What is product positioning strategy?
One of the biggest challenges faced by brands is to identify how to sell their products. A product positioning strategy involves planning for the market and identifying ways to get customers to perceive the product in a particular way. A positioning strategy highlights the inherent qualities that distinguish your product from other counterparts in the market. A critical mistake that even some of the best marketers make while formulating their product positioning or even their brand positioning strategy is that they presume positioning to be primarily driven by promotions. However, building a good positioning strategy has to do with more than merely undertaking rapid promotions for the product or the brand.
Why is a product positioning strategy important?
What are the common product positioning mistakes that brands make?
Most products that aren’t positioned correctly ultimately end up in the consumer graveyard. If you want to formulate a good product positioning strategy for a new product or re-positioning an existing one, here are some of the common product positioning mistakes that you must avoid:
Product positioning strategy mistake #1: Diversifying products in unrelated markets
When a new product is introduced keep the target audience in mind and ensure that the product is related to what customers associate your brand with. For instance, if a popular toothpaste brand decides to venture into ready-to-eat meals, they will most likely fail. Furthermore, the brand positioning strategy should be in such a way that the customers trust the brand to offer best-in-class products. It would always be beneficial to do a trial run before a full-fledged entry into a new market or even a new product category.
Product positioning strategy mistake #2: Product launch when the market is not ready
Introducing a poorly positioned product before a market is ready for it could be a grave mistake for brands. Take the instance of Apple’s Newton PDA that hit the markets in the early 90s. This was a period when people were not even accustomed to mobile phones and Filofax diary and business cards were the key tools used for time management and networking. The product was highly criticized for its poor handwriting recognition and the huge price tag associated with it.
Product positioning strategy mistake #3: Ineffective communication of the use cases
One of the key questions that consumers ask themselves before purchasing a new product is why they should buy the product and what are the use cases that the product would serve. Apart from a strong product positioning strategy, it is also essential for businesses to have a clear competitive positioning strategy in place. This will ensure that consumers not only understand the uses of your product, but also become convinced as to why they should opt for your product when compared to other similar products in the market.