, you might want to be known as the ‘low cost’ option in comparison to other more expensive brands, or the ‘premium’ option with a higher price tag but also superior quality.

Perceptual Map in Market Positioning

PerceptualMap1
Source: wikipedia.org

A perceptual map was developed to show consumers’ perceptions about specific companies in general. It identifies where your competitor stands in comparison to you and helps identify opportunities in the marketplace.

There are many ways to create a perceptual map, but one of the most common methods is to use a quadrant. This approach can be used for any positioning strategy, but it’s especially helpful when you’re thinking about how to position your product or service in relation to your competitors.

As can be seen from the perceptual map, the market positioning of a brand can have a significant impact on its perceived value. Therefore, it is important for companies to carefully consider their market positioning when developing their marketing strategy.

How to Create an Effective Market Positioning Strategy?

There are a few key factors that companies need to consider when creating an effective market positioning strategy. These include:

Target Market

The first step is to identify the target market for the brand. This includes identifying the demographics, psychographic, and needs of the target market.

Determine company uniqueness by comparing to competitors

You must understand your competition before you can develop a market positioning strategy. This means taking a close look at what they offer, how they reach their target market, and how they are positioned in the marketplace.

Competitor positioning analysis

Describe the market conditions: How much influence a competitor has on each other. Conducting a competitor positioning analysis will help you understand how each competitor is perceived by the marketplace.

What are the unmet needs of the target market?

Once you have a good understanding of your target market and your competition, you can start to identify the unmet needs of the target market. These are the needs that your brand will be able to address and satisfy better than

Unique Selling Proposition

Once the target market and competition have been identified, companies need to develop a unique selling proposition (USP). This is what sets the company apart from its competitors and is what will attract customers to the brand.

Identify current market position

Determine if identifying your current market position differentiates you from other companies’ offerings and how that would impact you.

Positioning Statement

The final step is to develop a positioning statement. This is a concise statement that articulates the company’s USP and how it will be positioned in the market.

Ways to strengthen a company’s positioning in the market

By now you should know how an effective marketing position can make a big impact on a company’s bottom line. Here are some additional ways you can strengthen your brand’s position in the marketplace:

Improving the quality of the product offered

This is the most obvious way to stand out in the market. If your product or service is of a higher quality than what your competitors are offering, customers will be more likely to purchase from you.

Focusing on customer service

Another way to differentiate your company is to focus on customer service. This can be anything from providing helpful and friendly customer service to going above and beyond for your clients.

Offering something unique into the market

Another way to position your company is to offer something unique that your competitors don’t have. This could be a unique product, a new take on an existing product, or even just a different approach to customer service.

Creating an innovative brand image

Creating an innovative brand image is another key aspect of market positioning. This can be accomplished by creating a unique selling proposition or USP. Your USP should be something that sets your company apart from the competition and makes your products and services more appealing to customers.

Building strong relationships with customers

Building strong relationships with customers is another important part of market positioning. By developing a strong rapport with your target market, you’ll be able to better understand their needs and wants. This, in turn, will allow you to position your products and services in a way that meets their needs.

Creating a niche market

Creating a niche market is another effective way to position your business. By targeting a specific group of people, you can better meet their needs and wants. This will also allow you to set yourself apart from the competition.

Fostering employee loyalty

Fostering employee loyalty is another important part of market positioning. By creating a positive work environment, you’ll be able to attract and retain the best employees. This, in turn, will allow you to position your business as a great place to work.

Creating a positive image

Creating a positive image is another key element of market positioning. This can be done by ensuring that your marketing materials are professional and accurate. You should also focus on creating a positive customer experience.

Offering competitive prices

A final way to differentiate your company is to offer competitive prices. This could mean offering discounts, sales, or even just having lower prices than your competitors.

No matter which method you choose, it’s important to make sure that you’re constantly thinking about how you can improve your company’s position in the market. By doing so, you’ll be able to stay ahead of the competition and keep your business thriving.

When it comes to market positioning, there are a few things you should keep in mind. First, make sure that you’re always thinking about how you can improve your company’s position in the market. By doing so, you’ll be able to stay ahead of the competition and keep your business thriving.

Algorithm used in positioning analysis

There are a variety of algorithms that can be used in positioning analysis. The most popular ones include:

Cluster Analysis

This algorithm is used to group data points together. The goal is to find natural groupings in the data. This can be useful for identifying market segments.

Conjoint Analysis

The conjoint analysis is used to measure the importance of different features of a product or service. It can be used to determine which features are most important to customers.

Correspondence analysis

The correspondence analysis is a type of graphical representation that displays the relationships between and within two groups. In this case, we’re analyzing how people feel about brands as well as what attributes they associate with those brands.

Multidimensional scaling (MDS)

Multidimensional scaling is a technique used by marketers to identify key dimensions underlying customer evaluations of products, services or companies. This can be useful for understanding what differentiates one brand from another and why certain customers may choose one option over another in an economy where there are many competitors offering similar goods/services on the market place

These we are just a few algorithms that can be used for market positioning your businesses product. For example, you could use cluster analysis to identify natural groupings among your customers and then use MDS to map those groupings onto a perceptual map. This would give you a clear picture of how customers perceive your brand in relation to other brands on the market.

Repositioning: Why and How Companies change their positioning

Respositioning is about changing the way that customers perceive your brand in relation to other brands on the market. It is about creating a new, unique position for your brand in the minds of customers. And it’s not something that you can do overnight – it takes time, effort and planning.

There are certain situations when a business would benefit from repositioning its brand. These conditions are as follows:

  • Current position is no longer working well
  • Better align with new market opportunities
  • The company wants to change its image or reputation
  • There are changes in customer needs or preferences
  • Response to changes in competitor’s positioning

There are a few different ways that companies can go about repositioning their brands. They can either change the way that they communicate with customers, or they can change the actual product or service itself.

If a company wants to communicate differently with its customer base, then it needs to focus on creating a new message and identity for the brand. This will require developing a new advertising campaign, as well as changing the way that employees interact with customers.

If a company wants to change its actual product or service, then it will need to make changes to its offerings. This could involve adding or removing features, or changing the price point. The company will also need to make sure that its manufacturing process can handle the changes, and that its employees are trained on the new product or service.

Once a company has decided on which direction to take, it needs to make sure that all of its communications reflect the new positioning. This means updating the website, social media accounts, marketing collateral, and anything else that potential customers might see. Consistency is key when it comes to market positioning, as any inconsistency could confuse customers and make them less likely to do business with the company.

No matter what method you choose, make sure that your marketing strategy is clear and concise. When customers know what to expect from your company, they’re more likely to do business with you.

Each of these strategies can help to make your company more attractive to customers and improve your chances of success in the marketplace. By taking the time to position your company correctly, you’ll be able to maximize your chances for long-term success.

Conclusion

Positioning your product or service correctly in the market is essential for success. You need to be able to differentiate yourself from the competition and find the right place for your product on the perceptual map. Luckily, there are a number of positioning strategies you can use to get started.

If you’re feeling lost, or just want some help putting together an effective market positioning strategy, our team at can assist you. We have extensive experience working with businesses of all sizes and can help you navigate these tricky waters so that you come out on top.

Have you ever had to reposition your company? Why did you choose that route and what were the results? Get in touch if you’d like to share your story with us!

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