Why does a product or service fail in the market?

The market is a big jungle with new and better options coming up every day and in this cutthroat race to survive many get crumbled eventually or just leave the ecosystem of the jungle (Market). 
To help you understand more easily let us take an example of two companies A & B, Now here company A is a Lion and the other company is a tiger, both producing the same product
But the lion (A) rules over the jungle and enjoys much more monopoly than the tiger (B) in the jungle (MARKET). This is because Company A is more open to market trends, policies, technological advancement, a better product model, consumer behavior, etc, and deeply cares about their customer base & wants to solve their problems with the help of their product. Whereas on the other hand Company B is reluctant to change, selling with the same archaic methods, no product improvement, no customer satisfaction thus reducing the reach of their product gradually, ultimately pulling it out of the market.
Hence, The Market is no less than the jungle with every company competing with each other to make their product better than the other and one with less effort getting kicked out of the industry.

Reasons for Product Failure :

Here are some of the popular reasons why a product fails to perform in the market

  1. No Market Research.
  2. Poor Customer Service.
  3. Poor Quality.
  4. Lacking Technological Advancement.
  5. Reluctant to Change.
  6. Following Selling Concept instead of Marketing & Societal Concept.
  7. Improper Product Management.
  8. Pricing Issues.
  9. Packaging, Labelling & Branding Problems.

Product Management

It’s the only role in a company that grasps all aspects of the business, including customers, the market, competition, trends, strategy, business models, and more. As such, great Product Management makes great companies.

Product Positioning 

Product Positioning 1
Product Positioning

Product positioning is a strategic exercise that showcases your product’s unique benefits to a specific target audience in such a way that makes it better than its alternative option. It is the process of designing companies offering into an image to occupy a distinctive place in the target market’s mind. i.e.

The act of creating a difference between a company’s offer from those of competitors. It’s necessary to clear out a very common misconception that many marketing & product teams have about it Ultimately, a business does not get to determine the position its product holds in the market. Only the market itself can do that. It starts with the product but positioning is not about making changes to a product but positioning is what you do to the mind of the customer. (Make them feel the product is a necessity)

The aim is to distill who your audience is, what they need, and how your product can uniquely help.

The only product positioning that counts is what your customers think of it. If a customer isn’t thinking about it, your product doesn’t occupy that position.

How to develop product positioning?

Product positioning strategy will help you Know:

  • Where is your product today?
  •  Where would it ideally be?

A product positioning strategy is what gets your product position from A to B.

For developing a positioning one must have to utilize the knowledge of these three fields, It needs product marketing and product management working together.

  • Assess your Product.
  • Understand the Customer.
  • Analyze the target market.
Let’s take an example: in an ideal world, what would your target market think of your product? You may have several target markets. Write down what each of them would ideally believe about your product.

Product Positioning Examples

It could require several different elements. A product can be positioned in an appropriate way for target consumers through advertising, the channels it is advertised through, the packaging of the product, & the way the product is priced. E.g., market research may have shown that the product is popular among Teens. What interests them about the product? What should be highlighted about the product to attract them? And where should the product be advertised to reach them? With all the answers to these questions, a fruitful marketing campaign could be created to send benefit-oriented messages to the target audience wherever they may be (such as Google, Facebook, where targeted ads can be purchased based on demographics and interests).

Here’s an example of amazing use of positioning:

  • When it is about product positioning example then Coca-Cola is a pioneer. A very successful example, it is no wonder that the company has been able to survive for more than 125 years. The brand has always tried to bring out the value of happiness, friendship, joy, and sharing to position itself in the market. This has helped to promote engagement in consumers and in turn encouraged them to share happy experiences and moments.

Core elements of Product Positionings

IT is made up of core building blocks that define your product’s unique value. Once you have completed your customer, market, and product assessments, you can define your product positioning, align the broader team around core messaging and build a product marketing plan.

Here are the key elements that define your product positioning:

VisionThe overall direction where you want your product to be headed
MissionWhat are you ready/will do or build to make your vision come true as a reality
Market categoryThe market that you are in and your key customer segments
TaglineCatchphrase or slogan you use to describe your company or product
Customer challengesMajor struggles for your customers
Company and product differentiatorsUnique, value-creating characteristics of your company or product
Brand essenceThe core elements you want to be known for
Core Elements

Strategies of Product Positioning

PRODUCT POSITIONING STRATEGIES 1
Product Positioning Strategies

Some of the positioning strategies for you to get an idea off

  • Attribute Positioning: A company positions itself on an attribute. for example: size, number of years in existence.
  • Benefit Positioning: The product is positioned as the leader in a certain benefit.
  • User of Application Positioning: Positioning a product as the best for some use or application.
  • User Positioning: positioning a product the best for some user group. For example: Food for consumption.
  • Competitor Positioning: The product claims to be better in some way than a named competitor.
  • Product Category Positioning: The product claims to be better in some way than a named competitor.
  • Quality Positioning: This is a powerful positioning technique. To provide the best quality product in the respective field.
  • Price Positioning: The product is positioned as the one offering the best value.

Types Of Product Positioning

 There are multiple options available for brands for a product. Below are some of the common categories:

  • Pricing – Pricing is the most usual and common type of market positioning wherein the businesses with a reasonable level of quality and the lowest product prices achieve success.
  • Convenience – Consumers prefer products and services that make their life easy. It can be in terms of usability, terms, and even location. The best example for this is any e-commerce websites that offer a convenient mode of ordering, a wide variety of selection, and a sound return policy at affordable prices.
  • Differentiation – If your product offers an identifiable difference from your competitor, it helps you stand out from the competition.
  • Brand Recognition – Unique visual branding, including symbols, shapes, colors, typography, logo, and more, can give your brand and product a distinct identity.
  • Problem Solver – You may position your product to focus on your consumers’ problems in your marketing strategy and communication and offer a ready solution.

Production Positioning for Small Businesses

Big organizations have the resources for extensive market research, small businesses could find it hard to come up with the resources for in-depth research. Rather than doing lotta research, a small firm owner could ask their network for their suggestions/opinions and they could collect info on consumers & their purchases.

Potential future strategies can be derived from actual sales data collected. It may be more impactful than developing product positioning on the suggestions/opinions of potential consumers, Much more in a focused group as this positioning is based on real behavior rather than speculation.

When to define your Product Positioning Strategy?

product positioning strategy 1
Product Positioning Strategy

A very usual mistake is to create a product, and not to have any crystal idea of how it ought to be ideally appraised by the consumer when you’re finished with it. If one doesn’t know what you want your consumer to believe about your product, how are you even gonna converse with them? How are you gonna develop cogent marketing communications plans? Before you even commence the product development process, start with a perfect/ideal product positioning statement. Then you will get to know where your product position is at the end of development.

Creating your own Product Positioning Statement

Product Positioning Template 1 812x1024 2
Product Positioning Statement

Developing a Positioning for the first time or improving the existing Positioning becomes easier when one uses a Product Positioning Statement

For (user/consumer) who (need/want or opportunity), the (company/product name) is a (product category/solution) that creatively solves this (key benefit, reason to buy).

It’d be much easier to use an example/supposed company to explain this all. Let’s use Fitness Nutrition, an imaginary company that builds a Fitness exercise app. The target market is primarily Fitness aficionados who are interested in improving their workout and learning more about nutrition/diet. The market and consumer research show that users are worried about their health but are grappling to stick with an exercise program. Users want to stay motivated by connecting with like-minded friends and people. The product(app) addresses this need by providing a social Fitness group/community that promotes friendly competition, provides an assessed nutritionally balanced diet regime, Guidance from professionals and experts, and tracks workout performance.

Here’s an example of the product positioning statement of Fitness Guru:

For Fitness interested people that want to connect with other like-minded fitness enthusiasts, Fitness Guru is the leading social fitness application that uniquely brings the fitness community together by promoting the idea of health, exercises, and workout to maintain it.

If you are interested in addressing multiple target markets or customers, you can come up with multiple product positioning statements.

Service Positioning

Let’s just first understand what service really is. Okay so,  A service is a transaction in which no physical goods are transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the buyer’s willingness to make the exchange.

So we can understand that; Service Positioning is the unique identity of service in a  competitive market. A valuable position serves customer needs and stands out from the competition in a way that has meaning to customers.

Importance of Service Positioning

  • Create an image.
  • Identifying niche.
  • Face competition.
  • Facilitates brand extension.
  • Reduces marketing cost.

5 Comments

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