What's your position? This question could be asking where you stand on a political issue, where you stand on a baseball field, or where you stand in the eye of your potential customer. When it comes to your business, your market position describes your competitive strategy. It defines where you fit in the marketplace and where you fit in the minds of your customers. Do they think of you first? As a backup? Not at all? You want to be first. Period.
But what goes into a successful marketing plan that makes positioning a priority? There are three main elements that you need to keep in mind when creating your strategy.
1. What's Your Image?
Creating an image for your product or service to promote in the marketplace is critical to your positioning. Think of some high-profile brands. Do you know what their logo looks like? What their branding is? What they offer to their customers?
Take FedEx, for example. When someone mentions overnight shipping, most people don't have to think very hard to come up with this industry leader. And what about Apple? Love 'em or hate 'em, everyone can identify with their simple logo, sleek electronics, and always-crowded Genius Bars. Your image is what people will remember when they're looking for a product or service, it helps position you for success.
2. What's Your Price Point?One of the primary ways a business can position itself is through its price. Do you offer a luxury item? Are your products geared more toward the middle ground? Or do you offer deeply discounted items for people on a budget or who do competitive bargain hunting? You need to understand how price-sensitive your customers are and market to that demographic.
If your products or services are so unique that you can justify a higher price tag, that's your pricing position. If you're competitive but offer the biggest/strongest/fastest item at a certain price point, that's your angle. But bear in mind, no matter what your pricing, what you offer better meet or exceed expectations or you can't offer a deep enough discount to get return business.
3. What's Your Product?
What are you really selling? Does your portfolio of goods and/or services stand together in harmony? If what you offer doesn't make sense, if it isn't congruous, you need to step back and regroup. If you've ever been to a restaurant that offers so many options that it doesn't seem like they could all come from the same kitchen, it's confusing for diners. Same goes with your business. It needs to make sense to your customers.
We all find ourselves taking a position on things that are important to us. That's the key to market positioning. Putting out there what's important, different, and valuable about your business that your customers need to know about to get to know you. Once they know you, you'll rank in that desired number one position for them, which will keep them coming back. It's the foundation for your marketing strategy.