The 5 Most Important Questions Business Owners of UK-Based SMEs Should Be Asking When Considering Their Market Position
#1: How To Position Based On Product/Services Characteristics?
This Market Positioning Method Is The Most Traditional And Market-Driven.
It focuses on what benefits it can provide to customers, features such as colour, size, durability, and so on will play a significant role in this market positioning type. A product or service market position depends heavily on competitor analysis and choosing the key message that sets your product apart from others.
When market positioning is based on product/service characteristics you must consider whether there are any market segments that have special needs or preferences that would be better addressed by a particular type of product/service. In this case, market positioning would be based on the fact that your product or service has a differentiating factor from others. This is often called a unique selling point (USP). For example, if your market is mainly used to long-term contracts, you could offer short or more flexible ones.
#2: How To Position Based On Price?
It’s no secret that people are often influenced by the price of a product when making a purchase decision. Price-based market positioning can be effective in some cases, but it’s important to remember that not all products or services can be positioned this way. You need to make sure that your market is willing to buy on price. If your market will not, this approach will be of little use to your business. When positioning based on price, you need to ask yourself whether there are market segments that will pay more for a product if it has different/superior quality than the market more generally.
Also, it is important to recognise that market positioning based on price can be a short-term strategy if your delivery doesn’t match the price. Eventually, customers will catch on to the fact that they are being offered a low-priced product or service and will demand a lower price, or they may even switch to a competitor’s product.
#3: How To Position Based On Quality Or Luxury?
This market positioning approach is often used by businesses that are looking to attract customers or clients who place a high value on quality and luxury. When positioning based on quality or luxury, it’s important to remember that not all products or services will be seen as luxurious or high quality by all customers.
You also need to be aware that this market positioning can be expensive to maintain, as high-quality materials and production processes are often more costly. You also need to make sure that your market is willing to pay the higher price for a product/service perceived as being of high quality.
#4: How To Position Based On Product/Service Use Or Application?
This market positioning approach is also a popular one, as it can allow you to market your product or service to market segments that have a very different set of needs. For example, if your market is small businesses and you’re selling a product that is specifically designed for them, you could market it as being for businesses that are just starting out. This market positioning would appeal to business owners who are looking for a low-cost, yet a high-quality product.
When using this market positioning approach you need to make sure that your market is aware of the different applications or uses your product or service can have. You also need to be sure that you are not limiting yourself by positioning too narrowly.
#5: How To Market Position Based On The Competition?
This market positioning approach is often used by businesses that are looking to find customers who are already using a similar product or service. When using this market positioning, it’s important to remember that you need to have a clear understanding of what your market segment currently uses, as this market positioning approach only works if you are able to position yourself as being better than what they are already using.
When market positioning is based on the competition, it’s important to remember that even if your market is using a similar product or service there may still be market segments who will want something different/better. You need to make sure that you are targeting the right market segments with this market positioning strategy.
So, these are the five most important questions business owners of UK-based SMEs should be asking when considering market positioning. By answering these questions, you will be well on your way to finding the market positioning that is right for your business.