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Business Positioning Strategies: Market, Brand and Offerings.

Business positioning strategies are crucial for companies looking to differentiate themselves in competitive markets and establish a strong brand identity. By understanding their target audience, leveraging unique strengths, and crafting a compelling value proposition, businesses can increase customer loyalty, drive revenue growth, and achieve long-term success. 

Past Data:

In the 1970s, less than 50% of businesses had a formal positioning strategy*. By 2001, 72% of consumers said that a strong brand was important in their purchasing decisions*

 

Present Trend:

A 2015 survey revealed that 79% of chief marketing executives considered positioning a key factor in their company’s success. By 2021, companies with strong brand positioning strategies experienced a 20% increase in revenue compared to those without*

Future Forecast:

By 2030, purpose-driven marketing and Corporate Social Responsibility will be crucial for successful positioning. Data analytics and AI will help tailor strategies, increasing customer engagement by 30% by 2035*

Business Positioning

Introduction:

   Business positioning strategies refer to the methods and approaches that companies employ to differentiate themselves from their competitors and establish a unique and valuable position in the minds of their target customers. These strategies involve identifying and leveraging a company’s strengths, weaknesses, opportunities, and threats to create a distinctive brand identity and value proposition that resonates with their target market (Kotler & Armstrong, 2021). By carefully analyzing their internal and external environments, businesses can develop a clear understanding of their competitive landscape and identify areas where they can excel and provide superior value to their customers.

   Effective positioning strategies enable businesses to build a strong brand image, increase customer loyalty, and ultimately gain a competitive advantage in their industry. By clearly defining their target audience, understanding their needs and preferences, and crafting a compelling message that highlights their unique selling points, companies can establish a strong market position and drive long-term success (Ries & Trout, 2001). 

   Positioning strategies can take many forms, depending on the specific characteristics and goals of a business. Some common approaches include positioning based on product attributes, price, quality, customer service, or brand personality. For example, a company may choose to position itself as a premium brand, emphasizing high-quality materials, craftsmanship, and exclusive features to justify a higher price point. Alternatively, a business may focus on positioning itself as a value-oriented option, offering competitive prices and emphasizing affordability without compromising on essential features or benefits.

   Ultimately, the key to successful positioning lies in the ability to identify and communicate a clear, compelling, and differentiated value proposition that aligns with the needs and preferences of the target audience. By consistently delivering on this promise and reinforcing their chosen position through all aspects of their marketing mix, businesses can build a strong and enduring brand that stands out in a crowded marketplace and drives long-term growth and profitability. As such, developing and executing effective positioning strategies is a critical component of strategic marketing and a vital factor in the success of any business.

Business Positioning
Brief history:

   The concept of positioning in marketing was first introduced by Jack Trout and Al Ries in their 1969 article “Positioning is a game people play in today’s me-too marketplace” published in Industrial Marketing magazine (Ries & Trout, 1969). They argued that in an increasingly crowded and competitive marketplace, companies need to create a unique and memorable position in the minds of their target customers to stand out from their rivals.

   In the following decades, the concept of positioning gained widespread acceptance and became a fundamental component of modern marketing strategy. In their 1981 book “Positioning: The Battle for Your Mind,” Ries and Trout further developed the concept and provided a framework for creating effective positioning strategies (Ries & Trout, 2001). Since then, numerous scholars and practitioners have contributed to the development and refinement of positioning strategies, adapting them to the evolving business landscape and consumer preferences (Aaker & Shansby, 1982; Fuchs & Diamantopoulos, 2010; Urde & Koch, 2014).

Business Positioning

Data and insights:

  Research has consistently demonstrated the importance of effective positioning strategies for business success. A study by Kalafatis, Tsogas, and Blankson (2000) found that well-executed positioning strategies can lead to increased customer loyalty, higher perceived value, and improved brand equity. Furthermore, a survey of 500 senior marketing executives revealed that 79% considered positioning to be a key factor in their company’s success (MarketingProfs, 2015).

  In addition to these findings, a meta-analysis by Fuchs and Diamantopoulos (2010) examined the relationship between positioning strategies and firm performance across 62 empirical studies. The results showed a significant positive correlation between effective positioning and various performance metrics, such as market share, profitability, and customer satisfaction. These data and insights underscore the crucial role that positioning strategies play in driving business success and achieving a competitive advantage.

Business Positioning

Real world success:

  One notable example of a company that has successfully employed positioning strategies is Apple Inc. By focusing on innovation, design, and user experience, Apple has differentiated itself from competitors and established a strong brand identity that resonates with its target customers (Moorman, 2012). Through consistent messaging and product offerings that align with its positioning, Apple has cultivated a loyal customer base and achieved remarkable success in the technology industry.

Business Positioning

Future trends:

   As consumer preferences continue to evolve and new technologies emerge, the future of positioning strategies is likely to be shaped by several key trends. First, the growing importance of purpose-driven marketing and corporate social responsibility will require companies to align their positioning with societal values and demonstrate a commitment to making a positive impact (Kotler, Kartajaya, & Setiawan, 2021). Second, the increasing use of data analytics and artificial intelligence will enable companies to gain deeper insights into customer preferences and tailor their positioning strategies accordingly (Davenport, Guha, Grewal, & Bressgott, 2020). Finally, the rise of digital platforms and social media will provide new opportunities for companies to engage with customers and communicate their positioning in innovative and interactive ways (Kannan & Li, 2017).

Business Positioning

Getting started:

   For companies looking to develop effective positioning strategies, the first step is to conduct thorough market research to identify target customers, assess competitors, and understand the unique value that the company can offer. This research should inform the development of a clear and compelling brand positioning statement that articulates the company’s unique selling points, target audience, and brand promise. Once the positioning statement is established, companies should align all aspects of their marketing mix, including product design, pricing, distribution, and promotion, to consistently communicate and reinforce their chosen position in the market.

References:
Note: Page hyperlinks can change overtime. If a hyperlink has a 404 error, please search Google for the new link.
Aaker, D. A., & Shansby, J. G. (1982). Positioning your product. Business Horizons, 25(3), 56-62. https://doi.org/10.1016/0007-6813(82)90130-6
Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How artificial intelligence will change the future of marketing. Journal of the Academy of Marketing Science, 48(1), 24-42. https://doi.org/10.1007/s11747-019-00696-0
Fuchs, C., & Diamantopoulos, A. (2010). Evaluating the effectiveness of brand-positioning strategies from a consumer perspective. European Journal of Marketing, 44(11/12), 1763-1786. https://doi.org/10.1108/03090561011079873
Kalafatis, S. P., Tsogas, M. H., & Blankson, C. (2000). Positioning strategies in business markets. Journal of Business & Industrial Marketing, 15(6), 416-437. https://doi.org/10.1108/08858620010349501
Kannan, P. K., & Li, H. “A.” (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing, 34(1), 22-45. https://doi.org/10.1016/j.ijresmar.2016.11.006
Kotler, P., & Armstrong, G. (2021). Principles of Marketing (18th ed.). Pearson.
Kotler, P., Kartajaya, H., & Setiawan, I. (2021). Marketing 5.0: Technology for humanity. John Wiley & Sons.
MarketingProfs. (2015, January 27). The State of Marketing Leadership. https://www.marketingprofs.com/charts/2015/26950/the-state-of-marketing-leadership
Moorman, C. (2012, July 10). Why Apple is a great marketer. Forbes. https://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/
Ries, A., & Trout, J. (1969). Positioning is a game people play in today’s me-too marketplace. Industrial Marketing, 54(6), 51-55.
Ries, A., & Trout, J. (2001). Positioning: The battle for your mind. McGraw-Hill.
Urde, M., & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal of Product & Brand Management, 23(7), 478-490. https://doi.org/10.1108/JPBM-11-2013-0445 

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Guide: Business Positioning Strategies

Finding Your Position in the Market

In the highly competitive business landscape, positioning your company effectively is crucial for achieving long-term success. This guide explores strategic approaches to positioning that can help your business stand out, attract the right customers, and sustain growth. By understanding and implementing these strategies, you can create a distinct identity and value proposition that resonates with your target audience.

Benefits for your organisation

The following are expected benefits when applying these resources in your organisation.

Benefits of Business Positioning Strategies:

Enhanced Brand Equity:

A well-executed positioning strategy helps your company build strong brand equity, increasing the perceived value of your products or services and enabling you to command premium prices.

Greater Business Resilience:

A well-defined positioning strategy helps your company navigate market changes and challenges more effectively by providing a clear direction and focus for your marketing and business development efforts.

Enhanced Stakeholder Alignment

A well-defined positioning strategy ensures that all stakeholders, from employees to investors, understand and can articulate your company’s unique value proposition, fostering a cohesive and focused organisation.

How to get started

The following steps are designed to provide an actionable framework for improving your organisation and implementing new systems.

How to create a Business Positioning Strategy:

Data-Driven Customer Persona

Move beyond traditional demographics by leveraging big data and advanced analytics to create dynamic customer personas. Use AI to analyse customer behaviour, preferences, and purchasing patterns, resulting in highly detailed and accurate personas.

Predictive Analytics for Market Trends

Utilise predictive analytics to forecast market trends and customer behaviour. By analyzsing historical data and identifying patterns, you can anticipate changes in the market and adapt your positioning strategy proactively.

Multi-Channel Attribution Model

Adopt a multi-channel attribution model to understand the customer journey across various touchpoints. This approach provides insights into which marketing channels and sales funnels are most effective, enabling you to allocate resources more efficiently.

 

Align Your Marketing Mix

Ensure that your product design, pricing, distribution, and promotional efforts consistently reinforce your chosen positioning strategy. For instance, invest in high-quality packaging that reflects your brand’s premium positioning.

 

Continuous Feedback Loops

Many next-generation Customer Relationship Management (CRM) systems integrate real-time feedback mechanisms. Finding the right system will help you gather insights from customers continuously and refine your positioning strategy based on their evolving needs and preferences.

 

Strategic Partnerships

Collaborate with Influencers,  Leaders, and various Communities to create Strategic Partnerships that will help you expand your reach, tap into new audiences, and enhance your brand’s perceived value and credibility.

Technical Tips

We are always looking for better systems, tools and technology. Learn what we have learned, to make your organisation more effective.

Business Positioning

Technical Tips:

   To enhance your business positioning strategies, start by conducting comprehensive keyword research using tools like Google Keyword Planner, Ahrefs, or SEMrush. Identify the most relevant and high-traffic keywords related to your business and incorporate them strategically into your website content, meta tags, and online adverts. This will improve your search engine rankings and visibility among your target audience. Additionally, implement schema markup, a structured data vocabulary that helps search engines better understand and display your content. Use schema markup to highlight your unique value proposition, customer reviews, and other key information that reinforces your positioning strategy. Utilise machine learning algorithms to analyse customer data and deliver personalised experiences that align with your positioning strategy. Platforms like Adobe Target or Optimizely can help you create targeted content, product recommendations, and offers based on individual customer preferences and behaviour.

   Leverage influencer marketing platforms like AspireIQ or Upfluence to identify and collaborate with industry influencers who align with your brand’s positioning. These platforms provide data-driven insights into influencers’ reach, engagement, and audience demographics, allowing you to select the most effective partners. Implement A/B testing to optimise your landing pages and ensure that they effectively communicate your brand’s positioning. Use tools like Google Optimize or VWO to test different headlines, images, and calls-to-action, measuring their impact on conversion rates and user engagement. Finally, use heatmapping and session recording tools like Hotjar or Crazy Egg to gain insights into how users interact with your website. Analysing this data can help you identify areas of your site that are effectively communicating your positioning, as well as potential pain points that may be hindering user engagement.

Questions & Answers

These questions and answers provide information that may not fit into other areas or categories. If you want more information or have questions you would like to ask, please feel free to reach out.

Business Positioning Questions and Answers:

How can I identify the ideal market for my business?

Market Research: Conduct thorough market research to understand the demographics, needs, and preferences of potential customers.

Competitor Analysis: Evaluate your competitors to identify gaps in the market that your business can fill.

Customer Feedback: Gather insights from existing customers to understand what they value most and identify potential areas for expansion.

What strategies can I use to position my brand effectively?

Unique Selling Proposition (USP): Develop a clear and compelling USP that highlights what sets your brand apart from competitors.

Consistent Messaging: Ensure that all marketing and communication materials consistently reflect your brand’s values, voice, and positioning.

Emotional Connection: Create an emotional connection with your audience by aligning your brand with their values and aspirations.

How can I ensure my product or service offerings are aligned with my brand positioning?

Product Development: Design and develop products or services that align with your brand’s value proposition and meet the needs of your target market.

Customer Experience: Ensure that every touchpoint in the customer journey reflects your brand’s positioning and provides a consistent experience.

Feedback Loop: Implement a continuous feedback loop to gather customer insights and make adjustments to your offerings as needed.

What tools can I use to enhance my market positioning?

Customer Relationship Management (CRM): Use CRM systems like Salesforce or HubSpot to manage customer interactions and gather valuable insights.

Marketing Automation: Implement marketing automation tools to streamline campaigns and ensure consistent messaging across all channels.

Analytics Platforms: Utilise advanced analytics platforms like Google Analytics or Adobe Analytics to track performance and make data-driven decisions.

How can I adapt my positioning strategy in response to market changes?

Agile Frameworks: Adopt agile frameworks to allow for quick adjustments to your positioning strategy based on real-time market feedback.

Trend Analysis: Regularly monitor market trends and emerging technologies to identify opportunities and threats.

Scenario Planning: Develop multiple scenarios and strategies to prepare for different market conditions and ensure flexibility in your approach.

What are common mistakes to avoid in business positioning?

Inconsistent Messaging: Avoid sending mixed messages across different channels, which can confuse customers and dilute your brand.

Ignoring Customer Feedback: Don’t overlook the importance of customer feedback in shaping your positioning strategy and refining your offerings.

Overemphasis on Price: Focusing solely on being the cheapest option can undermine your brand’s perceived value and long-term profitability. Instead, highlight the unique benefits and quality of your offerings.

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