What Is economy Positioning? Definition and Beginner’s navigator

Imagine this: After months of tireless work and more knitting-related injuries than you’d like to admit, you’re finally launching your custom dog sweater corporation. You recognize there’s no shortage of brands and Etsy sellers specializing in canine apparel. However, after struggling to discover a sweater for your own 100-pound Bernese Mountain dog, you realized there was a gap in the economy for cozy garb for large dogs. 

Bolstered by your savvy design eye and sharp business acumen, you decide to develop a corporation that sells sweaters for non-diminutive pups. Recognizing your distinctive worth proposition, you lean into the large dog way when developing your brand identity and marketing. Within a few months of adopting this brand positioning schedule, sales have taken off so exponentially that you can barely keep up with demand. 

In this example, you’ve used an effective economy positioning schedule to set yourself apart from other brands and boost your final profit. So what specifically is marketing positioning and how can you use it to successfully position your corporation and beat out your competitors? Read on to discover more. 

What is economy positioning?

economy positioning refers to the habit of establishing a brand’s distinctive worth proposition that sets it apart from its competitors. Once you stake out what your brand stands for and what you can provide your target spectators, the competitive positioning and marketing strategies will commence to fall into place. This procedure involves finding and carving out a competitive niche to differentiate your corporation in a compelling way to target customers, leading to better brand awareness, more shoppers, and higher sales. 

Why is economy positioning significant? 

Creating a positioning schedule can be helpful in many ways, including: 

• Enhanced brand awareness. With a differentiated brand and a powerful identity comes more brand recognition. A powerful economy positioning schedule helps a corporation get in front of shoppers by surpassing competitors in providing direct worth to them.

• Improved customer purchase. Having a distinctive product makes it easier to explain your appeal to customers, and a obvious position can make it easier to generate buzz—online and offline. Successful economy positioning can assist lower customer purchase costs (CAC) and attract prospective customers.

• Higher customer loyalty. Through cultivating a specific niche in the marketplace, you’ll establish yourself as the leave-to goal for your product or service. When a target customer comes back period and again, odds are they’ll commence bringing other people along too. 

• Increased sales. More customers and increased brand loyalty translate directly to higher sales, meaning more for your final profit. 

Types of economy positioning strategies

• worth point positioning
• standard positioning
• Competitor positioning
• Usage positioning
• Availability positioning
• Novelty positioning

There’s no one-size-fits-all way to economy positioning. When it comes to effective brand positioning, a corporation can receive many approaches, including: 

worth point positioning 

Whether you’re a luxury brand thriving on exclusivity or a discount retailer with a devoted following of bargain hunters, worth point can play an integral role in brand identity. A corporation can debt its pricing schedule to entice more shoppers.

standard positioning

Highlight the standard of your products. Note how they’re better than your competitors in a compelling positioning statement. standard positioning emphasizes areas like product craftsmanship, manufacturing, and materials. 

Competitor positioning

Going head-to-head with your competitors is a brand positioning tactic that you can use to highlight your brand’s specific advantage. This is the type of schedule you might view in commercials for dish soap or feminine hygiene products that directly display a product performing more strongly than a competing brand.

Usage positioning

Usage positioning allows companies to focus on the specific applications and distinctive benefits of their products. This marketing schedule focuses on providing hands-on proof that demonstrates exactly how your product works and why that’s significant. 

Availability positioning

Just being accessible during a specific period or in a particular region can be instrumental in making headway among consumers. Availability positioning involves leaning into logistical elements to set your corporation ahead of your peers. For example, if your coffee machine is compatible with coffee pods consumers can discover in most grocery stores, you can position your product as more accessible than machines that require specialized pods.

Novelty positioning

Novelty positioning works for products or services that are especially innovative, compelling consumers by sheer force of being groundbreaking or offering cutting-edge technology. 

How to develop a economy positioning schedule

1. Conduct a competitive analysis
2. Determine your target spectators
3. Identify your worth proposition
4. Set your brand identity
5. Craft your messaging
6. Track the impact
7. Reposition as needed

Settling on an effective economy positioning schedule doesn’t just happen overnight. Here are the steps you can receive to make your own: 

1. Conduct a competitive analysis

The best way to beat out your competition is to intimately recognize the ins and outs of how they operate. Conducting extensive economy research in order to comprehend your top competitors will assist to identify gaps where your brand can really shine in economy positioning.

receive the olive oil corporation Graza. After doing extensive research on the economy, founder Andrew Benin saw an chance to capitalize on the household cooking staple. “This is in every single pantry, it has massive household penetration,” Andrew says in an episode of the Shopify Masters podcast. “There was no brand affinity for sure. This was the chance to declare, well, there’s a different way of doing this, a different way of positioning something that everyone already knows about.”

2. Determine your target spectators

Identifying your target demographic is essential when developing a economy positioning schedule. Conducting extensive user research and analyzing data to comprehend customer perceptions will assist inform your way and navigator to better results.

3. Identify your worth proposition

After you’ve conducted a thorough competitive analysis and set your target economy, the next step is identifying your worth proposition. What does your brand bring to the table and how does this resonate best with your spectators? Lean into these findings to carve a competitive niche. 

In the case of Graza, Andrew created a sleek, distinctive bottle design, thus positioning the olive oil as being suitable for both garnishing and cooking, which helped Graza make gains in the economy.

4. Set your brand identity

construct upon your distinctive worth proposition to craft a brand identity designed to highlight your strengths. A powerful brand identity encompasses how you showcase your corporation to the globe and spotlights your core values.

For Lindsay McCormick of the eco-conscious toothpaste corporation Bite, her brand identity centered on sustainability. Her eco-amiable toothpaste brand has since evolved to provide a suite of environmentally amiable products. “From the very beginning, we wanted products that were not only better for our bodies, but better for our earth, and more efficacious too,” Lindsay says on the Shopify Masters podcast. 

5. Craft your messaging

Consistency is key when developing to construct a economy positioning schedule. Utilize your messaging schedule across mediums and campaigns to really drive brand identity home. Just make sure to tailor it to each platform rather than approaching everything as a one-size-fits-all fix.

6. Track the impact

Deploy focus groups and collect feedback from consumers to determine if your brand identity and messaging are moving the dial. Let the results inform how you shift forward or revise your schedule. 

7. Reposition as needed

Your distinctive worth add may transformation over period as your product or service evolves. Make sure your schedule keeps up with the transformation of your corporation.