4 Steps to Successful Position Products of B2B Companies

Without product positioning, nothing works in B2B marketing. That's why a target group analysis and a strategic placement are essential success factors that you have to consider.

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Strategic Marketing: The Duty for B2B Companies
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Product positioning? What often seems simple in the B2C sector poses great challenges for many a B2B company due to complex and often very technical products. And this is exactly how positioning works: By listing the product features

That's a shame, because no one understands why a product is outstanding when it's just a matter-of-fact list of facts - or do you know why a NAS with a PCIe 10GbE network card and Quad Core processor is a real advantage for your business over an ordinary storage system? Or what a NAS even is? Your potential customers will feel the same way if you only work with technical terms and listings. And that's where product positioning comes in: It's about showing your buyer persona how they can benefit from your product

We Want to Sell - and Really Good Products at That

What all B2B companies probably bring to the table is a fair amount of expertise. Your company should not lack this either

However, a really good product won't get you anywhere if no one understands that it's a really good product.

Before every advertisement, every brochure and every effort to find enthusiastic customers, there should therefore be an intensive study of one's own offer. Only those who know what excites their potential customers can highlight the advantages of their product and engage in targeted marketing - and this is precisely where product positioning comes in.

In this article you will learn,

  • what product positioning is.

  • why you need to know your target group down to the last detail.

  • how to communicate strategically and intelligently.

  • how to highlight the advantages of your product.

  • how to create a positioning for your product in the market that will boost sales.

Good and Bad Positioning

One thing first: Not every positioning is a successful positioning. So - to put it very casually - it cannot be the goal to somehow shoot your product into the market and praise something about it as a unique selling proposition. But what makes a good positioning?

How You Can Tell that Your Positioning is Bad

The fact that one's own product / service could be poorly positioned is something that people like to generously overlook. Or one simply does not recognize it

You can recognize a bad positioning by the following signs:

  • Your sales department has to explain to customers what it's all about until they understand.

  • You have a poor retention rate or a high churn rate

  • You have many prospects, but in the end they buy from your competitor.

  • Your prospects feel the price is too high. Only if you offer a generous discount, you can sell at all.

It is important that you always keep in mind when positioning that it must be adapted to changes - both in the product and in the market.

But When is Positioning Good?

If you belong to the target group and are confronted with a well-positioned product, you will not soon forget it. Excellent examples of this can be found almost exclusively in the B2C market. Just think of the positioning of every new iPhone: The message is clear - technically at the top, visually in a league of its own and all this without selling data. There is usually no mention of the chip in the iPhone or any other technical details. Very important: The iPhone is not an ordinary smartphone and is not positioned as such, which is strategically smart, since it can do far less than one without a jailbreak. The fact that we do not criticize it is mainly due to the positioning as a device in itself, which has its very own qualities.

Such examples of strategic positioning from the B2C area can easily be transferred to the B2B market. Here, too, the central goal is to provide the target group with powerful arguments for your product that they can relate to

In summary, good product positioning is characterized by the following features:

  • It is aligned with the knowledge and needs of the target audience.

  • It does not create pressure to justify missing features.

  • It communicates the benefits.

  • It identifies what the product is about and what makes it unique.

Why is Product Positioning so Important?

This should have made it clearer why the strategic positioning of a product is important. But maybe the following questions come to mind

Don't products sell that hardly anyone understands? Do I even want to reach people who are not familiar with the technical details and do not understand the technical language?

Especially in the B2B area, where customers can be expected to have greater expertise than in B2C, these questions are often asked

However, it does not make sense, which can be quickly explained with the chosen example: Doctors don't need to be good at organizing their practice. They don't need to understand why booking appointments online can make them money. Nor do they need to know how risky it is in terms of data protection to completely outsource the organisation of appointments. If you want to reach this target group, you have to be able to do more than just program it watertight and be able to name the details.

In B2B, too, a product is brought closer to the target group through positioning in order to ultimately be able to sell it

It is therefore just as important to know the needs of the target group, to analyse the strengths and weaknesses of the competition and to be able to position your own product with its advantages accordingly.

Four Steps for the Perfect Product Positioning

Such a strategic positioning can be achieved in four simple steps, which we have listed for you below.

Step 1: Who is Your Target Audience and What do They Want?

If you don't know your target audience, you will fail. So ask yourself the following questions:

  • Who has bought your product so far?

  • Who could be interested in it?

  • And why is this group interested in it?

Create as detailed a target group profile as possible

  • Are they small or large companies?

  • In which industry are they active?

  • What is their turnover?

  • What skills do they have?

  • What problems are they confronted with?

  • What do the people in charge get annoyed about again and again in their daily business?

  • Where is there potential for improvement?

Step 2: What Can Your Product Do?

You need to know your product at least as well as your target group. Here, too, it pays to create a profile

To move from product to positioning, you need to know what features it offers and what the benefits are

You also need to know what your product can't do. A brainstorming session in the team is a good idea here. It is important that not only developers are involved, but also that other perspectives are taken into account. It makes sense, for example, to specifically ask existing customers what exactly they appreciate and love about the product.

Step 3: What Can Your Product Do Better than the Competition?

Let's not kid ourselves: There are probably competing products already out there, and the idea isn't completely unique. That's why it's important to know your competition well: What can it do? What can't your product do? What can your product do better? In looking at the already established alternatives, some concise unique selling points should be developed that fit the needs of the target audience. These should be formulated as succinctly as possible, and again the way they are formulated needs to be tailored to the target audience - law firms and real estate companies are approached differently than tech startups.

Step 4: What Trends Can You Take Advantage Of?

It's often useful to look for trends that you can take advantage of. Trends that have a tangible connection to the product often help to clearly communicate the benefits. In the example mentioned, the trend towards digitalisation is good to use, as this buzzword already invokes a massive frame of meaning that conveys some benefits to the target audience without you having to go far. However, such a trend positioning should be done carefully and not degenerate into reproducing empty phrases that only cause confusion in the end

Without Positioning no Marketing Works and Without Marketing no Sales

Strategic positioning is important because the path to sales leads through product and positioning to marketing. In concrete terms, this means that no meaningful marketing positioning is possible without the appropriate preliminary work, which affects the sales success of the product

Product positioning is not just a nice extra, but an essential part of the marketing strategy that must precede all concrete marketing measures

Conclusion: Find the Right Market Position for Your Product

Finding a positioning for a product is also one of the most important corporate tasks in B2B. Only those who know their target group and position their product accordingly on the market can conduct targeted marketing and achieve sustainable sales success.However, one thing is important above all: It is not enough to simply know that product positioning is important, you also have to implement it.