The importance of product positioning to the marketing strategic planning

Product positioning is a very important tool for an effective marketing strategic planning. Product positioning creates an image of the company’s products in the mind of consumers, highlighting the most important benefits that differentiate the product from similar products in the market. Product positioning involves identifying points of parity and points of differentiation that enable a company’s product to both meet market standards while offering consumers additional value on key dimensions such as quality, innovation, price, leadership, and functionality, among others.

Product positioning starts with identifying the specific, niche market segments to target e.g. not just working professionals but single working professionals of age group 25-30 years, having an annual income of $50,000-$60,000, and enjoy adventure activities. After segmenting the target market by demographic and psychographic attributes, marketers must understand customer needs. With well-defined target segments, product positioning enables a company to meet very specific needs of a particular market segment, offering value that may not be provided by competitors.

Marketers must keep an eye on the competitiion while considering positioning elements of their marketing strategy. An effective positioning must convey a message to customers why this company’s product should be preferred over the other competitor’s products of similar nature. In other words, the company should not go by the flow of the market i.e. copying what the competitors are doing rather they need to stand out from the crowd by offering distinguishing or differentiated product attributes and other value added services.

The next stage is how to communicate the differentiated offerings to the identified niche market segments. This is possible by selecting the appropriate communication channels that are tailored to connect with their identified target audience when they will be most receptive to these messages. Say for example, a sports car manufacturer position their products through communication via television advertisements during sports events like formula one. They also use print media by running full page high resolution color ads in sports magazines.

It is important that the business incorporate the product positioning across all facets of the business, including manufacturing and customer service in order to ensure consistency of the positioning from the consumer’s standpoint. Further, the positioning must not only align with other divisions and with the current corporate objectives, but also provide long-term sustainability and remain relevant for product variants and for future market scenarios. Using strong product positioning is a key component to the success of the Marketing Strategy and to meeting overall corporate objectives.

To learn more about the product positioning, visit SMstudy.com.

The Search for Social Media Insights

It may be time to recognize that data collected from social media will not so easily reveal its immediate impact on a company’s sales (as we’ve said before, it’s proven to be a bit slippery). But this doesn’t mean the baby should be thrown out with the bathwater. In finding ways to prove its value, social media marketers are changing the conversation away from a cause/effect relationship between a company’s marketing and its ROI to a deeper understanding of social data’s value. And as it turns out what it offers is way more valuable- the unprecedented parse-able social insights of a population.

In a recent post, we explained that the number one problem facing social media marketers today is tying social data to an increase in the bottom line (or the sales of a product or service). The challenge of “proof,” in turn, was making it harder to make a case for additional investment in social media marketing.

We said, “Demonstrating the value of the social programs within the company was, in fact, the top challenge noted (60%) by survey participants consisting of 600 media marketing professionals.”

 The State of Social Marketing 2015 report by Simply Measured states, “Companies of all sizes and maturity levels are struggling to prove the value of their social programs. Social media activities can be difficult to quantify, and marketers are trapped between readily available “vanity metrics,” such as Likes and followers, and difficult-to-measure objectives such as brand awareness.”

We went on to suggest that unless there’s a collapse of the capitalist system, better tools will surely arise to address the challenge. But we also noted, of equal, if not greater importance, would be the ongoing discovery of more creative and accurate ways to query the data.

As marketers hone in on methods to extract the gold nuggets of consumer intel out of the mountain of information, they’re hitting upon the true capital of social media- the most comprehensive picture of consumer behavior, sentiment and decision-making process they’ve ever been blessed to lay hands on. This might not be the smoking gun that ties directly to a sale, but, in fact, presents many more gifts in the long run as John Donnelly III, SVP of global sales and marketing at Crimson Hexagon, points out.    

 “One of the most effective ways to glean consumer insights is by analyzing social media conversation… sales teams are realizing that social media is rife with information about what their prospects care about, how they consume media and what motivates their decision-making,” said Donnelly.

Based on Donnelly’s presentation and other insights, here are some ideas to consider when taking the dive into social data.  

Get granular. Almost any question a marketer has regarding brand perception, market competition and the general sentiment of people discussing a product or brand can be found through social media analytics, so ask away.

Getting granular also let's marketers zero in on microsegments of the population that either are or can be Word-of-Mouth advocates for a brand or product.

Word of Mouth is the golden standard for all marketers. The ability to target Word-of-Mouth advocates on social media can be the difference between success and failure. Writing for convice&convert, Devon Wijesinghe discusses the importance of Word of Mouth and how it can be used.

“This rich source of information comes in handy when you’re looking to generate Word of Mouth about your brand. Tapping into the “right” market segments—segments whose interests and values are aligned with your brand—can be the catalyst your campaign needs,” Wijesinghe said.

Layer trending topics on top of a hyper-targeted market segment (both bits of information available through social media data analysis) and a marketer has made a happy marketing marriage.  

Focus groups may be passe according to some, but testing is still very much a part of the marketing strategy. From a product standpoint, social media insights can reflect the strengths and weaknesses of a product’s lifecycle as well as the effectiveness of current marketing efforts. Filling the role of the modern-day focus group, social media insights are also valuable for taking the temperature of the public on an idea such as a logo or slogan, a product or service. Testing the social media world’s tastes and perceptions allows for adjustment before launching, saving money and perhaps even preventing a catastrophic mistake.  

Social media data is virtually limitless (pun optional) and social media marketers are stepping up and learning how to use it best. We expect to be reading many more social media data “hacks” in the future. Stay tuned.

Visit smstudy.com/articles for additional articles on sales and marketing. 

Sources:

"How to Sell Smarter Using Social Insights," Devon Wijesinghem http://www.convinceandconvert.com/social-media-measurement/social-insights/

"Supercharge Your Selling Strategy: The Power of Social Data," John Donnelly, https://inbound.org/discuss/john-donnelly-forget-the-focus-group-how-social-insights-can-help-you-sell-smarter-at-inbound15

The State of Social Marketing- 2015, Simply Measured, http://simplymeasured.com/#sm.0001gymsunkgqdcepli19xtqnlo4p

Evolution of a Logo

Walk through any airport and you’ll experience the power of logo. Starbucks’ green siren beckons from down the terminal, easily recognized 200 yards away. Cinnabon’s royal blue ribbon assures you there’s a tasty treat waiting for you. McDonald’s, Burger King, TGIF, Chili’s—you know them. All have risen to the top of the logo ecosystem, known and understood by consumers across the country and often around the globe.

Communicating the “right” message via a logo is of critical importance throughout the life of any company. According to theSMstudy® Guide, “This image communicates the promise of value the customer will receive from [their] product or products.” A logo becomes the most recognizable symbol of a company or brand and ideally should be unique, adaptable, timeless and appropriate. These four characteristics identified by Inc. are considered essential for a great logo.

Having a unique logo is essential for companies or brands to be easily identifiable in the vast consumer marketplace, such as in the airport terminal scenario above. So when it comes to logo updates and changes, Business Insider reminds us that the process is a delicate one and that certain qualities must remain constant.

Business Insider’s Jason Nazar says, “Every brand hopes to elicit from its logo (a sense of) fondness and comfort with a touch of excitement. Every logo must walk the fine line between nostalgia and modernity; you want to remain your lovable self, while staying current.”

With all these factors to consider, logo evolution can become a dicey affair. But as Inc. points out, logo adaptability and appropriateness allow for, and indeed require, revamping from time to time. Many companies are willing to risk the public backlash—an ever-lurking possibility—and make changes for the sake of keeping up with customer tastes.

Companies have tackled the problem of keeping logos “lovable” but also making them “current” in various ways. Some companies have adopted a gradual design evolution approach while others have opted for more dramatic transformation.

One of the logo success stories that’s made gradual design iterations to reflect the changing tastes of customers over the years is the coffee giant Starbucks. Since its founding in 1971, Starbucks has evolved its logo to project a modern aesthetic yet keep its most memorable elements. 

Here you can see the evolution of the Starbucks logo … in 1971, 1992 and 2011.

Oftentimes, major logo alterations accompany big changes within a company. Moving into a new market or changing the name can present the opportunity for radical logo transformation.

One company that chose a more dramatic logo change was the luxury auto manufacturing company Mercedes Benz. Although the company had existed since 1883, the first Mercedes logo wasn’t introduced until 1902.  

The now famous three-point star was brought into the logo design in 1909 and has remained one of the logo constants despite various logo modernizations.

Here you can see the evolution of the Mercedes Benz logo from 1902 until modern day.

Regardless of where a company finds itself in the marketing process, the impression created by the face of the company (logo) is always something to keep at the forefront of the marketing strategy, whether the company is new and looking to create a great first impression or whether the company logo is well known to consumers but needs a little freshening up. [ML1] Whether the intention is to wow the marketplace with a new company presence or to freshen up the look of a well-recognized brand, a business’ marketing strategy should continually monitor the impression being created by the face of their company, their logo.

Inc., Lauren Cannon

http://www.inc.com/ss/4-characteristics-of-great-logo-design

Business Insider, Jason Nazar, Nov. 21, 2013

http://www.businessinsider.com/evolutions-of-the-biggest-business-logos-2013-11

SMstudy® Guide; Marketing Strategy, p. 19.http://www.smstudy.com/SMBOKGuide/Overview-of-SMstudy-Guide