Positioning is a marketing strategy that helps a business establish a unique identity in the minds of its target audience. It’s about how consumers perceive a company, brand, or product in relation to its competitors. The goal is to create a perception that sets the brand apart and resonates with the needs of consumers.
Local businesses should consider using market positioning to effectively differentiate yourself from competitors, attract the right target audience, build brand loyalty, and ultimately increase sales by clearly communicating the unique value proposition of your product or service, making it stand out in the minds of consumers and justifying the price point in the market.
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A classic and educational example of market positioning is Avis rental cars. Avis’s market position is to provide a stress-free car rental experience by focusing on customer service and excellence. Avis’s positioning statement and slogan, “We try harder” was a counter-point to Hertz’s position as the number one car rental company. The slogan was a promise that Avis would work harder for customers, because they had to.
More modern examples of effective positioning strategies include Apple, which has successfully positioned itself as a brand synonymous with innovation, high quality, and user-friendly design, differentiating itself from competitors by focusing on sleek aesthetics and seamless integration across devices, often with the tagline “Think Different.”
Some of the key benefits of market positioning include:
- Distinguishes from competitors: By highlighting unique features and benefits, a company can show how its product is different from others in the market.
- Attracts the right customers: Understanding the target market allows a company to tailor its messaging and offerings to appeal specifically to their ideal customer.
- Increases brand awareness: A strong positioning strategy helps customers recognize and remember a brand building recognition and loyalty.
- Improves customer perception: By defining how a product should be perceived, a company can influence customer opinions and buying behavior.
- Justifies pricing strategy: A well-positioned product can command a premium price because of the perceived value it offers to the customer.
- Guides marketing efforts: Knowing your market position helps to focus marketing campaigns and resource allocation on the most relevant strategies.
These positioning benefits apply to both large businesses including Avis and Apple, as well as small local businesses. The importance of standing out from the crowd, effectively positioning your business in the mind of your customers, and increasing brand awareness are equally important in the local context.
What should be your first steps in developing an effective positioning strategy?
- Conduct a competitive analysis to understand how your business compares to your competitors. Ask questions including who your main competitors are, what customers like and dislike about them, and where they are performing well.
- Consider the four P’s of marketing, which are product, price, promotion, and place and consider how your business’s product compares to the market.
- Create a positioning statement that is brief, memorable, and clearly states what your business does and how it does it. It should also reflect the business’s core values and make a promise to customers.
Here are some examples:
- A small bakery positioning itself as “the only local bakery using fresh, organic ingredients.”
- A neighborhood coffee shop positioning itself as “the community hub with a cozy atmosphere and friendly staff.”
When developing your market positioning it is important to ensure it is sustainable and durable, meaning it should be able to withstand changes in the market and remain relevant over time, as it helps maintain a consistent brand identity and consistently communicates your unique value proposition to the local community.
One of the key challenges in defining a market position is defending it. Once you establish an effective position it is likely competitors will want to take it from you. Sure, imitation is the best form of flattery, but ensure your position is not easily copied. The bakery above could be upended pretty easily if the bakery across the street simply changes their ingredients to be likewise fresh and organic. This strategy might not be the most durable and everlasting.
The best products AND brands are the most defensible. Emphasize those value attributes that competitors can’t copy; energetically improve your product and the customer experience; and fiercely market your value and positioning as yours…Branding that position in the mind of the customer.
Here are a few tips:
- Build your positioning based on capabilities that your competitors can’t match.
- Work relentlessly to solidify your position through product improvements and the customer experience.
- Emphasize your positioning within all your branding tactics, solidifying to the marketplace that you own that position.
Positioning is a crucial part of your local marketing strategy because it allows your business to clearly differentiate itself from competitors within its immediate market, effectively communicates your unique value proposition to local customers and establishes a strong brand identity within the community.
If you’d like to learn more about positioning as a component of your marketing strategy, please give us a call or email us here at Sentinel Solutions.
We are experts in marketing and effectively incorporating these tactics into the marketing mix. We can help you build a compelling multimedia campaign that engages your audience and drives sales.
Give us a call if we can help at 603-352-5896 or e-mail to Advertising@SentinelDigitalSolutions.com. We’re here to help you succeed.
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