Steps To Creating An Effective Market Positioning

Marketing positioning is the process of creating a marketing mix that positions the product in a distinct place among the targeted groups in order to attract potential purchasers. In the eyes of target consumers, marketing positioning is arranging for a product to occupy a clear, distinct, and desired place in relation to rival items, which is accomplished through formulating competitive positioning for a product and a detailed marketing mix.

What Is Market Positioning?

The consumer's impression of a brand or product in relation to competing brands or products is referred to as market position in marketing and business strategy. Market positioning is the process of building a brand's or product's image or identity so that people perceive it in a specific way.

A car manufacturer, for example, may market itself as a luxury status symbol. A battery manufacturer, on the other hand, may position its batteries as the most dependable and long-lasting. A fast-food restaurant business, for example, could represent itself as a source of low-cost, standardised meals. A coffee company could market itself as a source of high-end coffee drinks. The retailer might then advertise itself as a low-cost source of home supplies. A computer corporation could advertise itself as providing cutting-edge, inventive, and user-friendly technology.

Positioning is a strategic process that entails promoting the brand or product in a specific way in order to generate and establish an image or identity in the minds of the target market's consumers. A brand's or products' market placement must be maintained throughout its life cycle. This necessitates continuing marketing efforts aimed at reinforcing the target market's perceptions of the product or brand.

Types Of Positioning Strategies

Researchers discovered that in marketing, hard criteria (such as product or service quality) and relationship-building elements are primarily used to determine a company's market positioning (e.g., personal contact). Other factors to examine are company structures (i.e geographic coverage), degree of integration, and breadth of offerings (i.e., distribution chain location). According to a study, brand familiarity is a contributing factor in perceptions of the desired positioning in marketing tactics.


Pricing is a critical component that influences most customers' selections. In many product categories, the companies that offer the lowest-priced products with a fair level of quality frequently prevail.

Consider the comparison between Gillette and Dollar Shave Club. Razors and refill blades have altered due to lower-cost competitors to some high-quality brands like Gillette. According to the Washington Post, Gillette's market share is shrinking as a result of Dollar Shave Club's low rates. Dollar Shave Club's cheapest refill razor cartridge was 20 cents, compared to $2 to $6 for Gillette.


Most pricing battles can be avoided by focusing on quality. Quality can define who the competitors are in some areas, such as luxury cosmetics or automobiles. Take, for example, Chipotle vs. Taco Bell. Chipotle, ranked 14th in QSR Magazine's top 50 fast-food restaurants in America, has gained significant market share over the years by focusing on quality rather than price.


Differentiation is what distinguishes your product or service from the competition. Rivals may not offer as much of a threat if your product or service is very distinct. Take, for instance, Toyota vs. Tesla. Tesla entered the electric vehicle market with a high-end sports car, quickly edging out economic automobiles such as the Toyota Prius. The Model S was designed with the high-end market in mind.


Customers' lives are made easier through convenience. Convenience could include things like free returns and E-commerce, among other things, from location to usability. Consider the case of Simple vs. Bank of America. Traditional banks have been reluctant to develop smartphone apps, but online-only banks such as Simple have made investments in this area to appeal to younger, more tech-savvy customers. The company even has built-in budgeting and savings tools and doesn't charge any fees.

Customer Service

The goal of customer service is to provide useful and courteous interactions. This is particularly important in some businesses, such as restaurants and banking. Consider the case of Allstate vs. State Farm. In this market, where client contact is essential, both insurance firms acknowledge the value of customer service. To focus on this position, they deploy customer service-based messages in their marketing.

User Group

This sort of positioning focuses on a specific user group and explains why the company's products and services are directly applicable and relevant to them. Consider the case of Johnson's vs. Axe. While Johnson's baby shampoo is marketed toward children, Axe body spray is marketed to men.

Steps To Creating An Effective Positioning Strategy

Identifying your target market is one of the most crucial first stages for any new business. After that, you must design a strategy to position your brand and solidify its identity, distinguishing itself from competitors and industry noise, and influence how your target audience views you. It's critical to send the proper signals about your product or service if you want your company to be perceived in a certain light.

Finding Your Current Position

Are you currently selling your own product or service as if it were just another item on the market, or as something unique? Your existing market position provides crucial information on where you should go next. To examine your competition more thoroughly, you must first comprehend your existing position.

Consider the following questions to determine your current market position:

  • What is the meaning of your brand?
  • Who are the people you want to reach out to?
  • What are your goals and objectives?
  • What makes you different from the competition?
  • What are the problems that your brand can solve for your customers?

Remember that we all enjoy engaging with brands that sound and feel genuine. Instead of creating a complicated dialect that no one understands, simply speak in plain English. Begin by learning about your current and desired audience and speaking in their language.

Analyze Your Competitors

After you've figured out who you are, you'll need to look at your competition using competitor analysis. Why? Because you need to conduct research on your competition to know who you're up against. It will assist you in determining what you can improve in order to obtain an advantage.

There are a variety of ways to figure out who your competitors are, including:

  • Market research should be done. Find out which companies are mentioned by conducting a quick search using relevant keywords. Alternatively, you might inquire with your sales team about potential competitors during the sales process.
  • Take advantage of client feedback. Inquire of your customers which firms or items they think about before deciding on yours.
  • Use social media to your advantage. Users can ask inquiries about products and services on a variety of free sites. Explore competition in your niche by searching these communities and forums.

Once you have discovered who your competitors are, it's time to undertake in-depth competitor research. The end goal is to figure out how your competitors are positioning their brands. As a result, your study should cover the following:

  • Your competitors' products or services
  • Their advantages and disadvantages
  • Which os their marketing methods they are employing is successful
  • In the current market, do they have a strong position

Developing Your Own Distinct Position

It's all about figuring out what makes you different and what works best for your company when it comes to creating a unique position. After completing competition research, you'll most likely notice something. You may notice that some businesses have similar strengths and weaknesses. When you compare your product or service to theirs, you may discover that one of their flaws is also one of yours.

This is precisely what distinguishes your stance, and it serves as an excellent beginning point for placing your brand in the marketplace. When comparing and diving deep to determine what you do better than anyone else, remember to take note of your distinct offerings.

Make A Statement About Your Positioning

A positioning statement is crucial since it expresses your brand's distinctiveness to your customers in comparison to your primary competitors in one or two sentences. Before you write your positioning statement, some experts propose that you answer the following questions:

  • Who do you want to reach out to
  • What is the category of your product or service
  • What is the most significant advantage of your product or service
  • What evidence do you have that this benefit exists

Take Amazon, for example: "Our mission is to be the world's most customer-centric company; to provide a location where people can come to find and discover everything they would want to buy online."

Here is a template as a starting point to writing your positioning statement.

Make Up A Tagline

After you've come up with a powerful positioning statement, you may come up with a tagline, also known as a slogan, to use for possible consumer communications. It's a shortened version of what you want your customers to know, rather than the positioning statement. Here are some examples of well-known taglines.

  • L'Oreal: "Because you're worth it"
  • Nike: "Just Do It"
  • McDonald's: "I'm Lovin It"
  • Apple: "Think Different"
  • Coca-Cola: "Open Happiness"

You may then use it in other marketing initiatives to communicate your company's message far more successfully than a longer and more thorough positioning statement.

Conduct A Marketing Positioning Test

When it comes to your positioning statement, nothing should be left to chance. You should spend time testing, experimenting, and getting feedback from your customers to see if your positioning meets its aim after it has been produced.

From surveys and polls to focus groups and in-depth interviews, testing should include a mix of quantitative and qualitative research. You may finally clarify your marketing positioning and adapt your marketing activities based on the results of these testing!

Examples Of Positioning in Marketing

Market positioning is a strategic exercise that we employ to develop a brand's or product's image in the minds of consumers. The four Ps are used to achieve this, promotion, price, location, and product. The more specifically you define the 4Ps in your positioning strategy, the more effective it will be. Here are some examples of company's positioning.


Tesla avoids using the word "price" in its branding and instead emphasises the quality of its vehicles. As a result, Tesla is a high-end brand with a higher price tag than its competitors. Tesla autos are also long-range, environmentally friendly, and electric. Because of its exceptional quality, Tesla stands out from other gas-powered luxury and standard electric automobiles. The company created a specialised market for itself, as well as a humorous brand to go along with it. CEO Elon Musk has even built himself up as a Tony Stark-like character, and the company promotes its uniqueness through ads and quirky features, such as “Ludicrous Mode.”


Since the 1960s, coffee consumption in the United States has been declining. As a result, Starbucks chose their target market with extraordinary caution. Starbucks targeted office professionals with middle to high incomes who wanted to buy high-end items.

The company aspires to become the "Third Place," a space in between home and work where clients may gather, rest and socialize. As a result, they were extremely conscientious about quality control in order to satisfy the high standards.

They frequently promote their identity in most of their advertising efforts by displaying the following value proposition statements:

  • The Best Coffee
  • The Finest Milk Used
  • Rich & Smooth Flavours
  • Natural & Clean
  • 100% Recycled Paper Use


Nike began by emphasising performance and innovation in its products. The business developed the waffle shoe and marketed it to serious athletes. Their product line has expanded to include athletic apparel that encourages performance in addition to shoes.

From their catchphrase "Just Do It" to their namesake, the Greek Goddess of Victory, the corporation has positioned itself as the industry leader in sports equipment, offering excellent quality and cutting-edge technology.


Apple is a textbook example of a well-executed commercial positioning approach. The company creates stunningly designed and inventive technology that is unlike anything else you've seen before and markets it to appeal to a wide range of customers.

Apple's branding language emphasises the same traits in their customers as they do in their products: being an Apple person also means being imaginative, innovative, and creative.

Instead of focusing on price, Apple, like Tesla, focuses on the value their goods provide and building relationships with their customers.

Differences Between Positioning And Branding

The main distinction between branding and positioning is that branding is the process of creating a distinct image of a company's product, primarily through brand logos, taglines, and advertising strategies, whereas positioning is the process of gaining a place in the customer's mind among competing brands. Due to a large number of replacements on the market, both branding and positioning are critical. The company's ability to position itself and brand its products has a direct impact on its profitability and long-term survival.

Branding Positioning
Is the practice of using brand logos, taglines, and advertising methods to create a distinct image of a company's product in the minds of customers.The process of gaining a place in the customer's mind among competing brands
A stand-alone idea that is influenced by competition in a tangential way.Positioning is done in comparison to the competition.
Intangible asset value is directly increased by branding techniques.By boosting the brand, positioning tactics indirectly increase the intangible asset value.

While branding is concerned with differentiating a company's brand through particular components such as a unique logo, tagline, and advertising strategy, positioning is concerned with establishing the brand in the minds of customers. The success of both methods is primarily dependent on the marketing team's inventiveness and ability to identify and exploit market possibilities that will help the company's brand stand out amid many competitors.

To Conclude

Market positioning is a difficult task that needs time, commitment, and even the courage to say "no" to some things. However, it's crucial, especially if you're having trouble generating consistent revenue streams, attracting new consumers, and keeping existing ones. It's a means to bring in new business, talent, and influencers, and it's something you absolutely have to put in time for.


What Is Market Positioning

Type Of Positioning Strategies

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Written by Pinky

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