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Product positioning: the key to becoming successful in the market?

Updated: Nov 13, 2023

Blog by Aistė

Author: Aistė Kulikauskaitė

Date of Publication: 13/07/2022

There are many questions when entering the market with a new product. Some of them are: What strategy should my business choose? How can I advertise my product? Which marketing channel is the most effective?. But the first and necessary step is to decide about the positioning. It will help to find the direction of developing your new product/service or brand.

Product positioning is an effective marketing tool for a business

What is Product positioning?

David Ogilvy, often called the master of advertising, explained positioning as ‘‘what the product does and who it is for “. So, product positioning is the process of defining and communicating the thoughts and emotions you want your market to have about the product. Correct positioning introduces the advantages of a product to a specific target group.

Brands use positioning to emphasize the features of their product. For example, creating an image that the product is either luxury or cheap, innovative, or traditional, high quality or convenient, and others.

Importance of positioning

Positioning is about focusing and discovering the unique key feature that helps a product stand out from its competitors. This creates its place (position) in the consumer’s mind. Every brand has the power to design and control its product positioning. So, it is important for these reasons:

  • It enables us to explain the brand's pricing strategy. For example, your brand positioning highlights the quality and uniqueness of the product. Thus, it drives up the price and the cost naturally becomes acceptable in the eyes of the client.

  • It affects the creativity of your brand. Some brands sell products to the same customer base with very similar offerings. However, they each stand out and are distinctive due to their brand positioning. Actually, customers usually remember the more creative and innovative brands.

  • It helps to differentiate the brand. Knowing what makes the brand exceptional is essential for gaining the attention of potential clients. Moreover, it explains to the target audience why your company is the best match for them.

Positioning strategies

Customers often feel overwhelmed with options. Making precise distinctions between options makes it easier for people to choose. Thus, positioning strategies help to create recognition for your brand. It is usual to find these strategies:

  1. First product strategy. It means being first in the market, and who offers the product. Usually, people perceive the first offer as a leader. At the same time, it is also important to maintain and improve the quality and reputation of the product.

  2. Multiple brands strategy. You can do so by providing options for every single price and feature requirement. This positioning strategy will enable you to dominate the market. However, you can consider adopting a multi-brand strategy in two cases:

  3. If the industry is simple to enter

  4. If consumers in this market enjoy experimenting with various products

  5. Demographic strategy. Differently from your competitors, position your products for various demographic groups. Differentiate groups according to their age, income, education level, gender, or other characteristics.

There are many different strategies and methods to position your product or service.

Positioning methods

Some commonly used methods to position your new product:

  1. Price or quality positioning. Place your product within a specific price range. It is important to decide if you want the product to be seen as low or high price.

  2. Comparison. Put your brand in a leadership position. Show why it is the best among others.

  3. Type or situation of use. Position your product with the phrases “product x will help when you have y pain”. For example - “Snickers – you’re not you when you’re hungry”.

  4. Packaging. Target for people who search for something that will look good as a present or for their home.

  5. User. Use this strategy for a specific product which is created for “true men” or “just for women”, etc.

  6. The benefit of the product. Emphasize what benefit the product will give your customer. For example “Product x will make your clothes white again”.

  7. Exceptional feature. Use this when the product is exceptional with its color, size, speed, longevity, etc.

In addition, people will choose the product that will give them the benefit they are looking for. So, it is important to present it with rational and emotional arguments. Marketing is a complex subject that consists of many details. Therefore, the positioning will determine all the actions of your marketing campaigns. Considering these following steps will make the process effortless.

Step 1Define and understand your target audience. Knowing your audience, their needs, and wants is the most relevant step of marketing positioning. Creating surveys, customer personas, and identifying their demographics helps to give them the desired product.

Step 2Identify why your product is the best for your target audience. As mentioned before, product advantages are the top priority for people. So, you need to identify the key benefits of your product and communicate them to the target audience.

Step 3Develop brand credibility. Prioritize being clear and honest with your customers. Show that your brand is reliable and unique. It will help you to build a loyal customer base that keeps coming back.

Step 4Analyze your competitors. Be aware of the existing market. Define why your brand is better and what makes you different.

Step 5Decide on your messaging. Finally, the last step is to analyze the best channels to communicate your message. Maybe the best way is to use social media or traditional media, like TV? These steps will help you decide where to start your marketing campaign.

Overall, marketing positioning is a tactic used to emphasize the benefits of a product to a specific target group. Positioning is essential because it strengthens the uniqueness of a brand. It also helps to know the state of the market. Moreover, it is the basis of creating marketing strategies. However, the key to good positioning is to consider your positioning strategy, So you should ask yourself which method you could use. Then, you can take the suggested steps to analyze your options more.


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