Product positioning is the process of determining new products’ position in the minds of consumers. It includes analyzing the market and competitors’ positions, defining the position of a new product among the existing ones, and communicating a particular brand’s product image. Show
Companies can implement product positioning by using communication channels, pricing, or quality of the products to stand out and be recognizable. In this article, we’ll discuss the importance of product positioning and its benefits, talk about several strategies, explore the steps you need to take to position your product, and see several examples. Why is product positioning important?Each brand has to know its customers to provide a product that resonates with their needs. A well-thought-out strategy can determine the position of this product within the market and identify its benefits for consumers. The process involves creating a particular image of a brand and its products in consumers’ minds and identifying the key benefits to show how a particular product differs from competitors’ alternatives. Afterward, the difference is communicated to a brand’s target audience through the most effective communication channels. The messages brands convey to their customers should evoke interest. Marketers need to determine the best ways to present specific products and reach their target audience based on customers’ needs, competitive alternatives, the most effective communication channels, and tailored messages. Implementing product positioning strategies enables companies to create messages that address their customers’ needs and wants and entice them to purchase. There are even more pros this type of marketing can bring, so check out our list to know all of them. Benefits of product positioningWe’ve prepared the top benefits of product positioning that show why it’s one of the most effective marketing tactics. It helps in:
Now that you know the advantages, we’ll move to the next section to review product positioning strategies.
While a lot of time is devoted to product development, only a few companies think about how consumers will perceive the product when it’s already in the market. Product positioning is about understanding the products you decide to introduce to the masses. That’s why it’s critical to pay attention to what your customers think. Let’s explore the key strategies that will help you define the position of your product.
The difference is clear now, so it’s time to jump to the steps required for successful product positioning. 10 Steps to Position Your Product
The way your customers perceive your brand is crucial since they define your sales volume, the success of your business, and the profits your company will earn. Therefore, you should be ready to present your products honestly and effectively. To do this, you need to consider the following steps.
Now that you know the steps, let’s move to the examples. Examples of Product PositioningWe’ve prepared several examples of famous brands that work in different industries and implement product positioning. Let’s dive in to grab some inspiration. Beautycounter — clean beautyThe brand famous for its skincare and cosmetic products promotes clean beauty. The company strives to create products that are safe for our environment. Beautycounter stands for sustainability and uses ingredients that can’t harm the environment. Nike — high qualityNike, a famous brand that designs, develops, and manufactures running shoes and sportswear, positions itself as a company that provides athletes with high-quality, fashionable athletic sneakers and apparel. Thrive Market — healthy livingThis retail company offers customers healthy food from the best organic brands. They provide their clients with products at wholesale prices. To sum it up, with a well-thought-out strategy, your company will be able to build an image you strive for and pave the way to reaching your audience. Plus, it will empower your company to be market-oriented, resonate with your customers’ needs, and easily adapt to the changes within the market. Resources:
Last Updated: 18.08.2022 What is responsible for a product product line or several distinct products in an interrelated group within an organization?A product manager is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization.
Which of the following occurs between similar products and is based on buyers perceptions of the benefits of products offered by particular companies?Brand competition occurs between similar products, such as the auditing services provided by the large accounting firms of Ernst & Young and KPMG. Brand competition is based on buyers' perceptions of the benefits of products offered by particular companies.
What is the primary distinction between a line extension and a product modification?What is the primary distinction between a line extension and a product modification? extension is simply changing an old product. with a product modification than it is with a line extension. segment while product modifications target entirely new segments of the market.
What type of failure has occurred when a new product introduction loses money for the company?Market cannibalization is a sales loss caused by a company's introduction of a new product that displaces one of its own older products. Market cannibalization can occur when a new product is similar to an existing product and both share the same customer base.
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