When a new company first launches, it has to do a lot of work to do. It must make the necessary investments and perform the proper research to determine whether its product/service can deliver value and solve a customer problem. A business must also define who its customers are, where to find them, and how to maintain them.
Most importantly, organizations need to implement a positioning strategy to regularly communicate and market a unique brand to a segment of customers in the market.
Utilizing the proper tools to demonstrate a brand's position in the market is one of the most challenging and essential components of running a business.
Without communicating a company's value proposition through a set of marketing strategies, businesses cannot maintain their competitive edge, innovate, grow, or build brand awareness.
Read ahead to learn how effective strategic positioning can help a new startup build brand loyalty.
Understanding Strategic Positioning
Strategic positioning is focused on how an organization sets itself apart from the competition and delivers a benefit to target customers.
Successful startups initially focus on how they plan to position themselves in the market. Strategic positioning refers to how powerful the brand is in the customers' minds, what the company's message is, and how the organization sees itself in the market.
Selling a great product or service isn't enough to ensure a company's success. Many times, inferior companies sell more products/services due to the way they have positioned themselves.
Startups have to create a unique positioning strategy that influences the customers' minds to choose the organization's product or service which can solve a problem.
Positioning influences the pricing, marketing, and sales strategy. To be successful, the strategy needs to make sense to different target groups of customers.
Unsuccessful positioning strategies focus on proving a company is better than the competition, rather than different.
The organization needs to tell a story about their unique brand and find the most effective ways to share that information with others. It's important to maintain consistency and not deviate from the original story, as that is what initially gained customer loyalty in the first place.
Why Strategic Positioning Matters for Growth Efforts
Effective strategic positioning ensures that an organization's marketing tactics are oscillating with customers and obliging them to take some sort of action.
Without communicating a product/service's best qualities to a customer segment, an organization can't grow. The more specific this message is to a customer segment, the likelier there will be a return on investment.
Even when marketing to the same set of customers as the competition, it's essential to position oneself as radically different. An attention-grabbing positioning message that defines which products/services solve a customer problem is the directive that will be most successful.
For newer startups, this requires creating a positioning statement that is clear and focused on how the customer captures value by using the product/service.
Newer companies that offer products similar to the competition can use strategic positioning messages to entice customers who still have a problem that hasn't been solved by a regular establishment business.
By informing the target audience of how valuable the product is and how the organization can solve a problem, newer startups can achieve the stability needed to maintain their operations.
Why It's Important to Maintain Strategic Positioning for a Competitive
When an organization is planning how it wants to position itself, it must consider how the competitive landscape will influence its marketing plans.
Good positioning allows consumers to know why the organization's product/service is preferable to the competition. In a growing market where consumer needs change every day, it's essential to find a way to stand out.
Creating a branding and marketing strategy by utilizing the best messaging channels are part of employing this positioning strategy.
For example, a cosmetic company may buy a slot to run ads on television, employ a social media marketing strategy, and run ads in women's magazines to convey a positioning message.
Researching and using the correct channels to market a product/service is the primary way to maintain a competitive edge and remind customers of who the organization is.
As a startup evolves and becomes more mainstream, it will have to reevaluate its positioning message. Staying in tune with the competition, customers, and the market will help an organization rework an outdated strategy.
While it's helpful to reassess an older strategy to maintain a competitive edge, it's important to maintain the same underlying theme regardless of evolving markets or circumstances.
Reworking an entire brand is akin to starting over once a business has already established itself as legitimate. It's best to tweak and add on to a positioning strategy to remain competitive, rather than revamp the entire message.
There is a reason why customers put their trust in the organization in the first place. Don't lose that trust by abandoning the original strategic positioning message completely.
Ensuring Brand Awareness Through Strategic Positioning
Without regularly reminding customers of who the business is and what they do, it's impossible to find new clients and maintain the current ones.
Utilizing a positioning message as a tool to remind customers why they need to act is one of the more consistent requirements of running a business. With the right message and the marketing strategies to convey it, businesses can build brand awareness over time.
Loyal customers tend to recommend a known brand to friends and family. Before long, an organization's brand is not just built through marketing efforts, but through word-of-mouth.
However, continuing to remind customers of the organization's value is essential to maintain this brand awareness. This is particularly true in an evolving market with a growing list of competitors.
In conclusion, here are the key takeaways to remember about strategic positioning-
- Strategic positioning is focused on how an organization sets itself apart from the competition and delivers a benefit to different groups of target customers.
- Startups have to create a unique positioning strategy that influences the customers' minds to choose the organization's product or service that can solve a problem.
- Effective strategic positioning ensures that an organization's marketing tactics are oscillating with customers and obliging them to take some sort of action.
- By informing the target audience of how valuable the product is and how the organization can solve a problem, newer startups can achieve the long-term success they need to maintain their operations.
- It's best to tweak and add on to a positioning strategy to remain competitive, rather than revamp the entire message.
- Utilizing a positioning message as a tool to remind customers why they need to act is one of the more consistent requirements of running a business. With the right message and the marketing strategies to convey it, businesses can build brand awareness over time.