For a business to be viable, it has to do something as well as its competitors; to win in a competitive market, it has to do something better than its competitors and communicate this convincingly to the customer group that will value it the most .
Effective positioning reduces the costs of ineffective marketing and selling. Positioning strategy is one of the most important business strategies for start up/ emerging stage ventures – as they seek to enter or create a new market for their first product - and for established ventures seeking rapid growth strategies through new product development and internationalisation.
Formulating the ventures positioning strategy involves three steps and the answers to six questions.
STEP 1: ANALYSIS
Collect and analyse information in the 5-C areas that create and drive a ventures growth:
3. Competitive environment
5. Company capability and competencies
STEP 2: STRATEGY
Based on this analysis and information, answer the four positioning strategy questions:
1. Who is the Target Market?
2. What is the Product Category?
3. What is the unique customer benefit - highly valued by them?
4. What Proofs for this can you give at the start and on an ongoing basis?
STEP 3: PROGRAMS
What is the ‘brand personality’?- to foster awareness in the target market of the positioning and impress the market to buy the product/service; with –
1. Brand name
2. Logo/ symbol
6. Owned word
How will you communicate the brand positioning continuously (repetition is vital) and consistently (across all interactions with customers in the target market)?