Importance of Product Positioning
The product positioning is an important aspect of a marketing strategy. An organization’s product positioning establishes a mental image of their products in the minds of consumers, emphasizing the most important benefits that distinguish the product from similar products on the market. Product positioning involves the identification of strengths and weaknesses of a company’s product that enable it not only to meet market standards but also to deliver additional value to consumers on aspects such as quality, innovation, price, leadership, and functionality, among others.
It is unlikely that any one product will be an ideal choice for everyone. If you try to build a marketing story that appeals to everyone, it is likely that the message won’t resonate with anyone. It is crucial for product teams to understand what market segment is most likely to enjoy their products. As well as communicating the value of their product, they must also be able to articulate it in a way that will resonate with their audience.
Following are a few benefits of product positioning that suggest its usefulness in marketing:
1. To Make Entire Organisation Market-Oriented
As part of the marketing philosophy, product positioning plays a role. The goal is to identify aspects of a product that are superior and match them more effectively with consumers than competitors. The whole organization is oriented towards the marketplace in this way.
When an organization is market-oriented, it emphasizes understanding its customers’ needs and meeting them. In addition to product development and marketing, customer service and support are also included. Organizations can be more responsive to changing customer needs if their efforts are aligned with those of the market.
In order for an organization to become more market-oriented, it is essential to position its products effectively. Organizations can better understand and meet the needs of their customers by clearly defining their target market and positioning their products accordingly. As a result, the organization can better align its efforts with market needs and be more responsive to changing customer demands. An organization’s product positioning plays a key role in helping it become more market-oriented and better positioned for success in a competitive marketplace.
2. To Cope with Market Changes
Positioning a successful product does not imply that the manager’s job is done. The manager must continually monitor the market. Market developments should be used to identify, discover, or develop new competitive advantages that suit changing expectations in the marketplace. This keeps managers alert, engaged, and dynamic.
In product positioning, a product is positioned in the marketplace in a way that distinguishes it from competitors and appeals to a specific market. By aligning the product with the needs and preferences of the target audience, this process helps companies cope with market changes. It is easier for a company that has positioned its product as a natural and eco-friendly alternative to cope with a market shift toward healthier and more sustainable products.
Companies can also adapt their marketing efforts to better target the needs of their audience through product positioning to adapt to changing market conditions. Companies may need to pivot marketing efforts to better meet their target audience’s needs during times of economic uncertainty. By ensuring that their product meets the needs and preferences of their target audience, as well as by adapting their marketing efforts to meet changing market conditions, product positioning is an important tool for companies to cope with market change.
3. To Meet Expectation of Buyers
It is generally determined based on the expectations of the target buyers what advantages should be communicated. Therefore, positioning can assist in achieving the expectations of consumers. By clearly, relevantly, and compellingly describing the product, an effective product positioning meets the expectations of buyers. This clarifies the product’s purpose, its target audience, and how it can solve specific problems. As a result, buyers are more likely to purchase the product and build trust and confidence in it.
In addition to aligning products with customer values and lifestyles, product positioning also allows them to be more relevant to target customers. Marketing messages and marketing efforts can be tailored to appeal to potential buyers by understanding their interests and motivations. By creating a strong connection with the product, buyers are more likely to choose it over competitors.
The aim of product positioning is to align the features and benefits of a product with the needs and preferences of target customers in order to meet the expectations of buyers. Any business must consider it very important.
4. To Promote Consumer Goodwill and Loyalty
By systematically positioning products, companies reinforce their own names, products, and brands. They popularize their own brands. As a result, customers become loyal to the brand. In marketing, product positioning involves making a product stand out from its competitors. To attract and retain customers, marketing campaigns highlight a product’s unique benefits and characteristics. It is possible for companies to build goodwill and loyalty among consumers by positioning a product effectively.
- It is possible to achieve the following by using effective product positioning:
- Create a strong connection with the right target audience by highlighting a product’s unique features and benefits.
- By communicating the unique selling points of a product consistently, product positioning helps to increase brand awareness. In the minds of consumers, this can help establish a strong brand image.
- When a product meets a customer’s specific needs and wants, he or she is more likely to remain loyal to it. Consumers are more likely to return and purchase again when a product is positioned as having value and uniqueness.
- In order to stand out from their competitors, companies need to effectively position their products. Customers can be attracted and retained in this way.
A strong brand image is built by effectively communicating the unique benefits and characteristics of a product, attracting the right target audience, and communicating the unique advantages of the product.
5. To Design Promotional Strategy
Promotional programs can be designed to be more meaningful. In order to promote a product, appropriate means are selected depending on what benefits are to be communicated. In order to effectively communicate the value of a product to its target market, a company must begin with product positioning. To reach your target audience, you can use various channels, such as email marketing, search engine marketing, or influencer marketing, to create marketing materials highlighting the product’s key features and benefits.
As a result of product positioning, a company can effectively design its promotional strategy and drive sales of its products. In a crowded market, a company can create a promotional strategy that highlights the product’s unique selling points and targets the right audience.
6. To Win Attention and Interest of Consumers
The positioning of products refers to those advantages that are important to consumers. Providing consumers with such benefits through effective advertising certainly captures their interest and attention. By clearly communicating the product’s benefits and value, effective product positioning can help win consumers’ attention. By positioning the product as a superior choice, it differentiates it from its competitors.
Suppose a company was selling luxury cars. They might position the cars as status symbols and emphasize their luxury features, such as high-end interiors, advanced technology, and outstanding performance. Luxury-loving consumers will be attracted to this product, which comes at a higher price point.
When selling budget-friendly cars, companies may position the car as a practical and affordable choice for daily commuting. A cost-effective and reliable vehicle will appeal to consumers. A unique identity for the product and clear communication of its benefits and value to the target audience is what helps to win consumers’ attention and interest.
7. To Attract Different Types of Consumers
The expectations of consumers for a product differ. Some consumers wish to purchase durability, some desire unique features, some desire novelty, some desire safety, some seek low prices, etc. Companies can attract different types of buyers by promoting different types of competitive advantages.
In order to attract different types of consumers, a company must position its product effectively. Consumers who are willing to pay a higher price for a high-quality, durable product may be attracted to a company that positions its product as such. Consumers who are looking for a good deal and who are less concerned about durability may be attracted to companies that position their product as budget-friendly.
By communicating the unique benefits and features of a product in a way that resonates with the target market, product positioning helps companies attract a specific type of consumer. Creating a clear and compelling value proposition for their target market allows companies to differentiate their products from their competitors.
8. To Face Competition
A product’s positioning is fundamentally used in this manner. This allows companies to respond to their competitors strongly. This strengthens their competitive position. Businesses can use product positioning to face competition in several ways. The first benefit is that it allows businesses to target a specific market segment and tailor their marketing efforts accordingly. Businesses can create a product that meets the needs and preferences of their target market and stands out from the competition by understanding those needs and preferences.
As a result of product positioning, brands become more known and recognized. Brand identity can be easily recognized by consumers if businesses consistently communicate their products’ unique benefits and qualities. In a competitive market, this can be difficult to achieve, but it can help create loyalty among customers and boost brand loyalty.
The unique selling proposition (USP) of a product is what helps a business separate itself from the competition. In order to convince consumers to buy a product, a business must highlight the unique features and benefits it offers. Business can benefit from this by standing out from the crowd and attracting new clients.
Business positioning can help businesses succeed in crowded and competitive markets by allowing them to face competition head on. Differentiating themselves from the competition and building loyal customers can be accomplished by identifying and highlighting the unique features and benefits of their products.
9. To Introduce New Product Successfully
It is possible for a company to introduce a new product in the market using product positioning. By positioning new and superior characteristics of the product, it can easily break into the market. In order for a new product to succeed, it must have an effective positioning, which creates a strong brand identity and differentiates it from its competitors. Additionally, it allows potential customers to clearly understand what the product is about and what its value is, thereby generating sales and revenue for the business.
It is important for companies to identify their target market’s needs and preferences before introducing a new product. In addition, they must clearly define the USP of their product and devise a marketing strategy aimed at communicating this value to potential customers. There are many marketing tactics that can be used to achieve this, such as advertising, social media marketing, content marketing, and influencer marketing. Consumers’ awareness of new products can be increased by carefully positioning them in their minds.
10. To Communicate New and Varied Feature Added subsequently
Changing the qualities and/or features of an existing product can be used to position it against the competition. The competitive strength of the company is enhanced by product positioning. Before purchasing a product, consumers usually consider its advantages. In other words, product positioning proves the superiority of a company’s offers over its competitors. Product positioning may also assist consumers in choosing the right product.