Relationship Between Differentiation & Positioning in Marketing Products
Differentiation helps establish a product's position in the marketplace. To compete successfully, your company must identify what makes your brand different or better, and communicate this value to potential customers. Differentiated products stand out from the competition with clearly beneficial features. Successful companies position their differentiated products in the marketplace effectively to attract the attention of likely customers.
Differentiation Basics
When customers enter the marketplace to make purchases, they typically have options. By considering criteria like quality, taste, look, feel and price, they make purchasing decisions. To stand out from competitors, your product must have distinct features or benefits that your marketing communication clearly conveys to potential customers. A comparison of your product to competitors helps establish this differentiation.
Unique Selling Proposition
Companies differentiate their products in the marketplace through advertising that aims to establish a unique selling proposition. The website Entrepreneur defines a unique selling proposition as "the factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition." You can differentiate your product from the competition's, but unless you communicate specific value to potential customers, your marketing efforts will fail.
Positioning Basics
Positioning pits your product and brand against the competition, according to Business Dictionary.com. Product differentiation and market segmentation are two common components of market position development. You want to identify your target market, or the specific customers you will market to, and align your product's uniqueness with the specific benefits those potential customers desire. Common marketing positions, which can be established through effective advertising, include luxurious, premium, valuable, practical, affordable and inexpensive.
Positioning Statement
Developing a positioning statement helps a business build a marketing plan. The website Entrepreneur describes a positioning statement as one to two sentences that separate your product from competitors in the mind of your customers. Your positioning statement guides those creating your advertising messages. You should incorporate your statement into every written and visual communication presented to your market to establish a consistent position.
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