Market Positioning is an effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. It is the procedure of establishing and defending a precious position for products and services comparable to the competition. Its objective is to occupy a clear, unique, and advantageous position in the consumer’s mind. The primary elements of positioning are:
- Pricing:
Is your product a luxury item, somewhere in the middle, or cheap, cheap, cheap? It is associating your brand/product with competitive pricing. Price is one of the strongest types of competition. In many industries, customers normally purchase the lowest price item that meets a minimum level of quality.
- Quality:
Total quality is a much used and abused phrase. But is your product well produced? What controls are in place to ensure consistency? Do you back your quality claim with customer-friendly guarantees, warranties, and return policies? It is associating your brand/product with high quality. It is the value of your products and services including intangible elements such as experience and reliability. Often the only way to keep away from exhaustive price competition is to offer a superior level of quality that your intention consumers robustly favor.
- Service:
Do you offer the added value of customer service and support? Is your product customized and personalized? It is the capabilities and performance of your products and services. Identifying your intention consumers and how you will accomplish a set of needs. This can contain functionality and experience. Customers gravitate towards products and services that make life easier. This can contain location, usability, and terms. For example, the convenience of an e-commerce site with extensive product variety, low prices, easy ordering, and free returns.
- Distribution:
How do customers obtain your product? The channel or distribution is part of positioning. Customers often buy from the most convenient location or from the salesperson who reaches out to them first.
- Packaging:
Packaging makes a strong ‘statement. Make sure it’s delivering the message you intend.
- Competitors:
Making consumers think that your brand/product is better than your competitors. Compare and contrast the differences between your company and competitors to identify opportunities. Understanding the differences between a business and its competitors is innermost to finding gaps in the market that can be filled.
