Why is Global product positioning important?
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
May 7, 2022
Why is Global product positioning important?
Each brand has to know its customers to provide a product that resonates with their needs.
A well-thought-out strategy can determine the position of this product within the market and
identify its benefits for consumers.
The process involves creating a particular image of a brand and its products in
consumers’ minds and identifying the key benefits to show how a particular product differs
from competitors’ alternatives. Afterward, the difference is communicated to a brand’s target
audience through the most effective communication channels. The messages brands convey to
their customers should evoke interest.
Marketers need to determine the best ways to present specific products and reach their
target audience based on customers’ needs, competitive alternatives, the most effective
communication channels, and tailored messages. Implementing product positioning strategies
enables companies to create messages that address their customers’ needs and wants and
entice them to purchase.
There are even more pros this type of marketing can bring, so check out our list to know all
of them.
Benefits of product positioning
We’ve prepared the top benefits of product positioning that show why it’s one of the most
effective marketing tactics. It helps in:
identifying key benefits of a product and matching them with customers’ needs;
finding a competitive advantage even when the market changes;
meeting customers’ expectations;
reinforcing your brand’s name and its products;
winning customer loyalty;
creating an effective promotional strategy;
attracting different customers;
improving competitive strength;
launching new products;
presenting new features of existing products.
Now that you know the advantages, we’ll move to the next section to review product
positioning strategies.
5 Product Positioning Strategies
Characteristics-based positioning
Pricing-based positioning
Use or application-based positioning
Quality or prestige-based positioning
Competitor-based positioning
While a lot of time is devoted to product development, only a few companies think about
how consumers will perceive the product when it’s already in the market. Product positioning is
about understanding the products you decide to introduce to the masses. That’s why it’s critical
to pay attention to what your customers think. Let’s explore the key strategies that will help
you define the position of your product.
Characteristics-based positioning. Brands give certain characteristics to their products
that aim at creating associations. It’s done to make consumers choose based on brand
image and product characteristics. Let’s take the automobile industry, for example. A person
who worries about safety will probably choose Volvo because of the brand’s positioning. At the
same time, another customer who pays attention to reliability would prefer Toyota.
Pricing-based positioning. This strategy involves associating your company with
competitive pricing. Brands often position themselves as those that offer products or services at
the lowest price. Let’s take supermarkets, for example. They can afford to provide customers
with products for lower prices because of the lower costs they pay for shipping and distribution,
huge turnover, and a large procurement of goods. As a result, many consumers already know
the supermarkets with attractive prices and choose them without considering other options.
Use or application-based positioning. Companies can also position themselves by
associating with a certain use or application. People who adhere to a healthy lifestyle create a
great demand for products that help increase performance in the gym. Hence, many businesses
offer nutritional supplements. These brands sell supplements that are high in calories, vitamins,
and minerals.
Quality or prestige-based positioning. The brands we are talking about now don’t
concentrate on their price point; they focus on their prestige or high quality instead.
Sometimes, it’s the reputation that makes a brand attract customers. Let’s take Rolex, for
example. This famous watch brand is associated with achievement and excellence in sport and
is popular among powerful and wealthy people.
Competitor-based positioning. The strategy involves using competitors’ alternatives to
differentiate products and highlight their advantages. It helps brands distinguish their products
and show their uniqueness.
The difference is clear now, so it’s time to jump to the steps required for successful product
positioning.
10 Steps to Position Your Product
1. Define your target audience
2. Identify the key benefits of your product
3. Establish brand credibility
4. Offer a unique value proposition
5. Consider audience segmentation
6. Craft your messaging
7. Do a competitive analysis
8. Demonstrate your expertise
9. Focus on your competitive advantage
10. Maintain your brand’s position
The way your customers perceive your brand is crucial since they define your sales volume,
the success of your business, and the profits your company will earn. Therefore, you should be
ready to present your products honestly and effectively. To do this, you need to consider the
following steps.
1. Define your target audience. Knowing your customers' needs, wants, demographics,
and interests allows you to give them the product they strive for. This way, you can reach your
target audience and motivate them to buy your products. For this purpose, you need to be
well-prepared and operate the necessary information.
2. Identify the key benefits of your product. Benefits are a top priority for any customer
who wants to solve a particular problem. As a business owner, you need to know all the
peculiarities of your products or services, including their features and advantages. You need to
identify your key perks and communicate them to the masses so that they can consider your
product when reviewing several options.
3. Establish brand credibility. You need to create a brand that people can rely on to build
trusting relationships and encourage your customers to make repeat purchases. Consumers are
more inclined to make repeat purchases from companies with a good reputation and high
credibility. Remember not to make promises you can’t keep and claims that can’t be verified.
Prioritize honesty and transparency since they will help you build a healthy product positioning
strategy.
4. Offer a unique value proposition. Communicate the value your product can bring to
your target audience. You need to be aware of the fact that consumers won’t choose a product
if they can’t benefit from it. Explore your product, find its benefits, and search for the most
appropriate communication channels to convey them to your leads and customers effectively.
5. Consider audience segmentation. If you want to obtain the best results, you need
to segment your audience since your product can’t satisfy all your customers’ needs. You can
divide them into groups based on their interests, traits, and needs to create customized
messages. As a result, you’ll be able to appeal to their individual wants and needs and provide
them with your product as a solution.
6. Craft your messaging. Once you segment your customers, it’s necessary to select the
right communication channels for each group. Some of them might prefer social media
platforms, but others might use traditional channels like TV and radio. Give some thought to
writing a positioning statement (a description of a product, its target audience, and how this
product can solve a problem that arises). It will help you prepare personalized and effective
messages that speak to the needs and preferences of each group.
7. Do a competitive analysis. Once your message is ready, you need to evaluate your
competitors’ businesses and the products or services they offer. Competitor research gives you
a clear understanding of your rivals, their offers, and what makes your product different in a
positive way. Afterward, you’ll be aware of the distinctive features and benefits your product
has, your core values, innovations, and various improvements your company provides
consumers with.
8. Demonstrate your expertise. Explain to your customers why they should choose you
over your competitors. You should also prove that your product is better and that it has several
benefits useful for consumers. There are several ways to show the quality of your product or its
benefits: testing, trials, demonstrations, etc.
9. Focus on your competitive advantage. These are the factors that enable your company
to manufacture better or cheaper products and outperform your competitors. You need to
speak about the actual benefit your product provides. Customers should truly need this product
and obtain its visible value. It also includes staying up-to-date and adapting to new trends and
innovations.
10. Maintain your brand’s position. Once you reach this step, you need to maintain your
brand’s position so that customers continue buying your products. If you aim to operate this
successfully, you should never compromise on quality and increase or reduce prices drastically
since it can make customers suspicious.
