Paws for Thought

The ADAMS Blog
July 9th, 2009

Tactics for effective positioning strategy

When it is time to position products and services, organizations often do not know where to begin. The most obvious starting point is  the branding strategy, but once the new product or service has been aligned with the brand, is there a logical next step?

Consider the audience and how the product or service will serve its marketplace. In addition, the following tactics can also help define a product or service’s position, ensuring it will adhere to the branding strategy and have an impact on its target audience.

Product Attributes: Sometimes specific product attribute can define a product or service in the marketplace. For instance, the iPhone was introduced as the first smartphone that did not have a number pad.

Benefits: How will the product or service enhance the life of the end user?Keeping with the iPhone example—does it have a longer battery life, is it sleeker or smaller than other phones?

Usage
: Every product or service is created to enhance the life of the user. Specifically; how, when, and why is the product to be used. The iPhone combines an mp3 player with a smart phone which can be used for business and recreation.

Users: Identifying the targeted users not only contributes to a product or service’s position, it also helps distinguish the audiences to which the product will be marketed. The iPhone could be marketed to business people, college kids, or anyone who has a mobile lifestyle.

Against a Competitor
: Positioning directly against a competitor makes users compare your product to another similar product or market leader. Because of its exclusivity deal with iPhone, AT&T was able to position itself against other wireless carriers.

Away from a Competitor: Though a product or service might be similar to the competition, positioning it away from a competitor distinguishes its features.

Product Classes: Labeling a product or service within a category of other similar ones helps the target audience understand the product by association. The iPhone conveniently fit into many product classes—smart phone, mp3 player, and innovative being a few.

A thorough understanding of the brand, the target audience, and the marketplace combined with strategic use of one or more of the tactics above will lead to more effective results.

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