Consider this information when writing your product positioning statement

Information that should be considered when forming product positioning statements includes the following: 1) Product differentiators that show the product’s advantages over the competition’s products 2) Market segment 3) Customer benefits 4) Pricing and how it relates to performance of the product (For example, a high end product may cost more, but it may offer more features or benefits than competitive products.) 5) Market share. Here is an example of a product positioning statement: “Our new SuperSonic toy costs more than Acme Corp.’s Rocket, but unlike the Rocket, which has no audio and comes in only one color, the SuperSonic plays three different popular songs, accelerates twice as fast as the Rocket, has a reverse feature and comes in five alternate colors including hot pink and bright lime. Because of these added features, our SuperSonic appeals to both boys and girls in the age range of eight to twelve, while Acme’s Rocket only appeals to boys eight to ten years old.”

I recommend: Read about "What Every Serious Company Should Know in Order to Dominate Their Market" by Chet Holmes.

Research your market and your competition

To research your market, you may want to commission custom research or perform certain types of research yourself using various methods such as surveys and focus groups. But before you spend the money on customized research, study research that is already complete. Research your competition by visiting their Web sites, visiting stores where their products are displayed, attending trade shows where they are exhibiting and even calling competitive companies and requesting information. Also read analysts' reports and track your competition in the press by performing Internet searches or enlisting the aid of your public relations firm if you have one.

I recommend: Consider joining Shop.org if you are an online or multi-channel retailer. Technology companies may want to subscribe to appropriate research from Forrester Research, Jupiter Research or Gartner which provide information about both market trends and products. If you are exporting products, be sure to check out the U.S. Government Web site Export.gov for access to valuable market research. Can't find what you need? Locate a research firm that is right for your company at The Blue Book Research Services Directory or at Greenbook. For focused, customized marketing research and analysis to support your company and product positioning and messaging, contact Kurfiss Connect.

Be first or carve out a unique niche

It is hard to change the minds of consumers once they are set, so if you can position yourself as first in your market, you have an advantage. But no matter what, you need to carve out a unique niche for your product.

I recommend: Positioning as Popularized by Al Ries and Jack Trout explains these and other positioning concepts. The American Marketing Association provides a Product Positioning Overview. Also see the SBA for information sheets on Product Basics and Finding a Niche.

Choose your price strategically

Price is a critical factor in positioning your product. Consider your market segment, your product's benefits and features as compared to that of the competition, the demand, your costs and your pricing objective.

I recommend: Read more about pricing strategy at NetMBA or Marketing Teacher. You may also want to try Price Director software to assist you in setting pricing.