Product positioning is a strategic exercise that helps to identify the product’s unique benefits to an identified target audience. It is a showcase of the product in a way that it makes better than the alternative competitor products. Product positioning is a similar concept to market positioning.
Product positioning highlights how the consumer sees the brand/product compared to the products in the competitor market. It emphasizes establishing the product identity or the image in the market so that the customers recognize the product and create brand loyalty. In simple terms, product positioning aims to make the product wanted by the customers and attract the customers who know exactly what they want in the product, why they want the product, and how they want it.
Positioning the product correctly in the right market segment is important for the success of the product or the service.
Importance of Product Positioning
It helps to increase customer loyalty for the product. Providing a product that can satisfy an unmet need of the customer will create a positive impact for the customers and it will create long-term customer loyalty towards the product. The product must ensure customer satisfaction and the feedback and suggestions from customers should be taken into consideration when developing and modifying the product.
Product positioning enhances product launches and market penetration. Positioning the product during the product launch can help the business to establish trust in the target market. Apart from that, the right positioning of the product can help to highlight what the product brings to the market, how it differs and be better than the competition and how it can create an influence on the target market. This helps potential customers to understand the product and identify how the product will fit their needs. this can create a direct influence on the purchasing decision of the customers.
Product positioning helps the product to achieve a competitive advantage over rival products. Right positioning of the product ensures maximum achievement of the target market. It helps the product to achieve a competitive advantage over the rivalry products in the market while maximizing the revenue.
Positioning the products in the market correctly helps to inspire the sales and marketing strategies of the business organization. Strong positioning increases the efforts of the sales and marketing teams of the business. It helps the marketing team to easily identify the right type of content to promote the product in the market without wasting time on experiments.
Components of Product Positioning
Target Audience – The product should target a specific market segment when introducing product to the market. The target market can be segmented based on age, gender, demographics, geographic conditions, or customer behavior and preferences.
Market Category – The business should identify the buyers and potential buyers in the market, where they are looking for the product or services, and whom they are approaching to get the products or services. Simply, this is about examining the customers’ current buying behavior and purchasing patterns. This will help the business to determine what the competitors are offering and how the product can be positioned in the market against the competition.
Unmet needs of customers – This is one of the most important factors in introducing a unique product to the market. The business should identify the unmet needs of the customers and target satisfying those unmet needs through the product or service. That can help to create a strong positive impact on the target market.
Brand/Product identity and values – Brand/product identity should include the brand value, logo design, product voice, and all other aspects that set the product apart from the competitor products and gain recognition in the target market.
Mission – Mission includes what the organization is planning to achieve by introducing the product to the target market. It includes goals, objectives, and the approach of the business to achieve the set goals and objectives.