Training course (EN)

As a new beginner entrepreneur in the business field, you want to become visible, to promote yourself and your business on the market.

That’s why, before launching their business on the market, every “young entrepreneur”, should answer the following strategic questions about their market and their products or services:

• What's your customer really buying from you?
• How's your product or service different from those of your competitors?
• What makes your product or service unique?

So, an entrepreneur should have clear in mind what is selling, which products/services are in demand; if there will be a steady flow of cash, what is new and different about the product or service your business is offering.

Asked to define what are the most important ingredients for a successful business, several entrepreneurs mentioned the following components:

• the product should solve a specific problem of the target market
• the correct positioning of the product in the market
• creating momentum through pre-launch marketing campaigns 

In this chapter, we are going to discuss more in detail the second ingredient which is the correct positioning of the product and the company on the market.

According to the Business dictionary “positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning”. (http://www.businessdictionary.com/definition/positioning.html)

Basically, positioning refers to the need of the new entry entrepreneur to promote (a product, service or business) within a particular sector of the market or as the fulfillment of that sector's specific requirements. Using a positioning strategy an entrepreneur could create an image of their products in the mind of the consumers and in this way to create the first impression of brands in the minds of the target audience.

Within a marketplace cluttered with lots of products and brands offering similar benefits, a successful positioning makes a brand or company stand out from the rest, giving it the ability to demand a higher price and stave off competition from the others.  Good positioning in the marketplace also makes it easier for a company and its industry to overpass the bad times, allows flexibility to the brand or product in extensions, changes, distribution, and advertising.

 

Steps to Product Positioning

The process of market positioning involves several steps needed to be taken, and as equally important  for a small or medium-sized business as well as for well-established companies. The positioning of your business creates an imagine if your products in the mind of the consumers.

Here are some steps that an entrepreneur should consider:

 1.      Know your target audience well

It is essential for young entrepreneurs and newly startup marketers, to identify their target audience and then understand their needs and preferences.

The better you understand your target market, the more closely you’ll be able to reach that target. Your target market should be based on audience research, not a gut feeling. You need to be willing to learn as you go, adapt on the fly, and go after the people who really want to buy from you, even if they’re not the customers you originally set out to reach.

2.      Identify the product features

Product features refer to those characteristics of your product that describe its appearance, components, and capabilities.

Before selling the products to customers, the entrepreneurs themselves must be well aware of the features and benefits of their products/services offered. You cannot sell something unless and until you yourself are convinced of it. For example, if you are selling Nokia telephones, should you also use a Nokia phone to easily determine your customers to believe in your products.

3.      Branding

Branding means defining an identity both for the organization (entrepreneur, employees) and for the outside world. Just like the organization, your brand will evolve, and its management will represent a continuous process that requires time, resources, and involvement.

The brand is the result of a combination of attributes: name, packaging, price, reputation, advertisement, which give identity to the product or service you offer and make it easier for customers to choose. When products or services are similar, any differentiation is critical.

Besides the price, the correct positioning of the offer of your company is essential to reach the consumer. In short, the brand is what we "promise" to customers starting from the simple product or service and bringing into the equation all the aspects necessary for a special experience.

4. Positioning the company in relation to the competition

Let's think about the following practical situation: a commercial artery. Shops side by side, all with the same goods. What
differentiates your product from that of your neighbors? Prices? Promotions? The customized program, maybe non-stop? The way the store is arranged? Additional
services? All these or each of them can differentiate the store's offer from
the others.

So, you can add various advantages to your offer. The products also "interact" with the customers, perhaps even more powerful than anything else. The purchase decision is influenced by a lot of factors, from the price, the color or the material of the packaging, to the label "Bio" or the association with a local VIP.

An entrepreneur must be aware of the competitor’s offerings and never underestimate them. For this reason, you should always try to communicate to your target audience, through different channel how your product is better than others

5.      Ways to promote brands

         - Choose the right theme for the advertisement.

         - Use catchy taglines like in examples (Mercedes-Benz: Engineered like no other car in the world

BMW: The ultimate driving machine, L’Oreal: Because you’re worth it, Nike: Just do it)

         - The advertisement must not confuse people.

         - The marketer must highlight the benefits of the products.

          - Tell a story. It’s well known that customers respond to emotions, be it admiration, surprise, or anger. Thus, connect with your target audience, and that’s because people buy from people.

Special attention should be given to the website or Social Platform creation in order for people to know who you are and what you can offer.  It’s important as well to have patience and wait for your consumers when they’re ready to buy and they will look at your brand instead of that of your competitors. To make the purchase a reality, focus on SEO (search engine optimization) strategies. It‘s helpful to find the right keywords that your current and future clients and customers will use in order to find your service or product.

6.      Maintain the position of the brand

         - For an effective positioning it is essential for the marketers to continue to live up to the expectations of the end-users.

        -  Never compromise on quality.

         - Don’t drastically reduce the price of your products.

         - A Mercedes car would not be the same if its price is reduced below a certain level.

Criteria for Evaluating Your Brand Positioning Strategy

In order to bring clarity to your marketing strategies, advertising campaigns, and promotional tactics as a new entry on the market you can start developing a statement that can help you to make good decisions about your business.

Here some criteria that you can ask yourself for checking your brand positioning:

o   Does it differentiate your brand?

o   Does it match customer perceptions of your brand?

o   Does it enable growth?

o   Does it identify your brand’s unique value to your customers?

o   Does it produces a clear picture in your mind that’s different from your competitors?

o   Is did it focus on your needs customers?

o   Is it memorable and motivating?

o   Is it consistent in all areas of your business?

o   Is it easy to understand?

o   Is it difficult to copy?

o   Is it positioned for long-term success?

o   Is your brand promise believable and credible?