Antix Consulting Insights
Introduction
Unlocking the full potential of your business requires a strategic approach in today's competitive landscape. Amidst the demands of daily operations and project delivery, many businesses overlook the essential strategy work needed for increased market credibility and capture. Choosing to embark on a market positioning engagement is a deliberate step that sets you apart from the majority of competitors, steering your company towards a more strategic market presence. In our dynamic environment, where perception often shapes reality, understanding the nuances of market positioning becomes pivotal. It acts as a catalyst, paving the way for heightened brand recognition and sustained success.
Who are market positioning engagements for?
Companies poised for growth and seeking a distinct edge in their respective markets should consider engaging in a market positioning effort. This strategic decision is especially beneficial for organizations navigating competitive industries, experiencing shifts in customer preferences, or aiming to redefine their brand image. Engaging a market positioning consultant is ideal for businesses that recognize the need to articulate a compelling value proposition, differentiate themselves from competitors, and strategically align their offerings with market and customer demands. Whether entering new markets, undergoing rebranding, or aiming to optimize existing market presence, these companies can leverage the expertise of a consultant to strategically position themselves, enhance brand perception, and ultimately drive sustained success in their industry.
What does market positioning mean and what are the types of strategies used?
Market positioning refers to the strategic efforts a business makes to establish its distinctive place in the market and in the minds of its target audience. It involves crafting a unique identity and value proposition that sets the business apart from competitors. Market positioning encompasses how a company presents itself, its products or services, and the perceived benefits it offers to customers. Effective market positioning helps attract the right audience, differentiates the brand, and influences customer perceptions, ultimately contributing to the business's success in the marketplace.
Here are some key strategies employed by successful companies:
Pricing and/or Value: Establishing your brand based on competitive pricing or highlighting the value customers receive.
Buyer Benefits / User Experience: Focusing on the positive impact and seamless experience your product or service offers to customers.
Product Quality: Positioning your brand as synonymous with high-quality products, appealing to customers who prioritize excellence.
Product Differentiation: Emphasizing unique features that distinguish your offerings from competitors in the market.
Innovation: Showcasing a commitment to innovation, attracting customers who seek cutting-edge and forward-thinking solutions.
Heritage or Tradition: Leveraging a rich history or tradition to build trust and credibility with your audience.
Environmental Sustainability: Appealing to environmentally conscious consumers by highlighting sustainable practices and initiatives.
Customer Service Excellence: Establishing your brand through exceptional customer service, creating positive and lasting customer relationships.
Market Niche: Targeting a specific market segment with tailored products or services to meet their unique needs.
These strategies provide businesses with a roadmap to effectively position themselves, creating a distinct identity that resonates with their target audience.
How are market positioning and business development services different?
Market positioning is geared towards cultivating a positive perception among customers and stakeholders, influencing their choices and preferences. Its primary focus is on defining and communicating the unique value proposition of a company, emphasizing what sets it apart from competitors. In essence, it serves as a precursor and companion to business development (BD). On the other hand, BD aims to enhance revenue and profitability by identifying and capitalizing on new business opportunities—essentially, it's about building and working a pipeline. Market positioning ensures that when your business is ready to present an offer to a customer, they already possess awareness of your services and have a favorable impression, increasing the likelihood of them choosing you over other options.
Market positioning includes more of a public relations and marketing focus than the traditional business development function.
Is market positioning relevant for government contractors?
Absolutely! Market positioning holds immense relevance for government contractors, providing tailored benefits crucial to navigating the unique challenges of this sector. In the competitive landscape of government contracting, where decisions are often influenced by factors beyond traditional market forces, strategic positioning becomes a game-changer. Firstly, a well-defined market position enhances visibility, ensuring that government agencies are not just aware of a contractor's services but view them favorably. This positive perception can significantly influence procurement decisions. (For example, opportunities under $25K do not need to be competitively awarded - your customer can call and ask for your help directly for these smaller engagements. There are also circumstances where they can sole source larger contracts.)
Additionally, market positioning assists contractors in articulating their unique value proposition and differentiators. A strategically positioned contractor is better equipped to align with evolving regulatory landscapes and industry trends, staying ahead of the curve. Furthermore, by fostering a positive brand image, contractors can cultivate long-term relationships with government agencies, fostering trust and credibility. In an industry where reputation matters, market positioning becomes not only relevant but instrumental in the success of government contractors seeking to capture and retain valuable contracts.
We mentioned that market positioning includes more traditional marketing and PR activities than BD. We've observed that many government contractors have BD staff, but don't always have dedicated marketing personnel, which is another reason that this type of engagement is a great fit.
While the trusted established networks of long-time BD personnel are valuable, we cannot help but notice that the way that government buyers engage with contractors is changing - such as increased activity on platforms like LinkedIn. In the article "Federal presence on LinkedIn continues to grow," Mark Amtower states that as of January 2023, there were approximately 2.7 million Federal employees on the platform. At Antix, we've noticed government personnel such as Jess Berrellez, an Executive Officer for the Food and Drug Administration's Office of Digital Transformation, sharing posts on the platform almost daily - including posting events that industry can attend to engage with her organization.
What does a market positioning consulting engagement look like?
We suggest a 4-phased approach that is completed in approximately six months. Each phase answers a critical question for that stage of the process:
“Where are we?”
“Where do we want to be?”
“How do we get there?”
“What does success look like?”
Below we describe our recommended 4-Phased approach to help companies elevate their market position.
Phase 1: Discovery and Assessment – “Where are we?”
Phase 1 takes place within the first 1-2 months of the engagement and includes three deliverables:
Phase 2: Strategy Development – “Where do we want to be?”
Phase 2 takes place in month 3 of the engagement and includes three deliverables:
Phase 3: Implementation Planning – “How do we get there?”
Phase 3 takes place in month 4 and includes two deliverables and an optional service:as
Phase 4: Execution and Monitoring – “What does success look like?”
Phase 4 takes place in months 5 and 6 and includes four deliverables:
Optional Additional Services
Communication Plan Development
Clients may need to develop a communication plan to ensure that internal and external stakeholders are informed about the changes and updates.
Technology Integration Support
Clients may need support in integrating new technologies or tools that enhance their market positioning and operational efficiency.
Marketing Plan Development
Clients may need support to develop company-wide and/or customer-specific marketing plans.
What is the value of completing a market positioning engagement?
Evaluating the return on investment (ROI) for market positioning involves developing key performance indicators (KPIs) in Phase 4. These KPIs define success for your company, ranging from easily measurable metrics like increased website traffic to more nuanced ones such as thought leadership recognition. The mix of KPIs often includes both quantitative and qualitative measures. Over time, observable outcomes emerge, such as an elevated win rate and a shift towards increased inbound lead generation. As your brand becomes more prominent in your niche, deals may progress more swiftly—an additional potential KPI—while customers increasingly seek your insights.
Conclusion
In the ever-evolving business landscape, a market positioning engagement emerges as a transformative force, offering companies a pathway to strategic distinction. The deliberate choice to undertake a market positioning engagement reflects a commitment to shaping perception, differentiating from competitors, and strategically navigating market demands. At Antix Consulting, we recognize the power of this strategic imperative and guide companies through a comprehensive and collaborative process, ensuring they elevate their market position and increase their success over time.
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