The term positioning is widely and often used by people when it comes to marketing and product targeting. In this article, I would like to discuss positioning and its relevance in startup context.
To position a product or service effectively, companies must first understand the competitive landscape and identify the unique benefits that their product or service offers. Once they have a good understanding of their unique value proposition, companies can develop a positioning statement that clearly articulates what their product or service is and why it is different from the competition.
Positioning can be used to target a specific audience, from a large market segment, including the general public, specific demographics, or even niche markets. For startup founders, positioning is especially important, as it can help them to stand out from the competition and attract customers to their new product or service.
How Positioning Theory Can Help Startup Founders Target a Niche?
One of the most effective ways to use positioning theory is to target a specific niche market. Niche markets are smaller and more specialized than the general market, which makes them easier to target and dominate.
To target a niche market effectively, startup founders must first identify a specific problem or need that their product or service can solve. Once they have identified a niche market, startup founders can develop a positioning statement that clearly articulates how their product or service can solve the problem or need of their target audience.
For example, a startup founder might decide to target the niche market of busy working parents. This startup founder could develop a positioning statement that says, “Our meal delivery service makes it easy for busy working parents to feed their families healthy and delicious meals.”
By targeting a specific niche market and developing a clear positioning statement, startup founders can increase their chances of success.
The Need to Exclude Some Markets
When targeting a niche market, it is important to exclude some markets. This is because trying to please everyone will result in a product or service that is mediocre and does not appeal to anyone.
By excluding some markets, startup founders can focus on developing a product or service that is perfectly tailored to the needs of their target niche market. This will help them to achieve a competitive advantage and stand out from the competition.
Here are some examples of why startup founders might choose to exclude certain markets:
- They do not have the resources to serve all markets. Startup founders often have limited resources, so they need to focus on the markets that offer the greatest opportunity for success.
- They are not experts in all markets. Startup founders should focus on the markets that they know best and where they can offer the greatest value to customers.
- They want to develop a strong brand identity. By targeting a specific niche market, startup founders can develop a brand identity that is closely associated with the needs of their target audience.
In India Rajiv Bajaj*, the CEO of Bajaj Auto, applied the positioning theory most effectively and built the Pulsar brand successfully.
Positioning theory is a powerful marketing strategy that can help startup founders to target a niche market and achieve success. By understanding the needs of their target audience and developing a clear positioning statement, startup founders can increase their chances of standing out from the competition and attracting customers.
By excluding some markets, startup founders can focus on developing a product or service that is perfectly tailored to the needs of their target niche market. This will help them to achieve a competitive advantage and stand out from the competition.
A J Balasubramanian is a serial entrepreneur, with over three decades of startup experience in founding companies, mentoring / incubating startups and writes regularly on topics of interest to startups.
