Arriving At Your Market Positioning

farmpaintlickInternet and Web Development

Oct 21, 2013 (3 years and 7 months ago)

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Arriving At Your Market
Positioning

Use
-
it Cases

ToolTips

For Developing Your

Market Strategy

For Communication

When you want to think through critical aspects of your market that

will lead
to an effective positioning in your chosen market.

When you want to show
that your business has a solid strategy for
penetrating and positioning in your market.

When you want to

develop a well
-
rounded market strategy that can be
refined prior to writing a business plan.

When you want to show

how your relationship to your competitors will
evolve.

Description:

This method helps you think through the
Strategic Question:
How are you going to be compared to your competitors and how will you win? The resulting p
icture
will depict
Your market Positioning Axes


Approach:

This method consists of three tools. The first two are used to discover the appropriate information that you need to devel
op
the
firnal

market strategy diagram
that will depict your Market Positioning Diagram. If you have a good understanding of your industry and market, you may want

to

develop the Market Position
Diagram without going through the other two tools. Another option is to complete the Market Positioning Diagram first with t
he
best information that you
know, then redo or adjust your results after completing the other two tools.


Tools:

a)
Market Forces Diagram:

A way to think through the positive and negative forces at work in your industry that will impact your business.

b)
Competitor Landscape:
A way to think through who your competitors are, what their value proposition is and how you compete to win.

c)
Market Positioning Diagram:

A picture that depicts where you are going to be compared to your competitors and your strategic direction in your chosen
markets.

1


Tool

1:
Market Forces

Analysis


Tool

3
: Market Positioning
Diagram


Tool

2
: Competitive Landscape Analysis

Arriving At Your Market
Positioning

2

Market Positioning Diagram

Use
-
it Cases

ToolTips

Case Study:
Luminate

Technologies

Luminate

Technologies is developing intelligent
buying guides

(personalized product advisors) to enable a new generation of business to consumer web
sites and in
-
store kiosks.
Luminate’s

approach is
fundamentally different to using the search and browse features

on a Web site. Search and browse are
both
time consuming

and leave the burden of finding the best product squarely on the customer


resulting in an inferior experience and lower conve
rsion
of visits to sales. Among
eCommerce

market research companies, Jupiter Research

an online market research company


has identified
Buying Guides

as
a feature that would offer an online merchant a significant competitive advantage. Our technology will do the foot
-
work for con
sumers looking to buy
products and services, using
Luminate’s

state
-
of
-
the
-
art semantic web and artificial intelligence technologies.



For Strategic Planning

For Communication

When you want to map out

your market, competitors and determine your
strategic positioning goals

When you want to quickly communicate your market strategy.

When you need to identify the interim steps to get to your ideal position.

Customize

this chart for your investor pitch.


To develop this diagram you need to understand your market, your competitors and how you will differentiate yourself in the m
ark
et.


Your first step is to think about your company’s core differentiators then boiling it down to TWO strategic dimensions. Remem
ber
:
“Low Cost


High Quality”
is a death sentence!

o
Your positioning strategy stems from the internal strengths and resources of your company, but you need to also consider the
tre
nds that are impacting
the market long term.

o
If you need to better understand what is going on in your market, the “Market Forces” tool in this series and your own resear
ch
will help you.


Use these strategic dimensions to develop your ideal position or the extreme positive position on the X and Y axis.

o
Think now about the opposite of these dimensions and use them as the negative extreme (Although they are opposite they are no
t n
ecessarily bad.
You’ll need these to help position your competitors. i.e. If one dimension is providing a completely automated self
-
service venu
e for your customers
the opposite would be providing traditional phone and documented customer service.


Next , think of one or two critical points that you want to reach on the way to your positioning. The first may be where you

ar
e right now, but the final one
should represent criteria that let you know you literally “Have Arrived!” so you can plan your next position.


The next essential step is to research your competitors to understand how they line up on this axis. If you need to better un
der
stand your competitors, the
“Competitive Landscape” tool in this series will help you .

o
Your top two or three direct competitors will be ones that are successful in serving the market with a similar strategy. The
se
are the folks you will run
into in the lobbies of your potential customers.

o

Your other competitors could fall anywhere with respect to the axis, but your direct competitors should be positioned in your

f
irst (top right) quadrant.


3

Most Popular
store search


instore

and online

Most Popular
online search
-
all
products

4

Market Positioning Diagram


Market Positioning Diagram

One winning
Dimension

Second
winning
Dimension

Your
Comp
any

Compe
titor 1

Opposing
Dimension 2

Opposing
Dimension 1

Compe
titor 1

Potential
Competitor

Potential
Competitor

Competitor

Competitor

Competitor

Critical
Point 1

Critical
Point 2

You’ve
Arrived!

5


Your Market Positioning Diagram