When a product is being introduced into the market, it is very important to know who your target audience is because it tells you the scope of your product’s sale. This is why brand positioning is important because it gives your product direction and shows you who your target audience is.
Factual Marketing Positioning
Take for instance the difference in market positioning between a Digital Photo Frame and a Tab. Unlike the Digital Photo Frame, the tab comes equipped with a rechargeable battery, HD display, camera, and more built-in memory, while also being sleeker. Yet, the tab which is of the same screen size as the digital photo frame, sells at a significantly lower price. Why is this so? It’s because the Digital Photo Frame has a smaller target audience while people who are looking to buy a tab are more of a mass audience, who use their tab for everything from entertainment, to work, and connecting with people via social media. So, though logically the tab should be more expensive because it has far greater utility value, the truth is a niche market has the advantage of quoting a higher price compared to a mass market. So, if you feel your product should sell at a premium, then what you most probably should be looking for, is a niche market. A niche market product may not meet all the demands of a mass market but serves one dedicated function glamourously and flawlessly.
Advertising Strategy & Niche Markets
Now take the example of a sedan, which the average city commuter drives around. This same car if modified by DC, the entire target audience changes because its brand positioning changes. Here a designer simply puts in a fraction of the labour taken to manufacture the car, by working on the body & upholstery. So, though the car may have the same engine under the hood, it sells for twice the price because it now has an elite niche audience. This is the power of brand positioning, which a given business can leverage to increase their profit margins, by positioning their products or services in a manner that is justified in the audience’s line of sight.
Ideally, it’s before a product hits the market, where its positioning is strategized. For example, if your product is a tonic, you need not launch your tonic in the same area where most of the tonics are market-focused. You need to first know which Vitamins your tonic is rich in and then check the kind of vitamin deficiency that exists in the demographic area where you want to market it. It’s after all this homework, that you strategize the market positioning for your tonic. That is partly how the process of brand positioning works.
Statistical Data On Brand Positioning
Another important aspect of brand position is sticking with your marketing approach because brands that are consistently presented, see a revenue increase of 23%. It is no wonder that Content Marketing Institutions put more importance on having the right brand positioning, than even Sales and lead generation. According to ONBrand, brand positioning is so critical for building a brand’s audience, that 70% of brand managers believe it is more important than even direct sales.
So, though you may know the product/services your business offers inside out, what you may not know is the full potential at which it can be marketed. This is where an Advertising agency’s expertise like Eggfirst comes in, because we help your business broaden the horizon of the products/services it offers, via a successful brand positioning strategy and execution.