Market Positioning Basics

Audience

Objectives

Customers (current and potential)

Establishing in customers' minds what makes the company and its products more attractive than those of its competitors.

Internal (the staff of a business and its partners)

Teaching employees about the approach they should adopt to meeting customers' needs and the basis on which the firm is competing in the marketplace. Channel partners and suppliers also need to understand how to best align with / serve the business.

Investors

Setting expectations on how the firm will pursue business advantage, and how it will strengthen its share price (eg businesses positioning themselves as "new economy" or "bricks and clicks" stocks - particularly during the dot-com bubble). Occasionally companies will position themselves as candidates for acquisition.

Competitors

Making barriers to entry highly visible in an effort to reduce new market entrants. Identifying "owned" market space, to encourage competitors to invest elsewhere. Positioning as the technology or process leader can encourage others to licence (from you!) rather than build.