Hello, and welcome to the pLAYmARKETING blog! Today we’ll be discussing a fundamental business strategy that every company must consider: positioning. What is it? And why is it so important? Let’s find out!
WHAT DO WE MEAN BY POSITIONING? First and foremost, it’s essential to understand what positioning is. When we talk about positioning, we imply “market positioning”: it’s the way a brand (or a specific product) decides to be perceived in its market segment. When entering a specific market, a company decides how it wants to be perceived: for example, whether it wants potential buyers to see it as a luxury brand or as more affordable. The same goes for a specific product: if a company produces product X and is launching a new one, it first decides whether it wants the product to be perceived as high-end or more popular. In simple terms, this is the concept of market positioning.
POSITIONING AS A REFERENCE STRATEGY It’s clear that for a brand, it is strategically necessary to position itself in a market segment that, given its characteristics, makes it more attractive to potential customers. For example, if one decides to open a pizzeria, the first thing to determine is whether to position it as a takeout pizzeria, a classic pizzeria, a Neapolitan pizzeria, or a gourmet pizzeria. Clearly, it’s not always straightforward to delineate a single positioning, but by making customers perceive that you lean more towards one direction over another, you attract clientele that is likely to appreciate your products more. Having a clear understanding from day one of the potential customers most interested in your offer and, consequently, the competitors in that market segment, is the essential basis for building a solid marketing strategy.
HOW TO POSITION YOURSELF EFFECTIVELY: THE SWOT ANALYSIS Given the evident and primary importance of positioning in a marketing strategy, the natural question is: how do you determine the best market segment for your brand? The most effective answer to this question is a SWOT Analysis. What is it? SWOT stands for: Strengths, Weaknesses, Opportunities, Threats.
The SWOT Analysis is a schematic method useful for anyone starting a business to clearly understand their strengths, weaknesses, opportunities, and threats in entering that market. It’s a planning tool that helps make a well-rounded, informed decision. By conducting a complete SWOT Analysis of your brand, it becomes easier to know yourself and identify the ideal market segment to enter.
FOR MORE INFORMATION Are you interested in marketing positioning and want more advice on how to position yourself effectively? The pLAYmARKETING team can help you, don’t hesitate to contact us!
