Market Positioning or Marketing Positioning is the act of defining where you belong in the market landscape.
The question often asked is where do you stand? Market Positioning is not about claiming to be number one. It’s not about trying to claim that you are number one for no reason at all. Market positioning simply refers to the location that a product or brand occupies in the heads of the buyers and how it differs from the ideas of other products and the existing brand concept.
Market segmentation is the process of defining the various market segments that customers perceive themselves into.
A company’s marketing strategy will depend on the extent to which the market segment’s customers perceive themselves to differ from others. For example, a marketing strategy might be better off targeting the core market segments (owners, employees, retirees, renters, and children) versus market segments where they have less of an affinity (workers, students, affluent, upper-class, etc.).
Once a company has developed its market positioning, it must then determine what it is selling (its value proposition statements). A good marketing strategy will help a company to pinpoint its value proposition statements so that it can better position itself in terms of offering what the target market wants. The value proposition statements of a company should include:
A good marketing strategy will require market research.
A company will need to identify the target market segments to which it intends to sell its products. This market research can take the form of a questionnaire, focus group, or market research online. It also may require field surveys, among other methods. Once the market research results have been analyzed, a marketing manager will be able to develop a marketing strategy based on the information the data reveals.
In terms of developing a value proposition for a business, a market positioning statement will usually contain three elements: the promise of value, the product or service’s market position, and a call to action.
The promise of value refers to what the product or service will give the customer, and the call to action can be presented in different forms. It could be as simple as “take one step closer to success” or as complex as “make your life easier.” Developing a strong value proposition will require research and analysis of market conditions. It will also require developing a marketing position strategy.
A good positioning statement will make clear the benefits customers will receive if they do business with a specific company.
It should highlight these benefits in simple everyday language. Additionally, it should offer measurable quantitative proof of these benefits. The quantitative proof should come from relevant market data, consumer studies, or other means deemed appropriate by the market positioning statement writer.
Developing a marketing position strategy is important because it gives companies an insight into how consumers perceive their buying decisions.
Market positioning affects buying decisions in several ways. First, it increases consumers’ confidence in purchasing decisions. Second, it shifts spending from expensive products to more affordable products. Third, and perhaps most importantly, it shifts spending from brands to non-branded products.
Consumers perceive brand identity in many different ways. Some perceive the brand identity as a logo or color combination. Others perceive the brand identity as a consistent model of quality, service, and product use. Developing an effective marketing position and a robust marketing position statement will increase a company’s perceived ability to meet the customer’s expectations and create a competitive advantage.
Companies need to be very clear about what they stand for and why customers should care.
Customers need to understand why and how their brand is different from competitors and why they should care about it. Brand positioning creates trust and credibility. Building trust and credibility require careful planning and consistent communication with the public. There are several ways for companies to market their positioning: Brand positioning through advertising and public relations.
Companies also must create their own unique positioning maps.
A positioning map is a visual representation that clearly shows the relationship between a company, its products and services, and its competitors. In the past, companies had little choice but to rely on market research to understand their positioning relative to their competitors. However, with the advent of the Internet, companies can now analyze their positioning on the Internet. Internet positioning maps provide information about competitor websites as well as general industry information such as price and gross profit.
The Internet is an excellent tool for analyzing your own positioning map and for generating competitor positioning maps. Many companies use a variety of tools including surveys and market research. One of the most effective tools for market positioning analysis is the positioning map. These positioning maps allow you to quickly determine which keywords are being searched and which keywords potential customers are entering in order to find you.