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With how savage the competition on Amazon has become, it will be no stretch to describe the internet’s biggest marketplace as a warzone. Thousands of online sellers are constantly fighting for the attention of consumers. When it comes to eCommerce warfare, as with all warfare, one rule rings true – know your enemies.
So, in this digital age, how exactly do eCommerce sellers get to know their enemy?
The most effective way to do it is through an in-depth competitor analysis.
By analyzing what your competitors are doing, you’ll know how to stand out and outperform them.
There’s A Lot To Learn From The Competition
“You should learn from your competitor, but never copy. Copy and you die.”
~ Jack Ma, Executive Chairman of Alibaba
To learn from the competition, you need to break down their online presence and thoroughly understand their overall approach.
You can then leverage this knowledge to develop a strong competitive advantage and sustain that advantage by always being one step ahead.
What You Can Gain From Tracking Your Amazon Competitors
Amazon FBA sellers have much to gain from performing an Amazon competitor analysis. The value of the insight that can be gained from your competitors’ successes and failures cannot be understated. Having a thorough understanding of the competition allows one to:
- Improve the precision of portfolio scouting and sourcing decisions
- Optimize advertising campaigns and maximize the efficiency of ad spending
- Improve performance and profitability tracking
How to Conduct Your Competitive Analysis
Identify the competition.
You can’t analyze the competition if you don’t know who your competitors are. Knowing the competition will let you:
- Use their strengths and weakness as a guide on what you should and shouldn’t do.
- Better understand the Amazon FBA landscape and how to position your business above the competition.
- Keep track of the competition so you are never caught off guard and can stay one step ahead.
Find Your Competitors
Making full use of Google and Amazon search engines is one of the fundamentals of how to do competitive analysis as an Amazon FBA seller.
Here’s an example of how to leverage the immense power of these two search engines to cast and wide net and get an accurate view of the current competitive landscape of your chosen industry:
- Go to Amazon and search for your planned business name, product ideas, and overarching business ideas.
- Take note of the top results as they will most likely be ones you’ll have to compete with.
- Go to Google and search for the different social media channels, organizations and online communities of each of the competitors you’ve listed in the previous step.
- Utilize a combination of free and paid tools to find more information on your competitors. Such tools may include:
- SpyFu – a competitor analysis tool that helps you research and download your competitors’ most profitable keywords.
- SEMrush – a tool that helps you to conduct competitive research on any domain name and to use the data to optimize your campaigns.
- SimilarWeb – a competitive analysis tool for digging into a site, app or platform.
- Alexa – a tool that provides deep analytical insights to compare and optimize businesses on the web.
- Keyword Competitor – an all-in-one competitive analysis tool that shows you keyword opportunities that your competitors have been ignoring.
- Social Mention – a tool that provides real-time search on brand mentions.
- Rank Signals – a backlink checker tool that helps you uncover SEO backlinks & traffic sources of your competitors.
- Buzzsumo – a social networks tracking tool that helps you find the most shared content for a given topic.
Categorize Your Competitors
After finding the competitors you believe will be a threat to your Amazon FBA business, it’s time to segregate them. You can divide them into three main groups based on their threat level:
1.) Primary Competition
- Targets the same audience as you or;
- Sells a similar product to yours
Example: A Nike retailer is a primary competitor of an Adidas retailer.
2.) Secondary Competition
- Offers a high-end or low-end version of your product or;
- Sells a similar product to yours but to a completely different audience
Example: A Rolex seller is a secondary competitor to a Timex seller.
3.) Tertiary Competition
- Sells products tangentially related to yours
Example: A seller of gems and precious stones is a tertiary competitor of a jewelry seller.
Find and compile the following information for each competitor:
- Name of store
- Mission statement (if available)
- Product offering
- Strengths and weaknesses of their business
- Category of competition
Examine your competitor’s website & customer experience.
Now that you know the basic information about the competition, it’s time to dig a little deeper.
Take a closer look and put yourself in their customer’s shoes. You can do this by finding the answer to relevant and important questions such as:
- How good are their product images? How do they communicate the details of their product?
- How detailed are their product descriptions? What information can be added and what information can be omitted?
- How are their calls to action presented throughout the online shopping experience? Do they feel organic? Are they easy to notice?
- Do they have an email capture strategy such as a newsletter subscription opt-in? If yes, how prominent is it?
- Where are their social media buttons positioned?
- Do they maintain a blog? How often do they post? What type of content do they publish?
- Is their website optimized for mobile users?
- What are the available ways of contacting them? Do they offer 24/7 customer support?
- What is their average response time to emails, live chats, and contact form submissions?
- Do they have reengagement strategies such as an ‘Abandoned Cart’ feature? If yes, how do they tell their customers about it?
- What information do they include in their marketing banners and callouts?
- How often do they run promotions such as discounts and freebies?
Knowing the answers to these questions will help you identify what competitive advantage you have over your competitors.
Identify your competitor’s market positioning
Understanding the positioning strategy of your competitors will give you valuable insights into the prevailing demands and expectations of your target market. Knowing how your competitors position themselves will give you an idea on how to position yourself against them.
To do this, you need to look at their website and messaging and answer these three simple questions:
- What is the main reason customers buy from them? Is it the price? Is it the experience? Or is it something else entirely?
- How do they differentiate their product from that of their competitors? What feature/s and benefit/s do they highlight the most?
- What, according to them, makes their product unique?
Here are a few tips to help you gather as much relevant information as possible:
- Sign up for their newsletter and check out the messaging of their newsletter campaigns.
- Subscribe to and follow their blog. Look at what type of content they publish and what tone they use.
- Follow their official social media pages and analyze how they communicate with their followers.
- Put an item into your shopping cart but do not complete the checkout process. Wait and see whether or not they will try to convince you to complete the purchase. Study the language and structure of each email in their ‘Abandoned Cart’ email series.
- Purchase a product and analyze it. Determine how it compares with your own product.
Take a peek at pricing.
Your pricing strategy can make or break your Amazon FBA business.
There are numerous factors to consider when setting the price of your products. You can use the way your competitors priced their products as a reference.
Doing so will give you an idea on how much your target consumers are willing to pay. Check their prices on both Google and Amazon.
Keep in mind that your prices don’t necessarily have to be less than your competitors as long as you offer something they don’t. That extra value can come in the form of peace of mind, expedited shipping, better buying experience, etc.
Don’t forget to factor your startup and operating costs when setting your prices. It is essential that you earn enough to profit to make your time as an Amazon FBA seller worthwhile.
Take a temperature check with reviews.
Find out what consumers are saying about your competitors’ products and the overall customer experience they provide.
You can gauge the health of an ecommerce business by how good or bad the online word of mouth about it is. The number of available reviews also indicates how much interest consumers have on a particular product.
Knowing this information is essential to identifying the best items to sell on Amazon FBA.
Check the reviews on the competitor’s Amazon product pages, on their website, on review sites, and on social media.
Read the comments left on their blog posts too, if you can.
Customer reviews might show you something you can capitalize on or give you hints on something you have that you can turn into a competitive advantage. Identify the things consumers complain about.
Find ways to ensure they won’t make the same complaints about your product.
Review their social media.
Taking a closer look at a competitor’s social media accounts can tell you a lot of things.
The number of followers along with how much they talk about the product tells you how viable that product is.
You’ll also learn the general consensus consumers have about that competitor’s business. You’ll see which attempts at engagement fail and which succeed.
Check out as many social media accounts you can find for each competitor. Use the following questions to gauge how strong or weak their social media presence is:
- How would you define their overall social media presence?
- What social media channels do they use the most?
- What tone do they use when speaking with their followers?
- What are they posting and how often?
- How often do they post something new?
- What relevant social media channels do they ignore?
- What percentage of posts talks about their business?
- What percentage of posts is aimed at increasing engagement or attracting new followers?
Amazon is the largest online marketplace on the World Wide Web. It is also the most competitive.
Fortunately, you don’t necessarily have to start from scratch.
You can use the trials, failures, and success of your potential competitors as stepping stones for your own Amazon FBA business.
Your competitors are goldmines of valuable information. They can give you an idea of what the best items to sell on Amazon FBA are. They can tell you what you should and should not do. They can give you ideas on how you can differentiate your brand.
Understand your competition and Amazon FBA success will be well within reach.
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
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.”
Why Do I Need To Know My Target Market?
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
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!”
The Dollar Shave Club became a well-known brand in the US within a few months.
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
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
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.
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
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
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.
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.
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.
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.
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.
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.
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.
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.
Describe your manufacturing process.
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.
7.) Highlight your brand’s origins
People love success stories. It inspires them.
Share a story about the evolution of your brand.
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.
Highlight what they bring to the table.
Showcase the various ways they contribute to your company.
Talk about people who founded your company.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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?
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.
The market research for each of those target audiences found different interests that the positioning
Product Positioning vs. Product Differentiation
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
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.
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
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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