How to Find Your Target Market for Your Ecommerce Businesses

Knowing the intricate nuances of your target market plays a crucial role in the performance of any eCommerce business.

Because there are so many competitors out there selling a similar product as you, you need to make your products stand out and speak to your potential customers and current customers. That way, they buy from you over the guy down the street (web).

Failing to put the work in doing the research and doing the testing may mean pushing the wrong messaging and wrong visuals to your intended buyers. Which means a lot of wasted time and money.

Know Who You’re Marketing To

How to Find Your Target Market for Your Ecommerce Businesses 1

It is incredibly hard to succeed as a business if your target audience is not clearly defined.

A big mistake beginner business owners make is trying to market to everyone. That is, using the same messaging and visuals towards each demographic cluster.

The problem is that a universal marketing strategy does not exist in today’s age.

Why bother marketing to consumers who are unlikely to buy your product? You’ll end up spreading your budget too thin.

Aim for consumers who are most likely to connect with your brand. This is the best way to use your marketing dollars and your best chance of succeeding in such a vicious industry.

What is “Target Market”?

You can find several variations of the target market definition on the internet.

I find Shopify’s definition is one of the most accurate:

“A target market is a group of consumers or organizations most likely to buy a company’s products or services. Because those buyers are likely to want or need a company’s offerings, it makes the most sense for the company to focus its marketing efforts on reaching them. Marketing to these buyers is the most effective and efficient approach. The alternative – marketing to everyone – is inefficient and expensive.”

-Shopify

Why Do I Need To Know My Target Market?

How to Find Your Target Market for Your Ecommerce Businesses 2

How can you sell to consumers if you have no idea what they want or need?

Each person has different demographic qualities, interests, and pain points.

Selling without a target market is like traveling without a specific destination. You’ll likely get lost and never achieve the goals of your journey.

On the other hand, if you target the right audience, success will be well within reach.

If you find an untapped market, you can even disrupt the market.

Let’s take a look at this recent success story.

Do it like the Dollar Shave Club

How to Find Your Target Market for Your Ecommerce Businesses 3

The Dollar Shave Club took the shaving industry by storm. It completely disrupted the personal grooming market.

How did it do this?

First, it found an untapped market. And which market is that, you ask?

It’s the men who don’t like the hassles of going out to buy razors and grooming products.

During that time, all sellers of razors and male grooming products required their customers to come to their stores.

Disruption is the Key to Rapid Growth

The Dollar Shave Club’s business model changed the face of the male grooming industry forever.

The company sends its subscribers razors and grooming products delivered to their house. Subscribers only have to pay a small monthly fee in return.

The Dollar Shave Club then topped this off with its memorable and catchy tag line, “our blades are f***ing great!”

How to Find Your Target Market for Your Ecommerce Businesses 4

The Dollar Shave Club became a well-known brand in the US within a few months.

How to Find Your Target Market for Your Ecommerce Businesses 5

It owed half of its success to its business model. The other half was thanks to it choosing the right target market.

How Do I Find My Target Market For My eCommerce Business?

The process of identifying your target market can be broken down into the four steps listed below:

Step 1: Define Your Target Market

How to Find Your Target Market for Your Ecommerce Businesses 6

This first step is all about identifying the problem you solve or the desire you fulfill.

You need to know the pain points you want your marketing to aim for.

Consider these tools and areas during your research:

  • Amazon Reviews – look at the negative review and positive reviews of a similar product a competitor is selling. See what works and what doesn’t.
  • Quora – a Q&A board where you can see what people are struggling with or curious about in the topic your product is in.
  • Answer the Public – displays all the questions people ask online about any term or topic.
  • Facebook Insights – input a Facebook page of a global company that caters to a similar target audience and see the interests and demographic information about them.

Write down all the key information you find in these platforms, specifically:

  • what are the biggest pain points people are having?
  • what is the goal people are looking to achieve?
  • how does the product make them feel?
  • what brands, books, known individuals are mentioned?
  • what demographic and psychographic patterns to do you see?

Let’s say your service delivers razors and other male grooming products to subscribers.

Who would be your ideal target audience?

You can target working adult males who are too busy to go to the department store only to buy a razor.

You can then use this to create your buyer persona. Buyer personas make it easier to make your marketing, product, and packaging have the same target.

Let’s say that our buyer persona is John, a 31-year-old working father of two.

Step 2: Refine Your Target Market

Now that you have a buyer persona, it’s time to refine it.

You need to factor in the demographics and psychographics of your potential customers so you can get into their heads.

Demographics can include gender, age, income level, education level, marital status, and the like.

Psychographics can include behaviors, attitudes, and the like.

Here are some examples of how to refine the buyer persona we’ve created above:

  • John, a 31-year-old working father of two who is separated and takes care of the kids on his own
  • John, a 31-year-old working father of two with a stay-at-home wife who does the shopping for him
  • John, a 31-year-old working father of two who is rich and has a housekeeper who buys groceries for the family

Step 3: Validate Your Target Market

How to Find Your Target Market for Your Ecommerce Businesses 7

Now that you have refined your buyer persona, it’s time to check its validity.

How? You do some old-fashioned research.

Proper market research is needed to ensure that there are no major flaws in your chosen target market.

So far, you’ve built your buyer persona based on assumptions. It’s time to put those assumptions to the test.

Here are some of the questions you should answer to ensure the eligibility of your target audience:

  • Are there enough people in your target market segment?
  • Can they afford your price tag?
  • Are there existing competitors?
  • Can you deal with them?

Step 4: Evaluate Your Target Market

Let’s say the research supports the validity of your target market.

Don’t jump the gun just yet. Don’t forget to test the waters.

Create a test launch were you try to sell only a few products here and there.

Or you can test it by talking to individuals who fit your target market. This means actually going out there to find multiple “Johns”.

If the results are positive, then you’re good to go.

If they’re disappointing, use the findings to refine and adjust your strategies.

The bottom line is that you have products you want to sell, but you can’t market to everyone.

No business has the budget for that.

To spend your marketing budget efficiently, you need to find the right target audience.

You need to find the segment of consumers who need and/or want your product. This will allow you to maximize the conversion rate of your marketing efforts.

Don’t make the novice mistake of ignoring this crucial step. Put in the work and figure out your target audience. It will be well worth it down the road.

Why Storytelling is Crucial for Ecommerce Businesses

People love stories.

It’s why some stories originally told over a thousand years ago endure up to this day.

We’ve loved stories from an early age, back when we barely understood them.

Stories entertain. Stories inspire. Stories fuel the imagination.

Storytelling in Marketing

Why Storytelling is Crucial for Ecommerce Businesses 8

It’s no surprise that storytelling has become one of the most effective tools used in marketing.

Its ability to establish a deeper connection with consumers is unparalleled. Storytelling can humanize a brand and make it more relatable.

When done right, eCommerce storytelling can reach out of the computer screen and “touch” consumers.

It can also be the catalyst to mobilizing a legion of loyal fans.

What Is Storytelling For eCommerce?

Marketing is a necessity if you want to succeed in eCommerce.

There are countless competitors selling products identical to yours.

It becomes a race of who can capture their audience’s attention first. When it comes to engaging your audience, few can be as potent a tool as storytelling.

Capture the Imagination of Your Audience

Why Storytelling is Crucial for Ecommerce Businesses 9

Online stores can make consumers experience their stores physically.

So you need something else to reel them in. Engage them. Make them understand what your brand is about. Let them know what you stand for.

Tell a story that makes your audience imagine themselves enjoying your products.

Take Consumer on an Emotional Journey

A powerful story can do a variety of things for your brand.

It can compel your audience to trust you.

It can evoke an emotion that leads to a desire to buy your product.

A good story can make consumers feel like they’ve known your brand all their life.

Why do I need to care about storytelling?

Stories make your brand feel more authentic.

Stories can make your audience feel like they are talking to a trusted friend.

Stories allow you to converse with your audience on a more emotional level. Stories add depth.

They can make your brand seem more than just a product or service.

Stories can make your brand an entity that consumers want to be friends with.

Information overload

Let’s face it. Consumers today find most conventional advertising methods boring.

You can’t expect a consumer to read a boring wall of text. We’re in the digital age.

Consumers are overloaded with information:

  • Google receives over 63,000 searches per second
  • The average consumer processes around 100,000 digital words each day
  • A person encounters an average of 5,000 marketing messages per day
  • 3 trillion online ads are sold each year

Most consumers don’t bother with marketing messages. Almost 80% of people scan content and only read the parts that interest them.

Ecommerce storytelling can compel your audience to read every word of your message.

Develop stronger relationships

Communication is a two-way street.

Consumers aren’t content with just listening to you.

They want you to listen to what they have to say too.

Tell a story your audience can relate to. This will make them feel that you understand them.

The more relatable stories you tell, the stronger your bond with them will be.

Make Your Audience Feel They’re a Part of Something Greater

Define your brand with a core set of beliefs. Make sure these core beliefs resonate with your audience.

This will build goodwill between you and your audience. It will add perceived value to your products and services.

This perceived value will allow you to charge higher than your competitors without losing your customers.

Consumers who feel strongly about your brand will also become your brand ambassadors.

For instance, Warby Parker has the mission to solve the problem with access to glasses. Their Buy A Pair, Give A Pair program encourages customers to be part of their initiative and help solve this crisis. This adds to the alure of buying a pair of glasses from Warby Parker.

Why Storytelling is Crucial for Ecommerce Businesses 10
Warby Parker Buy A Pair, Give A Pair Program

Similarly, LUSH is an active participant in donating and discovering ways to help solve various environmental and animal crisis. Their strong activist brand attracts those who share similar values and adds to the “feel good” state of customers when they see that portions of sales goes to LUSH’s many ethical campaigns.

Why Storytelling is Crucial for Ecommerce Businesses 11
Some of LUSH’s initiatives

Stories are motivational

Stories can move people. A good story can motivate consumers to do what you want them to do. Build a story around these motivations. To do this, there are three factors you need to consider:

  • What you want your audience to feel
  • What action you want your audience to take
  • What call-to-action (CTA) will be the most compelling

How Do I Start Telling A Story About My Business?

1.) Focus on emotions

Most consumers make buying decisions based on emotion instead of logic.

Paint a clear picture of how much they’ll love your product or service. Focus on positive emotions.

Why Storytelling is Crucial for Ecommerce Businesses 12
Casper focusing on how they help people get better sleep

Make consumers see themselves being satisfied with what you offer.

2.) Talk about how your product makes the customer’s life better

Focus on the benefits instead of the product or service.

Emphasize why your product or service is superior. Highlight why it is unique.

Why Storytelling is Crucial for Ecommerce Businesses 13
Casper’s Mattresses
Why Storytelling is Crucial for Ecommerce Businesses 14
Bellroy showcasing how their wallets can handle wear and tear through time

Last, clearly define what consumers can achieve by getting it.

3.) Explain how your company solves customer problems

Attack the pain points of your target audience. Describe the problem in detail. Include its causes and its impact.

This will tell them you understand what they’re going through. Then describe how you’ve developed a solution for the problem.

Why Storytelling is Crucial for Ecommerce Businesses 15
Bellroy visually showing the difference from regular wallets and theirs – the pain most people have with their wallets.

4.) Make the story shareable

Build a story around the core values of your brand. Present the story in a way that makes readers want to share it.

Create a short hashtag that summarizes your core message or the story.

Encourage your audience to share their own stories using the hashtag.

Why Storytelling is Crucial for Ecommerce Businesses 16
Warby Parker’s story that makes you want to root for them

5.) Be more transparent

Consumers tend to assume the worst when there’s something they don’t know. So say tell it to them right off the bat.

Tell them about your company culture and how it’s like for the people working for you.

Why Storytelling is Crucial for Ecommerce Businesses 17
Zappos’ perspective on company culture

 

Describe your manufacturing process.

Why Storytelling is Crucial for Ecommerce Businesses 18
Warby Parker shows the full process from prototype to completion
Why Storytelling is Crucial for Ecommerce Businesses 19
Everlane sharing their factory details for their products

Talk about where you came from and how you got to where you are today.

6.) Be socially conscious

Give back and pay it forward.

Get involved in local community events. Donate to charity. Sponsor a local project. Fund a few scholars.

Any good thing you do can be incorporated into the story of your brand.

Sharing this story will further endear you to your audience.

But make sure to be authentic with this. If you don’t believe in the event or charity, do not force yourself to be part of it. People can sense it.

Why Storytelling is Crucial for Ecommerce Businesses 20
Everlane’s ethical approach
Why Storytelling is Crucial for Ecommerce Businesses 21
Patagonia’s Denim

7.) Highlight your brand’s origins

People love success stories. It inspires them.

Share a story about the evolution of your brand.

Why Storytelling is Crucial for Ecommerce Businesses 22

Highlight the challenges and setbacks you’ve had to overcome.

Talk about the mistakes you’ve made and the lessons you’ve learned.

8.) Humanize your brand

Don’t only talk about your company or your products.

Tell stories about your employees.

Why Storytelling is Crucial for Ecommerce Businesses 23
LUSH has video features of their employees that share their work and life

Highlight what they bring to the table.

Showcase the various ways they contribute to your company.

Talk about people who founded your company.

Why Storytelling is Crucial for Ecommerce Businesses 24
The story behind Huckberry
Why Storytelling is Crucial for Ecommerce Businesses 25
Story of Yeti

9.) Enhance product descriptions

Many Amazon FBA sellers have trouble finding ways to tell their stories on the Amazon.

Ecommerce storytelling is harder to do on online marketplaces. So what should you do?

Use what’s already there. Use visuals and stories to describe what your product is and what it’s like to use them.

Why Storytelling is Crucial for Ecommerce Businesses 26

Why Storytelling is Crucial for Ecommerce Businesses 27

10.) Use real-life stories from customers

Encourage your customers to share their stories involving your company. Offer them a prize to encourage their participation.

This will give you a chance to collect user-generated contact. It will also add authenticity to your storytelling.

Why Storytelling is Crucial for Ecommerce Businesses 28
LUSH user-generated content
Why Storytelling is Crucial for Ecommerce Businesses 29
Daniel Wellington user-generated content
Why Storytelling is Crucial for Ecommerce Businesses 30
Tweets and Instagram posts from Casper customers

Storytelling is vital to eCommerce success. It’s vital for a business’s longevity.

A good story will not only make someone want to read every word of it, but it will also connect with them on a much deeper level. It transcends what the product is about.

The beauty of a well-established brand is creating that connection where what you sell matters less than what you stand for.

And when you stand for something and mean something more than just a product to them, you build a tribe that will root for you in the long run.

Amazon FBA Sellers – Why You Need to Build a Brand Before It is too Late

There’s a surprising number of Amazon FBA sellers who don’t think that branding is important.

They believe that it’s okay to sell the same product as everybody else as long as they offer a better price.

This strategy can be viable in the short term but it is rarely sustainable for the long term.

You do not want to settle for being the cheapest in the market. You don’t want to compete with other Amazon sellers that also think the same.

It will become a competition of who can set their prices the lowest. This will hurt your profit margin.

What you want is to be able to compete with other sellers even if your prices are not the lowest. And you can do that through branding.

Reasons to Start Brand Building Today

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 31

You need to get started on your Amazon FBA brand development strategy as soon as possible.

And here is why:

Stand Out from the Sea of “Me Too” Products

95 million Americans have Amazon Prime memberships.

Consumers purchased over 100 million products on Prime Day 2018. These two Amazon 2018 stats are proof that Amazon is a lucrative marketplace.

Amazon gives its FBA sellers the chance to make it big quick.

The benefits being so great is also a disadvantage. Everyone wants in on the action. Thousands and thousands of new sellers join Amazon each month.

This creates a sea of “me too” products, where everyone is selling the same white-labelled products and using the same strategies. Many of the listings end up becoming indistinguishable.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 32
A sea of “me too” products

 

Escape the Saturation Plague

A significant part of Amazon sellers offers generic products.

This causes the marketplace to suffer from a high level of saturation.

Market saturation is one of the most glaring Amazon issues. This makes it a lot harder for a new seller to enter his desired niche.

After all, it’s hard to stand out when a thousand other sellers offer the same product as you do.

You can change this with branding and actually stand out.

This doesn’t mean just slapping on a logo. It means taking the deliberate path of creating a brand that means something, that has values, that has a story, and goes beyond just the logo.

Charge a Premium Instead of Being a Commodity

Selling is all about perception.

Make consumers think that what you’re selling is different.

This will allow you to make them buy even if your prices are higher.

There can be no better example of this than Yeti’s $300 cooler. People were shell-shocked.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 33

It was surprising that consumers were actually willing to shell out 300 bucks for a cooler.

It was so baffling that it became a popular meme.

But even if it became a meme and was considered outlandish by many…Yeti is getting the last laugh.

Because while other people sell coolers for $80, they are able to sell their’s for triple the price. And it works.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 34Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 35

Build a Brand That Demands a Premium

So what gave Yeti the audacity to charge so much for a cooler?

Yeti believed in its brand.

While most Amazon sellers focus on being the cheapest, Yeti did a 180 and decided to be the most expensive.

This was possible because Yeti was able to establish itself as a premium brand.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 36
Yeti makes their products look premium and advanced

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 37

When consumers buy a Yeti product, they don’t pay only for that product. They also have to pay for the brand.

Develop Customer Loyalty & Build a Loyal Fan Base

When was the last time you bought a generic product online and remembered the seller?

It’s hard to build customer loyalty when your customers can’t even remember your name.

And what can’t they remember your name? You’re selling the same unbranded product as everybody else so why would they bother?

In the minds of consumers, there’s no reason to remember you.

They believe that they can get the same product from another seller. It won’t matter if they can’t find you again so there is no point in remembering you.

But if you spend the time and effort to build a brand that focuses on them, they will remember you and think of you.

Build a Brand That Inspires Confidence

The first step to building a loyal fan base is creating a brand that commands trust and respect.

Let’s look back at Yeti. Imagine a lesser-known brand selling a $300 cooler. Consumers would most likely dismiss it as nonsense. Some will even outright laugh at the foolishness of it.

The $300 cooler only worked because Yeti did it.

What did Yeti’s loyal customers do after they heard about the $300 cooler?

They rationalized that the cooler must be far superior to other coolers. They didn’t feel skeptical. They believe that Yeti always gives them the right value for their money.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 38

Build a Superior Customer Experience

By having your own brand, you can offer your customers a unique experience.

You can engage your fan base on social media. You can convince them that you care for them. Show them you respect their feedback.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 39
Yeti showcasing customer’s photos of their product

Consumers love the feeling that the seller actually cares.

Publish useful and/or interesting content on a regular basis. This will make consumers want to follow you. Make them look forward to new products you are planning to sell.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 40
Yeti Youtube Channel

Become a Trusted Resource of Your Niche

Build a thriving community around your brand.

Become that dependable friend.

Be the first thing consumers think of when they need to buy something.

Think of ways to offer a customer experience consumers can’t find anywhere else.

For example, you can offer to send articles on how someone can make the most out of a product they bought. All they have to do is provide you with their email. You can then use the collected email as leads for your next marketing strategy.

Enjoy Creative Freedom Through Brand Longevity

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 41

It’s easier for an Amazon FBA seller to be creative when they know that they have a fan base that will give them a shot.

Knowing your loyal customers are there for you will give you peace of mind.

You’ll have more confidence to launch a contest or event. All you need is one viral campaign to make your popularity explode.

And each surge in popularity helps ensure the longevity of your brand and your business.

Don’t be Afraid to Defy Conventional Marketing Wisdom

Remember KFC’s 11 Herbs and Spices Twitter campaign of 2017?

All KFC did was follow only 11 people on Twitter: the five original Spice Girls and six guys named herb. Then KFC waited for someone to notice.

Remember what happened when someone finally did and twitted about it?

That original tweet had been favorited more than 700,000 times. It also received more than 300,000 comments.

Amazon FBA Sellers - Why You Need to Build a Brand Before It is too Late 42

Why did KFC come up with that campaign? It knew it had enough Twitter followers to make it work.

Branding is essential if you want to be a successful Amazon FBA seller.

You will be another generic seller in a wide sea of generic sellers if you don’t.

Building your brand should be one of your top priorities. A strong brand will give you the competitive advantage you need.

Your brand will ensure your business will remain sustainable for the foreseeable future.

What Is Product Differentiation and Why Is It Important?

Today I’m going to introduce you to a very important concept: Product Differentiation.

Knowing how your product is unique and different from your competitors can be the thing that makes or breaks it for your business. Especially in today’s crowded market.

We’ll be going over why it’s crucial for your business and its 3 different types, as well as some common examples.

Let’s get started!

What is Product Differentiation?

Product differentiation is a marketing strategy to show a product’s distinctiveness. How is the product different or unique from others in the same category?

Hubspot defines it as:

the strategy used by businesses to highlight the unique features and benefits of its product or service to separate it from competitors. The marketing team communicates these unique qualities through their campaigns and promotions. And the sales team can use them to demonstrate the product’s competitive advantage.

There are many ways for a business to highlight their product’s unique features. For instance:

  • It can showcase the brand symbol and quality
  • It can boast on specific features and style or
  • It can emphasize the unique aspects that make your product superior against specific competitors

For example, Casper, a mattress company, highlights a combination of their product’s features and benefits like comfort and manufacturing right on their homepage:

What Is Product Differentiation and Why Is It Important? 43

Why is Product Differentiation Important?

Think about the times you go to the grocery store. Each aisle is filled with products from different brands. There’s 5 selling the same type of yogurt.

If you’re not able to inform the consumer HOW you’re different from the rest, there’s no reason to buy your product over another. And in many cases – especially for more established brands – the differentiation comes from their name alone. This mainly comes from their reputation for consistently creating products that may be high quality (or low quality).

What Is Product Differentiation and Why Is It Important? 44
Safeway Orange Juice vs. Tropicana Orange Juice: People are willing to pay double for Tropicana

So in a world where we have so many choices, having a product differentiation strategy sets the foundation that defines your business and how other’s perceive your brand compared to your competitors.

But of course, saying you’re high quality doesn’t exactly mean much, since anyone can say the same. Finding the characteristics that are important to your target market is then crucial to showcase your differentiation.

This means spending the time to research the behaviors of your target market to uncover their specific pain points and what they truly desire. With that information, you can formulate the features and benefits that potential customers actually care about and perceive as value. This would provide the basis of your product differentiation strategy and direct all marketing and sales messaging.

What Are The Product Differentiation Types?

There are three types of product differentiation: simple, horizontal, and vertical differentiation.

  1. Simple Differentiation makes a certain product set apart from the rest. The difference can be easy for customers to determine because it is obvious. Think of a regular rice cooker versus rice cooker with a removable steamer lid.
  2. Horizontal Differentiation focus on a single feature. The price may be the same as the competing products and doesn’t focus on the superiority of quality. Yet, it offers a different feature or functions. For example, think of a digital camera and a film-based camera. Both can give you a good quality photo but has different features.
  3. Whereas, Vertical Differentiation shows a product’s single characteristics. Customers are aware of its unique quality. It stands out among the rest even though there is a great difference on the price. A Levi’s 101 jeans stand out from the rest even though the price varies between other jeans in the market.
[box type=”download”] Download the FREE Guide: 3 Step Secrets To Building An Ecom Brand here[/box]

Examples of Product Differentiation

Let us take a look at some product differentiation examples.

Apple Macbook Pro

What Is Product Differentiation and Why Is It Important? 45

Apple is a multinational technology company (you may have heard of them ;)) that produces super popular products like the iPhone and MacBook Pro laptops. Apple has been highly touted for its sleek ergonomic designs and simple Operating System (OS). That is their differentiation factor.

People know that buying an Apple MacBook Pro won’t get you the most ram or processing power for the price you chalk up, like you would from another brand. Nor will it have the most advanced technology built in or varying customization capabilities.

But certain students, video editors, businessman, and creatives choose to purchase the MacBook because of its form factor and an intuitive OS. And those who do require top of the line processing power or customization, they tend to be the ones who build their own computers.

And in recent years, Apple has attempted to increase the power of their laptops to cater to some of the professionals who do require the extra oomph. This makes it more attractive for potential customers who may be eyeing at the Microsoft Surface.

What Is Product Differentiation and Why Is It Important? 46

Razer

What Is Product Differentiation and Why Is It Important? 47

Razer is an award-winning gaming accessories brand that is well known for its keyboards and gaming mice. Their DeathAdder mice recently reached the 10 million milestone and has been one of the hottest gaming mouse for the last decade. Razer continues to release new iterations of the Deathadder and continues to boast the very qualities that made it so famous: its sleek design, comfort, and optimum performance.

What Is Product Differentiation and Why Is It Important? 48

These qualities define their differentiation strategy. They are the very characteristics that are heavily sought by their target market: casual and hardcore gamers.

As a cherry on top, Razer uplifts the credibility of the Deathadder by mentioning how League of Legends pro, Faker, uses their mouse and has won championships. This acts as social proof and truly cements the quality of their product and difficult for other gaming mouse brands like Logitech to compete.

Takeaway: Find the pain points of your customers. Then create your product features and marketing around how your product solves those frustrations.

In business, competition is hard. It is important to think on product differentiation strategy. It is a key element to market the product, create a longstanding brand, and capture a segment in the market. Otherwise, you’ll have difficulty in connecting with potential customers who are busy looking for a product that truly speaks to them and gets their attention.

 

[box type=”download”] Are part of our Facebook Group? Join the Branding & Marketing Tribe for Ecom Entrepreneurs here![/box]

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?

Why Product Positioning Is Crucial For A Successful Business 49

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.

Shopify

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.

Daniel wellington - product positioning example
Photo Credit: Daniel Wellington

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

Product Positioning vs. Product Differentiation

Why Product Positioning Is Crucial For A Successful Business 50

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

Why Product Positioning Is Crucial For A Successful Business 51

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.

[box type=”download”] Download the FREE Guide: 3 Step Secrets To Building An Ecom Brand here[/box]

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

Daniel Wellington Ambassador Instagram Post
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.

[box type=”download”] Are part of our Facebook Group? Join the Branding & Marketing Tribe for Ecom Entrepreneurs here![/box]

 

What Is Branding and Why Is It Crucial For Your Business

[et_pb_section fb_built=”1″ _builder_version=”3.0.47″ custom_padding=”0|0px|0|0px|false|false”][et_pb_row custom_padding=”27px|0px|0|0px|false|false” _builder_version=”3.0.48″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.0.47″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.19.3″ text_font=”Open Sans||||||||” text_font_size=”18px” text_line_height=”1.8em” header_font=”||||||||” header_2_font=”Open Sans|700|||||||” header_2_font_size=”30px” header_3_font=”Open Sans|700|||||||” header_3_font_size=”26px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”71%” module_alignment=”center”]

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?

What Is Branding and Why Is It Crucial For Your Business 52

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

What Is Branding and Why Is It Crucial For Your Business 53

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

What Is Branding and Why Is It Crucial For Your Business 54

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

What Is Branding and Why Is It Crucial For Your Business 55

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.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]