Product positioning in Product Management is the process of determining the position of new products in the minds of consumers. It entails analyzing the market and competitors’ positions, defining the position of a new product among existing ones, and communicating the product image of a specific brand. Product positioning is a strategic activity that explains where and how your product or service fits in the current market and why it is superior to competitors. The ultimate goal is to identify your target audience’s needs and how your product can solve customer problems.
What is Product Positioning? Definition, Strategies, and Example.
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Why is product positioning important?
Each brand must understand its customers to provide a product that meets their needs. A well-thought-out strategy can determine this product’s market position and identify its benefits for consumers.
- The process entails instilling a specific image of a brand and its products in the minds of consumers and identifying key benefits to demonstrate how a specific product differs from competitors’ alternatives.
- Following that, the distinction is communicated to a brand’s target audience via the most effective communication channels.
- The messages that brands send to their customers should pique their interest. Marketers must determine the best ways to present specific products and reach their target audience based on the needs of their customers, competitive alternatives, the most effective communication channels, and tailored messages.
- Product positioning strategies enable businesses to create messages that address their customers’ needs and desires and entice them to buy.
- There are even more benefits that this type of marketing can provide, so check out our list to learn about them all.
Key elements that define your Product Positioning:
Key elements that define your Product Positioning
Product positioning is defined by several key elements that collectively create a unique identity for a product in the market. These elements help communicate the value of the product to the target audience and differentiate it from competitors.
Here are the key elements that define product positioning:
- Unique features: What distinguishes your product? What are the most important features of this product, and what distinguishes it from others? How do you want your audience to perceive these features, and how are they incorporated into the product design?
- Audience appeal: What is your intended audience? How can you market this product to make it more appealing or “worth it” to them? What do they want to see in the future from your product?
- Competitive advantages: Even if your market is new, you will almost certainly face competition. What are your product’s key competitive advantages, and how can you market and promote them?
- Category or industry: What is the product’s market segment? What will people think of it? Will customers understand how it fits into the market right away? There are obvious answers to these questions for many products. Others may view your definition as determining its ultimate fate.
- Target customers: Who is your ideal customer? Who will use this product, and how will they perceive it? If you’re targeting a fundamentally different audience, you’ll need to define the product’s features and utility differently. Products marketed to teenage girls and those marketed to middle-aged men, for example, rarely highlight the same features and benefits. What are your audience’s core values, needs, and perceptions?
- Pain points to be addressed: Every high-quality product solves a problem or addresses a major pain point. So, exactly what does your product do? What problems does your product solve? This aspect of the equation can assist you in creating much more effective advertising – as well as making better pitches to your target audience.
- Mission: What is the mission statement for your product? In other words, why is your product available? What issue is it attempting to address? What are your goals, and how will you serve your customers?
- Vision: You should also consider your vision statement. What do you see for the future? What do you hope to accomplish? This is similar to, but not the same as, your mission statement.
- Brand identity and values: Your mission and vision are most likely already part of your brand identity, but you’ll also need to consider other factors. Is your product’s brand distinct from your company’s brand? In any case, what is the personality of your brand? What colors, styles, and attitudes best represent your business and product? How would you like to be perceived?
- Key differentiators: Finally, what are your key points of differentiation? What draws people to your product? What distinguishes this product from other similar products on the market? There may be many factors to consider here, so consider your audience and competitive positioning carefully. Are you more affordable? More durable? Do you provide superior customer service? Are your brand and core values more appealing on a subjective level?
Strategies for Product Positioning:
Product positioning means creating in consumers a distinct and favorable image of a product in comparison to competing products.
Here are some effective product positioning strategies:
Identify Target Audience:
- Clearly define the specific audience for the product.
- Understand the demographics, psychographics, and behaviors of the target market.
Positioning in a particular specialty:
- Target a specific niche market with unique needs or preferences.
- Position the product as the ideal solution for that niche.
Understand Customer Needs and Preferences:
- Conduct market research to identify customer needs and preferences.
- Tailor the product positioning to address the key pain points and desires of the target audience.
Highlight Unique Selling Proposition (USP):
- Identify and emphasize the unique features or benefits that set the product apart.
- Clearly communicate what makes the product different or superior to competitors.
Price-Based Positioning:
- Position the product based on pricing strategy (e.g., premium, value).
- Emphasize value for money or exclusivity based on the target market.
Quality-Based Positioning:
- Position the product based on superior quality and reliability.
- Highlight testing, certifications, or industry standards to reinforce quality.
Convenience and Accessibility:
- Position the product as convenient and easily accessible to the target audience.
- Emphasize factors like ease of use, availability, and distribution channels.
Problem-Solving Positioning:
- Highlight how the product addresses specific problems or challenges.
- Emphasize the solutions the product provides to meet customer needs.
User Experience Positioning:
- Focus on the overall user experience and usability of the product.
- Emphasize user-friendly features and interfaces.
Lifestyle Positioning:
- Align the product with the lifestyle and values of the target audience.
- Emphasize how the product fits into the daily lives or aspirations of customers.
Cultural or Social Positioning:
- Align the product with cultural trends or social values.
- Position the product to resonate with current societal preferences.
Repositioning:
- Evaluate and adjust positioning over time based on market changes.
- Consider repositioning if the product is entering new markets or facing shifts in consumer preferences.
Consistent Branding:
- Maintain consistency in branding elements such as logos, colors, and messaging.
- Reinforce the desired product image through all marketing channels.
Emotional Positioning:
- Connect with consumers emotionally by tapping into their values or aspirations.
- Position the product to evoke specific emotions that resonate with the target audience.
Test and Refine:
- Test different positioning strategies through market research or pilot campaigns.
- Use feedback and data to refine the positioning strategy for optimal effectiveness.
Examples of great product positioning:
Let’s take a look at some examples of great product positioning in action. Here are some examples of brands that get it right:
Allbirds
What distinguishes this footwear and apparel company? Two words: accountability and sustainability. Allbirds is combating the climate crisis by pledging to be 100% carbon neutral – and encouraging other businesses to do the same.
TED
“Thank you for coming to my TED Talk.” This phrase appears at the end of many lengthy social media posts. And it’s a fantastic example of proper product positioning. Why? Because it demonstrates the TED brand’s ubiquity and strategy to promote conversation and community knowledge sharing.
Apple
Apple dominates the technology market, offering products that customers are eager to buy the moment they hit the shelves. Having the latest and greatest iPhone – and accessories – has become a status symbol. For Apple, it means they’re consistently nailing product positioning centered on innovation, design, simplicity, and imagination.
Conclusion:
The conclusion emphasizes the importance of aligning the product positioning with the target audience’s preferences and needs. Effective product positioning not only sets the product apart from competitors but also creates a compelling and memorable brand image.