Have you heard the expression, “You can't be all things to all people?” It's a significant truism and it has direct application to product positioning. When you introduce a product you must be clear about the benefit you are selling. No product does everything, but each successful product does something better than all the rest. Your job when positioning your product is to discover what that “best” is.

The only way to know what you do best, or to design a better product, is to understand your competitor's unique positioning statement. Do they position on price, service, quality, features, or a combination of these? When you are clear about what specific need your competitors' products fulfill, you can uncover the needs that are going unmet. These unfulfilled needs represent the areas you need to focus on with your own product position.

There are a variety of ways to position your product and make it unique, yet all of these distinct competitive advantages fall into four main categories: Product/Service Innovation; Customer Service; Total Value; and Prestige positioning.

Product/Service Innovation positioning is based on developing a product that solves a particular problem for customers, or gives customers access to innovative or proprietary technology. For example, Apple's iPod was the first portable MP3 player and crowds rushed to jump on the iPod craze because the technology was new and different. Though other companies have since produced their own MP3 technology, Apple is seen as the innovation leader in the field.

Customer Service positioning means building your business around providing excellent customer service; better customer service means you can typically charge more for your products. High-end department stores--such as Nordstroms--and specialty shops often employ this model. Busy customers are willing to pay more because they value the time and attention they receive.

Total Value positioning is employed by business such as Wal-mart, Target and Southwest Airlines. These businesses offer mid-range products and services at a reasonable cost. Though they don't provide high-end customer service, low prices and good values keep customers coming back.

Prestige positioning is achieved by creating a personal identification with a product. A product may be positioned as a status symbol (Rolex watch) or as something that will bring personal fulfillment and happiness (feng shiu products). Symbolic positioning happens when consumers view products as extensions of themselves and something that will help bring meaning, excitement, or esteem to their lives.

Regardless of how you position your product, you must have a marketable position based on your distinct competitive advantages. The market is too broad and deep for you to expect your audience is all-inclusive. Focus your time and energy on finding what you do better than anyone else and then spend your marketing dollars wisely by promoting that message to the right people.

Questions about this article? Visit the 247advisor.com forum for free, expert advice.

© Copyright 247advisor.com

Top of Page