Entrepreneurship Development

Product Positioning
Why is product positioning important?
 Each brand has to know its customers to provide a product that resonates with
their needs. A well-thought-out strategy can determine the position of this
product within the market and identify its benefits for consumers.
 The process involves creating a particular image of a brand and its products in
consumers’ minds and identifying the key benefits to show how a particular
product differs from competitors’ alternatives. Afterward, the difference is
communicated to a brand’s target audience through the most effective
communication channels. The messages brands convey to their customers
should evoke interest.
 Marketers need to determine the best ways to present specific products and
reach their target audience based on customers’ needs, competitive
alternatives, the most effective communication channels, and tailored
messages. Implementing product positioning strategies enables companies to
create messages that address their customers’ needs and wants and entice
them to purchase.
 There are even more pros this type of marketing can bring, so check out our list
to know all of them.
 Benefits of product
positioning
We’ve prepared the top benefits of product positioning that show why it’s one of
the most effective marketing tactics. It helps in:
 identifying key benefits of a product and matching them with customers’ needs;
 finding a competitive advantage even when the market changes;
 meeting customers’ expectations;
 reinforcing your brand’s name and its products;
 winning customer loyalty;
 creating an effective promotional strategy;
 attracting different customers;
 improving competitive strength;
 launching new products;
 presenting new features of existing products.
 Now that you know the advantages, we’ll move to the next section to review
product positioning strategies.
Product Positioning
Strategies
Characteristics-based positioning
Pricing-based positioning
 Use or application-based positioning
 Quality or prestige-based positioning
 Competitor-based positioning
 Characteristics-based positioning. Brands give certain characteristics
to their products that aim at creating associations. It’s done to make
consumers choose based on brand image and product
characteristics. Let’s take the automobile industry, for example. A
person who worries about safety will probably choose Volvo because
of the brand’s positioning. At the same time, another customer who
pays attention to reliability would prefer Toyota.
 Product Positioning
 Strategies
Pricing-based positioning. This strategy involves associating your company with competitive pricing.
Brands often position themselves as those that offer products or services at the lowest price. Let’s take
supermarkets, for example. They can afford to provide customers with products for lower prices
because of the lower costs they pay for shipping and distribution, huge turnover, and a large
procurement of goods. As a result, many consumers already know the supermarkets with attractive
prices and choose them without considering other options.
 Use or application-based positioning. Companies can also position themselves by associating with a
certain use or application. People who adhere to a healthy lifestyle create a great demand for products
that help increase performance in the gym. Hence, many businesses offer nutritional supplements.
These brands sell supplements that are high in calories, vitamins, and minerals.
 Quality or prestige-based positioning. The brands we are talking about now don’t concentrate on their
price point; they focus on their prestige or high quality instead. Sometimes, it’s the reputation that
makes a brand attract customers. Let’s take Rolex, for example. This famous watch brand is associated
with achievement and excellence in sport and is popular among powerful and wealthy people.
 Competitor-based positioning. The strategy involves using competitors’ alternatives to differentiate
products and highlight their advantages. It helps brands distinguish their products and show their
uniqueness.
 The difference is clear now, so it’s time to jump to the steps required for successful product positioning.
Steps to Position Your Product
 Define your target audience
 Identify the key benefits of your product
 Establish brand credibility
 Offer a unique value proposition
 Consider audience segmentation
 Craft your messaging
 Do a competitive analysis
 Demonstrate your expertise
 Focus on your competitive advantage
 Maintain your brand’s position
Steps to Position Your Product
 Define your target audience. Knowing your customers' needs, wants, demographics,
and interests allows you to give them the product they strive for. This way, you can
reach your target audience and motivate them to buy your products. For this purpose,
you need to be well-prepared and operate the necessary information.
 Identify the key benefits of your product. Benefits are a top priority for any customer
who wants to solve a particular problem. As a business owner, you need to know all the
peculiarities of your products or services, including their features and advantages. You
need to identify your key perks and communicate them to the masses so that they can
consider your product when reviewing several options.
 Establish brand credibility. You need to create a brand that people can rely on to build
trusting relationships and encourage your customers to make repeat purchases.
Consumers are more inclined to make repeat purchases from companies with a good
reputation and high credibility. Remember not to make promises you can’t keep and
claims that can’t be verified. Prioritize honesty and transparency since they will help you
build a healthy product positioning strategy.
 Offer a unique value proposition. Communicate the value your product can bring to your
target audience. You need to be aware of the fact that consumers won’t choose a
product if they can’t benefit from it. Explore your product, find its benefits, and search
for the most appropriate communication channels to convey them to your leads and
customers effectively.
 Steps to Position Your Product
 Consider audience segmentation. If you want to obtain the best results, you need to segment your audience since
your product can’t satisfy all your customers’ needs. You can divide them into groups based on their interests, traits,
and needs to create customized messages. As a result, you’ll be able to appeal to their individual wants and needs
and provide them with your product as a solution.
 Craft your messaging. Once you segment your customers, it’s necessary to select the right communication channels
for each group. Some of them might prefer social media platforms, but others might use traditional channels like TV
and radio. Give some thought to writing a positioning statement (a description of a product, its target audience, and
how this product can solve a problem that arises). It will help you prepare personalized and effective messages that
speak to the needs and preferences of each group.
 Do a competitive analysis. Once your message is ready, you need to evaluate your competitors’ businesses and the
products or services they offer. Competitor research gives you a clear understanding of your rivals, their offers, and
what makes your product different in a positive way. Afterward, you’ll be aware of the distinctive features and benefits
your product has, your core values, innovations, and various improvements your company provides consumers with.
 Demonstrate your expertise. Explain to your customers why they should choose you over your competitors. You
should also prove that your product is better and that it has several benefits useful for consumers. There are several
ways to show the quality of your product or its benefits: testing, trials, demonstrations, etc.
 Focus on your competitive advantage. These are the factors that enable your company to manufacture better or
cheaper products and outperform your competitors. You need to speak about the actual benefit your product
provides. Customers should truly need this product and obtain its visible value. It also includes staying up-to-date and
adapting to new trends and innovations.
 Maintain your brand’s position. Once you reach this step, you need to maintain your brand’s position so that
customers continue buying your products. If you aim to operate this successfully, you should never compromise on
quality and increase or reduce prices drastically since it can make customers suspicious.
Budgeting
What is Budgeting?
Budgeting is the tactical
implementation of a business plan. To
achieve the goals in a business’s
strategic plan, we need a detailed
descriptive roadmap of the business
plan that sets measures and indicators
of performance. We can then make
changes along the way to ensure that
we arrive at the desired goals.
Translating Strategy into
Targets and Budgets
There are four dimensions to consider when translating high-level
strategy, such as mission, vision, and goals, into budgets.
Goals of the Budgeting Process
1. Aids in the planning of actual operations
The process gets managers to consider how conditions may change and what steps they need to take, while also
allowing managers to understand how to address problems when they arise.
2. Coordinates the activities of the organization
Budgeting encourages managers to build relationships with the other parts of the operation and understand how
the various departments and teams interact with each other and how they all support the overall organization.
3. Communicating plans to various managers
Communicating plans to managers is an important social aspect of the process, which ensures that everyone
gets a clear understanding of how they support the organization. It encourages communication of individual
goals, plans, and initiatives, which all roll up together to support the growth of the business. It also ensures
appropriate individuals are made accountable for implementing the budget.
4. Motivates managers to strive to achieve the budget goals
Budgeting gets managers to focus on participation in the budget process. It provides a challenge or target for
individuals and managers by linking their compensation and performance relative to the budget.
5. Control activities : Managers can compare actual spending with the budget to control financial activities.
6. Evaluate the performance of managers
Budgeting provides a means of informing managers of how well they are performing in meeting targets they have
set.
Types of Budgets
Types of Budgets
A robust budget framework is built around a master budget consisting of operating budgets,
capital expenditure budgets, and cash budgets. The combined budgets generate a
budgeted income statement, balance sheet, and cash flow statement.
1. Operating budget
Revenues and associated expenses in day-to-day operations are budgeted in detail and are
divided into major categories such as revenues, salaries, benefits, and non-salary expenses.
2. Capital budget
Capital budgets are typically requests for purchases of large assets such as property,
equipment, or IT systems that create major demands on an organization’s cash flow. The
purposes of capital budgets are to allocate funds, control risks in decision-making, and set
priorities.
3. Cash budget
Cash budgets tie the other two budgets together and take into account the timing of
payments and the timing of receipt of cash from revenues. Cash budgets help management
track and manage the company’s cash flow effectively by assessing whether additional
capital is required, whether the company needs to raise money, or if there is excess capital.
Sales Planning
The 7-step sales process
 Prospecting
 Preparation
 Approach
 Presentation
 Handling objections
 Closing
 Follow-up
Sales Planning
1. Prospecting
The first step in the sales process is prospecting. In this stage, you find potential customers and determine
whether they have a need for your product or service—and whether they can afford what you offer.
Evaluating whether the customers need your product or service and can afford it is known as qualifying.
Keep in mind that, in modern sales, it's not enough to find one prospect at a company: There are an average
of 6.8 customer stakeholders involved in a typical purchase, so you'll want to practice multi-threading, or
connecting with multiple decision-makers on the purchasing side. Account maps are an effective way of
identifying these buyers.
2. Preparation
The next step is preparing for initial contact with a potential customer, researching the market and collecting
all relevant information regarding your product or service. Develop your sales presentation and tailor it to your
potential client’s particular needs. Preparation is key to setting you up for success. The better you understand
your prospect and their needs, the better you can address their objections and set yourself apart from the
competition.
3. Approach
Next, make first contact with your client. This is called the approach. Sometimes this is a face-to-face
meeting, sometimes it’s over the phone. There are three common approach methods.
Premium approach: Presenting your potential client with a gift at the beginning of your interaction
Question approach: Asking a question to get the prospect interested
Product approach: Giving the prospect a sample or a free trial to review and evaluate your service
4. Presentation
In the presentation phase, you actively demonstrate how your product
or service meets the needs of your potential customer. The word
presentation implies using PowerPoint and giving a salesy spiel, but it
doesn’t always have to be that way—you should actively listen to your
customer’s needs and then act and respond accordingly.
5. Handling objections
Perhaps the most underrated step of the sales process is
handling objections. This is where you listen to your prospect’s
concerns and address them. It’s also where many unsuccessful
salespeople drop out of the process—44% of salespeople abandoning
pursuit after one rejection, 22% after two rejections, 14% after three,
and 12% after four, even though 80% of sales require at least five
follow-ups to convert. Successfully handling objections and alleviating
concerns separates good salespeople from bad and great from good.
6. Closing
In the closing stage, you get the decision from the client to move forward.
Depending on your business, you might try one of these three closing techniques.
Alternative choice close: Assuming the sale and offering the prospect a
choice, where both options close the sale—for example, “Will you be paying the
whole fee up front or in installments?” or “Will that be cash or charge?”
Extra inducement close: Offering something extra to get the prospect to close,
such as a free month of service or a discount
Standing room only close: Creating urgency by expressing that time is of the
essence—for example, “The price will be going up after this month” or “We only
have six spots left”
7. Follow-up
Once you have closed the sale, your job is not done. The follow-up stage keeps
you in contact with customers you have closed, not only for potential repeat
business but for referrals as well. And since retaining current customers is six to
seven times less costly than acquiring new ones, maintaining relationships is key.
What is a sales strategy?
A sales strategy is a set of decisions, actions, and goals that inform how your sales team
positions the organization and its products to close new customers. It acts as a guide for sales
reps to follow, with clear goals for sales processes, product positioning, and competitive analysis.
Most strategies involve a detailed plan of best practices and processes set by management.
Why is a sales strategy important?
A clear sales strategy serves as a map for the growth of your business. Your sales strategy is key
to future planning, problem-solving, goal-setting, and management.
An effective sales strategy can help you:
Give your team direction and focus. Strategic clarity can help your sales reps and managers
understand which goals and activities to prioritize. This can lead to improved productivity and
outcomes.
Ensure consistent messaging. Your sales strategy can help your team deliver a consistent
message to prospects, partners, and customers. This can increase both trust and effectiveness.
Optimize opportunities. Strong sales strategies will help you target the right prospects and
customize your approach. This can help your team make the most of every sales opportunity.
Improve resource allocation. Your sales strategy outlines priorities and resources. In turn, this can
help your sales team use their time, effort, and resources efficiently. This efficiency can boost
your team's ability to focus on high-potential deals.
Sales Strategies
 Increase online sales through social media.
 Become a thought leader.
 Prioritize inbound sales calls as hot leads.
 Properly research and qualify prospects.
 Implement a free trial.
 Don't shy away from cold calling.
 Offer a demonstration of the product.
 Provide a personalized, clear end result.
 Be willing to adapt your offering.
 Close deals with confidence.
 Nurture existing accounts for future selling opportunities.
Unique Selling Proposition
 A USP represents what your business stands for. It is a quality that sets
your business apart from the competition. Choosing a highly specific
unique selling proposition is key to creating a focused marketing strategy
that carries a cohesive message across copywriting, branding, campaigns
and other marketing tools.
 When you have a clear USP, your target customer will be able to answer
one important question about your business: What makes it different from
the competition? There are four USP pegs on which you can focus your
marketing strategy. Known as the four Ps of marketing.
They include
 Product characteristics
 Price structure
 Placement strategy (location and distribution)
 Promotional strategy
How to Use USP Analysis
1. Understand the Characteristics That Customers Value
First, brainstorm what customers value about your product or services, and about those of your
competitors. Move beyond the basics that are common to all suppliers in the industry, and look at the
criteria that customers use to decide which product or service to buy.
As with all brainstorming, by involving knowledgeable people in the process, you'll improve the range
of characteristics you'll identify. So talk to salespeople, customer service teams and, most
importantly, to customers themselves.
2. Rank Yourself and Your Competitors by These Criteria
Now, identify your top competitors. Being as objective as you can, score yourself and each of your
competitors out of 10 for each characteristic. Where possible, base your scores on objective data.
Where this isn't possible, do your best to see things from a customer's perspective and then make
your best guess.
3. Identify Where You Rank Well
Plot these points on a graph. This helps you spot different competitors' strengths and weaknesses.
And, from this, develop a simple, easily communicated statement of your USP.
Tip : When you identify your USP, make sure that it's something that really matters to potential
customers. There's no point in being the best in the industry for something that they don't care about.
4. Preserve Your USP (and use it!)
The final step is to make sure that you can defend your USP. You can be sure that as soon as you start
to promote a USP, your competitors will do what they can to neutralize it. For example, if you've got
the best website, they'll bring in a better web designer. Or if you've got a great new feature in your
 What makes a strong USP?
Creating a strong USP is key to inviting the right audience to your product or service. Follow the below
points to come up with a unique selling proposition:
1. Start thinking like your ideal customer
Identifying your target audience will make it easier for you to understand what your customer needs. To
do this, answer the following questions:
2. Explain to your ideal customers how you can solve their problems
Your ideal buyer wants you to solve their problems. This goes beyond simple needs as the problem is
usually far more complex. For example, designer brands aren't simply selling clothes. They are selling
their ideal buyers a luxury lifestyle with their high-range fashion pieces. An airline is not simply selling
flights, but it is selling luxury and comfort in the sky.
When you have a firm grasp of who your ideal customer is, then you can start coming up with the best
unique selling proposition to solve their complex problem.
3. Become a must-have in the eyes of your customers
Tell your ideal buyers exactly what you plan on giving them. For example, years ago, FedEx's slogan
was, “when it absolutely, positively has to be there overnight." This slogan distinguished the company
from the many others out there. It told customers exactly what they could expect from FedEx. That's
when customers knew that they needed FedEx to solve their shipping problems.
Best practices of USP
The three-step process for a strong unique selling proposition is an important process for
your marketing strategy. When working on this process, it is important to keep the
following best practices in mind to come up with an effective unique selling proposition.
These are
1. Focus on value
When you are coming up with a unique selling proposition, avoid simply going for
something unique. Instead, focus on what your ideal buyer values. It could be an eco-
friendly quality, friendly service, cozy luxury or more.
2. Embody your slogan
Your slogan should be represented in every aspect of your business, not simply in what
you are selling. For example, if your buyer is choosing your product because it is made
from recyclable bottles, then your manufacturing space should also represent this slogan
by implementing a recycling-friendly environment.
3. Do your research
When coming up with your unique selling proposition, it is good practice to do extensive
research to see what your competitors are doing. Be aware of the unique selling
propositions of your competitors and what the trends are.
4. Focus on prospect research
Besides market research, it is also helpful to focus on prospect research to see what
people have already said about products similar to yours. Look for complaints. These
Best practices of USP
Look for complaints in every area of your competitors' business — from the product to delivery and returns. For
example, people buying eco-friendly beauty products could complain that the range of colors isn't as varied
compared to those that are not eco-friendly. With this in mind, you can address their complaint and have that be
your unique selling proposition.
5. Work on your SEO
Your ideal buyer will use specific keywords to find the product or service that will solve their problem. For example,
“organic luxury fashion." Keyword research is important for other aspects of your online business — mainly so that
you can rank higher on the search engine results page (SERP) and be found by your target audience. However,
knowing what your keywords are can also help you come up with the best slogan to address your unique selling
proposition.
6. Use your customer's language
If you know your ideal buyer, then you should know how your ideal buyer communicates. When you are coming up
with your content, you should use the same language as your ideal customer. So, if your buyers are experts, speak
the language. If your buyers are young, communicate in a way that resonates with them. Always be careful when
educating your buyers. You should be helpful but never condescending.
7. Keep away from cliches
Avoid using cliches when coming up with your unique selling proposition. A cliche means a phrase has been
overused and it is unlikely to appeal to your buyers. For example, when selling the features of your hotel, avoid
the “relax by the pool” cliche. It's obvious and it has been done. Instead, talk about the state-of-the-art spa or the
award-winning hotel restaurant.
8. Use the active voice
The active voice is shorter, clearer and stronger than the passive voice, so use it when you are writing your
content. A famous and strong slogan with an active voice is Nike's “Just do it.”
A startup can build a strong digital
presence and its importance.
 Building a strong digital presence is crucial for the success and visibility of a startup in the
modern business landscape. Here's an explanation of how a startup can achieve this and the
importance of a robust digital presence:
 How to Build a Strong Digital Presence:

 Website Development:

 Responsive Design: Ensure the website is mobile-friendly for a seamless user experience.
 Clear Branding: Reflect the startup's brand identity through design, color schemes, and logo.

 Search Engine Optimization (SEO):

 Keyword Optimization: Research and incorporate relevant keywords to improve search engine
rankings.
 Quality Content: Create valuable, engaging, and relevant content to attract and retain visitors.
A startup can build a strong digital
presence and its importance.
 Social Media Engagement:
 Platform Selection: Choose platforms relevant to the target audience.
 Consistent Branding: Maintain a consistent brand image across all social media channels.
 Active Presence: Regularly post content, engage with followers, and participate in relevant conversations.

 Content Marketing:
 Blogging: Share informative blog posts to establish authority in the industry.
 Visual Content: Utilize images, infographics, and videos for diverse and engaging content.

 Email Marketing:
 Building a Subscriber List: Encourage website visitors to subscribe for newsletters.
 Personalized Campaigns: Send targeted and personalized email campaigns.

 Online Advertising:
 Google Ads: Utilize paid advertising on search engines.
 Social Media Ads: Run targeted ads on platforms like Facebook, Instagram, and LinkedIn.
A startup can build a strong digital
presence and its importance.
 Influencer Marketing:
 Collaborate with Influencers: Partner with influencers relevant to the industry to reach a wider audience.

 Customer Reviews and Testimonials:

 Encourage Reviews: Request satisfied customers to leave positive reviews.
 Display Testimonials: Showcase positive testimonials on the website and social media.
 Importance of a Strong Digital Presence:

 Global Reach:
 Access to a Wider Audience: A digital presence enables startups to reach a global audience, breaking
geographical barriers.

 Credibility and Trust:

 Establishing Credibility: A well-maintained digital presence builds trust among potential customers and partners.
 Social Proof: Positive reviews and testimonials contribute to a positive brand image.
 A startup can build a strong digital
presence and its importance.
 Customer Engagement:
 Interactive Platforms: Digital channels provide opportunities for direct interaction with customers.
 Real-time Engagement: Responding promptly to queries and comments demonstrates commitment to customer satisfaction.

 Brand Visibility:
 Increased Brand Awareness: Digital marketing efforts enhance brand visibility, ensuring the startup is top-of-mind for consumers.

 Data Analytics and Insights:

 Data-Driven Decision Making: Access to analytics helps in understanding customer behavior, preferences, and optimizing marketing strategies.

 Cost-Effective Marketing:
 Budget-Friendly Options: Digital marketing often provides cost-effective alternatives compared to traditional advertising.

 Adaptability and Innovation:

 Staying Current: A strong digital presence allows startups to adapt to changing trends and technologies.
 Innovation Opportunities: Digital platforms provide space for creative and innovative marketing campaigns.
 In summary, a strong digital presence is integral to the success of a startup in today's competitive environment. It enhances brand visibility, builds
credibility, and provides avenues for customer engagement and feedback. By leveraging digital channels effectively, startups can establish
themselves as key players in their respective industries.
 The process of the sales pitch to the
startup customer.
 The sales pitch to a startup customer is a critical process that involves presenting your product or service in a
compelling way to generate interest and secure a sale. Here's a step-by-step guide on the process of delivering an
effective sales pitch to a startup customer:
 1. Research and Preparation:
 Understand the Customer: Research the startup customer's industry, challenges, and needs.
 Know Your Product: Be well-versed in the features, benefits, and unique selling points of your product or service.
 2. Introduction:
 Build Rapport: Start with a friendly greeting to establish a connection.
 Brief Introduction: Introduce yourself, your company, and the purpose of the meeting.
 3. Identify Customer Needs:
 Ask Questions: Understand the startup's pain points, goals, and specific needs.
 Listen Actively: Pay attention to the customer's responses and concerns.
 4. Tailor the Pitch:
 Customize Messaging: Align your product's benefits with the identified needs of the startup.
 Highlight Solutions: Emphasize how your product addresses their challenges and adds value.
 5. Present Key Features:
 Focus on Benefits: Clearly articulate how each feature translates into a benefit for the customer.
 Use Examples: Provide real-world scenarios or case studies to illustrate the product's effectiveness.
 The process of the sales pitch to
the startup customer.
 6. Handle Objections:
 Anticipate Concerns: Be prepared for common objections and challenges.
 Provide Solutions: Address objections with solutions and demonstrate the value your product brings.
 7. Demonstration (if applicable):
 Live Demo: If feasible, offer a live demonstration of your product in action.
 Visual Aids: Use visuals, such as slides or multimedia, to enhance understanding.
 8. Value Proposition:
 Reiterate Value: Clearly state the unique value proposition your product offers.
 Quantify Benefits: If possible, quantify the benefits in terms of cost savings, efficiency gains, or
revenue growth.
 9. Call to Action:
 Propose Next Steps: Clearly outline the next steps, whether it's a trial, further discussion, or a
purchase.
 Create Urgency: Encourage a timely decision by emphasizing limited-time offers or benefits.
 The process of the sales pitch to the
startup customer.
 10. Closing:
 Ask for the Sale: Request a commitment or agreement from the startup customer.
 Handle Final Questions: Address any remaining questions or concerns.
 11. Follow-up:
 Send Materials: Provide additional materials, such as brochures or documentation.
 Schedule Follow-up: Set a date for a follow-up discussion or meeting.
 12. Thank You and Gratitude:
 Express Appreciation: Thank the startup customer for their time and consideration.
 Reiterate Value: Highlight your enthusiasm for the potential partnership.
 Tips for an Effective Sales Pitch:
 Be Concise: Keep the pitch focused and avoid unnecessary details.
 Adapt to Feedback: Be flexible and adapt your pitch based on the customer's reactions.
 Build Trust: Establish credibility and trust throughout the pitch.
 Practice: Rehearse the pitch to ensure a smooth and confident delivery.
 Stay Positive: Maintain a positive and enthusiastic demeanor throughout the presentation.
 Remember that every startup customer is unique, so tailoring your pitch to their specific needs and concerns is key to
success.