PHASE 5: COMPETITIVE POSITIONING
Understand and influence buyer perception.
By understanding and influencing buyer perception you can increase the willingness-to-pay and capture more market value. There is no such thing as “reality” when it comes to pricing. Buyer perception is everything. What buyers perceive your performance is compared to the competition will dictate whether you can win, and at what price premium. Your ability to grow your revenues will depend on your ability to influence these perceptions.
1. You have identified which competitors are direct, indirect or a replacement of your solution.
2. You have identified buyer evaluation attributes and priority for each type of competitor (direct, indirect, replacement).
3. You have quantified your performance vs. competitors for each competitor and segment.
4. You have classified each attribute as compared to the closest competitor (Competitive Advantages, Competitive Disadvantages, Potential Disadvantages, and Overinvestments).
5. You have a plan for addressing each Competitive Advantage, Competitive Disadvantage, Potential Disadvantage, and Overinvestment.
6. You have quantified your positive or negative differentiation (i.e., you are 20% better/worse than competitor X).
7. You have quantified each decision criteria and perceived value each is expected to deliver.
8. You can quantify how much value you expect to deliver to a new customer.
9. You have quantified the benefit on perceived value for each marketing initiative.
10. You have prioritized all initiatives by greatest impact to the decision criteria buyers feel are most important.
• Identification of Competitors
• Price Positioning Statement
• List of Attributes for Purchase Decisions
• Competitive Differentiation Maps
• Identification of Competitive Advantages, Competitive Disadvantages, Overinvestment Areas, and Potential Disadvantages
• Positive Differentiation Value Scoring
• Product & Marketing Re-Positioning Actions