As the competition among eCommerce brands continues to heat up, many businesses find themselves pinched from every angle. To survive, compete and thrive in this challenging environment, it is more important than ever to have a clear value proposition for your customers. But how do you really stand out in a sea of competitors? And what if your product features don’t differ from the next product on the shelf? Therefore, product positioning allows businesses to differentiate product offerings and communicate product values more clearly. This article will discuss 5 practical product positioning tactics you can leverage to build brand awareness, win more customers, and drive customer loyalty.
What is product positioning?
Product positioning answers the question: why should customers choose your product over your competitor’s? It is the process of introducing a product to your target audience in a way that makes it stand out in the market.
Often, especially in a competitive environment, the product itself is not enough to win new customers. This is why product positioning looks beyond product features, emotional triggers, brand stories, and more.
Product positioning is important to differentiate your business and create an offer that resonates with customers.
While this requires a deep understanding of customer needs and wants, brands that have positioned their strategy will pay off.
Improved conversion rates, retention, and pricing are all potential benefits of effective product positioning.
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How to create a product positioning strategy
To stand out from your competitors and differentiate your product in the eyes of consumers, you will need a compelling product positioning strategy.
Here are five tactics to help you create one:
Branding focuses on developing a cohesive look and feels on:
- Packaging Products
- Marketing materials
- Website design
- Product pictures…
It’s key to shaping the public’s perception of your product and business.
In fact, a thoughtful brand identity can help build awareness, create product recognition, and reinforce value. Consumers appreciate the time and effort it takes to create a unified brand and associate visual cues with the value of the product.
For example, Apple is an expert in product branding. The form factor of Apple products has always been sleek, modern, and minimal. Their iconic product logos and packaging also blow away the competition, creating excitement and anticipation during the unboxing process. These masterful product branding tactics have helped Apple get high prices and capture market share.
Storytelling is a free way to connect with potential customers on an emotional level. By sharing the story behind your brand, product, and mission, you can build a loyal following from like-minded consumers.
Storytelling throughout your content can help differentiate your product by emphasizing its benefits over features. Allows you to create product narratives around how your product is different and special.
For example, Nike clothing isn’t just about wicking away sweat — Nike also tells stories of greatness, resilience, and endurance.
These stories capture the customer’s imagination and create a deeper connection between the product and the buyer. These product values ultimately allow Nike to differentiate its products as more inspirational than comparable products.
Pricing is an important product positioning tool that can be used to differentiate a product’s quality and establish exclusivity. High-end pricing is often used to shape perceptions in the luxury goods market. The fact that only a small fraction of the population can afford brands like Hermes, Chanel, and Prada is part of the reason they are so appealing. The high price tag conveys the credibility of the product, helps brands maintain their mark, and reinforces the supposed caliber of the work.
On the other hand, pricing can also be used to position competitive products at lower prices. This strategy is often used in commodity markets where feature differentiation is difficult or impossible. By offering cheaper prices than competitors, companies can gain market share and build loyalty from price-conscious buyers. However, when starting to build an eCommerce brand, operators should be hesitant to use lower prices as the main product differentiator.
Instead of just competing on price, value is an important product positioning tactic focused on maximizing customer satisfaction. By developing bundles of products, loyalty programs, and free services, companies can create packages that offer more value than just a product. Even if your product isn’t different from the competition, providing value in complementary areas can give customers a reason to choose your product over others. These services will help your business stand out in the market and avoid price wars.
For example, Amazon Prime combines two-day shipping with product discounts on streaming services, music subscriptions, cloud storage, and more. These product combinations create exceptional service. cannot be copied and allows Amazon to clearly differentiate itself from other e-commerce competitors.
Segmentation is a product positioning tactic that divides the market into different customer groups to find unique product opportunities. And while this product positioning strategy narrows the entire market to exploitable markets, it often allows businesses to increase their market share by dominating sub-segments. Segmentation encourages business owners to tailor their product solutions to more specific customer problems. By studying customer attitudes, behaviors, and desires, product owners can determine who their products are best suited for, and how product delivery speaks to them directly.
This focus on product specialization allows smaller brands to compete with larger companies by taking advantage of product gaps and unexplored customer needs.
Product positioning is a powerful tool for any company that wants to stand out from its competitors. From product packaging to pricing and storytelling tactics, product positioning can help companies create a differentiated product that resonates with their customers.