-Here To Proudly Serve You, The Solopreneur
Welcome To The Jungle: A Lesson On Positioning Your Brand In An Extremely Competitive Market
May, 22, 2020
Dear fellow solopreneur & adthusiast,
I have great news and bad news to share with you.
Which would you like to hear first?…Great news or bad news?
Oh, you want the bad news first? Ok…
I wasn’t expecting that… but…alright let’s just get right to it then and rip the band-aid off.
The Bad News...
In these unprecedented times, ecommerce is quickly becoming the new norm and primary way of shopping…
“How the f*ck is that bad news?!” You yell…
As I was saying, this is bad news because with an ever-increasing market comes ever-increasing competition and ever-increasing chances of being left out in the cold.
In other words, mo’ buyers means mo’ sellers. Ya feel me?
That’s why It seems really important and highly appropriate to ask how, exactly, are you going to make a name for yourself?
Sorry. I didn’t quite hear you…
What’s that you say?
You’re not too sure…?
You haven’t given it much thought…?
You’ve been really busy segmenting and targeting your market. And haven’t seriously thought about how you’re going to distinguish yourself from the thousands of other online stores similar to yours?
Well, Then...Here’s The Great News
You’re going to really love this segment (no pun intended) because it’s time to talk about positioning yourself in the market; The key to competing successfully.
What Is Positioning?
Ok, so let’s start by answering the age-old question…what is positioning?
Well, positioning is the next important step, after segmentation and targeting, you take in developing an effective marketing strategy.
However, beyond that, positioning is the way you set yourself apart from your competitors by having your target market perceive your products and services a certain way.
In a nutshell, in order for you to compete successfully, you must stand out from the masses in a pleasing way.
And have some type of perceived advantage that distinguishes your ecommerce store from the rest.
Why Is Market Positioning Important?
Alright, now that you know what positioning is, let’s briefly discuss why it’s important for your your online store:
- Positioning provides value to your prospects.
- Positioning gives your prospects something to get interested in.
- Positioning ultimately convinces your prospects to buy from you.
The Different Ways Of Market Positioning
There are many factors that play an important role in market positioning. Here are the common ones:
This may seem like the most obvious factor, but in all honesty, if your ecommerce store is dramatically different, then your competitors won’t pose much of a threat to you.
For example, let’s look at Tesla.
Tesla entered the electric car market with the Model S, and completely sidestepped economy cars like the Toyota Prius.
Tesla dramatically differentiated itself by targeting the high-end market and offering luxurious, and sporty electric vehicles.
While it’s never wise to compete on price alone (you can price yourself out of business) it’s a very important factor for your customers.
It’s not true for all stores and products, but for the most part, the products with the lowest prices often win.
Dollar Shave Club is a great example of this.
For years Gillette has been the brand to offer high-quality, pricier razors and refill blades.
However, that’s been changing recently thanks to lower-priced alternatives like Dollar Shave Club.
Dollar Shave Club’s low prices have been chipping away at Gillette’s market share.
If you aren’t able to compete on price and it seems virtually impossible to really differentiate your offerings, distinguish yourself by offering outstanding customer service that specializes in creating extremely helpful, friendly interactions.
For instance, insurance companies know this all-too-well since contact with customers is vital to their existence.
State Farm really positions itself on this factor by using customer service-based messages in their advertising…Think Jake from State Farm.
This is an important factor next to price.
Price is a big determinant in the buying decision, however, if the product is not of quality it really doesn’t matter what the price is.
Furthermore, quality can define who your competitors are and help you brush-off any pricing wars with them.
To illustrate this point, Chipotle gained a large market share over the years by competing on quality instead of price.
The reason you’re even in business is to make your customers’ lives easier.
So no matter how you position yourself, just remember this one thing: Convenience is king!
Always has been and always will be.
Make it easy for your customers to find you and make it even easier for them to buy from you.
The Sweet, Sweet Advantages Of Market Positioning
1. You Can Cope With Market Changes
Once your online store is positioned successfully, you’re now able to watch the market for new developments.
(*Note: This is particularly important as we navigate the uncharted waters of COVID19).
So you can discover, identify, and develop new competitive advantages to cope with the marketplace’s changing expectations.
2. You Can Meet Your Customers’ Expectations
Since the advantages you want to communicate are decided on the basis of your target market, your positioning can help realize your customers’ expectations.
3. You Can Create Customer Loyalty
Systematic positioning reinforces your online store’s name and the products you sell. It also popularizes your overall brand and creates customer loyalty.
4. Win Attention And Interest Of Your Customers
Positioning signifies the advantages or benefits that are significant to your customers.
Therefore, when those benefits are promoted clearly, and consistently through advertising they definitely win the attention and interest of your customers.
5. Design More Meaningful Promotion Strategies
By positioning you’re able to design more meaningful promotional strategies because you’ve selected the advantage or advantages that you want to communicate.
6. Introduce Your Products Successfully
Positioning new and superior advantages of your products not only assists you in introducing the products to the market, but it also helps you penetrate the market more easily.
Now that you’ve done the research, segmented your data, targeted your market, and discovered that you have a $#!% load of competition, it’s time to start thinking about market positioning and how you’re going to make a name for yourself.
It takes a good amount of creative effort, but, believe me when I say the rewards are definitely worth it.
Well until next time my friend, stay healthy and stay wealthy.