Creating a powerful positioning strategy: the what, why, and how

“The basic approach of positioning is not to create something new and different, but to manipulate what's already up there in the mind, to retie the connections that already exist.” — Al Reis & Jack Trout, authors of Positioning: The Battle for Your Mind

What is a positioning strategy?

A positioning strategy is all about the actions aimed at improving the image and visibility of your brand, company, or product. In other words, it helps you stand out from your competitors.

To create a powerful positioning strategy, you must first understand the competitive landscape.

Elements you should highlight when developing a positioning strategy include the values that resonate with your target audience, as well as benefits and attributes, such as your unique value proposition.

The goal is to create a clear, distinct, and desirable image in the minds of your customers, positioning your brand or product above competitive offerings.

The idea of positioning began to take shape in the late 1960s, when it was first articulated by marketer Jack Trout in his article titled “Positioning”, published in Industrial Marketing. Later, the concept was developed and popularized by Trout and Al Reis, who solidified positioning as a central strategy in marketing.

Why is positioning important?

Positioning shapes your customers’ perception, influences buying behavior, and drives brand loyalty.

In addition to this, it:

Offers a competitive advantage: A well-defined position helps you to stand out in your market, especially if many products and services are similar – making it easier for customers to choose your brand over others.
Creates brand consistency: Positioning ensures that all marketing and communication efforts are aligned, which leads to a consistent message across all your channels.
Boosts customer loyalty: By clearly articulating what your brand stands for, you can build stronger emotional connections with your audience. This, in turn, can lead to customer retention.
Allows you to cater to market segments: This means you can tailor your offerings to meet the unique needs and preferences of your target market.
Influences your pricing strategy: A value-based position might require competitive pricing while a premium position may allow you to set higher prices.
Sustains the long-term success of your brand: Over time, as markets evolve and new competitors emerge, having a well-established position allows you to adapt and maintain your competitive advantage.
Better allocates resources: When you fully understand your competitive position, you can more easily focus on areas you have a competitive advantage in and invest in marketing, innovation, etc., that reinforces that position in the market.

Types of positioning strategies (with examples)

Which positioning strategy suits you best?

Product positioning

“Understanding the competitive landscape is a critical step in effective product positioning. It involves conducting a comprehensive analysis of your competitors to gain insights into their strategies, strengths, weaknesses, and unique value propositions. By understanding the competitive landscape, you can identify opportunities to differentiate your product and position it in a way that highlights its distinct advantages.” – Vimal Cherangattu, Head of Product Marketing at Improvado

Product positioning is the way you present your product to your target market in relation to competing products. It involves creating a distinct image or identity for a product in the minds of consumers.

Things like defining your target audience, highlighting your product’s unique features (e.g., superior quality, cutting-edge tech, innovation, etc.) and doing a competitive analysis to see how your product compares to others are crucial.

Example: Red Bull positions itself as a premium energy drink synonymous with sports and adventure. It differentiates itself from other energy drinks by investing a lot in sponsorships and events related to extreme sports, creating a brand identity closely associated with high performance. Other companies tend to focus on functional benefits like “longer-lasting energy” instead.

Price positioning

This strategy is used by many companies to establish the price of their products in a way that reflects their perceived value in the minds of consumers.

Price positioning can range from premium pricing, where your product is positioned as a high-value, luxury option, to economy pricing, where your product is marketed as an affordable or budget-friendly option.

Example: Rolex is a well-known brand that uses price positioning effectively. The prices of their watches are set higher than many other watch brands, which reinforces the perception of exclusivity, craftsmanship, and prestige. By maintaining these high prices, Rolex continues to be seen as a symbol of luxury and status, appealing to affluent consumers.

Market positioning

This is the process of establishing a brand or product in the minds of consumers within a specific margaret segment. To achieve this market positioning, you want to define a clear, distinctive image for your product that differentiates it from competitors.

In short, it’s all about creating a perception of the product in the marketplace.

Example: Nike positioning itself as a brand that inspires and empowers athletes of all levels. The slogan “Just Do It” really showcases Nike’s focus on motivation and performance – as well as on overcoming challenges. The company tends to feature top athletes like Serena Williams and Michael Jordan, further linking it with high performance and excellence in the minds of customers.

Benefit positioning

Simply put, benefit positioning is the strategy of promoting a product by highlighting its benefits to your target audience.

For this, focus on the unique advantages you offer and the positive outcomes that customers will experience when they use your product (this could be solving a problem, improving their life, or fulfilling a need).

Your goal is to create a strong connection between your product and the customer’s pain points.

Example: Colgate positioned its products by highlighting benefits such as cavity protection, teeth whitening, and fresh breath. The products tend to be marketers to address a specific concern, making it easy for people to choose the product they really need.

Competitive positioning

Competitive positioning is all about finding out what makes your product distinctive and, therefore, more attractive to your target audience. This could be quality, features, and brand reputation. The goal is to establish a unique place in the market that resonates with your customers and sets you apart.

Example: Apple is a prime example of a company that uses this strategy effectively. All of its products, such as the iPhone, iPad, and the Mac, are perceived as premium, innovative, and user-friendly, as Apple emphasizes design and overall user experience. The brand also differentiates itself through its ecosystem, where all Apple devices work together seamlessly.

How to create a positioning strategy

“Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.” – Al Ries & Jack Trout

Analyze your market and competitors

Researching and understanding the market – a.k.a., analyzing every component of the market, from size and growth trends to customer needs and preference – should be part of your positioning strategy.

You must also identify and analyze your competitors. A SWOT analysis can give you a lot of vital information.

Of course, it’s also important to map out where your competitors are positioned in regards to price, features, etc.

Find your unique value proposition

Identify what makes your product unique compared to others out there, be it its quality and price, or its innovation. It could even be the customer service you provide.

Having a clear unique value proposition means you can easily communicate the specific benefits your customers will receive – and address their needs and pain points.

Segment your audience

Make sure to identify and segment the target market based on demographics, psychographics, behaviors, or needs.

This way, you can create messaging that resonates with each segment and highlight how your product meets those needs better than your competitors’.

Write a positioning statement

Create a clear and concise statement that encapsulates your brand or product's positioning in the market in order to build a great positioning statement.

This typically includes the target audience, the category in which your product is competing, the unique value proposition, and the primary reason customers should believe in that value.

If you’re looking for inspiration to write a powerful product positioning statement, Geoffrey Moore, author of Crossing the Chasm, offers a simple template you can use:

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“For (target customer) who (statement of the need or opportunity), the (product name) is a (product category) that (statement of key benefit – that is, compelling reason to buy). Unlike (primary competitive alternative), our product (statement of primary differentiation).”

Develop your brand personality and voice

Do you know your brand’s personality? Whether you’re innovative, trustworthy, or playful, defining this personality is essential to help you create an emotional connection with your customers.

The same goes for tone of voice. Make sure everyone in your org is aware of the tone and style of communication you’re using, since this should reflect the personality of the brand and be consistent across all channels.

Create brand associations

What do people associate your brand or product with? Identify and reinforce positing attributes and imagery, so that customers only have positive perceptions of your brand.

Make sure to balance emotional appeals (e.g., trust, status) with rational appeals (e.g., features, performance) to strengthen your brand's positioning.

Be consistent

It goes without saying – though we’ve already mentioned this a few times – that consistency is important, whether you’re posting articles on your site or using social media.

So, ensure your positioning is consistently communicated across all touchpoints, from advertising and packaging to customer service and digital platforms.

Your positioning should be consistent over time to build strong brand recognition and loyalty.

No product exists in a vacuum. The way you position yourself relative to your competitors is crucial, as we saw in this article.

But, if you’re unsure where to start, how to create a rock-solid strategy, and the three steps you really can’t skip, get your free copy of our Competitive Positioning Playbook – with all the answers you’re looking for.