New Product Positioning Strategy
Today's marketplace is crowded, with companies constantly introducing new products to the public. Businesses consistently look for a way to position a product prominently in the minds of their target base. For a new product to be successful, it must find its way into the minds of the consumer, which is why having a positioning strategy for a new product is so important.
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Definition
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In a store, product positioning is literally where a product is displayed, with the items selling the best positioned at eye level and the items with lower sales numbers placed either higher or lower on the shelf. In marketing terms, product positioning is getting your product into the awareness of the consumer -- which is why you need to have a strategy.
Research
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The first step in having a successful new product positioning strategy is conducting market research. After all, there's no point in trying to introduce a new product if there isn't any demand for it. While you might have created the world's greatest electronic rubber band stretcher, market research might determine there just isn't a market in which your product can be positioned. On the other hand, if your product is a new style of computer keyboard, market research might confirm both a need and a sales avenue for it.
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Focus
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When you're trying to determine a new product positioning strategy, you need to focus on a few areas. Once you know there is a need for the new product, you must examine what a customer will be willing to pay for it. Unless you're trying to sell to a niche market, people might not be willing to pay what you're asking and what it costs to manufacture. You also will need to focus on how the product can actually save either time or money or, in the case of business, how it actually can make money.
Niche
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If your new product is in an area that already is crowded, you might think about finding the right audience. For example, to gain success in selling your new kind of laser paper, a fairly crowded field, you might need to find something special and unique about your paper that will appeal to a certain core group of users. If your paper is made only from plants in the United States, you might market to a niche market of "Buy American" consumers.
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References
- Photo Credit product image by Leticia Wilson from Fotolia.com
