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How to create a market positioning strategy

What sets your company apart from your competition? What products and services do you offer that your competitors cannot? How can you connect and engage with customers in unique and memorable ways?

Answers to these questions are at the heart of identifying, defining and executing on an effective market positioning strategy.

A marketing positioning strategy is designed to carve out and amplify an identity different from your competitors. In an increasingly competitive marketplace, a strong market positioning strategy is key to promoting and differentiating your company and products in ways that build deep brand loyalty, attract and retain new customers and, ultimately, drive strong revenue growth.

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Evidence of the value of successful market positioning is readily available in our daily lives. Brands that have gained iconic status have done so by effectively positioning themselves in engaging and inspiring ways, even if they’re selling products that are largely everyday commodities.

Starbucks is a prime example. Countless restaurants, stores and, of course, coffee shops sell a wide array of Java. Yet, in a crowded market, Starbucks found the right blend of good coffee, a wide array of offerings, distinctive branding and an inviting yet bustling atmosphere to position itself in ways that garner deep devotion among their customers – devotion so deep that those customers will pay more for a cup of coffee at Starbucks than they are willing to at less distinctive competitors.

Apple is another classic example. There are plenty of personal computers and electronic devices on the market, most of which are considerably less expensive than Apple products. Yet Apple has been able to maintain and grow the value of their iOS products by staking claim to market positioning anchored by clean and beautiful design, simplicity, coolness and engaging branding that customers love.

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You need a marketing position strategy because it drives home the value of your products or services in ways that resonate with current customers, attracts new ones, and sets you apart  and hopefully above your competitors.

Without a positioning strategy, Starbucks is a run-of-the-mill coffee shop and Apple is a computer and phone manufacturer. In reality, that is what both those companies are, but the fact that hardly anyone thinks of them in that way should tell you all you need to know about why a positioning strategy matters a lot.

Your goal in crafting a marketing position is to clarify who you serve, why you serve them, which competitors are vying for your business and how you are differentiated from those competitors. Armed with that insight, you can execute on marketing, branding and go-to-market strategies that reinforce and amplify your marketing position to differentiate your company and build stronger customer engagement, loyalty and even advocacy.

Bear in mind that market positioning is more than just a slogan or tagline. Those are certainly important, but they are only as effective as the well-thought out positioning strategy and tactics supporting them. A slogan or tagline that rings hollow to customers is arguably worse than not having one at all. Consumers today are savvy, and they can readily detect when a company doesn’t live up to its own hype.

So, clearly a market positioning strategy is an important component of a successful business. But how do you make it a reality? The key is to take a focused and well-planned approach to developing a marketing position that is authentic, defensible and distinctive to your company.

What follows is a step-by-step approach to making it happen.

Tap into an audience of 144M+ people in 130+ countries using over 50 attributes.

Like many things in life, it’s essential to start by doing your homework. In this case, that means conducting market research to gain deeper insights about your target audience, their preferences, needs, attitudes and behaviours.  

You can use market research resources for audience targeting to understand who your ideal customers are and what problems you can solve for them. Surveys are a great way to quickly identify which people are most likely to buy your products. You can also gain insights from both domestic and international audiences to expand your research.

Identifying your ideal audience is critical to your market research. Demographics, buyer behaviour and psychographic surveys will provide you with data-driven insights about your custom