What’s Your Best Position?

October 27, 2006

When considering starting a business or launching a new product choosing how you want to position that product or service in the marketplace is very critical.  If you are dealing with consumers as the end users, the question you need to answer is how do you want consumers to think about your product.  For example if you say Rolls Royce most people would say “the best car in the world.”  If you say Tide, many people would say “the best laundry product.”

How do you develop a position?  There are three key elements:

1.  Market Segment:  In which market do you want your product to compete within?  And within that market which specific segment?  Let’s say you are going to launch a new drink which has health benefits.  Then your overall Market is the “liquid refreshment” market, and the specific segment you are going to appeal to is the “Health and Wellness” segment.  Specificity is critical in the selection of your Market Segment.

2.  Target Market:  To which group of consumers/customers will you be trying to appeal.  In the case of the “health and Wellness” product, your target market will probably be Consumers between 18 and 35 who care about their overall health and well being.  Identifying your target market will help focus your marketing, product, and packaging  strategies among others.

3.  Point of Difference:  I have talked about this on more then one occasion.  But it is at the core of any successful product or service.  Why is your product or service better then any other product or service within your Market Segment.  And, importantly, what is the support for your claims of superiority.

So, the combination of your Market Segment, Target Market, and Point of Difference, represents the “core” of your product or service since it ultimately defines what your product is in the minds of your customers.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship 

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