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Arriving At Your Market Positioning. Use-it Cases. ToolTips. 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:
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Arriving At Your Market Positioning Use-it Cases ToolTips 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 picture 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 develop 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 the best information that you know, then redo or adjust your results after completing the other two tools. Tools: Market Forces Diagram: A way to think through the positive and negative forces at work in your industry that will impact your business. Competitor Landscape: A way to think through who your competitors are, what their value proposition is and how you compete to win. 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.
Arriving At Your Market Positioning • Tool1: Market Forces Analysis • Tool 3: Market Positioning Diagram • Tool 2: Competitive Landscape Analysis
Market Positioning Diagram Use-it Cases ToolTips • To develop this diagram you need to understand your market, your competitors and how you will differentiate yourself in the market. • Your first step is to think about your company’s core differentiators then boiling it down to TWO strategic dimensions. Remember: “Low Cost – High Quality” is a death sentence! • Your positioning strategy stems from the internal strengths and resources of your company, but you need to also consider the trends that are impacting the market long term. • If you need to better understand what is going on in your market, the “Market Forces” tool in this series and your own research will help you. • Use these strategic dimensions to develop your ideal position or the extreme positive position on the X and Y axis. • Think now about the opposite of these dimensions and use them as the negative extreme (Although they are opposite they are not necessarily bad. You’ll need these to help position your competitors. i.e. If one dimension is providing a completely automated self-service venue 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 are 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 understand your competitors, the “Competitive Landscape” tool in this series will help you . • Your top two or three direct competitors will be ones that are successful in serving the market with a similar strategy. These are the folks you will run into in the lobbies of your potential customers. • Your other competitors could fall anywhere with respect to the axis, but your direct competitors should be positioned in your first (top right) quadrant. 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 conversion 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 consumers looking to buy products and services, using Luminate’s state-of-the-art semantic web and artificial intelligence technologies.
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Your Market Positioning Diagram Potential Competitor You’ve Arrived! One winning Dimension Your Company Critical Point 2 Competitor 1 Critical Point 1 Competitor 1 Second winning Dimension Opposing Dimension 2 Competitor Competitor Competitor Potential Competitor Opposing Dimension 1