Glossary Term
Product Positioning
Definition
Product positioning refers to the process of defining how a product is perceived by consumers in relation to competing products within the marketplace. It involves creating a clear, unique image or identity for the product in the minds of potential customers, emphasizing its benefits, features, and value proposition. Effective product positioning highlights why a product is the best solution for a specific target audience, differentiating it from competitors and aligning it with consumer needs and preferences. In the medical device industry, product positioning plays a key role in how devices are marketed to healthcare professionals, institutions, and patients, especially in competitive or regulated environments.
Relevance to the MedTech Industry
Product positioning communicates the unique value of a product to the target market, ensuring that it stands out among competitors and resonates with potential customers. It helps guide marketing strategies, sales approaches, and customer communications to maximize product appeal and sales performance. In the medical device industry, positioning influences how a product is adopted by healthcare professionals and how it is perceived in terms of clinical benefits, cost-effectiveness, and patient outcomes.
Additional Information & Related Terms
The Levers That Affect Product Positioning
Target Market:
Defining the specific segment of the market that the product will serve is critical to positioning. This includes understanding the needs, preferences, and pain points of the target audience (e.g., healthcare providers, patients, or hospitals).
Example: A medical device designed for senior patients with arthritis may be positioned as an easy-to-use, pain-relieving tool that improves quality of life.
Value Proposition:
The value proposition is the central message that explains the unique benefits the product offers to the target market. It should clearly address the problem the product solves or the improvement it delivers.
Example: A new diagnostic tool may be positioned as providing faster, more accurate results, enabling earlier disease detection and better patient outcomes.
Competitive Advantage:
The product's positioning should highlight its competitive advantages—what makes it different from or superior to existing alternatives in the market. This could include features such as innovation, cost-effectiveness, ease of use, or superior performance.
Example: A medical imaging device may be positioned as having higher resolution images at a lower cost compared to competitors, offering significant savings for hospitals while maintaining clinical accuracy.
Brand Identity and Messaging:
Product positioning influences the tone and messaging of branding. This includes the product's name, logo, packaging, and promotional materials, all of which should reflect its unique position in the market.
Example: A high-tech surgical robot may be positioned with a sleek, modern brand image that emphasizes precision, innovation, and cutting-edge technology.
Perceived Value:
Positioning defines how the product is valued in the eyes of the customer, including its perceived quality, effectiveness, and pricing. This perception plays a crucial role in the product’s success in the market.
Example: A wound care product may be positioned as a premium, clinically proven solution for faster healing, justifying a higher price point compared to generic options.
Related Terms
Target Market: The specific group of potential customers that a product is designed to serve, influencing product positioning.
Value Proposition: The unique benefits and value that a product offers to its customers, central to the positioning process.
Competitive Advantage: The distinct features, pricing, or performance characteristics that make a product more attractive compared to competitors.
Brand Identity: The image, values, and perception a company builds around its product, often driven by its positioning strategy.
Product Differentiation: The process of distinguishing a product from its competitors in the market through features, branding, or quality.