Why Product Positioning Is Crucial For A Successful Business

It has become easier than ever to create your own product or to source them. Places like Alibaba and local wholesale markets has spawned an era of private labeled businesses for passionate and opportunistic individuals to take advantage of. 

And with so many places and channels for someone to potentially see your item, product positioning has become one of the most discussed business strategies.

Not having the right positioning and strategy could mean a huge loss of time, money, and brand equity.

What is Product Positioning?

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Product positioning is a form of marketing that presents the benefits of your product to a particular target audience. Through market research and focus groups, marketers can determine which audience to target based on favorable responses to the product.

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Basically, product positioning is carefully and strategically putting a product in front of a certain target audience to generate sales and revenue.

It is a form of marketing that requires a high level of research to place a product and create favourable feedback from the targeted market. It involves nailing down the visuals, feelings, and words used to market to a specific demographic. 

For instance, the words and imagery of a sleek modern minimalistic watch would be entirely different when it is shown to busy fashionable women and to the businessmen in their late 20s to early 30s. 

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Photo Credit: Daniel Wellington

The market research for each of those target audiences found different interests that the positioning

Product Positioning vs. Product Differentiation

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You’re probably wondering how is product positioning different from product differentiation?

While product positioning focuses on a niche of audiences, product differentiation focuses on the qualities of the product and comparing it to what its competitor cannot offer.

The goal of product positioning plays a huge role in building the necessary bridge between your company and the market you’re looking to target.

Let’s take a look at the 6 Types of Product Positioning you can apply to your business.

6 Types of Product Positioning

1.) Customer Benefits Focus

This is one of the most used strategies used out there. From the word itself, you are using the key beneficial qualities of your product and market it in a specific audience.

For example, your company sells adorable little plush dolls. Of course, you wouldn’t market these to the male audience. What you can do is present the qualities of your products to the female kids since they’re the ones who will most likely appreciate the product.

2.) Quality Approach

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As for the quality approach, you are marketing your product while highlighting the quality of it compared to the other brands.

For example, if you were to buy a car, would you settle for a used dealership or a completely brand new model? Coming into this, you’d assume that the former is cheaper in quality than the latter.

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3.) Application Marketing

For this method, you are marketing your product for a certain use. This way, you can set up a specific audience and work from there once it grows bigger.

For example, if you are to market swimwear…Naturally, you will do this in the summer since this season is where swimwears are often used.

Once you establish a market, regardless of the season, you can introduce more products that would entice your audience without compromising loyalty – a foundation you established during summer.

4.) Product Process

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Photo Credit: Daniel Wellington

This is one of the most used product positionings that you may not have even noticed.

You use a model as a representation of your market and use that as a bridge to your audience.

For example, you want to market high-end tote bags. Like every luxury brands out there, you can hire celebrities or supermodels to market your products and set a standard within the community or your target audience.

5.) Product Class

A simple technique that only requires you to set your products within a certain range as an alternative.

Let’s say you are to market lip balm for example. You wouldn’t put it in the dairy section, right? What you would do is position it in the beauty section of a certain market and build your engagements from there. It’s a simple method that often works if done right.

6.) Cultural Symbols

As one of the widely used methods of product positioning, here you are setting your market within a certain culture.

You are creating an engagement without compromising the cultures of these places to show respect and build a market within them.  This is also defined as using a cultural symbol to create a market engagement.

To use an existing example, nudity is one of the most prevalent symbolism in today’s music industry. Several albums from artists like Shakira, Lady Gaga and Katy Perry were all marketed globally that explicitly shows graphic covers. To respect certain cultures, the labels decided to photoshop these covers for them to market them in countries where female nudity is a major offense.

As you can see, there are a lot of things you can do if you want to position your product in a certain market.

You can choose to focus on one strategy or make a hybrid of two or three of these to make a super marketing plan for your products.

Of course, do not forget to conduct research to as this will be a vital component before the execution. 

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What Is Branding and Why Is It Crucial For Your Business

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When you see small, colorful circular chocolates; you don’t have to check the signature “M” to tell what they are.

You know they’re M&M’s.

When you see the golden arches that band together to make a letter M…

You know it’s McDonalds.

Even without seeing the name of the product, the name of the business instantly pops into mind; along with the feelings and sentiments you have for them.

That’s the power of branding.

What is Branding?

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But what exactly is branding?

Let me help you better understand what branding is by starting off with the definition of a brand.

A brand is a depiction of who you are as a business.

It also illustrates how you wish to be perceived. Brands exist only in the customer’s’ minds. The sum of all customers impression about you is what your brand is.

Branding, on the other hand, is a companies’ marketing practice to create a name, design, symbol or logo to easily identify a company with. Through branding, a product is identified and easily distinguished from other products and services.

Branding gives customers a memorable impression. It is a way to provide customers with what is to be expected from a company.

Branding helps you

  • Stand out,
  • Be distinguished, and
  • Choose why you are a better option because of what you can offer.

Branding is an essential asset for a company. It helps in developing and leaving a lasting positive image and impression in the minds of consumers.

Branding should also be integrated into online activities, especially for Amazon FBA sellers. With branding efforts, a brand’s reputation goes above and beyond original product services and offerings. This allows for tons of revenue brought forth to a brand.

Why is Branding Important?

Branding is highly critical for the success of any business.

Branding delivers an overall impact to a company. It is so pivotal that it can change the way consumers see and perceive your brand. It can also be used to increase brand awareness and drive in new businesses.

A lot of Amazon FBA sellers make the mistake of not making a conscious effort with branding. They think that people slapping a generic logo on a product is enough.

But it isn’t.

And with so many people selling the same private labeled product as you, branding is one of the biggest factor that sets you apart from everyone else. It also means avoiding the race to the bottom by offering the lowest prices.

Here are 3 reasons why branding is crucial for your business:

1) Branding Provides Recognition

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One of the most definable reasons why branding is important is because of how it helps a company gets recognized and known to people. To bring a face to a brand, a logo is created. A vital element of branding is a company logo.

However, logo generation should be done professionally.

If you want your brand to be taken seriously, make the necessary efforts to provide a professional logo design that is memorable, impressionable, and catchy to a consumer’s attention.

LEGO is an example of a brand that has built recognition over the years.

LEGO started in 1939 just as a brand that makes wooden toys in Denmark. But with great branding, it has turned itself into a multi-billion dollar company around the world. From making toys, LEGO has now a theme park, movies, and even a factory where it allows customers to build custom creations.

All of these are made possible because of its iconic design, font, and constant creativity of branding.

2) Branding Attracts New Customers

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Strong branding will help your business get a positive impression and leave familiarity and dependability in your brand. Getting business referrals will be a breeze when people know you in an affirmative way.

With an established brand, word of mouth comes easy and it works wonders in advertising your brand even without you moving a finger.

Just like in building your brand in the Amazon marketplace, a door can open up externally.

You can start up as a newbie and develop a product that can sell in Walmart or other large retailers nationwide.

If you properly brand your product, use a platform to sell, and deliver a killer brand experience; you can grow your business exponentially in more ways than you can imagine.

3) Branding Develops Trusts

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How you present yourself helps you win trust among your competitors.

Branding allows you to appear professionally in the eyes of consumers. Depending on how you strategize your branding, consumers will trust your company and what you have to offer if they see you as someone is is well-polished and professional.

People are more likely to trust a brand that exudes familiarity and consistency.

If you are a buyer, what would you rather get –  an iPhone or an unbranded mobile phone?

The answer is simple, iPhone all the way!

Apple has strongly identified the iPhone as the mobile phone to beat. The Apple brand speaks volume of professionalism and higher quality because we know it. We are familiar to it.

When you see a product that has no brand, you will feel that the item is of lower value and quality.

You might even think that they will not offer after-sales support since you do not know who they are and who created them.

And there’s no feeling that can be connected to the product without a brand name attached to it. You lose the ability to connect with the customer and build an audience that would talk about your business to others.

The importance of branding to your business is not something that you should keep a blind eye from. Building a brand is critical to solidify your business’ chances to succeed.

These are just some of the reasons why branding is important, but they all point to you starting on building a brand.

If you are a digital entrepreneur or an Amazon FBA seller, it’s time to consider bringing branding into your business. Branding should be the core and building block that you should focus on to cement your place in the competitive world we live in.

 

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