How to Create an Effective Positioning Strategy for Your Business

As a marketer or entrepreneur, you know that having a well-defined positioning strategy is critical to the success of your business. But what goes into creating an effective positioning strategy?

In this blog post, we’ll explore the key components of a successful positioning strategy and how you can create one for your business.

We’ll also provide some examples of companies that have executed their positioning strategies effectively. So whether you’re just getting started with positioning or looking to fine-tune your existing strategy, this post is for you!

What is product positioning?

Product positioning is the process of strategically defining how a product or service should be perceived in the minds of customers.

It involves creating an image for your brand that sets it apart from competitors and resonates with target audiences.

Product positioning helps businesses to differentiate themselves from their competition, build stronger relationships with customers, and increase sales. When done correctly, positioning can create a lasting impression on potential buyers and help them make better purchasing decisions.

By understanding customer needs and preferences, companies can create an effective position that communicates value to the right people at the right time.

With this approach, businesses are better equipped to stand out in crowded markets and reach their desired goals.

For example, Apple positions itself as the leader in technology innovation, offering the most advanced products and services. The company consistently communicates this value to its customers through marketing campaigns and product launches.

Competitive advantage and product position

Product positioning and competitive advantage are closely related but ultimately serve different purposes.

Product’s position is how customer prospects product.

Competitive advantage refers to the attributes or resources of a company that gives it an edge over the competition in the marketplace. This could be a product feature, pricing, location, or customer service.

Customers are typically well-informed about the products they purchase. However, consumers may easily group products in their minds based on simpler parameters, for example, cheap and low quality or expensive and high quality.

A product’s position is a mix of the customer’s feelings, impressions, and perceptions.

Take Tesla for example; in the minds of customers, it stands for innovative, luxurious electric cars. It would be a difficult endeavor for other auto manufacturers to replicate this exact position. People always remember the first one. Tesla revolutionized the automotive industry by being the first to introduce an electric car for mass market consumption. However, nearly no one remembers which company was second to introduce an electric car for the masses.

By combining competitive advanatge and product position, businesses can create an effective positioning strategy that communicates value to customers while also giving them a competitive advantage in their market.

Positioning strategies if your product is not a leader

  1. You can strengthen your second or third position. You will still have competitors behind you. You can use the phrase “try to be better or try harder” in your communication to show that you are committed to making improvements.
  2. Uncover a new product position where you can stand out from the competitors. For example, in the TV show Emily in Paris where a marketing agency has a product – champagne (which can’t compete to be in the first place). They placed this product in an entirely new application: for spraying.
  3. Product positioning can be improved through deposition and repositioning. A deposition is a process of refining existing product positioning to make it more effective. This can be done by improving the messaging, adjusting pricing points, and adding new features or benefits. Repositioning involves changing the existing positioning of a product or service to target a different market segment. Businesses may reposition their products when they come up with something new or change their target audience. For example, Apple re-positioned the iPad from a media consumption device to an educational tool when they launched their iPad Pro and supporting software. Both deposition and repositioning require businesses to have detailed customer insights, as well as a thorough understanding of their own products, services, and market dynamics.

Steps to create an Effective Positioning Strategy

Step #1: Define your target market

In order to create an effective positioning strategy, you must first define your target market. This involves understanding who your ideal customer is and what needs or wants they have that your product or service can address, creating a buyer persona.

It is also important to consider what other products or services your target market is considering. This will help you to understand how to position your own offering in a way that highlights its unique strengths and benefits. With this information in hand, you can develop a positioning strategy that will help you achieve your business goals.

Step #2: Research your competition

Researching your competition is an essential part of creating an effective positioning strategy. This involves understanding what other products or services your target audience is considering and how they compare to yours.

By researching the competition, you can gain insights into their strengths and weaknesses, as well as what sets them apart from you in terms of features, benefits, pricing points, etc. Knowing this information will help you tailor your positioning message to highlight the unique value proposition that sets you apart from the rest.

Additionally, it will also give you a better understanding of how to price your product or service competitively within the market. With this knowledge in hand, you can create a powerful positioning strategy that will help set your business up for success.

Step #3: Develop your unique selling proposition

Developing your unique selling proposition (USP) is an essential step in creating a successful positioning strategy.

Your USP is the one thing that sets your product or service apart from the competition and tells potential customers why they should choose you.

To develop a powerful USP, you must understand your target audience and their needs, as well as what makes your product or service stand out from the rest. This will help you to craft a message that speaks to them and resonates with their needs.

It can be tough to come up with a unique selling proposition, so sometimes companies develop an emotional selling proposition (ESP) instead. An ESP taps into the consumer’s emotions and speaks to how their needs will be met with your product or service.

Step #4: Determine what benefits you offer to your customers

Another important step in creating an effective positioning strategy is to determine what benefits your product or service offers. This involves identifying the unique features and benefits that make your offering stand out from the competition.

Once you have identified these, you can use them to craft a powerful messaging strategy that speaks to your target market and highlights why they should choose you.

Step #5: Select a right Positioning strategy

Marketers may choose from a variety of positioning strategies in order to create an effective marketing strategy.

Attributes positioning strategy

Technical products are often ranked by their attributes. For example, if a company is selling laptops, they may position their product by listing its features such as RAM capacity, storage space, processor speed, etc.

Benefits positioning strategy

This type of positioning strategy focuses on the benefits that a product or service can provide to customers. For example, a cosmetic brand might emphasize the anti-aging properties of its products in order to stand out from the competition.

Price positioning strategy

Price-positioning strategies involve using pricing points to differentiate your product or service from others in the market. For example, a business might choose to offer a lower-priced version of its product or service than competitors in order to attract cost-conscious customers.

Usage occasions positioning strategy

Usage occasions positioning strategies focus on when customers are likely to use a product or service. For example, a meal-delivery service might position itself as an easy and convenient option for busy professionals who don’t have time to cook during the week.

User position strategy

This type of positioning strategy focuses on the people who use a product or service. For example, a clothing brand might position itself as being for “the modern professional” in order to appeal to younger customers.

Activities position strategy

This positioning strategy emphasizes the activities that can be completed with a product or service. For example, an outdoor equipment brand might position itself as being for “outdoor adventurers” in order to attract customers who enjoy camping and hiking.

Personalities position strategy

Personalities positioning strategies involve creating a person or character that can represent a product or service. For example, a soft drink company might create an animated mascot to stand for its brand and promote its products.

Origin position strategy

This type of positioning strategy focuses on the place where a product or service was created. For example, a craft beer company might emphasize its local roots in order to attract customers who are interested in supporting local businesses.

Other brand position strategy

Forging a partnership with another brand to create campaigns together is one way to effectively position your business.

Product class position strategy

This type of positioning strategy focuses on the category or class that a product or service belongs to. For example, a company might position its product as being the “best” in its class in order to stand out from the competition.

Competitor position strategy

Competitor positioning strategies involve using a direct comparison between your product or service and those offered by the competition. This helps customers easily see why they should choose you instead of another brand.

Culture position strategy

This type of positioning strategy focuses on the values and beliefs of a company in order to attract customers who share similar beliefs.

Marketers usually use a combination of these positioning strategies. But the question is, how many differences should be utilized in communication, and which ones will be winning? Experienced marketers suggest promoting aggressively one USP or ESP to the target audience. But if USPs or ESPs are similar to competitors, then they suggest using more than one difference.

Most common errors of positioning

  • Underpositioning – failing to stress any points of difference
  • Overpositioning – Pushing off too many points of difference
  • Inaccurate Positioning – Inappropriate or incorrect positioning
  • Underinvestment – Failing to invest enough in marketing communications supporting the positioning strategy
  • Misalignment – When different elements of a company’s offering don’t match up with its positioning statement, customers may be confused when they compare
  • Relying on a single point of difference that could be easily copied
  • Failing to understand what customers really value
  • Creating a position that is not sustainable over time


  • Base positioning strategies on customer needs and wants, not on what you think is best for the product or service.
  • Your business might have multiple target audiences, so your positioning statement should be specific to each one.
  • Don’t make assumptions about what customers want or need—always test your positioning statements with customer research.
  • Be prepared to adjust your positioning strategy as your business grows and changes.
  • And finally, don’t forget about younger customers. Many businesses overlook the importance of creating a positioning strategy that appeals to this demographic, but it can be a powerful way to capture their attention and loyalty. Make sure your positioning statement resonates with them by including elements that are relevant to their interests and lifestyles.

Step #6: Design Your Positioning Statement

Once you’ve chosen your positioning strategy, the next step is to develop a positioning statement. This is a short, clear sentence that accurately conveys the unique value of your product or service in comparison to your competitors.

Your positioning statement should encompass everything you’ve researched about customer needs, wants, and expectations as well as the USPs or ESPs you want to emphasize. Keep it simple; the more complex it is, the harder it will be for customers to remember.

Your positioning statement should accurately reflect the brand’s position in the marketplace and serve as a reminder of why customers should choose your business over the competition. It can also be used as a guideline for crafting other marketing materials such as promotional campaigns, website copy, press releases, and product packaging.

Ultimately, the goal of your positioning statement is to make sure that customers know exactly why they should choose you and what sets you apart from the competition. With a clear and concise positioning statement, you can ensure that your message resonates with your target audience and helps establish a strong brand identity.

Step #7: Develop an integrated marketing strategy

Once customers have a clear understanding of your positioning statement, it’s time to move on to the next step—developing an integrated marketing strategy.

Your marketing strategy should be designed to reinforce and emphasize your positioning statement in all customer touchpoints. This includes creating promotional campaigns, product packaging, website content, and other materials that clearly communicate the value and benefits of your product or service.

Your marketing strategy should be tailored to your target audience and designed to engage them across all channels. Make sure to include visuals that reinforce your positioning statement, as well as copy that highlights the unique value of your brand.

Finally, don’t forget about digital channels such as social media and email marketing. These are incredibly powerful tools for reaching customers, so make sure to leverage them to maximize the reach of your positioning statement.

Step #8: Monitor and Adjust Your Positioning Strategy

Once you’ve crafted your positioning statement and developed an integrated marketing strategy, it’s important to monitor customer feedback and adjust your strategy as needed. This will help ensure that your positioning statement resonates with customers and accurately reflects their needs and wants.

It’s also important to monitor the competition regularly, as they may be pivoting their positioning strategy to better align with customer demands. Make sure you stay ahead of the curve by keeping track of industry trends and adjusting your own strategy accordingly.

By staying on top of customer feedback and adjusting your positioning strategy as needed, you can ensure that it remains effective and helps you stand out from the competition.


Positioning your product or service in the market is a crucial step towards achieving success. By understanding customer needs, wants and expectations, you can create an effective positioning statement that resonates with them and sets you apart from the competition.

Additionally, crafting an integrated marketing strategy to reinforce your message will help ensure that it reaches customers across all channels.

Finally, monitoring customer feedback and adjusting your strategy accordingly are key components of maintaining a successful position in the marketplace. With these tips in mind, we wish you luck as you embark on this journey!

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