If the answer is 'yes', then do your clients understand what you are known for? If that's a 100% ‘yes’ too, then read no further. Your product and positioning strategy is working. If it's a 'no' then there's an opportunity to build one.
Understanding your position enables you identify the right opportunities quickly, align your marketing and discover where you are in the marketplace in relation to your competitors.
The very first step is to understand if your company is a 'product' company or a 'distribution' company? Quite often I find clients think they are a product company because they "sell products" but on further analysis they are a distribution company selling others products or services that look like a “product”. Product companies are usually in the minority. They are the companies that spend proportionally more on R&D than other expenses. They innovate product, build it and leave the distribution and selling to others. Distribution companies are usually service based and client focused.
For example, many software businesses build software solutions for clients. They are distribution companies. Once in while they do such a good job on solving a client’s problem they think, “this would make a great product to sell to lots of businesses – let’s do that as well”. They then begin offering this “new product” to the market and find it difficult to get it moving. That’s because their skill base and capability is in “servicing clients” rather than delivering new “product” to a market. You need to decide what the core capability in your company is.
How does a company decide how to package and position their product whether it’s a service or a product?
1. Discover whether you are a product or distribution company.
2. Determine how you are presenting your company. Is it by product, price, market or service offering?
3. Make your primary position choice - the other three make up your secondary position.
4. Create alignment over all four. For example, if service is your primary position, does your pricing (secondary) reflect the cost of providing that service or do you still discount?
5. Build a positioning statement. Think Avis, “We try harder”
A new positioning strategy takes application and time. Once completed, the commercial and cultural benefits to the company will be substantial.