In marketing, a positioning strategy is like a special spotlight that shows how a brand is different from its competitors. It’s all about how a brand wants people to think about it compared to other similar brands. Understanding positioning strategies can help us connect better with the people we want to reach.
In this blog, we’ll break down the main ideas behind strategic positioning and look at a complete guide on how to create effective positioning strategies.
What is positioning strategy?
A positioning strategy is like the way a brand wants to be known and remembered by its customers. It’s about telling people why a product or company is better or different from others.
Just like when you meet new people, you want them to remember something unique about you. Companies want their customers to remember something special about their products or services.
To do this, companies think about what makes them special, who their products are for, and why people should choose them over other options. Then, they create a plan to talk about these things in a way that makes customers like and trust them.
This helps the company stand out in a crowded marketplace and attract the right customers who will love what it offers. So, a positioning strategy is like a brand’s way of introducing itself and making a good impression on customers.
Importance of positioning strategy for your market plan
A positioning strategy is crucial for your market plan because it helps your brand stand out and make a lasting impression on customers. Here’s why it’s so important:
Differentiation
In a competitive market, customers have many choices. A well-defined positioning strategy sets your brand apart from others by highlighting its unique qualities and benefits. This differentiation helps customers understand why they should choose your product or service over others, increasing your chances of success.
Targeted marketing
Knowing your position in the market allows you to tailor your marketing efforts to a specific audience. This precision saves time and resources and ensures that your message resonates with the right people, leading to higher conversion rates.
Brand consistency
A clear positioning strategy guides your branding efforts, ensuring that all marketing materials, from advertisements to social media posts, convey a consistent and compelling message. Consistency builds trust with customers and reinforces your brand’s identity.
Long-term success
A strong positioning strategy is not just about short-term gains. It lays the foundation for long-term success by creating a customer loyalty base and establishing your brand as a leader in its category.
A well-crafted strategy is a cornerstone of any successful market plan. It sets your brand apart, helps you reach the right customers, maintains brand consistency, and ensures long-term growth and profitability.
3 keys of strategic positioning
These three keys of strategic positioning – Channel, Customer, and Competition – are essential for businesses looking to carve out a successful place in the market:
Channel
Your chosen channel is the way you communicate and interact with your customers. Whether it’s through social media, advertising, email campaigns, or other means, your channel plays a critical role in how your brand is perceived. Selecting the right channel for your target audience ensures that your message reaches the right people at the right time.
Customer
Understanding your target market and its specific needs is fundamental to developing a successful positioning strategy. When you know your customers well, you can tailor your products, services, and marketing efforts to meet their expectations. This customer-centric approach leads to increased satisfaction and loyalty.
Competition
To effectively position your brand, you must assess how it compares to your competitors in the market. Creating a positioning map helps you understand where your business stands in the minds of customers relative to other players. This insight guides your overall business strategy and helps you identify opportunities to stand out from the competition.
Types of positioning strategy
Businesses can employ several types of positioning strategies to establish a unique identity and capture the attention of their customers. Here are some common types:
Market positioning strategy
Effective market positioning strategy defines how your brand is perceived within a specific market or industry. It involves tailoring your products, services, and marketing efforts to cater to the needs, preferences, and behaviors of a particular segment of the market.
This strategy helps your brand establish a unique identity within that market, allowing you to differentiate yourself from competitors. For example, if you’re in the smartphone industry, you might position your brand as catering specifically to tech-savvy professionals who prioritize security and productivity.
Product positioning strategy
Product positioning focuses on highlighting the distinct features, benefits, and value that your product offers in comparison to others in the market. It’s about creating a clear and compelling image of your product in the minds of consumers.
This positioning strategy answers questions like, “Why should customers choose our product over similar options?” For instance, if you’re marketing a sports car, your product positioning might emphasize speed, performance, and cutting-edge technology.
Brand positioning strategy
Brand positioning goes beyond individual products or services; it’s about shaping the overall perception and reputation of your brand in the minds of consumers. It encompasses the emotional connection and values associated with your brand.
Effective brand positioning creates a unique and memorable identity that fosters customer loyalty and trust. For instance, a brand like Apple is positioned as innovative, user-friendly, and design-focused, creating a strong emotional bond with its customers.
Price positioning strategy
Correct Pricing strategy is about how your product’s price is positioned relative to its quality and the perceived value it provides. It involves deciding where your product stands on the price spectrum within your market.
You can position your product as a premium option with a higher price point, emphasizing quality and exclusivity. Alternatively, you can position it as a budget-friendly choice, highlighting affordability and value for money.
Quality positioning strategy
Quality positioning centers on highlighting your product or service’s superior quality, reliability, and performance. It aims to position your brand as a leader when it comes to quality within your industry. This strategy is often used in industries where quality is a critical factor, such as luxury cars, high-end electronics, or gourmet food products.
Competition positioning strategy
Competition positioning means showing why your brand is better than others. You talk about what makes your brand special compared to your competition. To do this, you need to know what your competitors are good at and where they’re not so good.
Then, you focus on the things your brand does better and use that to show why customers should choose you. It’s like saying, “We’re the best because we do this really well, and they don’t.” This strategy needs you to really understand what your competitors are good and not so good at and then use that to make your brand look like the better choice.
How to create a positioning strategy: a step-by-step guide
Positioning your brand effectively in the market is essential for standing out and attracting your target audience. Here’s a step-by-step guide to help you develop a compelling positioning strategy:
Step 1: Identify your goal
Begin by clarifying your goal for creating a positioning strategy. What do you want to achieve? Your goal could be to increase market share, target a new customer segment, or rebrand your business. Having a clear objective will guide your strategy.
Step 2: Study your competitors
In-depth competitor analysis is crucial. Identify your competitors and study their positioning in the market. Understand how they communicate their unique value propositions and what sets them apart. This will help you find opportunities to differentiate your brand.
Step 3: Create a perceptual map
A perceptual map is a visual representation of how consumers perceive brands in your industry. It helps you understand where your brand stands relative to competitors in terms of key attributes or factors. Plot your brand and your competitors on the map to identify gaps and opportunities for positioning.
Step 4: Make a timeline
Develop a timeline that outlines the key milestones and deadlines for implementing your positioning strategy. This timeline should include tasks such as market research, branding updates, content creation, and promotional campaigns. A well-structured timeline keeps your strategy on track.
Step 5: Find your niche
Identify a niche or specific market segment that aligns with your brand’s strengths and unique offerings. By focusing on a niche, you can become an expert in that area and connect more deeply with your target audience.
By following these steps, you can create a positioning strategy that helps your brand stand out, resonate with your audience, and achieve your business objectives. Remember that positioning is an ongoing process that may evolve over time to adapt to changing market dynamics and customer preferences.
Strategic positioning best practice
Positioning strategy is a critical component of marketing and branding. Here are some best practices to help you develop and implement an effective strategy:
Understand your target audience
In-depth knowledge of your target audience is essential. Create detailed buyer personas to identify their needs, preferences, and pain points. Tailor your positioning to address these aspects effectively.
Analyze competitors
Conduct thorough competitor research to understand their positioning strategies. Identify gaps in the market where your brand can excel. Your positioning should aim to fill these gaps and offer something unique.
Create a unique value proposition (UVP)
Your UVP is a concise statement that communicates your brand’s unique benefits and values to customers. It should clearly articulate why your brand is the best choice. Make sure your UVP is compelling and easy to understand.
Consistency across channels
Maintain a consistent brand image and messaging across all channels, including your website, social media, advertising, and customer interactions. Consistency builds trust and reinforces your positioning in the minds of customers.
Focus on customer benefits
Instead of just listing features, emphasize the benefits your products or services offer to customers. How will using your brand improve their lives or solve their problems? Connect emotionally with your audience.
Segment your market
If your target audience is diverse, consider segmenting it into smaller, more specific groups. This allows you to tailor your positioning for each segment, making it more relevant.
Test and refine
Don’t be afraid to test different positioning strategies or messages with your audience. Conduct surveys and A/B tests and gather feedback to refine your approach based on what resonates best.
How QuestionPro help create your business positioning strategy?
QuestionPro is a versatile online survey and research platform that can be a valuable tool for creating and refining your positioning strategy. Here’s how QuestionPro can help:
Market research surveys
QuestionPro allows you to create customized surveys to gather insights from your target audience. You can use surveys to understand customer preferences, pain points, and perceptions about your brand and competitors. This data can inform your positioning strategy by clearly understanding market dynamics.
Competitive analysis
Use QuestionPro surveys to conduct competitive analysis. You can create surveys to collect feedback about your competitors from your target audience. Understand what customers like or dislike about competitors’ products or services, and identify opportunities to differentiate your brand.
Customer feedback
Positioning is all about meeting customer needs and expectations. Use QuestionPro’s feedback and satisfaction surveys to collect real-time feedback from customers. Identify areas where your brand excels and where improvements are needed. This data can guide your positioning efforts.
Segmentation
Effective positioning often involves segmenting your target audience. With QuestionPro, you can create surveys that include segmentation questions. This allows you to divide your audience into smaller groups based on demographics, behavior, or preferences. Tailor your positioning for each segment to increase relevance.
Brand perception studies
Use QuestionPro to conduct brand perception studies. Create surveys that assess how customers perceive your brand compared to competitors. Are you seen as innovative, affordable, or customer-focused? Analyzing these perceptions helps refine your positioning strategy.
A/B testing
QuestionPro offers A/B testing capabilities, allowing you to test different positioning messages or brand elements. Create surveys with variations of your positioning statement and see which resonates most with your audience. Use the data to refine your final positioning.
Employee surveys
Ensure internal alignment with your positioning strategy by surveying employees. Gather their feedback and insights to ensure everyone in your organization understands and supports the brand’s positioning. QuestionPro’s employee engagement surveys can help with this.
Data analysis and reporting
The platform provides robust data analysis and reporting features. Visualize survey results with charts and graphs to gain actionable insights. Use this data to make informed decisions and adjustments to your positioning strategy.
Integration
QuestionPro integrates with other business tools and platforms, making it easier to incorporate survey data into your overall marketing and strategic planning. Integration with customer relationship management (CRM) systems can be particularly valuable.
Survey templates
QuestionPro offers a library of survey templates for market research, customer feedback, and brand perception. These templates can save you time when creating surveys for positioning research.
Real-time analytics
Get real-time access to survey responses and analytics. This allows you to stay agile and make adjustments to your positioning strategy as needed based on the incoming data.
QuestionPro is a versatile platform that can facilitate every step of the positioning strategy process, from gathering initial market insights to testing and refining your brand’s positioning. Its survey and research capabilities empower businesses to make data-driven decisions that strengthen their market position. Contact QuestionPro today for a free trial or learn more!
