In the competitive landscape, standing out from the pack is no easy feat. That’s where competitive positioning comes in. A strategic art, it can help you differentiate yourself from major competitors and solidify your brand strategy.
Whether you’re a seasoned entrepreneur or the founder of a fresh startup, mastering competitive positioning could be the key to attracting more customers, increasing sales, and achieving long-term success.
What is competitive positioning?
Competitive positioning is the strategic process of communicating what makes your brand unique and how it stands out from the crowd. This involves crafting a compelling message that resonates with your target market and highlights the value you offer compared to major competitors.
Effective competitive positioning helps you develop customer interest, attract loyal customers, and, ultimately, increase sales. By understanding your target audience’s needs and setting yourself apart from your major competitors, you can tailor your message to resonate with the customers who will benefit most from your company’s offerings.
The more customers who understand why your brand is the better choice, the more customers who have the best chance to convert and remain loyal. In this way, effective competitive positioning strengthens your brand positioning at the same time it increases sales in the long run.
Ways to create competitive value
- Deliver a superior customer experience
- Emphasize your brand’s mission and values
- Find a gap in the market
- Look for cost savings
- Offer quality products or services
Find your competitive position by first identifying your competitive advantage and then crafting a compelling message that resonates with your target market. Here are some essential methods for doing so:
Deliver a superior customer experience
Differentiate yourself through superior customer service, hassle-free transactions, or personalized interactions. By prioritizing customer satisfaction throughout the buying journey, you create value that not only attracts loyal customers but also keeps your customers interested and coming back. This could involve offering extended return windows, free product consultations, or a loyalty program with unique rewards.
Emphasize your brand’s mission and values
Consumers are naturally drawn to brands that align with their personal values. Highlight your company’s mission to commit to sustainability, ethical sourcing, or social responsibility to boost your competitive position. This creates value by associating your brand with positive attributes that resonate with your target market. For example, an athletic apparel business could emphasize its use of recycled materials, appealing to eco-conscious consumers.
Find a gap in the market
Go beyond generic features and identifypain points or unmet needs of your target audience. By positioning yourself as the best solution to this particular challenge, you create value by addressing something your major competitors might be overlooking.
Imagine a crowded athletic shoe market dominated by established brands. Instead of trying to compete head-on with everyone, a new company focuses on a specific niche: athletes with wide feet. If this businesspositions itself as the go-to brand for this market segment, it avoids directly competing with established brands on generic features.
Look for cost savings
For any business, cost-effectiveness is a major concern. Tout your operational efficiency with lower prices compared to your major competitors. This could involve launching subscription services at a discount, extending your products’ lifespans, or offering bundled packages that deliver greater value for the customer’s money.
Offer quality products or services
If you can develop a product with distinct features that your competitors’ products lack, you create value. This could involve selling cutting-edge technology or releasing a specialized product line. For instance, a phone company might offer a phone with a built-in projector, creating value for those who frequently give presentations.
Tips for creating a competitive positioning strategy
- Know your audience
- Know your brand story
- Know your competitors
- Know how to communicate
- Know your value proposition
Competitive positioning allows you to differentiate your company’s offerings in several key ways. Here are essential methods to develop a winning competitive positioning strategy:
Know your audience
Understanding your ideal customer is foundational to building a competitive positioning strategy. First, conduct market research to gather competitive intelligence (information about your competitors’ strengths, weaknesses, and strategies) and insights into factors like customer interest, then create detailed buyer personas. This enables you to pinpoint your prospective customers’ specific needs, wants, and pain points so you can build your ideal marketing strategy.
Know your brand story
Facts tell, stories sell. Tell a story that connects with your target market on an emotional level. Highlight your brand’s values, mission, and the impact you aim to have on the world to enhance your competitive position. A compelling brand story builds loyal customer relationships and communicates to prospective customers that your brand is so much more than just another product or service.
Know your competitors
Don’t fight blindfolded. Use competitive analysis to assess your competitors’ strengths and weaknesses. Identify gaps in their product or service portfolios and highlight your company’s offerings to provide superior value. This knowledge helps you carve out a niche by addressing customer needs that your competitors might be missing.
Know how to communicate
Your message needs to reach the right ears. Identify the best marketing channels for reaching your target audience, such as social media, email, or industry publications. Tailor your messaging to each platform, ensuring maximum impact to reach the right customers.
Know your value proposition
What makes your brand special? Craft a concise positioning statement that clearly communicates the core benefit you offer. This will highlight how you solve your customers’ problems better than anyone else and will become the cornerstone of all your messaging.
Learn moreCompetitive positioning FAQ
What is involved in competitive positioning?
Competitive positioning involves defining how a brand or product differentiates itself from competitors in the market to appeal to a target audience. This includes identifying unique selling points, analyzing competitors, and crafting a value proposition; for example, emphasizing superior quality, innovative features, or exceptional customer service can strengthen a brand's competitive edge in ecommerce.
What are competitive positioning tactics?
Competitive positioning tactics are strategies companies use to set themselves apart from their competitors. They can include highlighting your competitive advantage in marketing materials, crafting a compelling brand story, and focusing on unique customer needs and superior experiences. By using these tactics throughout your marketing strategy, you can fine-tune your market positioning and attract your ideal audience.
What is the goal of competitive positioning?
Competitive positioning aims to carve out a unique position in your target market. You can achieve this by identifying your competitive advantage and communicating a compelling message that resonates with your ideal customer. Ultimately, it’s about setting yourself apart from the competition to build more customer relationships and increase sales.
What is a competitive positioning map?
A competitive positioning map is a powerful tool that compares your brand to your major competitors through data visualization. It plots key product attributes on axes, then positions the relevant brands based on how your target audience perceives them. This can help you identify gaps in the market and presents major opportunities to differentiate your brand for a winning competitive edge.
