Product Positioning

This is a function of the marketing team.

Product positioning is the work of making decisions about who the product is for, what it does for them, how much it costs, and how to present the product.

Who is it for – this would be the target market, the ideal customer profile, or the perfect-fit customer.

What it does – this would be the product or service and the features and benefits.

How much it costs – this would be pricing decisions, like flat price, or in tiers, or with add-ons, etc.

How to present it – this would be decisions like cheap or expensive, mass-produced or custom, basic or sophisticated, plain or luxury, traditional or modern, etc. Your product positioning adopts a specific point of view about your product — how it solves the problem, how it’s different from other products in the marketplace, and how it makes the customer feel.

Changing positioning can be difficult to impossible — sometimes it works and sometimes it not only fails but also the original customers don’t move with it and the company ends up just losing business to competitors. If the company is considering a change in positioning, it might be better to consider introducing a new product with that positioning or even an entirely new brand with a new product and its own positioning.

Once the product positioning is decided, you need to check that every step in the sales route reinforces the positioning. Check how each message is presented to the target market. They must all be consistent with the product positioning — their style and their substance.

Compass

Return to revenue activities.

Return to business plan revenue.

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