Every successful company has unique features that give it a competitive advantage. Competitive positioning is a strategy for promoting a company on the market that allows it to stand out from its competitors and effectively use its strengths.
The basis of competitive positioning is marketing and samoa b2b leads branding strategies, ways of presenting business, products or services. Even in conditions of tough competition, the right competitive positioning will help to stand out and create a unique selling proposition.
Effective competitive positioning includes several key components:
1. Analysis of competitors: identification of strengths and weaknesses.
2. Determining the value of the product for consumers.
3. Study of market preferences and shortcomings regarding competitors' products or services.
4. Analysis of pricing and consideration of market trends.
According to statistics, 50% of companies close down by the fifth year of operation, one of the main reasons being insufficient competitive positioning. If you cannot clearly justify why the product is better and different from the competitors’ products, how can a potential client make an informed decision? It is important to have a clear understanding of the market positioning in order to successfully stand out from other players.
Once competitive positioning has been determined, it will be possible to:
To highlight the brand and attract customers from the target audience.
Effectively identify customer pain points and problems.
Get information about branding and marketing.
Create an informative approach to working with clients.
Significantly increase brand awareness.
Tips on how to find competitive positioning
Your competitive position may change over time, so these tips will help you identify where you stand now and stay relevant as the situation evolves.
1. Before starting a business, it is necessary to thoroughly study the target market.
First, conduct a detailed market analysis. Study the situation, find out the number of competitors, determine the potential market size and customer base, and also study the average income level of companies in this industry. Don't forget to evaluate strengths and weaknesses using SWOT analysis.
It is also important to define the image of the ideal client. What characteristics does he/she have? What attracts and repels? What problems does he/she face in everyday life? What features of the product or service might interest him/her?
If your business is already running, it is recommended to conduct a survey among current customers to get valuable feedback based on real experiences.
It is necessary to conduct detailed research of competitors. This is as important as understanding your own company and the market, if not more important.
When researching your competitors, consider the following questions:
Who are the major players in the market?
What attracts customers to their products or services?
What do customers complain about regarding their offerings?
Are there gaps that the product or service can fill or improve?
At this stage, it is necessary to pay special attention to customer complaints and problems that have been identified. If most competitors are facing similar complaints about the product or lack of offers, this can be a great opportunity for the company.
3. Define your goals
The company's positioning depends not only on its current status, but also on its plans and goals for the future. This is especially important in cases where achieving goals can significantly contribute to the company's development.
Gather stakeholders and list both short-term and long-term goals and objectives. Review the list and identify which ones might impact the company's positioning. Pay special attention to the objectives and consider them as you complete the rest of this guide.
Approach your business with an emphasis on identifying a narrow niche that you can successfully fill.
The first step is to conduct an analysis of the competition, your own products and market positioning. Then identify key differentiators and highlight them.
Next, list the problems your target audience faces that you plan to solve. Be pragmatic and focus only on problems that can be solved in the near future without significant financial costs or structural changes in the company.
After studying your competitors and target problems, you need to identify what exactly makes you stand out from the crowd. To do this, answer the following questions in as much detail as possible:
1. What unique problems are you able to solve?
2. What is the company's strength?
3. What gaps can you actually fill?
The answers to these questions will help you define your niche—the unique position that only your company and products can occupy.
Don't forget to use the data you gain to determine your competitive positioning.
After studying customer needs and analyzing competitors, it is time to use the acquired knowledge to effectively position the brand and products in the market. This can be done by identifying gaps in customer satisfaction that are not yet filled by competitors.
Conclusion
Competitive positioning is an ongoing process, not a static outcome. It is subject to change as audiences change, competitors make changes to products and brands, and your own products and brands may evolve. It is therefore important to review competitive positioning periodically, conducting an analysis at least once a year or whenever there is a major brand or product update.