What is Product Positioning?

For businesses, product positioning is a beneficial practice that helps them identify where their new services or goods fit in respective markets and buyers’ minds. Also, this is a useful process to set apart a brand's products in a competing landscape by determining their unique features. This practice is dependent on 3 factors - the target audience, the product, and the market. In addition, it relies on the type of approach such as price positioning, quality positioning, and feature positioning. For any approach to work, creating a strategy to position commodities is important. As the strategy begins to function, the offerings are placed in the market and their sales are focused on.

What is Product Positioning?

In marketing, product positioning is a practice that determines the position of new commodities by brands in the minds of buyers. It is inclusive of conducting an analysis of the position of competitors and markets. On the basis of the same, this process outlines new items' positions among the ones that exist. Following this, it establishes the image of the brand. 

• In other words, product positioning relates to a strategic approach to marketing.

• This approach differentiates a service or good from similar ones.

• It helps create an exceptional image of an item in the target audience's mind.

• Thus, a business can gain a beneficial space in the perception of customers.

• As a result, buying decisions can be positively influenced.

Why is Product Positioning So Important?

Product positioning is important for businesses as it helps them offer goods that resonate with customers' requirements. During the functioning of this process, they can identify the position of goods in the market. Along with this, businesses can know their advantages for the audience. Consequently, it becomes possible to market them better and derive profits.  

• This process includes the development of a specific type of image of a business.

• The image is also developed in buyers' minds for the offerings of that business.

• It focuses on finding out the core benefits of the items to distinguish them from their alternatives.

• This difference is conveyed to the audience of that business.

• For this purpose, the best mediums of communication are preferred.

• Through messages that raise buyers' interests, product marketing is further carried out.

What are the Factors to Consider When Positioning Products?

There are 3 factors to look at when positioning the products of an enterprise, business, or brand. These include the target audience, market, and specific item or service. Understanding these is vital to determine their influence on this process. 

Market: 

For product positioning, the market factor is crucial to take into account to identify what the competitors are up to. This enables businesses to set themselves apart from others in the industry. While focusing on it, conduct thorough market research of the product or service's alternatives. 

Intended Audience: 

When positioning products, an enterprise should be aware of the market segments to target. It should also know the problems or challenges its offerings can resolve. This factor guides enterprises to develop buyer personas, taking into consideration their behavioral data and demographics. Note that doing so will additionally help in knowing buyers' requirements.

Services or Products:

Product positioning is reliant on services or items as well as their USPs. Every product or service has a USP or unique selling proposition. This factor makes a particular product or service different from the rest. This variation can be due to the features of the offering, the experience provided to buyers, etc.  

What are the Types of Product Positioning?

Companies can position their products and services across industries as per several approaches. Through 6 types of product positioning, they can understand these approaches. Each of these centers around a notable aspect of an item or service. These aspects are price, competition, image, feature, benefit, and quality. 

Price Positioning:

Certain products by brands are affordably available. In accordance with this aspect, brands can position them in markets. This is indicated by the price positioning type.

Competitive Positioning: 

In marketing, the competitive positioning type is based on why a specific item is better than its alternative. As per this observation, that item is placed in the industry and its marketing is planned.

Quality Positioning

Some commodities are notable for their quality, regardless of their cost. Their quality can help in effectively positioning them in a marketing landscape. 

Image Positioning

One of the types of product positioning focuses on the image of a brand and its offerings. It emphasizes the values of the brand that resonate with those of buyers. 

For instance, a venture may operate through socially responsible actions. Certain businesses may keep their practices sustainable to limit their impact on the environment. Such values appeal to specific customers. As a result, they show their preferences for their services or products.

Feature Positioning 

Enterprises can rely on feature positioning to place their commodities or services in the respective sector. It makes use of features that stand out, indicating why particular goods are unique. 

Benefit Positioning

An important type of approach to placing goods in markets is benefit positioning. It considers the pain points of consumers. Then it outlines how these goods can benefit the customers by resolving their concerns or meeting their needs. 

How Do You Create a Product Positioning Strategy?

To create a strategy for product positioning, a business should determine the type of customers to target. It should assess which services or products can meet their requirements. By observing gaps in its respective industry, the business can launch or make its offerings accessible. Afterward, it should monitor their performance in the marketplace.

• Start by identifying the audience to target and its needs.

• Then assess the competitors and detect market gaps.

• Find out the gaps that a brand’s product or service can fill in.

• Develop a unique selling proposition or USP of that service/product.

• Create a suitable message to put forth the advantages of the offering.

• Identify relevant marketing channels or social media platforms to share this message.

• Consider approaching influencers to market the service or product.

• For this purpose, brands can also share customer testimonials through these platforms.

• Engage in strategically pricing this commodity or service for a larger audience to invest in it.

• Keep track of how that commodity is performing in the market. 

• Regularly monitor this performance and enhance it through modified approaches. 

How to Improve a Product Positioning Strategy?

To improve a product positioning strategy, call tracking is a new-age solution to prefer. Through call tracking software, a company can execute this process. It can find out the source of calls. Furthermore, the software can record and analyze communication with customers. It can look into their needs and assist brands in modifying their products likewise.

Concluding the Above

Product positioning is a beneficial process for placing goods and services in the market. It is significant for businesses, enterprises, and brands to strategically sell their commodities to their target audience. To leverage the process, its types should be considered. By implementing the suitable type, products can be effectively positioned across industries.