What are the positioning strategies a firm can use to highlight its competitive advantage?
What sets your product, service and company apart from your competitors? What value do you provide and how is it different from the alternatives? Show
Competitive positioning is about defining how you’ll “differentiate” your offering and create value for your market. It’s about carving out a spot in the competitive landscape, putting your stake in the ground, and winning mindshare in the marketplace – being known for a certain “something.” A good positioning strategy is influenced by:
[Note: You can develop your
competitive positioning and differentiate your brand using our comprehensive brand strategy toolkit — for step-by-step guidance while designing your brand strategy.] When your market clearly sees how your offering is different from that of your competition, it’s easier to influence the market and win mindshare. Without brand differentiation, it takes more time and budget to entice the market to engage with you; as a result, many companies end up competing on price – a tough position to sustain over the long term. One of the key elements that many small to mid-size companies overlook is how they provide value at the highest level. There are three essential methods for delivering value: operational excellence, product leadership and customer intimacy. Here is a hypothetical example of each type of value.
These companies have a complete understanding of how they deliver value to their market. It’s part of their strategy, which makes it easier for them to win a position in their respective markets. Here’s another way to think of it: You can provide the best offering, the cheapest offering, or the most comprehensive offering, but you can’t provide all three. Another key factor in your brand positioning is your competition. Sure, you need to put your stake in the ground and claim your turf. But is it turf that you can own? Can you realistically beat your competition to own it? Rather than leaving your market positioning to chance, establish a strategy. What you’re ultimately striving for is to be known for something – to own mindshare of the market. This is typically easier for consumer product lines than for B2B companies, because positioning a single product against three to five competitors is a simpler task than positioning a mid-size B2B company with numerous offerings in numerous markets. Owning a strong position in the market is challenging for most small- to mid-size companies, but you have a better chance of achieving it if you clearly define a strategy and build your brand around it. Do you see your company in any of these scenarios?
Not Sure Where to Start with Competitive Positioning?Access detailed step-by-step plans in our new marketing website. The concept of positioning is entirely strategic. It’s the first element to address in strategic marketing, and everything else is aligned to it. Jack Trout and Al Ries defined the concept years ago in their landmark book Positioning: The Battle for Your Mind. While the concept is simple – to be known for a single thing in the mind of the customer – the road to achieve it can be complex. It’s best to have a clear understanding of your market – demographics, segments, their pains, how well you and your competitors provide solutions, how you truly provide value, and your strengths and weaknesses – before making this decision. An fully-informed decision is vital, because you’ll allocate a significant amount of resources in your journey to achieve it. Competitive Positioning Key Concepts & StepsBefore you beginYour competitive positioning strategy is the foundation of your entire business – it’s the first thing you should pin down if you’re launching a new company or product. It’s also important when you’re expanding or looking for a new edge. Profile your market
Segment your market
Define how you deliver value
Evaluate your competition
Stake a position
Select the mindshare you want to own, and record your strategy
After Competitive PositioningOnce you have a competitive positioning strategy, develop a brand strategy to help you communicate your positioning and solidify your value every time you touch your market. Together, these two strategies are the essential building blocks for your business. Check out our positioning and brand strategy toolkit if you’d like step-by-step guidance. What are the strategies in positioning for competitive advantage?There are four main types of brand positioning: normal positioning, re-positioning, over positioning, and under positioning. Companies also use different types of positioning strategies including value-based, quality-based, competitor-based, and benefit brand positioning.
What are the 5 positioning strategies?There are five main strategies upon which businesses can base their positioning.. Positioning based on product characteristics. ... . Positioning based on price. ... . Positioning based on quality or luxury. ... . Positioning based on product use or application. ... . Positioning based on the competition.. What are the 7 positioning strategies?The seven basic types of positioning strategies are:. Product characteristics or consumer benefits. In using this strategy for positioning, the focus is on quality. ... . Pricing. ... . Use or application. ... . Product process. ... . Product class. ... . Cultural symbols. ... . Competitors (relation to). What are the types of positioning strategies?There are four main types of positioning strategies: competitive positioning, product positioning, situational positioning, and perceptual positioning.
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