Positioning always looks to take a place in the consumer's mind the exact place we want to be, understanding "place" as a reference to a product or brand, to how users define it on the basis of the attributes or parameters they consider important, and in relation to the competition.
According to Fernando Trias de Bes "positioning consists of choosing something for which we want to be recognized, and as a strategy, it opens up greater opportunities for the development of varieties. It consists of choosing certain characteristics and highlighting them through the marketing mix, which needs to maintain a certain coherence, and not only must its elements be coherent with each other, but they must also be derived from and be coherent with the segmentation and positioning strategies.
The task of positioning is based on the development of competitive advantages and a correct differentiation to obtain competitive advantages. In order to do so, all the factors that generate an advantage for the company in relation to its competitors must first be listed, taking into account: customer needs, the essence of the brand and the differentiating factors of the competition.
After identifying them, a position must be developed based on them, taking into account the following criteria:
Important: The difference is a valuable benefit for the target group.
Distinctive: The difference is not offered by the competition or the company could offer it in a more distinctive way.
Communicable: The difference can be communicated and visible to buyers.
Exclusive: It cannot be easily copied by competitors.
In order to improve competitive advantages, a focus is sought on the development of the value proposition. Below is a value/price matrix that serves to define it:
More for more: This positioning implies offering the product as an exclusive at a higher price to cover the higher costs.
More for the same: This positioning is used by companies that offer products of similar quality but at a lower price. This option can be developed by offering the best products at the lowest prices.
The same for less: In the Auto Parts market this can be a very valuable option, traders like to make a good deal. Big discounts based on the same product, lower costs.
Less for much less: This applies to low-quality products but with the lowest price.
Differentiation is one of the keys to a successful marketing strategy, and in these hyper-competitive times, you must capture the essence of the problem to be solved, having the speed to benefit from the mistakes of the competition.
This differentiation must create value for the brand, and this can be achieved by going beyond products, and developing a long-term brand strategy that differentiates the company from the competition.
Once the positioning has been defined, it is important to consider the best competitive development strategy to reach the minds of your target segment. In "Principles of Competitive Development", Al Ries and Jack Trout define the following alternatives according to the competitive advantages and the level of differentiation of the company:
Frontal attack: This strategy can be the most costly because it is carried out against a direct competitor that is developing its business with the same strategy.
Guerrilla: This type is suitable for companies that do not want to confront the leader, seeking to satisfy a particular segment in a better way than the leader.
Defence: This consists of blocking the actions of the competition, which has the same strategy as the company but more resources.
Lateral attack: This strategy should be conceived from the weaknesses of the competition and the strengths of the company to seek that it cannot be contested.
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