Blog 47: Product positioning: Appeal to your customers
- Idea2Product2Business Team
- Jun 1, 2024
- 2 min read
Updated: Mar 18
Why Apple products seem different from its competitors? One of the key reasons is product positioning. They sell ‘different’. Even its tagline says so ‘Think Different’.
As the term ‘product positioning’ itself says, positioning the product in a way that’s appealing to potential customers. The product positioning strategy acts as a guide for the external messaging that is to follow. This entire process of positioning sets Apple apart. There is an art and science behind positioning a product.
But, why is positioning important? Even with great tech, product, or marketing, poor product perception can hinder adoption. Every user interaction shapes this perception. Hence, its critical to manage the ‘Complete Product Experience (CPE)’. There are 7 core areas that contribute to the CPE:
Marketing: How prospects learn about the product and decide if it might be a fit?
Sales: How prospects get the information they need to make a purchasing decision?
Technology: The core set of features that customers pay for.
Supporting systems: Internal systems that make it possible to deliver the product.
Third-party integrations: The ecosystem of products the customer uses
Support: How customers receive product training and assistance?
Policies: The rules that govern how your company does business
It would be better if you work on the product positioning strategy, once you have already worked out the below details:
· 360 degree understanding of your business (read blog 9) including primary research.
· Mapping your value proposition with customer expectations (read blog 10).
· Analyse your product w.r.t competitors (read blog 13).
Once, you have completed the above mentioned activities, try articulating (i) a tagline: a one-liner you use to describe your company or product; (ii) company or product differentiators: unique and value-creating (can be more than one); (iii) brand essence: The core attributes you want to be known for.
Next, choose a relevant product positioning strategy. Some common types include:
User: Position the product for a specific segment or user type.
Use case: Position the product for a particular use case.
Differentiation: Highlight product's unique features or its value (vs. competitors).
Value: Position the product as value for money. Attracts price-conscious customers.
Quality: Position the product as high-quality. Targets a specific type of customers.
Competitor: Pit the product against competitors and clearly say why it is better.
There are multiple benefits of highlighting a product’s unique characteristics in marketing messages. They include, cementing a place in a crowded marketplace, able to break away from competition, increase in brand image, increase in demand, increase in retention, ability to charge a premium, be the talk-of-town, and ability to tap into blue oceans (read blog 38).
Product positioning generally occurs in the introduction stage of the product life cycle (read blog 49 to learn more about PLC)
Jump to blog 100 to refer to the overall product management mind map.
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All the best! 😊