It sounds a bit intimidating, but it is not! It’ll be fun to go back to the roots of your business and reconnect with why you started it. So, what is a business positioning, and why is it important?
What is positioning?
Positioning refers to the way customers think of a brand and how they might compare it to its competitors. An example of positioning: Rolex positions itself as a luxury status symbol, and anyone who owns a watch knows what a Rolex is. So, positioning involves a bunch of stuff like your unique selling point and where it would sit in your industry. Don’t worry – we’ll go through the steps of finding out your business position in a bit.
Why is it important?
So why are we so passionate about positioning? It has so many benefits – that’s why!
Good positioning fosters a strong competitive position. If you create a positive image of your brand, you’ll continue to enjoy a competitive advantage. When was the last time you saw a Rolex advert? I have never seen one yet I’m still aware of its reputation.
Good positioning will also help you understand your customers better. As you focus on a specific aspect of your business to promote, your ideal customers will almost show themselves to you.
And of course, the best benefit of clear positioning is an increase in sales. Profit is the goal of any business, right?
How do you do it?
The first step is to review where you are currently. When your customers think about you, what is the first sentence that comes to mind? Knowing where you stand now will give insight into what the next steps might look like. Think about whether your company values are being portrayed properly by your positioning.
The next step is to take a look at your competitors. It’s always beneficial to know who you’re competing against and why. It’ll help you understand where your strengths and weaknesses as a business lay.
Now that you understand your and your competitor’s strengths and weaknesses, it’s time to mindmap a few ideas about what might be your new position. Maybe a big competitor has a weakness that is one of your strengths? Think about what your offer that no one else does.
Condense your positioning into a short sentence. It’s a quick way to help your customers differentiate between competitors and lets you show off your brand.
Try building a table like this and answering the questions. It might look short, but keep in mind, that it takes time to work out good brand positioning.
It helps to have a visual representation of where your business lies against your competitors.
While you’re here, why not take your marketing health check right now to see where your strengths are and discover new room for growth and opportunities.
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