Positioning is one of those things that sounds simple but isn’t. It’s not just about knowing who you’re trying to reach, but instead being able to communicate clearly and concisely who you are and what you do. Positioning is all about communicating your value proposition to potential customers.
Here are some examples of positioning statements:
• I’m a professional wedding photographer.
• I am a certified yoga instructor who helps those over 60.
• I sell custom-made jewellery made of stone.
• I online courses about the basics of water colouring.
• I design websites for construction companies.
• I write books about the pursuit of happiness.
• I run calligraphy workshops.
A great tip is to try to make these statements:
I am the ONLY ____________ focused on ____________ in ______________.
For example, “I am the ONLY jewellery store focused on handmade jewellery made from stone in Norway.“
The key to positioning is to find out exactly what your target market wants and needs and then figure out how you can give it to them.
Here are some of the most common positioning factors
- Target markets
- Research and development
- Finance & control
- Product line
These are three common ways to position yourself or your business.
Choosing differentiation as a strategy means that the business offers products and services that differ from the competitors’ offers, so customers are willing to pay a higher price.
Ways to differentiate
- Visual identity design (branding)
- Product features
- Customer service
Often it is a combination of different methods that makes the product or the business stand out and contributes to successful differentiation.
Focus on a specific buying or narrow customer group with a limited product range in a defined geographic area.
Instead of reaching out widely to many, the goal is to serve this narrow target group better.
Ways to focus
- One/few products instead of many
- Specializing in one/few services
- Serving a specific group of people.
Websites for female entrepreneurs in New York, USA. Only one service for one target group in one city.
3. Cost leadership
Cost leadership involves streamlining operations to reduce costs.
A business focusing on cost leadership reduces operating and production costs, not the product’s price.
Such a strategy requires that the company invests maximum in cost-minimizing measures.
Questions to ask yourself:
Should the business choose to sell products or services that are unique and different from those offered by competitors?
Should the business concentrate on reaching a specific purchasing group/narrow customer group in a defined geographical area?
Should the business choose to compete on price and be concerned with gaining market share or becoming a market leader?
Position yourself correctly and you can:
- Be unique and stand out in your field
- Be loved by your customers
- Charge more – get a price premium
- Have a feeling of being the expert
- Receive more engagement
In summary, positioning is about finding out who you are and what you do best. It’s about understanding what your audience wants and needs. How you can either differentiate or focus on what is contrary to competitors. And it’s about creating an image that helps you communicate your message effectively.