6 Steps for a Successful Tech Product Positioning
January 14, 2022 Elke Nijhoff
Product positioning is the art of how your product is positioned in front of customers. It helps you align your products with your target market, and it can also help you differentiate your products from competitors.
But what does this mean? And why should you care?
What is Product Positioning?
It is the process of understanding how people in the market would view your product. Always remember that your product has a life of its own. When it comes to product positioning, the only thing that counts is what your customers think. Your product isn’t in that category if a buyer isn’t thinking about it.
It is an important part of any marketing strategy, but it doesn’t have to be restricted to a single target market. A product, for example, may have a primary target audience and a secondary target audience who are both interested in the product but in different ways.
Each audience will find the product attractive for various reasons, which is why marketing messaging should be tailored to emphasize the benefits that each audience values the most. There are a lot of product positioning agencies that specialize in setting your product apart from the competitors.
3 Examples of Product Positioning
Apple leads the technology business with the most innovative products for people looking for the best personal computer or mobile device. Apple prioritizes technical innovation and employs an innovative approach to corporate best practices, taking into account the impact of its goods and processes on customers and the environment.
Bose is positioned as a high-end product. As a result, the brand focuses on large cities, where money is concentrated & on the higher income class people. We can see that Bose stores are primarily located in major cities. Even if more individuals are shopping online, access to the internet is still greater in cities than in rural areas. Plus, because it’s easier to distribute products in cities, it’s still cheaper.
Amazon is a one-stop online shopping platform for customers who want to buy a large choice of things with speedy delivery. Amazon’s customer focus, enthusiasm for innovation, and commitment to operational excellence set it apart from other online retailers.
Why is Product Positioning Essential?
It will help you in attracting your potential consumers:
There are some customers who will always be impulsive buyers and depending on your product, they can be the ideal customers for you. Customers that know exactly what they want, why they want it, and how they want it will regularly approach you if you position your product effectively.
It promotes customers loyalty:
People who are your potential customers are more likely to go with your product over time if you position your product effectively. You have to always make sure that the product that you are offering must match the expectations of your customers, and they will have a great overall experience.
It gives you a competitive advantage over the products of your competitors:
Because your offering appeals to them and their situations, proper placement assures that your consumers will choose you even after evaluating your competitors.
It improves product launches and market penetration:
During a product launch, your positioning may help you build trust with your target audience. Furthermore, the right kind of product positioning emphasizes what your product delivers to the market and how it differentiates itself from the competition, as well as how your buyers perceive your product. These considerations will influence their purchasing decisions in the future.
It encourages your sales and marketing strategies:
The marketing and sales teams’ efforts are amplified by strong positioning. The marketing team will have an easier time deciding what sorts of material to provide to the prospects, and the sales team will be able to complete deals faster without having to schedule multiple meetings. It also helps in optimizing the sales effectiveness for your product which as a result produces the best sales output.
Benefits of Product Positioning for Technology Products
The benefits of product positioning for technology products are numerous.
One of the most important aspects of marketing is positioning your product. The following are some of the benefits of product positioning for technology products.
Product positioning allows you to highlight the features of your product that are most appealing to your target market. This will give you a way to tell your story and share what makes your product different.
Another benefit of product positioning is that it will help you target your customers more effectively. By creating a specific positioning statement, you will be able to better understand who your customers are and what they want.
It will help you determine the best way to position your product in the marketplace. This will help you choose the best channels for marketing your product, the best time to launch your product, and the best pricing strategy.
Product positioning will also help you create an advertising campaign that is focused on the features and benefits that are most important to your target market.
Product positioning will also help you create a better product design. A positioning statement will help you to understand the features that are most important to your customers and how they will use your product. This will allow you to create a design that is tailored to your customers’ needs.
Moreover, it will help you
- To deal with market shifts
- To meet your customers’ expectations.
- To increase consumer trust and loyalty.
- To devise a product marketing strategy.
- Consumers’ attention and interest must be piqued.
- To appeal to a variety of consumers:
- In order to compete
- To successfully launch a new product.
- To communicate new and varied features that will be added in the future.
Key Elements of a Successful Product Positioning
Some companies continue to utilize positioning templates to generate product positioning, which can be restrictive. Because a successful product positioning is the result of a well-balanced combination of many factors.
Let’s look at each one individually.
The impact of price on product positioning varies in numerous ways. Luxury items are usually more expensive, and many things with several functions or uses are likewise more expensive. Some items, on the other hand, have the same or more features than the competitors but are less expensive.
2- The target audience.
Your product should be suited to certain demographics and behaviors, such as age, gender, geography, occupation, and income. Defining an ideal client or buyer persona is one of the most effective techniques to define a target audience.
3- Market Segment.
You must identify and define who the purchasers are in the market, where they are looking for services and things, and who they contact for these services and goods. It will assist you in determining what your rivals have to offer and how you can position your goods against them.
4- Customer Dissatisfaction
Identify the problems and obstacles that your product will solve for your customers.
5- The brand promise
What your target audience will receive from adopting your product to solve their issues or pains is the brand promise.
6- Brand and Product Interests and Values
Your brand and product identity is made up of factors such as your brand values, voice, logo design, and other characteristics that set you apart from the competition and help your target market to recognize you.
The mission statement outlines the aims, goals, and strategy of your firm.
6 Steps to Create an Effective Product Positioning Strategy
Step 1: Analyze the market context
This step isn’t just a framework to see how many people will love your product, but what they’d do if it did not exist, who your competitors are, and what value they derive from you.
- Identify demographic trends
- Identify technology trends
- Watch out for rules and regulations
- Stay updated about the economy and sociopolitics.
- Watch for new and disruptive competitors.
- Keep an eye on potential uncertainties
Step 2: Understand customer expectation
Pick up trends and needs through customer surveys, market research, and social listening
Step 3: Determine the market’s maturity
If you are entering a relatively new market, you must first establish the problem before discussing your offering. In an established market, simply presenting your solution will be sufficient, but you’ll have to convince people with your value proposition, not with features, but with benefits.
Step 4: Determine customers’ state of mind
To determine in which state your customers currently are, answer the below questions:
- Are they unhappy/unsatisfied with their current solution?
- Are they attracted by what you have to offer?
- What are their major concerns?
- Will they need to change a “habit” when switching to your offering?
Step 5: Analyze your competitors
In this step, determine your competition and compare and contrast their offering, market position, marketing strategies, strengths, and weaknesses with yours. Here’s how you can do that: Competitive Analysis: What is It and Why It Matters for Tech Product Leaders.
Step 6: Craft a positioning statement
After you’ve studied the market environment of your product inside out, you will be able to create a positioning statement. It is a one or two-sentence declaration of your product’s unique offering to customers and it covers:
- Who is it for
- What is the need
- Your offering
- The solution
- The benefits
Take a look at Slack’s positioning statement:
“Slack is the collaboration hub that brings the right people, information, and tools together to get work done. From Fortune 100 companies to corner markets, millions of people around the world use Slack to connect their teams, unify their systems, and drive their business forward.”
Now you need market research using a combination of qualitative and quantitative input from surveys, focus groups, polls, and interviews before carrying out your marketing plan.
Positioning is a complex topic, but when it comes to successfully bringing a product to market, there are no shortcuts. Customers do not have a single-minded focus. It’s the company’s responsibility to stand out, go beyond presenting features and benefits, focus on the customers, and differentiate its products.