Product Positioning

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Product Positioning

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A Customer only Buys a Product, when the Perceived Value is Higher than the Price.

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How you position your product or service is the most important decision in the history of a product. It is the core promise, the reason why people buy this product and prefer it over a competitive product. It is the conceptual framework for the product-strategy, the marketing-mix, the marketing instruments, the media mix and the digital logic behind the strategy how to interact with customers, stay close with the customers and interact with them.

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Product Differentiation

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There is no such thing as a commodity. Every product or service can be differentiated. The entire process from innovation all the way to customer service offers multiple options to differentiate from competitors in a long term way. The foundation is the people in the company, who deliver the difference and create customer satisfaction. This is an essential factor for companies of the 21st century.

Disruptive Product Differentiation is built by changing the characteristics of the product, market or an industry. Avoiding the competitor’s strengths with a clear focus and a tight timeline is as critical as the product differentiation strategy. Otherwise you have to argue via price.
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Alphabet soup or Brand-Name

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The second most important decision is how you name the product or service. The name is the road the customer’s mind to remember it. The positioning statement is the descriptor of what the brand is delivering, the brand promise. It is the differentiating message to attract customers to your product or service. Should you change this statement, often called a slogan? Should a product be explained by a slogan? Yes. But only if the slogan clearly and definitely delivers a reason to buy that differentiates from the relevant set of competitors. Should you change the positioning statement? In most cases never ever.
Some products and categories do not need a written statement, as fashion brands and religious congregations. All others need to explain why somebody should buy and how the people behind the brand are thinking.
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Many brand names are surviving form project names. But most of them are really bad brand names. A real good brand name has to be appealing to the ear, easy to spell and to remember. It should be different from competitive names and not descriptive. Patent offices change their minds. Go for a word brand, not a design brand. Write it clear and with nice contrast. Make it easy to identify. Be careful with design elements as to have a great LOGO.
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Product Positioning – Mag. Lorenz Wied-Baumgartner – Product Positioning

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Product positioning is of special interest for you?

Contact me now about product positioning. I look forward to meeting you.
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Avoid the line extension trap

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What brand to use – a product brand or the corporate brand? An existing brand or a new brand name? It depends on market volume, importance and degree of innovation, and if it is B2B or B2C. One common fact is, that decisions are made with a short-term view regarding the investment into a new brand name. The focus needs to be long term. Brands are created in the mind of the customer, which is a long-time process. It can take 20 years, but it can be destroyed in five minutes.
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Many successful products die because they want to grow with more varieties. This is only successful, if the core promise of the product brand is maintained. Tabasco Sauce still is a chili sauce and nothing else. Nivea is a skin-care brand holding the promise that each product delivers skin care. Victrinox the Swiss knife brand is still a knife. Backpacks are nice but not important. BMW still is Sheer Driving. Coca Cola is playing with new taste versions, less sugar and new designs for the can. But the problem is the product and the image of the product itself, built over decades. Coke is not healthy compared to other newly created categories. This is the problem.
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You have questions about the product positioning of your company?

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Contact me via telephone ot write me an E-Mail.
You can also contact me via mobile

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Product Positioning – Mag. Lorenz Wied-Baumgartner – Product Positioning

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