The key to standing out in today's competitive business climate is to embrace branding. Research on brand consistency has repeatedly found that businesses which present their branding consistently across every channel can see revenue increases in the region of 23%, but it is not just about the revenue. Improved branding means a better market position while improving customer loyalty and reliability. Branding and market positioning are symbiotic — for those companies that utilise a robust branding strategy combined with a strong focus on improving market positioning, growth is far easier to achieve.
What is Market Positioning?
At its most basic, market positioning is when you firmly establish the identity of your company or product so that it has more immediate recognition and a specific perception. A clean example would be Mercedes — immediately recognisable as a luxury car. Having the right market positioning strategies means knowing who your target audience is so that you can target your branding more accurately. Even small businesses that establish their positioning statement can compete with the largest companies in the world.
Identifying Your Target Market
All market positioning strategies will first require you to learn more about your target audience. By focusing on a specific target audience, you can aim your marketing at the people who are likely to buy from you or hire your services. To define your target market:
- Existing Customers — identify commonalities and learn what drives them to spend
- Competitor Research — look for niches not being served by current brands
- Know Your Product — list the best features and brainstorm the audiences who value them
- Identifying Demographics — fine-tune by age, geography, income, gender, education and more
Determining Your Current Market Position
Before you start fine-tuning your branding and marketing, you need to identify exactly what your current market position is. Your unique selling point (USP) is what sets you apart from your competitors and is the key to your effective branding. You will need to identify those USPs that attract customers because they want or need what you offer — aim to be the only business that offers that exact solution.
The Importance of Niche Audiences
When consumers do not understand your brand, it can take a lot of time, energy, and marketing budget to change their minds. The goal of your positioning strategy should be to align the perception of your brand with what you want it to be. Differentiating yourself from your competitors is crucial — find those niches and customers that are not getting what they need from your competitors and fill those gaps.
Positioning Your Business
Once you have identified your USP and finely tuned your branding, it is time to use those to work on improving your market position. Your marketing will be more effective because it will be more likely to resonate with your target audience. Use your customer data to find out where and when your customers spend their time, and focus your efforts on those channels for maximum return. Positioning work rarely stands alone — it tends to feed directly into the kind of strategic planning that turns a clearer market position into a concrete set of priorities for the year ahead.
