Market positioning is not dissimilar to positioning yourself in a military sense.
Your position in the marketplace is literally where you fit in the competitive landscape or ecosystem. You want to claim and keep turf in the best location. First, you want to find the best position–the place where the customers are–what is it that customers want to buy?
The challenge with claiming the best positioning, is that you won't be alone–there will be lots of competitors there. Ideally you want to find that market space that no one else is as well suited to claim in a credible way. For example, if you are a soda company, and you want to be "America's drink"–you will have dozens of competitors, including big guys like Pepsi and Coke. If you focus on a smaller area, like being "New Jersey's Drink" or "America's best Ginger-Orange drink", you have a greater chance of being able to control the turf. The broader that position, the more expensive it is to protect. On the other hand, if you get too narrow, you run the risk of owning an unprofitable segment.
Here are some rules for positioning well:
1. Know who you don't serve well--if you answer "Who would love your product/service most" with "everyone", you will either fail, or you will need to spend a lot of money to succeed
2. Make your primary claim something that matters with your target audience and moves them to action. It needs to be different from your competitors and motivating. Sometimes companies make the mistake of trying to win new leads using the key value described by existing customers. Remember–they can be different. For example, I might sign up with you because you're conveniently located, but stay with you because of the quality of your team. Don't pitch team quality when people make their choices on location.
3. Don't fall in love with clever wordplay. A tagline is not positioning. It's ok if the tagline isn't exciting, as long as it conveys your key value and is memorable. Positioning is where you fit, cool phrases are icing on the cake.
Having a clear positioning can save money and time, and help you generate and win new leads. However, for a positioning to be effective, it needs t o be focused, clear and unique–otherwise, it will be difficult to own the turf you claim.
