How to Develop Your Brand's Market Positioning Strategy

Eguaogie Eghosa
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Aug 10, 2022

What makes your brand distinctive depends on the market. A key component of brand building used by professional SEO services is market positioning strategy. It directs pricing and distribution models as well as content plans and marketing strategies. This article examines what makes an effective market positioning strategy, how to develop one, and when and when to put it into practice.

What is a marketing positioning strategy?

The goal of a marketing position strategy is to boost consumer traffic through marketing techniques. By developing such a plan, a team of any size can gain clarity on the best way to approach marketing development and have a reliable road map for maintaining and accelerating growth both internally and internationally.

Components of a positioning strategy for marketing

The following essential elements can help establish a marketing position strategy:

1. Determine your company's objectives. Describe the foundation of your company's existence and the market need it fills.

2. Compare your persona. Look at your competitors and how their communication tactics differ from yours.

3. The position you hold in the market Analyze where your company stands in the target market and whether or not you are unique.

4. Identify the state of the market. Keep track of your competitors' market share and the potential influence they may have over your intended audience.

Choose a distinctive stance. Give your intended target market a favorable yet unique picture of your company.

Developing a strategy

Start by describing what you are selling by responding to the following simple questions.

1. What is the brand name of the good or service you are offering?

This refers to the item's actual name ("multi-use widget") as well as its potential name ("Multi-Widget 3000"). If you have the option, defer naming your product or service until after you have completed the previous phases because the name of the product is a sort of marketing positioning strategy.

Creating an unofficial working title will still be helpful to you even if the product or service already has a name that does not clearly describe what it is or if you will not be involved in the naming process. To visualize what you are attempting to advertise is the point.

2. Briefly describe the product or service

Without going into great detail, communicate the core point. Be succinct and precise so that after reading just one line, readers will understand what you are trying to sell.

A decent example of a service description is given below:

"We offer technical support to businesses installing XYZ software."

We sell widgets that dry your hair more quickly as an example of an excellent product description.

Note that the goal-achieving process has not yet been covered in these explanations. In most circumstances, the mechanics of how your product or service performs are less essential to the positioning strategy, so it is ideal to leave those kinds of details to the marketing message—the way you tell people about your product or service. These still need to specify precisely who the product or service would benefit.

3. Describe the special qualities of the product or service.

What distinguishes your product or service from those of your main rivals will determine its place in the market. List every special characteristic of the product you are selling, including its size, colour, add-on services, and even your company's core principles.

This list will include your areas of differentiation, which are crucial for customers to consider before choosing to work with you.

4. What advantages do users of each feature receive?

Make sure it's simple for you to understand how each distinctive aspect benefits your audience. Look at all the qualities of your product or service, including those that are common among competitors, and describe the value for additional investigation. If your product or service lacks a feature that rivals offer, describe how this is advantageous to the customer—even if the response is that the rival product or service is less expensive.

If your product has features that don't clearly help the user, you should reconsider keeping them in the final offering to the customer—or at the very least, leave them out of your marketing message.

5. What are the product's shortcomings or flaws?

Explaining to potential clients why certain things they might not enjoy are required for performance is also a part of positioning strategy. For instance, a new software program may offer many client benefits yet come with a steep learning curve due to its novel platform. In that case, providing a risk-free trial period would help fix the problem. Be upfront about any shipping restrictions you may have before a potential customer tries to make a purchase. Recognize your limitations and be honest and upbeat about them.

6. Repetition of Steps 1–5 for every one of your principal rivals

Positioning is relative, so read through this list again for each of your main rivals. The aspects of your product or service that are distinct from others should be highlighted most in your positioning plan.

1. Determining the Right Price:

Calculate your ideal product price strategy using your product definition from above. The cost of your good or service has to be reasonable given what your clients get in return. Pricing should be as low as possible to attract many clients, but not so low that you lose money on each sale.

You can work with a financial accountant to determine the break-even point using the predicted demand curve for the product. The marketing team is then frequently responsible for figuring out the best price to position the product or service.

2. Consider The Prices Of Your Rivals:

It makes sense to charge more if you have already concluded that your product or service offers more features and advantages than rivals. Additionally, you can charge more if your product or service is significantly simpler, quicker, stronger, longer-lasting, or more user-friendly than what your rivals provide. In a similar vein, you may aim to be the cheapest and eliminate features to cut costs.

3. Consider brand perception.

Contrary to popular belief, the price a buyer will pay has little to do with the cost of production. Consider whether your brand might have a premium attached that would increase the price you could charge. Take into account the prices of the additional goods and services offered by your business. Customers frequently feel extra value or savings if the price you are giving is significantly higher or lower than that.

4. Choose The Locations Where You Want To Sell:

Customers will purchase a product for a variety of reasons, not the least of which is that it has amazing features and benefits at an affordable price. Specifically, it must be positioned in both physical and virtual venues where your customers will look for it. Decide if you want to sell physically, online, or both as your first inquiry.

Outside sales

When considering how to market offline, most consumers picture a real-world business, office, or retail. A retail establishment owned by someone else that also buys and sells other things of yours, a consignment shop that pays you a commission on each sale, or your own business with your company or brand displayed on the sign.

You may provide services from your own office, a shared office, a co-working space, or other public gathering places like a library or coffee shop.

In the current market, permanent stores are just one option for offline sales. Pop-up stores, festivals, tradeshow displays, expos, bazaars, networking clubs, and special events are other choices. Before choosing any offline sales channel, carefully examine your brand, event attendees, local residents and workers, other vendors, and tenants.

Internet sales

You can sell online using your own website, a seller's website, or a social networking platform. When you sell on your own website, you have complete control over the channel, description, and photos. Additionally, you can sell on a website that belongs to a different party without having to pay a commission to that person.

Selling on your own website has the disadvantage that you might have to spend more money on advertising or search engine optimization because customers might not know how to locate the site in the first place. You will need to be much more detailed about who will benefit from your goods and why customers should choose you over competitors, because a seller's site will have a lot of competition. You'll probably also need to make advertising investments and give the website owner a cut of each sale.

Conclusion

You now have a strategy after completing these stages and gathering as much information as you can to support your choices.

To increase profitability, stick to the execution of your strategy, whether you’re doing it by yourself or it is being handled on your behalf by professional SEO services; keep analyzing the data, and make any necessary revisions. The four Ps—product, pricing, place, and promotion—form the basis of a solid strategy, which should be updated as new information becomes available.