16 Examples of Positioning Statements & How to Craft Your Own

Meredith Hart

Published: June 05, 2024

Picture this: You launch a new product after you’ve spent countless hours, weeks, months, or even years determining what sets it apart from the competition and building a brand identity.

how to write a positioning statement

Sadly, it falls flat because you don’t have a positioning statement to guide your sales reps, marketers, and service and support teams to prove your value to your target audience.

Free Resource: 10 Positioning Statement Templates [Download Now]

Whether this has happened to you or not, I’m here to help. In this post, I’ll explain what a positioning statement is, outline exactly how to write a positioning statement (with advice from experts), and go over some real-life positioning statement examples to inspire you.

Table of Contents

What is a positioning statement?

What is the purpose of a positioning statement.

  • Positioning Statement vs Mission Statement

Value Proposition vs. Positioning Statement

The core elements of strategic market positioning, how to write a positioning statement, positioning statement examples.

A positioning statement is a brief description of a product or service and an explanation of how it fulfills a particular need of the target market. The goal of a positioning statement is to align marketing efforts with a company's brand and value proposition.

A positioning statement is an internal tools that help marketers appeal to their buyer personas in a relevant way. They're a must-have for any positioning strategy because they create a clear vision for your brand .

Having a clear and concise positioning statement is important because it gives potential consumers the ability to understand your business at first glance. Buyers want to know how your product and purpose differentiate you from the rest of the market, without buying the product first.

Here’s what Mike Sadowski , Founder and CEO of Brand24 , told me when I asked him about positioning statements: “I once asked myself, ‘What is the real purpose of a positioning statement?’ My answer: to communicate to people for whom I create my brand that it's tailored perfectly for them, addressing all levels of their needs...I view the positioning statement as a message that convinces people that our brand and product are precisely what they desire.”

market position business plan

10 Positioning Statement Templates

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  • Defining a positioning statement
  • 6 tips for writing a positioning statement
  • 10 industry specific positioning statement templates

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The purpose of a positioning statement is to convey a brand's value proposition to its ideal customers. It also frames the brand's identity, goals, and distinguishing features within the context of the buyer’s experience.

To craft your positioning statement, you'll need to get clear on a few key facets of your business:

  • Who you serve
  • What value you offer
  • How you position your offer
  • Why you're in business
  • What makes you different from the competition

Next, I'll talk about how a positioning statement differs from some other common guiding principles in a business marketing strategy.

Fill out the form to access free positioning statement templates.

Positioning statement vs. mission statement.

A mission statement is the purpose your business serves in the market — it's an inherent part of the organization that guides every business function. When considering the “what, why, and how” of your business, a mission statement answers the question “why” while the positioning statement answers the “what.”

(If you’re curious about what the "how" looks like, here it is .)

Unlike a mission statement , your positioning statement isn't public-facing. You don’t want to give away any competitive intelligence to your competitors, so it’s used as a source of truth to guide other processes, like the messaging for your marketing campaigns or the talking points salespeople use during 1:1 conversations.

At its core, your business’s positioning statement summarizes the value that your brand, products, and services bring to the target market.

The value proposition and positioning statement are both key elements in a business' marketing strategy, however, there are differences between these two. A value proposition describes what sets your product or service apart from competitors. It gives an overview of the benefits a product or service offers.

A positioning statement is broader and it’s created after you've developed your business' value proposition. It also identifies the primary customer benefits — why someone needs your product or service.

Now that you understand the differences among some common business and marketing elements, here are the core elements of strategic marketing positioning that you'll need to know.

As I mentioned earlier, crafting your positioning statement starts with a good understanding of your company. This includes defining the following core elements:

  • Target market
  • Market category
  • Customer pains
  • Brand promise
  • Brand identity and values

Target Audience

Your target audience is the "who" aspect of your positioning. Simply defined, it's the group of consumers you're targeting with your product or services.

They say that "the riches are in the niches." To me this means that, even if anyone can use your product or service, you should still be targeting specific buyers to maintain integrity and differentiation within your brand.

In my opinion, the best and most foolproof way to define a solid target audience is to create a buyer persona (a representation of your ideal customer).

Product Positioning

Product positioning should lead with the product's benefits rather than its features . A smart way to do this is to imagine your customer’s life before and after using your solution. Then, tell the story of what happens to them when they make that decision. That’s the benefit you’ll include in your product positioning.

Market Category

A market includes buyers and sellers. A category defines a specific segment of that market. Market categories can be as broad as "grocery store" and as niche as "vegetarian health food store." Market categories usually start out broad and get more niche as the businesses occupying that market expand their product and service offerings to the consumers in the market.

Whether your market category is developed or you're part of an emerging or niche market, I recommend defining who all potential buyers are, where they search for goods and services, and who has their attention. You'll want to define what your competition offers and how you can position your brand apart from those competitors .

Customer Pains

Customer pains are the problems or issues your target audience is experiencing that could be solved with products or services available in your market category. Your product or service should aim to address customer pains and offer a solution.

Brand Promise

Your brand promise is ultimately what the target audience or buyer persona stands to gain from using your product or service. It's what success looks like to them if their pain or problem is resolved.

Brand Identity

Brand identity is the personality of your business and includes both visible factors (such as logo design) and invisible ones (such as values or voice). Brand identity is one aspect of strategic market positioning that will set you apart from competitors and help you gain recognition from your target audience.

Values guide how your business makes decisions within the context of your brand. They create the culture of your organization and leave a favorable impression on your target audience. They are the intangible methods with which you execute your mission and vision.

Featured Resource : 50 Examples of Company Values

Once you have a solid understanding of these core elements, you can begin crafting the positioning statement.

My Pro Tip: I recommend developing your business’ value proposition before writing your positioning statement. When you know the unique value you bring, it’s much easier to craft a statement that speaks directly to your target audience and describes how your product or service is the best solution for their pain points.

  • Create a vision board.
  • Keep it brief.
  • Make the statement unique and memorable.
  • Remain true to your business’s core values.
  • Include what the brand delivers to consumers.
  • Differentiate your business from the competition.
  • Keep it simple.
  • Consult a colleague.

When writing and evaluating your positioning statement, keep the following tips in mind:

1. Create a vision board.

Positioning statements are written documents. Since they don’t include images, video, or other visuals, it can be challenging to communicate what your business is, who it serves, and why that matters in just a few sentences.

To bypass the initial blank page syndrome , create a vision board instead. A Columbia University study found that visual characteristics can trigger emotional responses , which can help you understand your target audience and what speaks to them.

To leverage this response, look for images that represent your customer in the environment where they need your product or service the most. Notice the emotions in the images, who is around your ideal customer in the image, and what they’re doing in the image to solve the problem.

create a vision board for your positioning statement

Image Source

Creating a vision board that represents your target audience when they need your product the most can help make your positioning statement come to life.

2. Make it brief.

You have a short time to capture attention, so a brief positioning statement is much more likely to be read than a longer one.

Your brand’s positioning statement should be concise and to the point. Aim for no more than three to five sentences, if possible.

The wordier that your statement gets, the less factual it becomes. It then risks becoming more aspirational instead of what your business is, with more elements that are more inflated than grounded in truth.

Pro Tip: Fluff and unnecessary details are your worst enemy when it comes to being brief. Stay focused on the value your product or service provides, and get rid of anything else that distracts from that.

Heather Johnson , MedTech Marketing Consultant and President at OutWord Bound Communications , shared her advice with me, and it’s a great exercise for keeping it brief: “Keep asking “so what” until you get to the root of those answers. For example, a small business wants to acquire and retain more customers without spending tons of time fiddling with technology; your XYZ platform makes it happen by…”

3. Make it unique and memorable.

This statement should be unique to your company and the problems you aim to solve. When crafting your positioning statement, be sure to emphasize the distinctive qualities of your brand.

Buyers should be able to see the special value that your business can offer or solve for. Many markets are already saturated with products or services that are similar to your offering, so your statement should be able to capture their attention against the noise.

Pro Tip: I think Shelley Grieshop , Creative Writer at Totally Promotional , tip about exploiting personal history is a great way to make your positioning statement unique and memorable.

She said, “Select one thing your company does or offers that is uniquely related to your personal history and demographics. Exploit that tidbit in your marketing strategy and all communications to show your individuality and establish brand recognition. The bottom line: Your story is your value.”

4. Remain true to your business’s core values.

The positioning statement isn’t the time to get fancy and pitch a new angle for the business. Your brand’s positioning statement should accurately reflect the core values of your business.

Clear core values in your positioning statement also send messages to your internal team. They help new employees with better alignment. Besides letting consumers know your stances, core values help existing team members stay on the right track and continue to deliver on your brand’s promises.

Pro Tip: Clarity and authenticity are William Hogsett ’s, CEO of Seota Digital Marketing , best practices for high-quality positioning statements. He says authenticity builds trust and credibility, so your positioning statement should be authentic and reflect your brand’s core values and strengths.

He said: “Incorporate elements of your brand’s story, mission, and personality into the statement to create a compelling narrative that resonates with your audience on an emotional level.”

5. Include what the brand delivers to consumers.

Your brand offering is a vital part of your positioning statement. It’s the main reason that customers are seeking you out, so when crafting your own, you need to cover these two bases:

  • Who does your company serve?
  • How does your company serve this group?

Succinctly state who your customer is and how you will help them in your positioning statement.

Pro Tip: Sai Sathish , B2B Marketing Leader and Founder at ConsaInsights , told me that considering your audience’s perspective is crucial. He says it’s easy to get carried away with what you think the best thing is about your brand when it should really be about what the best thing is for your audience.

He said: “I have had many instances where I thought my positioning statement was the most revolutionary one and would impress people in one go, but they failed miserably. So don’t brainstorm on how to highlight your company’s great aspects — simply back-calculate. Understand what they would like to hear and find that about your company and present it to them.”

6. Differentiate your business from the competition.

An effective positioning statement should articulate what differentiates a brand from its competition. Highlight your company’s unique qualities and how those qualities help serve your customers. You can even consider a niche marketing strategy .

Does your brand have cause-related campaigns? Differentiate your brand by highlighting your goals to give back.

Does your brand serve a previously underrepresented target audience? Let them know clearly and proudly that you fill that gap. If you’re not sure how to separate your product offer from your competitors, these competitive analysis templates can help you out.

There are so many different ways to stand out against the crowd, you just have to survey your competitors and see how you do it better .

Pro Tip : Bhavik Sarkhedi , CMO of Write Right , says that “[When creating a positioning statement] It’s crucial to articulate not only what your brand offers, but also how it differs from the competition.”

He adds, “Ask yourself: What can we offer that no one else can? Why should the customer choose us over others? This focused approach ensures that your brand’s message is clear and compelling, making it easier for customers to see the value in choosing your brand.”

7. Keep it simple.

In almost any circumstance, your team should be able to align key business decisions with your brand’s positioning statement because its simple and easy-to-understand nature .

The more complicated your statement becomes, the less convincing or engaging it will be. Make sure your business’ value and offering is unmistakable and buyers will understand and seek to learn more about it in their buyer’s journey.

8. Consult a colleague.

Just because positioning statements aren’t public-facing doesn’t mean they shouldn’t be easy to understand. Investors, new hires, and external agencies who work closely with your businesses will need to use this document, too.

After spending several hours perfecting every word, you might think what you’ve written is wonderful (and I’m not saying it isn’t) when it’s actually filled with jargon, acronyms, and features that aren’t clear to someone outside your company.

When you’re in your final stages, reach out to a colleague. Someone not directly involved with the writing process can give you a fresh and objective perspective to help identify any issues you’ve overlooked. A third party might even have an easier time placing themselves in your audience’s shoes.

My Pro Tip: You want helpful and actionable feedback, so I recommend telling your colleagues exactly what you’re looking for. For example, you could ask them to read for:

  • Clarity - Does your positioning statement clearly communicate value?
  • Consistency - Does your positioning statement align with your known brand image and values?
  • Relevance - Is your positioning statement relevant to your target audience’s pain points?
  • Impact - Does your positioning statement leave the reader interested in learning more?

Positioning Statement Template

For [your target market] who [target market need], [your brand name] provides [main benefit that differentiates your offering from competitors] because [reason why target market should believe your differentiation statement.]

You can use the template above to form a positioning statement for your startup or small business . Add the details of your target market, company, and the main points that make your product or service stand out from competitors. You can also download 10 more position statement templates for free below.

Positioning Statement Template

Download Now: 10 Free Positioning Statement Prompts

Each business is unique, and it's alright if your statement doesn't fit the template exactly, but I suggest including the main points below:

  • A description of the target market.
  • A description of the target market needs.
  • How your business will meet their needs.
  • What differentiates your product or service from the competition.
  • Why consumers in your target market should believe your brand's claims.

You might need a little more inspiration before taking pen to paper and creating your own positioning statement. Here are some examples to get your creative juices flowing.

I mentioned above that your positioning statement is a crucial part of your business and a guiding source of truth. So, for the most part, it’s away from the public eye and you’ll rarely find a business’ exact positioning statement floating around on the internet.

Because of that, I’ve used our positioning statement template to craft a few example statements for recognizable brands using the information we know about them.

Below are examples of positioning statements of well-known brands to give you a feel for how to create one for your business.

HubSpot Positioning Statement:

"Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over 100,000 customers in more than 120 countries use HubSpot's award-winning software, services, and support to transform the way they attract, engage, and delight customers. Composed of HubSpot's CRM, Marketing Hub, Sales Hub, Service Hub, CMS Hub, and Operations Hub, HubSpot gives companies the tools they need to grow better."

Why I Like This Positioning Statement:

It starts with a clearly defined mission and track record to capture the attention of prospects. Then, HubSpot’s positioning statement notes its trustworthiness and variety of products to better service businesses looking to grow and scale for the future.

  • Connects with the target audience by showing global businesses its breadth of scalable solutions.
  • Sells its product(s) in a unique wa y by showcasing that these products are made to scale.
  • Highlights core values by emphasizing its focus on customer success and innovation.
  • Offers a clear and focused message by leaning into its value proposition and services.

2. Coca-Cola

Positioning Statement Example: Coca Cola

Coca-Cola Positioning Statement:

"For quality beverage seekers, Coca-Cola offers a wide range of the most refreshing options. Each creates a great experience for customers when they enjoy a Coca-Cola brand drink. Unlike other beverage options, Coca-Cola products inspire happiness and make a positive difference in customers' lives, and the brand is intensely focused on the needs of consumers and customers."

While its product offering is beverages, Coca-Cola leads its positioning statement with the positive experience it wants to offer. It appeals to emotions and tells us consumers that we’re buying from a company that wants to better our lives — even with something as simple as a cold drink. It:

  • Connects with the target audience by focusing on beverage consumers looking for quality and satisfaction.
  • Sells its product(s) in a unique way by focusing on positive impact and using phrases like "inspire happiness" and "make a positive difference."
  • Highlights core values with a focus on quality products and customer experience.
  • Offers a clear and focused message that is easy to understand and highlights benefits without feeling salesy.

3. White Dog Distilling

Positioning Statement Example: White Dog Distilling

White Dog Distilling Positioning Statement:

"Founded in 2016 by the husband/wife team of Carlo and Alecia Catucci, White Dog Distilling stands for passion, spirit, and the journey from grain to glass. Bolstered by Carlo's background in physics and Alecia's culinary and product development experience, they set forth with one goal in mind: to produce high-quality distilled spirits that could appeal to both novice spirit drinkers and longtime aficionados alike."

White Dog leads its positioning statement with the quality it delivers to customers. Offering locally sourced and sustainable ingredients attracts customers looking for good value versus price, with delicious taste. I think the statement also makes the brand accessible to those who aren’t well-versed in spirits.

  • Connects with the target audience by using the founders' story to connect with both novice and expert customers.
  • Sells its product(s) in a unique way by focusing on quality, craft, and innovation.
  • Highlights core values by showing how and why it's committed to using quality materials and processes.
  • Offers a clear and focused message by using the value proposition as the center, then highlighting how the founders create that value.

4. Alaska Airlines

Positioning Statement Example: Alaska Airlines

Alaska Airlines Positioning Statement:

"We are creating an airline people love. Each day, we're guided by our core values of own safety , do the right thing , be kindhearted , deliver performance , and be remarkable at work and in our communities. Alaska Airlines also fosters a diverse and inclusive culture and is an Equal Opportunity Employer."

Alaska Airlines leads its positioning statement with love and heart. It introduces prospects to the brand feeling as though they’re more than typical transactions. Instead, it focuses on each customer as a unique individual who's worth delivering great service and inclusive experiences to.

  • Connects with the target audience with values that emphasize community, diversity, and inclusivity.
  • Sells its product(s) in a unique way by putting customers and their experience in the spotlight.
  • Highlights core values that matter to customers, like safety, ethics, kindness, and reliability.
  • Offers a clear and focused message by reinforcing its brand identity instead of creating a new set of benchmarks or expectations in the positioning statement.

5. Organic Bath Co.

Positioning Statement Example: Organic Bath Co.

Organic Bath Co. Positioning Statement:

"If you're seeking clean and healthy ingredients in your body care routine, Organic Bath Co. offers a line of organic and natural skincare products that you can feel good about using. Trust in Organic Bath Co. for clean uncomplicated ingredients that will leave you feeling rejuvenated and cared for."

I found that Organic Bath Co.’s positioning statement successfully conveys its focus on quality ingredients, health, and the value of rest. Prospects could be looking for a soap brand that not only has organic and safe ingredients, but also encourages its customers to indulge themselves in the relaxing experience of using its product line.

  • Connects with the target audience by finding a priority (clean, natural ingredients) and showing how the product meets that need.
  • Sells its product(s) in a unique way by emphasizing the feeling it gives customers as well as how the brand makes its products.
  • Highlights core values by focusing not only on company values , but the core values its target audience feels are most important.
  • Offers a clear and focused message by starting with what its audience is looking for, then sharing how the product meets those needs.

Positioning Statement Example: Amazon

Amazon Positioning Statement:

"For consumers who want to purchase a wide range of products online with quick delivery, Amazon is a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovation, and commitment to operational excellence."

I like that Amazon cuts straight to the chase with its positioning statement. It clearly outlines that its store is a quick way for its customers to find everything they need, to better help the customer achieve their goals.

  • Connects with the target audience by speaking to the needs of busy customers who prioritize convenience.
  • Sells its product(s) in a unique way by emphasizing its commitment to customers, experience, and operational excellence.
  • Highlights core values by selecting the most relevant brand values and weaving them into the positioning statement.
  • Offers a clear and focused message by summarizing the value proposition of the platform.

Positioning Statement Example: IMPACT

IMPACT's Positioning Statement:

"Empower your business to thrive with IMPACT. Our They Ask, You Answer approach and consulting services in content marketing, video sales, website strategy, design, and more help you take ownership of your digital sales and marketing. Find out how you can achieve remarkable results and become a trusted voice in your industry with IMPACT."

I think IMPACT ’s positioning statement expertly explains how it goes against the grain to better serve its customers in the market, by eliminating the cycle of dependency. This approach is unique and will attract many prospects to want to learn more about its solutions.

  • Connects with the target audience by speaking directly to business owners and marketers who are seeking a solution to marketing dependencies.
  • Sells its product(s) in a unique way by clearly outlining what it does and how it accomplishes goals with clients.
  • Highlights core values like empowerment, innovation, and trust with a quick explanation of the process and desired outcomes.
  • Offers a clear and focused message by packing the most useful terms and ideas into one powerful paragraph.

8. Bandwagon Fan Club

Positioning statement example, Bandwagon Fan Club

Bandwagon Fan Club Positioning Statement:

"Experience the future of fandom with Bandwagon Fan Club. Our Proof of Experience™ blockchain technology connects sports and entertainment lovers directly with their favorite artists, teams, and entertainers. Choose Bandwagon Fan Club to create, own, and preserve history with cutting-edge technology."

When a product is tough to understand, doubt can creep in and possibly turn customers away. I can see how that could happen with Bandwagon Fan Club since it uses newer technology, but I was impressed by its direct and clear positioning statement. It explains exactly how its technology connects fans directly to their favorite performers and teams and narrows in on the end value.

  • Connects with the target audience by centering on the people who will want this product — sports and entertainment super fans.
  • Sells its product(s) in a unique way with exclusive technology mentions.
  • Highlights core values by emphasizing its customer focus and innovation.
  • Offers a clear and focused message — that fans can use this technology to own a unique piece of event history.

9. Gro Intelligence

Positioning statement example, Gro Intelligence

Gro Intelligence Positioning Statement:

"Develop a holistic data-driven understanding of your impact as a business in the agriculture or climate science industries with Gro Intelligence. We offer live data, machine learning, and domain expertise to provide honest answers where ecology meets economy."

This positioning statement starts with the problem it solves — helping businesses see their impact with data. Then, it explains the technology it uses to show that impact, which builds trust with those potential customers. I like that it:

  • Connects with the target audience by targeting businesses in the agriculture and climate sciences industries.
  • Sells its product(s) in a unique way by naming the technologies it uses to collect data insights.
  • Highlights core values with terms like honest, holistic, economy, and ecology. This word choice quickly communicates what is most important to this brand.
  • Offers a clear and focused message by focusing on product benefits and how the brand delivers those benefits.

Positioning Statement Example: Nike

Nike Positioning Statement:

"For athletes in need of high-quality, fashionable athletic wear, Nike offers customers top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike's commitment to innovation and investment in the latest technologies."

Nike’s positioning statement does an excellent job of speaking to its target audience by clearly outlining its range of products to better serve athletes. I also like that it uses inclusive language to define what an athlete is, letting hobbyists and professionals alike know that they can derive value from its product line.

  • Connects with the target audience by identifying who uses these products and what they need.
  • Sells its product(s) in a unique way through emphasis on innovation and technology in athletic gear production.
  • Highlights core values by combining how this brand differentiates itself with a diverse range of customer needs.
  • Offers a clear and focused message that is straightforward and covers the most important qualities of its products.

11. Thrive Market

Positioning Statement Example: Thrive Market

Thrive Market Positioning Statement:

"Thrive Market is an online, membership-based market making the highest-quality, healthy, and sustainable products available for every budget, lifestyle, and geography."

Short and to the point, Thrive Market lets prospects know exactly what it has to offer in a single sentence. Prospects won’t have to guess what type of product they can find from it, and they also know that their line must be extremely versatile, too.

  • Connects with the target audience by leading with health and sustainability.
  • Sells its product(s) in a unique way by highlighting the membership aspect of its offer.
  • Highlights core values by emphasizing quality, health, budget, lifestyle, and location.
  • Offers a clear and focused message with a single-sentence positioning statement that is both well-defined and easy to understand.

12. Gig Wage

Positioning statement example, Gig Wage

Gig Wage Positioning Statement:

"Gig Wage uses proprietary technology for payroll services and compliance to offer control and flexibility to contractor-dependent businesses. This platform is specifically for the 1099 economy to manage, pay, and support happy independent workers."

This statement narrows its focus to a collection of employers that need a solution for 1099 workers. Then, it covers what it offers to solve a set of common problems for that audience.

  • Connects with the target audience by talking about the needs of both employees and independent contractors.
  • Sells its product(s) in a unique way by emphasizing proprietary technology and how that tech can help.
  • Highlights core values with a focus on a desired outcome — happy independent workers.
  • Offers a clear and focused message . Some positioning statements need to include industry-specific terms that not everyone is familiar with. But this statement pairs those terms with simple language that makes it easy for anyone to read.

Positioning statement example, Mural

Mural Positioning Statement:

"For organizations who need visual collaboration at scale, Mural helps you bring imagination to work from anywhere with agile and design thinking methodologies, sales and consulting, and research and design, all in one platform. Join a growing network of global enterprises, consultancies, schools, and nonprofits using Mural to innovate."

Leading with the primary value your business offers is a smart strategy. This positioning statement quickly lets consumers know you can use this product to visually collaborate from a range of locations. It also offers proof that you can trust this product because it's used by a diverse network of businesses.

  • Connects with the target audience by making the need for visual collaboration a priority, then sharing what kinds of companies are already using this tool.
  • Sells its product(s) in a unique way by highlighting specific ways businesses and individual users can get value from this product .
  • Highlights core values with terms like innovate, collaboration, and imagination. This emphasizes those values for this brand and for companies who want to make those core values a priority.
  • Offers a clear and focused message by focusing the first sentence on what the product is and how to use it, then using the second sentence to show who is already using the product.

Positioning Statement Example: Apple

Apple Positioning Statement:

"For individuals who want the best personal computer or mobile device, Apple leads the technology industry with the most innovative products. Apple emphasizes technological research and advancement and takes an innovative approach to business best practices — it considers the impact our products and processes have on its customers and the planet."

This positioning statement for Apple appeals to people of all different backgrounds. It inspires them to expect quality products made with intent to innovate in a way that helps people and the environment. I think it's also a great example of how to gain a prospects' trust by emphasizing industry authority.

  • Connects with the target audience by aligning itself with people who want "the best." It also emphasizes the brand's leadership in the industry.
  • Sells its product(s) in a unique way with emphasis on innovative approaches to research and technological advancement.
  • Highlights core values by mentioning the customer and environmental impact its products and processes have.
  • Offers a clear and focused message that quickly communicates the most important aspects of the brand and products.

15. McDonald's

Positioning Statement Example: McDonalds

McDonald's Positioning Statement:

"McDonald's is a leader in the fast-food industry, with quick, friendly service and consistency across thousands of convenient locations. McDonald's' dedication to improving operations and customer satisfaction sets it apart from other fast-food restaurants."

McDonald’s doesn’t narrow its target audience, but instead panders to individuals of all sorts looking for a fast and satisfying service. It also leads with its position as an industry leader to gain prospect trust.

  • Connects with the target audience by highlighting the qualities a person might seek in a fast food restaurant. This strategy is effective because it appeals to a broad audience in a specific situation.
  • Sells its product(s) in a unique way by mentioning how its operations and customer satisfaction goals differ from a set of competitors. It doesn't compare itself to every restaurant, only fast-food spots.
  • Highlights core values by leading the positioning statement with speed, service, convenience, and consistency.
  • Offers a clear and focused message in just two simple sentences, this statement shares what is most important to this brand in a compelling way.

16. Beautycounter

Positioning Statement Example: Beautycounter

Beautycounter Positioning Statement:

"One by one, we are leading a movement to a future where all beauty is clean beauty. We are powered by people, and our collective mission is to get safer products into the hands of everyone. Formulate, advocate, and educate—that’s our motto for creating products that truly perform while holding ourselves to unparalleled standards of safety. Why? It’s really this simple: beauty should be good for you."

Unlike other beauty brands that strive to fix or perfect customers’ complexions without much focus on ingredients, Beautycounter takes the unique stance that beauty should be good for more than your looks. I think its unique focus on cleaner, safer ingredients will attract customers looking to maintain their complexions instead of a temporary fix.

  • Connects with the target audience by advocating for cleaner, safer products on behalf of beauty lovers.
  • Sells its product(s) in a unique way by communicating higher-than-average safety standards.
  • Highlights core values like education and safety, and supporting people looking for clean beauty products.
  • Offers a clear and focused message by outlining a clear and easy-to-understand goal, then sharing how it plans to meet that goal.

Craft a Positioning Statement for Your Business

Competition online makes crafting a great positioning statement more important than ever, but I see this as a unique opportunity to make your business stand out, boast your unique value, and connect with your audience.

If you leverage the tips and insights from the experts I spoke to, you can create a positioning statement that paints a clear roadmap for business growth.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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Market Positioning

Influencing consumer perception of a brand or product in relation to rival brands

What is Market Positioning?

Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way.

For example:

  • A handbag maker may position itself as a luxury status symbol
  • A TV maker may position its TV as the most innovative and cutting-edge
  • A fast-food restaurant chain may position itself as the provider of cheap meals

Types of Positioning Strategies

There are several types of positioning strategies. A few examples are positioning by:

  • Product attributes and benefits: Associating your brand/product with certain characteristics or with certain beneficial value
  • Product price: Associating your brand/product with competitive pricing
  • Product quality: Associating your brand/product with high quality
  • Product use and application: Associating your brand/product with a specific use
  • Competitors: Making consumers think that your brand/product is better than that of your competitors

A Perceptual Map in Market Positioning

A perceptual map is used to show consumer perception of certain brands. The map allows you to identify how competitors are positioned relative to you and to identify opportunities in the marketplace .

An example of consumers perception of price and quality of brands in the automobile industry are mapped below:

Example of Perceptual Map in Market Positioning in the Automobile Industry

This map is for illustrative educational purposes only.

How to Create an Effective Market Positioning Strategy?

Create a positioning statement that will serve to identify your business and how you want the brand to be perceived by consumers.

For example, the positioning statement of Volvo: “For upscale American families, Volvo is the family automobile that offers maximum safety.”

1. Determine company uniqueness by comparing to competitors

Compare and contrast differences between your company and competitors to identify opportunities. Focus on your strengths and how they can exploit these opportunities.

2. Identify current market position

Identify your existing market position and how the new positioning will be beneficial in setting you apart from competitors.

3. Competitor positioning analysis

Identify the conditions of the marketplace and the amount of influence each competitor can have on each other.

4. Develop a positioning strategy

Through the preceding steps, you should achieve an understanding of what your company is, how your company is different from competitors, the conditions of the marketplace, opportunities in the marketplace, and how your company can position itself.

What is Market Repositioning?

Market repositioning is when a company changes its existing brand or product status in the marketplace. Repositioning is usually done due to declining performance or major shifts in the environment.

Many companies, instead of repositioning, choose to launch a new product or brand because of the high cost and effort required to successfully reposition a brand or product.

Example of Market Repositioning

The example below describes Coca-Cola’s repositioning of Mother Energy Drinks:

The Coca-Cola Company launched Mother Energy Drinks in 2006 into the Australian market. The launch campaign was professionally executed, and Coca-Cola was able to leverage its distribution channels to get the product into major retailers. However, the taste of Mother Energy Drink was subpar and repeat purchases were very low.

Coca-Cola was faced with a decision: to improve and reposition the product or withdraw it and introduce a new brand and product. The company ultimately decided to reposition the product due to already high brand awareness.

The biggest challenge faced by Coca-Cola was to persuade consumers to try the product again. The company changed the packaging, increased the size of the can, and improved the taste of the product. The relaunch of the product featured a new phrase – “New Mother, tastes nothing like the old one.”

Ultimately, Coca-Cola was able to successfully reposition Mother Energy Drinks and the brand today competes with the two leading energy drinks in the market – V and Red Bull.

Other Resources

To learn more and advance your career, see the following free CFI resources:

  • Natural Monopoly
  • Law of Supply
  • Command Economy
  • Bargaining Power of Suppliers
  • See all management & strategy resources

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Market Positioning – Definition, Types, Benefits, Examples & How-to

Imagine you want to be, let’s say,  a detergent manufacturer, and there are thousands of other detergents in the market.  Why do you think customers will buy your detergent from a cluster of “million options”?

However, if your detergent has unique features that can give your customers unique benefits, then that is a different story. People don’t want to buy a product that claims to do “everything.” Instead, they want a better solution that can tackle at least “something.” You just need to show them that your detergent can specifically do “this.”

 To cut it short, you need to position your product or service uniquely. In marketing terms, this is called market positioning. Why is market positioning important, and what are your options regarding market positioning? Let’s find out.

Table of Contents

What Is Market Positioning?

Market positioning, in simple words, is a marketing strategy that focuses on creating a unique image or perception of a brand, product, or service in the customer’s mind. A business can create that unique image by any means.

For instance, the four Ps of marketing (promotion, product, price, and place) are important factors in market positioning. The more a business focuses on these 4 Ps, the will better will be its positioning in the market. Still not getting a clear picture of market positioning? Here are some examples for basic understanding:

  • A shoemaker specializes in making formal shoes for highly sophisticated or formal events.
  • A fast-food franchise that makes unique grilled beef burgers.
  • A car manufacturing company specializes in manufacturing luxury cars with unparalleled features.

So, what was the basic theme in these examples? The sellers in these examples are focusing on a specific niche rather than catering to a general audience.

Types Of Market Positioning

Different businesses use different techniques for market positioning. However, here some of the most common types of positioning in the market.

Quality of A Product or Service

Amidst the fearsome price wars, many brands strive hard to provide quality. Yes, when you please your customer with unparalleled quality, price becomes a less-concerned issue.

Example. Chipotle has quickly gathered immense fame and climbed to the 14 th spot in the list of top 50 fast-food franchises in the USA (ranking from QSR magazine). This quality-oriented brand has already captured a significant market share and causing trouble for “big boys.”

Innovation and Uniqueness

Many brands focus on providing innovation and uniqueness. If you can bring something new and fascinating, you can charge higher prices and people will pay for it happily.

Example. What would be a better example of innovation than Apple? The electronics industry’s juggernaut has captured a massive global market just because of its mind-blowing and surreal innovations.

Price of A Product or Service

When a brand is not enriched with innovation or superior quality, then pricing is an excellent option to challenge your competitors. Whether you accept or not, price is still one of the most critical factors that affect many consumers’ purchase decision.

Example. Dollar Shave Club has proved to be a nightmare for Gillette because they offer the cheapest razor cartridge refilling (20 cents) while Gillette was doing it for $2-$5. Due to this massive difference, Gillette has seen a decreasing market share.

Product Differentiation

Similar to innovation, product differentiation is another excellent marketing strategy to take the lead. A different product or service can easily kill the competition.

Example. Tesla has revolutionized the automobile industry with its electronic cars. This has sidelined many economic cars such as Toyota Prius.

Customer Service

Customer services , if appropriately managed, can create a massive and defining image in consumers’ minds. In fact, this category is fundamental in specific industries such as banking and restaurants.

Example. Zappos, an American online shoe company, has unique customer service practices. They respond to every single email they get, even if the email is directly for the company’s CEO.

Niche Segregation

Targeting a micro-level market segment is another super-effective way of market positioning.

Example. Axe, also known as Lynx, is a famous British brand that focuses on male grooming products such as body sprays, deodorants, etc., for young males.

Advantages of Market Positioning

Market positing can help a brand in “countless” ways but here top five of them:

Increase in Revenue

Marketing positioning is purely dedicated to creating a unique image of any specific brand. When a brand succeeds in creating a unique market position, its revenue increases due to a boost in sales volume.

Built A Competitive Edge

Market positioning also helps brands to create a competitive edge. Either you are following a pricing strategy or focusing on providing quality products or services, you develop a competitive advantage when you position your brand in the market. Everything your competitors don’t have is a competitive advantage, whether it is your offering’s price, uniqueness, or quality.

Easy to Promote A New Product

A company that has already positioned itself in the market can launch a new product and penetrate the market easily. This significantly reduces marketing costs as well.

Create A Brand Identity

Brand identity is highly dependent on market positioning. Only proper marketing positioning can develop an image or perception in a customer’s mind.

Marketing Positioning Simplifies the Purchase Decision for Customers

Customers want easy options and solutions while making a purchase decision. Positioning allows them to determine what kind of benefits they will get from a specific product or service. It ultimately simplifies their buying process.

How To Create A Successful Market Positioning Strategy

The market positioning strategy of any brand should be based on its core objectives. Companies should be clear as to how do they want their customers to perceive them. Here are some “must-do” practices to develop a thriving market positioning strategy.

Identify Your Strengths Through Competitor Analysis

Identifying the differences between you and your competitors is mandatory. This ultimately helps you to determine your strengths and how you can use them to take advantage of opportunities.

Analyze the Current Market Position

Before you decide to position yourself in the market, it is better to evaluate your current position. This will assist you in differentiating yourself from your competitors.

Detailed Competitor Positioning Analysis

Apart from identifying your strengths, it is equally important to analyze your competitors’ strengths and how they can challenge you.

Create Your Market Positioning Strategy

Once you have examined the factors mentioned above thoroughly and understand your position, strength, and opportunities, develop your positioning strategy accordingly.

Positioning Errors That A Company Should Avoid

Excess of everything is bad, and the same is the case with market positioning. If a brand makes too many “promises” and claims to be the best, things may go south easily. So, here are some of the common mistakes marketers commit while developing positioning strategies:

  • Confused Positioning. Making too many claims and frequently changing the product features can make the customers confused about brand image.
  • Over Positioning. Over positioning means that a firm has gone way too specific in niche selection that only appeals to very few customers. It becomes challenging for a company to achieve its sales target with such a low number of potential customers.
  • Under Positioning. Under position, in simplest terms, means that a brand has failed to create a unique or differentiated image in customer’s mind.  That said, the customer fails to differentiate a specific brand from others.
  • Doubtful Positioning. Doubtful positioning can be best described as “it’s too good to be true.” That said, it is a situation where customers become doubtful about the claims made by the brand because they look suspicious or unreal. This usually happens when a product’s price, physical features, etc., fail to match with the company’s claim.

Examples of Market Positioning

It will be an injustice if we don’t talk about Tesla as one of the best market positioning examples. The company has taken “price” out of the equation and only focuses on providing unparalleled quality to its customers. Tesla is more of a luxury brand, and its vehicles are:

  • Eco-friendly
  • Large-ranged

One of the best and globally admired brands, Nike has positioned itself in the market as an innovator with a high focus on performance. The waffle shoes from Nike have become the most expensive sneakers in the world. After bossing the “shoes” category, Nike is now offering performance-boosting sports attires.

The finest portrayal of “inbound marketing,” HubSpot developed a huge customer-oriented platform by offering helpful content to its readers. HubSpot is:

  • User-friendly
  • Customer-centric, and

Which makes it an automatic choice of many consumers around the globe. Apart from that, HubSpot has become an “all-in-one shop” that deals in:

  • Marketing automation
  • Sales and service

It won’t be wrong to say that Starbucks has revived the tradition of coffee consumption in the USA. That is because the country had witnessed a decrease in coffee consumption since 1960. Starbucks, therefore, carefully targeted office workers who were interested in purchasing a high-quality product.

Coffee is considered as a soothing and relaxing beverage in the US, and Starbucks has always been vigilant to live up to the expectations.

About The Author

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shaharYar Ahmad Ranjhaa

Global business

How to Build the Right Market Positioning for Your Product

market position business plan

For any growing business setting out on a global expansion journey, market positioning becomes one of the first crucial steps. It’s all about effectively differentiating yourself from competitors and creating a unique value proposition for customers.

Think of Coca-Cola and Pepsi for a moment: Although they offer similar products, both have distinct identities. Coca-Cola is positioned as a timeless, traditional beverage, while Pepsi is perceived as a youthful, energetic alternative.

To help you, too, make the most of this opportunity, this comprehensive guide will walk you through the essentials of market positioning—from its meaning and common types to the benefits and key strategies for lasting success.

What is market positioning?

Market positioning is the strategic act of establishing a unique and favorable perception of a product or brand in the minds of consumers compared to competitors.

Essentially, market positioning makes a promise to customers, conveying the value a company offers above other options and showing why it’s the best choice.

When positioning a brand, businesses should go beyond simply selling a product or service and deeply understand the needs and preferences of their target audience during market entry .

Conducting extensive market research and analyzing consumer behavior can provide a business with valuable knowledge on each target market that they can use to position their offering effectively and prepare for market expansion . This means creating distinct customer personas to determine needs, identify problems, and create unique solutions.

Brand vs product positioning

Brand positioning and product positioning are distinct, interconnected concepts that make up every strong market positioning strategy. While brand positioning creates the overarching perception of the brand, product positioning shapes how a particular offering is perceived compared to competitors.

  • Brand positioning creates a unique and compelling brand image in the minds of consumers: It shapes your customers’ overall perception of your brand, including its values, personality, and associations.
  • Product positioning aims to establish a specific product within the market:  It emphasizes the unique features, benefits, or solutions your product offers.

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Why is market positioning important?

Without effective market positioning, you run the risk of leaving your brand and product reputation to chance. At best, consumer beliefs and images of your offerings may fail to reflect your goals. At worst, harm to your brand impacts your profitability. That’s why it’s essential to get market positioning right the first time. Let’s have a look at some of its core benefits. 

  • Market positioning allows businesses to establish a unique identity in the market: When you differentiate yourself from competitors, you can attract customers who seek specific benefits or solutions.
  • It also impacts consumer perceptions and purchasing decisions: When a product is positioned effectively, your customers are more likely to perceive it as superior and willingly pay more.
  • Finally, market positioning helps businesses build long-term customer loyalty: By consistently delivering on their promises, companies can develop a strong brand reputation and create a loyal customer base.

Types of market positioning

You have many positioning choices available to you depending on the nature of your product or brand. Each type of market positioning strategy caters to different customer needs and competitive landscapes. The key types of market positioning include:

  • Product attributes positioning: This positioning type focuses on specific product attributes that differentiate it from competitors. For example, a smartphone company may position its product as having superior camera quality compared to other brands.
  • Price positioning: Price positioning involves positioning a product as being affordable or targeting a specific price range. Companies may position their products as high-end and premium priced or as value-for-money options.
  • Quality positioning: Quality positioning emphasizes the superior quality of a product compared to competitors. Companies may highlight factors such as durability, reliability, or exceptional craftsmanship to justify a higher price point.
  • Usage positioning: This type of positioning focuses on the specific use or application of a product. For example, a laundry detergent may position itself as the best choice for removing tough stains.
  • Competitor positioning: Competitor positioning involves directly comparing a product to competitors. This type of positioning is commonly used when a product offers clear advantages over competitors in terms of features, performance, or pricing.

Successful market positioning examples

To illustrate the concept of market positioning, let’s explore some real-life examples of successful marketing positioning:

  • Apple: Apple has positioned itself as a brand synonymous with innovation, high quality, and user-friendly design (“Think Different”). Its products are known for their sleek aesthetics, intuitive interface, and seamless integration across devices.
  • Volvo: Volvo has positioned itself as a brand synonymous with safety (“For Life”). Its vehicles are known for their advanced safety features and commitment to protecting drivers and passengers.
  • Nike: Nike has positioned itself as a sports and fitness brand that inspires customers to push their limits and achieve greatness (“Just Do It”), emphasizing empowerment and motivation in its marketing campaigns.
  • Airbnb: Airbnb’s market positioning (“Belong Anywhere”) revolves around providing unique travel experiences by offering accommodations that allow travelers to feel like locals and truly immerse themselves in the destinations they visit.
  • Coca-Cola: Coca-Cola has positioned itself as the classic, timeless cola beverage, with its latest tagline (“Taste the Feeling”) highlighting the emotional connection that consumers have with Coca-Cola’s refreshing taste.

What is a market positioning strategy?

A market positioning strategy refers to the overall approach a business takes to position its product or brand in a target market. An effective market positioning strategy clearly defines the 4 Ps: product, price, place, and promotion.

The 4 Ps of marketing | Phrase

With a market positioning strategy, you ensure that you understand customer needs and have both a unique selling point (USP) and a unique value proposition (UVP). It will also guide all promotion efforts and shapes how a company communicates with its target audiences. By consistently delivering the message and reinforcing the desired image, your business can build brand awareness and loyalty among consumers.

How to develop a market positioning strategy

Developing an effective positioning strategy requires careful planning and consideration for companies to create a strong market presence and gain a competitive edge.

By understanding the target audience, identifying the USP, analyzing the competition, and effectively communicating the desired image, companies can create a strong market presence and gain a competitive edge.

Here are some essential steps to creating a market positioning strategy:

  • Conduct market research : Start by understanding your target market and its needs. Conduct extensive research to gain insights into customer preferences, competitor offerings, and market trends.
  • Define your target market segment: Clearly define the specific market segment you aim to target. Consider factors such as demographics, psychographics, and purchasing behavior to create a detailed customer profile.
  • Identify unique selling points: Determine what sets your product or brand apart from competitors. Identify the unique features or solutions that resonate with your target audience.
  • Define a unique value proposition: Craft a clear statement that communicates the exclusive benefits and value your product offers, setting it apart from the competition.
  • Create a consistent brand image: Ensure that all marketing efforts align with the desired positioning strategy. From brand messaging and visual identity to customer interactions, consistency is key in establishing a strong market presence.

That being said, market positioning is an ongoing process that requires continuous monitoring and adaptation. As consumer preferences and market dynamics change, you need to stay agile and adjust your positioning strategy accordingly. This may involve reevaluating the target audience, refining the USP, or even repositioning the brand entirely.

Measuring the impact of your market positioning strategy

Measuring the impact of market positioning is essential to evaluate the effectiveness of your strategy and make necessary adjustments. While the specific metrics may vary depending on the nature of your business, there here are some key indicators to consider.

Key metrics for assessing market positioning effectiveness
Monitor changes in market share to determine the extent to which your positioning strategy is attracting customers and driving growth.
Measure brand awareness metrics, such as aided and unaided recall, to find out how well your market positioning has helped establish your brand in the minds of customers.
Conduct customer surveys or gather feedback to gauge how customers perceive your product. Assess whether it aligns with your desired positioning.
Analyze sales data to assess the impact of your positioning strategy on revenue generation. Look for trends or patterns that indicate success or areas for improvement.
Continuously monitor competitor positioning and compare it to your own. Identify areas where you may need to refine your strategy to maintain a competitive edge.

Market positioning is the key to global success

Market positioning is an integral component of any global expansion strategy. By effectively positioning your product or brand in different target markets, you can differentiate yourself from competitors, grow your customer base, and build long-term loyalty. 

Whether through product attributes, price, quality, usage, or competitor comparison, positioning strategies play a crucial role in shaping customer perceptions and influencing purchasing decisions.

Finally, continuously evaluating the impact of your positioning strategy and making adjustments as needed can help you stay ahead in a competitive market.

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How to Create an Effective Market Positioning Strategy

Aug 28, 2024

12 min. read

Your market positioning strategy is a key piece when it comes to brand development. It helps guide content marketing plans, influencer marketing tactics, pricing and distribution models, and can even have an impact on decisions made outside of the marketing department.

But the concept of marketing positioning can be a little ambiguous. So in this post, we’ll delve into all you need to know about marketing and product positioning.

Table of Contents

What is market positioning, how to kick start your market positioning strategy.

Examples of Marketing Positioning Signals

3 Ways to Measure Market Positioning

Branding and digital marketing expert,  Phil Kotler  (also known as the "father of modern marketing”), defines market positioning as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market” .

In general, strategic positioning is used to influence the perception of a company or product in relation to others in the market. The idea is to create an image and brand identity that audiences recognize and relate to in a positive way.

See also: what is brand recognition , and the secrets behind excellent product branding

Perception is complicated. It varies from person to person and it’s fragile — it can take years to craft and seconds to shatter.

So, if it’s so temperamental, why do professionals invest millions into strategic market positioning? Well, there are a number of advantages that outweigh the risks, including:

  • Better brand awareness
  • Differentiation from competitors
  • Charging premium pricing
  • Increased recall
  • Improved market and customer-centricity
  • Easier to bounce back from crises
  • Increased brand equity

With advantages like these, it’s clear why so many teams strive to have a well-laid out brand positioning strategy. Read on for how you too can reap these kinds of rewards.

To get started on a market positioning strategy, you need to asses the market as a whole, learn and track how your competitors are doing, and understand your goals. Here are some simple steps you should follow:

Conduct a competitive analysis

Plot a market map

Write a positioning statement

In order to create a unique positioning in marketing, you first need to understand how you compare to other companies in your space. This can be achieved through performing a competitive analysis using competitive intelligence .

Questions to ask:

  • Who are your main competitors?
  • How much influence do they have on each other?
  • What key themes are associated with each competitor?
  • Are certain competitors thought of more favorably?
  • What do consumers like and dislike about them?
  • Where are they performing the strongest?
  • Where are they falling flat?
  • How is the industry landscape performing as a whole?
  • Where do the opportunities lie?
  • Any threats or disrupters to keep an eye on?
  • How does your organization compare and contrast amongst others in your category?

Once you have the answers to the above questions, your competitive positioning will become clearer.

Additional resources: How to Perform a Competitive Analysis , Competitor Benchmarking: What It Is and Why It Is Important

Plot a market map

Next, using the insights gathered from your competitive analysis, create a map of the market that shows your competitive positioning. A perceptual map, sometimes referred to as a position map or market map, is a v isual representation of how competitors are positioned in relation to your organization . 

Through market mapping, you can better understand the thoughts and behaviors of consumers, spot industry trends, and identify gaps in your category, helping you craft a unique and differentiated identity.

Market maps takes the form of a matrix, representing two or more attributes that are rated on a scale. It's typically to compare a qualitative vs. qualitative attribute such as the following:

  • Quality vs. price
  • Functionality vs. price
  • Performance vs. price
  • Safety & reliability vs. price

Here are some examples to help you get started creating your your own map:

Example of perception map

Never made this type of map before? We can recommend checking out  GroupMap’s free tool  and reviewing this article  offering tips on plotting and reading market maps.

By now you should have a good idea of how you want to be perceived. The next step is to formalize these ideas into a written statement.

As explained by Hubspot , a positioning statement is a brief description of a product or service, the target market, and how the product or service fills a particular need of the target market .

It's an internal tool designed to focus and align efforts with your brand, mission statement, and value proposition.

Positioning statement examples:

G2 : G2 provides a B2B review site for business professionals who are looking to quickly discover, buy, and manage  the best technology  for their needs. Unlike other B2B review sites, G2 offers 700K+ unbiased and verified user reviews in over 1400 categories.

HubSpot : Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over 68,800 total customers in more than 100 countries use HubSpot’s award-winning software, services, and support to transform the way they attract, engage, and delight customers. Comprised of Marketing Hub, Sales Hub, Service Hub, and a powerful free CRM, HubSpot gives companies the tools they need to Grow Better.

Tips for writing a positioning statement:

  • Keep it short and sweet
  • Make it unique
  • Stay aligned with your core values
  • Include your promise
  • Explain why your company is different

Follow the below positioning statement example formula as a rule of thumb:

For [your customer], [your company] is the [your market] that best delivers on [your promise] because [your company] is [your evidence].

Examples of Market Positioning Signals

Now you that you understand your positioning and have summarized it into a statement, it’s time to think about what marketing positioning strategies you’ll use.

Companies that generate strong, positive, connections in consumers minds didn’t happen by chance. A team of marketing experts carefully crafted that perception through a number of signals (or strategic positioning strategies). 

Let’s explore some of those signals in more detail:

Perceived quality

Corporate endorsements, influencer marketing, thought leadership, distribution.

More often than not, price is a key factor in a customers decision-making process. Because of this, marketing teams use their pricing strategy to portray a distinct image and, hopefully, influence how prospective customers perceive the value being presented.

Pricing strategy can revolve around keeping prices as low as possible, or it can be more complex. Offering "premium" prices, or pricing higher than the competition can trigger a sense in consumers mind that the higher priced items are better quality, or more worth the cost.

Price and perceived quality often go hand in hand, which is why they’re frequently used attributes for perception maps. According to David Aaker, consultant and professor, perceived quality has three prongs: 1. Objective quality : based on the performance of a product 2. Manufacturing quality : based on how well made a product is (or isn't) 3. Product-based quality : associated with features, parts, ingredients, or services Say you have two TVs, one is a 4K plasma Smart TV with after sales care, and the other is a standard model with no bells and whistles.

You may think that the entry-level TV would naturally be perceived as being lower quality as it has fewer features. But strategic marketing positioning requires you to understand what "quality" means to different customer segments.

If certain audiences prefer to look at the manufacturing specs materials used and the entry-level TV comes out top, consumers will deem that to be of better quality regardless of the product attributes of the plasma TV. Moreover, the plasma TV may be produced by a company that has a history with product recalls, in which case, consumers are likely to think that entry-level TV is still better quality. 

So to summarize, it's important to achieve perceived quality on a level that consumers consider important. Want to learn more about better understanding your target audience and their decision making process? Check out our  Meltwater Audience and Consumer Insights tool or take a look at the best consumer insights tools in comparison !

Another positioning signal often leveraged by marketing and branding teams is corporate endorsements.

While McDonald's is known as being a fast-food company, they worked to dispel their unhealthy image through  their London 2012 Olympic sponsorship .

Despite the sponsorship confusing people at first, it gave McDonald's the publicity and platform they wanted to raise awareness around obesity. In line with their sponsorship, they unveiled a large-scale promotional push which took place throughout the duration of The Games and included activity toys with Happy Meals and vouchers for sport sessions.

As a top-tier International Olympic Committee sponsor, McDonald's was also the only branded food in the Olympic Park and the Athlete's Village. The messaging strategy? If a Big Mac is good enough for the world’s top athlete’s, it's good enough for you (in moderation… of course)!

McDonald's chips

Influencer marketing can also significantly help company positioning efforts. Due to consumers often finding influencers more credible than owned brand content, it’s a great strategy to use for those wanting to amplify positive brand perceived amongst their target audience.

With that being said,  choosing the right influencers to endorse your brand  is critical. Make the wrong decision and your business can end up being positioned in a totally different direction than what you set out to achieve.

Thankfully you don’t have to rely on your intuition alone when choosing influencers. Using an  influencer management solution , you can filter by specific attributes and topics to find the perfect influencer partners.

Tip: These are the best social influencer management platforms and social influencer marketing platforms .

Lots of companies choose to include thought leadership in their content marketing strategy and  frame their executives as experts on certain topics . Thought leadership is useful for all organizations, but it’s especially helpful for those wanting to break into a new category, as it can make your leadership seem more credible and trustworthy.

A great example is  Lush cosmetics . To strengthen their positioning as a company focused on cruelty-free products, Lush stays closely involved in lobbying for animal rights. They even have their own award,  The Lush Prize , which is the largest prize fund in the non-animal testing sector, awarding £250,000 to support initiatives that work to end or replace animal testing.

lush store

Your distribution strategy can say a lot about you, and is a big factor in market positioning. For example, if you're a luxury brand, you may want to opt against selling your goods in convenience stores, given that the products sold in convenience stores tend to be lower in price in order to match the consumers browsing mindset and expectation.

That said, while it’s unlikely that customers will stop in to get a pint of milk or loaf of bread and walk out with a £1,000 handbag — but if it’s lower-priced, you might just trigger that impulse buy! It all depends on the goals and capacity of your distribution strategy.

It's important to note that when selling goods through retailers, brands have less control over promotional efforts. This is why it’s rare to see extremely exclusive brands in department stores — yes, even the fancy ones! Such companies prefer owning their owns stores, and in most cases, rarely offer promotions — a strategic tactic that helps strengthen their exclusive market positioning!

There’s no use putting all this effort into strategic positioning if you’re not going to measure whether or not your choices have been successful in moving the needle. As mentioned earlier, perception is complicated — but that doesn’t mean it can’t be analyzed.

Below you’ll find 3 strategies you can use to understand if you’ve influenced how your target audience perceives you.

Media monitoring

Use  media intelligence  and social listening insights to see how your thought-leadership content is resonating, and follow product mentions to assess if your pricing and distribution choices are making sense.

You can do this by measuring how many times your organization is mentioned alongside relevant industry conversations and keywords. You can even get a sense for how prominent your company is within the conversation, compared to your competitors.

Screenshot showing Meltwater media intelligence software

Audience analysis

Use a  consumer analysis tool  to see if there's a strong correlation between communities who follow you on social media, or if there’s a disconnect. If there's a disconnect, it doesn't have to be a bad thing! It may simply shine a light on a new marketing opportunity for your products.

This can be achieved by looking at dimensions such as audience affinity, how your target audience describes themselves in their bios, other types of companies they follow, and so on. This is especially useful if you want to measure whether you’ve successfully connected with the type of target audience you’re marketing to.  

a graph showing audience inights

Hold a focus group

Brand salience is the degree to which your company is thought of or noticed by consumers when they make a purchase decision. Focus groups are a great way of qualitatively measuring brand salience .

Now you should have a better understanding of what market positioning means and how to get started on a market positioning strategy. To see how Meltwater can help with your strategic positioning, fill out the form below!

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Positioning Strategy: A Complete Guide for Your Market Plan

Positioning strategy helps businesses stand out in the market and attract more customers. Differentiate a brand from its competition.

In marketing, a positioning strategy is like a special spotlight that shows how a brand is different from its competitors. It’s all about how a brand wants people to think about it compared to other similar brands. Understanding positioning strategies can help us connect better with the people we want to reach.

In this blog, we’ll break down the main ideas behind strategic positioning and look at a complete guide on how to create effective positioning strategies.

What is positioning strategy?

A positioning strategy is like the way a brand wants to be known and remembered by its customers. It’s about telling people why a product or company is better or different from others. 

Just like when you meet new people, you want them to remember something unique about you. Companies want their customers to remember something special about their products or services.

To do this, companies think about what makes them special, who their products are for, and why people should choose them over other options. Then, they create a plan to talk about these things in a way that makes customers like and trust them. 

This helps the company stand out in a crowded marketplace and attract the right customers who will love what it offers. So, a positioning strategy is like a brand’s way of introducing itself and making a good impression on customers.

Importance of positioning strategy for your market plan

A positioning strategy is crucial for your market plan because it helps your brand stand out and make a lasting impression on customers. Here’s why it’s so important:

Differentiation

In a competitive market, customers have many choices. A well-defined positioning strategy sets your brand apart from others by highlighting its unique qualities and benefits. This differentiation helps customers understand why they should choose your product or service over others, increasing your chances of success.

Targeted marketing

Knowing your position in the market allows you to tailor your marketing efforts to a specific audience. This precision saves time and resources and ensures that your message resonates with the right people, leading to higher conversion rates.

Brand consistency

A clear positioning strategy guides your branding efforts, ensuring that all marketing materials, from advertisements to social media posts, convey a consistent and compelling message. Consistency builds trust with customers and reinforces your brand’s identity.

Long-term success

A strong positioning strategy is not just about short-term gains. It lays the foundation for long-term success by creating a customer loyalty base and establishing your brand as a leader in its category.

A well-crafted strategy is a cornerstone of any successful market plan. It sets your brand apart, helps you reach the right customers, maintains brand consistency, and ensures long-term growth and profitability.

3 keys of strategic positioning

These three keys of strategic positioning – Channel, Customer, and Competition – are essential for businesses looking to carve out a successful place in the market:

Your chosen channel is the way you communicate and interact with your customers. Whether it’s through social media, advertising, email campaigns, or other means, your channel plays a critical role in how your brand is perceived. Selecting the right channel for your target audience ensures that your message reaches the right people at the right time.

Understanding your target market and its specific needs is fundamental to developing a successful positioning strategy. When you know your customers well, you can tailor your products, services, and marketing efforts to meet their expectations. This customer-centric approach leads to increased satisfaction and loyalty.

Competition

To effectively position your brand, you must assess how it compares to your competitors in the market. Creating a positioning map helps you understand where your business stands in the minds of customers relative to other players. This insight guides your overall business strategy and helps you identify opportunities to stand out from the competition.

Types of positioning strategy

Businesses can employ several types of positioning strategies to establish a unique identity and capture the attention of their customers. Here are some common types:

Market positioning strategy

Effective market positioning strategy defines how your brand is perceived within a specific market or industry. It involves tailoring your products, services, and marketing efforts to cater to the needs, preferences, and behaviors of a particular segment of the market. 

This strategy helps your brand establish a unique identity within that market, allowing you to differentiate yourself from competitors. For example, if you’re in the smartphone industry, you might position your brand as catering specifically to tech-savvy professionals who prioritize security and productivity.

Product positioning strategy

Product positioning focuses on highlighting the distinct features, benefits, and value that your product offers in comparison to others in the market. It’s about creating a clear and compelling image of your product in the minds of consumers. 

This positioning strategy answers questions like, “Why should customers choose our product over similar options?” For instance, if you’re marketing a sports car, your product positioning might emphasize speed, performance, and cutting-edge technology.

Brand positioning strategy

Brand positioning goes beyond individual products or services; it’s about shaping the overall perception and reputation of your brand in the minds of consumers. It encompasses the emotional connection and values associated with your brand. 

Effective brand positioning creates a unique and memorable identity that fosters customer loyalty and trust. For instance, a brand like Apple is positioned as innovative, user-friendly, and design-focused, creating a strong emotional bond with its customers.

Price positioning strategy

Correct Pricing strategy is about how your product’s price is positioned relative to its quality and the perceived value it provides. It involves deciding where your product stands on the price spectrum within your market. 

You can position your product as a premium option with a higher price point, emphasizing quality and exclusivity. Alternatively, you can position it as a budget-friendly choice, highlighting affordability and value for money.

Quality positioning strategy

Quality positioning centers on highlighting your product or service’s superior quality, reliability, and performance. It aims to position your brand as a leader when it comes to quality within your industry. This strategy is often used in industries where quality is a critical factor, such as luxury cars, high-end electronics, or gourmet food products.

Competition positioning strategy

Competition positioning means showing why your brand is better than others. You talk about what makes your brand special compared to your competition. To do this, you need to know what your competitors are good at and where they’re not so good. 

Then, you focus on the things your brand does better and use that to show why customers should choose you. It’s like saying, “We’re the best because we do this really well, and they don’t.” This strategy needs you to really understand what your competitors are good and not so good at and then use that to make your brand look like the better choice.

How to create a positioning strategy: a step-by-step guide

Positioning your brand effectively in the market is essential for standing out and attracting your target audience. Here’s a step-by-step guide to help you develop a compelling positioning strategy:

Step 1: Identify your goal

Begin by clarifying your goal for creating a positioning strategy. What do you want to achieve? Your goal could be to increase market share, target a new customer segment, or rebrand your business. Having a clear objective will guide your strategy.

Step 2: Study your competitors

In-depth competitor analysis is crucial. Identify your competitors and study their positioning in the market. Understand how they communicate their unique value propositions and what sets them apart. This will help you find opportunities to differentiate your brand.

Step 3: Create a perceptual map

A perceptual map is a visual representation of how consumers perceive brands in your industry. It helps you understand where your brand stands relative to competitors in terms of key attributes or factors. Plot your brand and your competitors on the map to identify gaps and opportunities for positioning.

Step 4: Make a timeline

Develop a timeline that outlines the key milestones and deadlines for implementing your positioning strategy. This timeline should include tasks such as market research, branding updates, content creation, and promotional campaigns. A well-structured timeline keeps your strategy on track.

Step 5: Find your niche

Identify a niche or specific market segment that aligns with your brand’s strengths and unique offerings. By focusing on a niche, you can become an expert in that area and connect more deeply with your target audience.

By following these steps, you can create a positioning strategy that helps your brand stand out, resonate with your audience, and achieve your business objectives. Remember that positioning is an ongoing process that may evolve over time to adapt to changing market dynamics and customer preferences.

Strategic positioning best practice

Positioning strategy is a critical component of marketing and branding. Here are some best practices to help you develop and implement an effective strategy:

Understand your target audience

In-depth knowledge of your target audience is essential. Create detailed buyer personas to identify their needs, preferences, and pain points. Tailor your positioning to address these aspects effectively.

Analyze competitors

Conduct thorough competitor research to understand their positioning strategies. Identify gaps in the market where your brand can excel. Your positioning should aim to fill these gaps and offer something unique.

Create a unique value proposition (UVP)

Your UVP is a concise statement that communicates your brand’s unique benefits and values to customers. It should clearly articulate why your brand is the best choice. Make sure your UVP is compelling and easy to understand.

Consistency across channels

Maintain a consistent brand image and messaging across all channels, including your website, social media, advertising, and customer interactions. Consistency builds trust and reinforces your positioning in the minds of customers.

Focus on customer benefits

Instead of just listing features, emphasize the benefits your products or services offer to customers. How will using your brand improve their lives or solve their problems? Connect emotionally with your audience.

Segment your market

If your target audience is diverse, consider segmenting it into smaller, more specific groups. This allows you to tailor your positioning for each segment, making it more relevant.

Test and refine

Don’t be afraid to test different positioning strategies or messages with your audience. Conduct surveys and A/B tests and gather feedback to refine your approach based on what resonates best.

How QuestionPro help create your business positioning strategy?

QuestionPro is a versatile online survey and research platform that can be a valuable tool for creating and refining your positioning strategy. Here’s how QuestionPro can help:

Market research surveys

QuestionPro allows you to create customized surveys to gather insights from your target audience. You can use surveys to understand customer preferences, pain points, and perceptions about your brand and competitors. This data can inform your positioning strategy by clearly understanding market dynamics.

Competitive analysis

Use QuestionPro surveys to conduct competitive analysis. You can create surveys to collect feedback about your competitors from your target audience. Understand what customers like or dislike about competitors’ products or services, and identify opportunities to differentiate your brand.

Customer feedback

Positioning is all about meeting customer needs and expectations. Use QuestionPro’s feedback and satisfaction surveys to collect real-time feedback from customers. Identify areas where your brand excels and where improvements are needed. This data can guide your positioning efforts.

Segmentation

Effective positioning often involves segmenting your target audience. With QuestionPro, you can create surveys that include segmentation questions. This allows you to divide your audience into smaller groups based on demographics, behavior, or preferences. Tailor your positioning for each segment to increase relevance.

Brand perception studies

Use QuestionPro to conduct brand perception studies. Create surveys that assess how customers perceive your brand compared to competitors. Are you seen as innovative, affordable, or customer-focused? Analyzing these perceptions helps refine your positioning strategy.

A/B testing

QuestionPro offers A/B testing capabilities, allowing you to test different positioning messages or brand elements. Create surveys with variations of your positioning statement and see which resonates most with your audience. Use the data to refine your final positioning.

Employee surveys

Ensure internal alignment with your positioning strategy by surveying employees. Gather their feedback and insights to ensure everyone in your organization understands and supports the brand’s positioning. QuestionPro’s employee engagement surveys can help with this.

Data analysis and reporting

The platform provides robust data analysis and reporting features. Visualize survey results with charts and graphs to gain actionable insights. Use this data to make informed decisions and adjustments to your positioning strategy.

Integration

QuestionPro integrates with other business tools and platforms, making it easier to incorporate survey data into your overall marketing and strategic planning. Integration with customer relationship management (CRM) systems can be particularly valuable.

Survey templates

QuestionPro offers a library of survey templates for market research, customer feedback, and brand perception. These templates can save you time when creating surveys for positioning research.

Real-time analytics

Get real-time access to survey responses and analytics. This allows you to stay agile and make adjustments to your positioning strategy as needed based on the incoming data.

QuestionPro is a versatile platform that can facilitate every step of the positioning strategy process, from gathering initial market insights to testing and refining your brand’s positioning. Its survey and research capabilities empower businesses to make data-driven decisions that strengthen their market position. Contact QuestionPro today for a free trial or learn more!

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How to Develop a Positioning Statement for Your Business

Female entrepreneur working in her flower shop checking on a plant. She's positioning her business as high-end and exclusive thanks to some unique plant varieties.

4 min. read

Updated May 10, 2024

Download Now: Free Business Plan Template →

Positioning is the essence of marketing strategy, and some would say of all business strategy.

It’s about how your business is different from the others. It’s about what your business does for people that other businesses don’t do.

  • The positioning statement template

I’m not sure where this classic positioning statement template started, or whom to credit, but I’ve found it very useful for years of developing business plans.

“For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].”

Here’s an example of that template in action for a social media consulting service, with the components separated:

“For [small business owners who want social media marketing but don’t have time to do it themselves], our social media services [do it for them without taking their time and effort]. Unlike [most social media consulting], [we don’t just advise; we do the work].”

Another example for a healthy fast food restaurant:

“For [busy people who want healthy foods but need fast meals], [we offer organic healthy fast foods]. Unlike [most fast foods offerings], we [offer fresh local ingredients, organic, grilled not fried, with a lot of vegetables and vegetarian options, and free-range meats].”

The examples show how the positioning statement sets the business and its offering apart from others. It implies strategic focus and a strategic match between target market, market need, and business offering. It’s a great tool to help you view your own business strategically, and to explain your strategy to outsiders when necessary.

  • Positioning diagrams

I also like to explain positioning graphically with diagrams, like this simple one from Philip Kotler’s iconic textbook, “Marketing Management,” that shows positioning related to breakfast:

market position business plan

The diagram illustrates simple positioning related to breakfast. Breakfast can be slow or quick, and expensive or inexpensive. Pancakes might compete with hot cereal for slow and inexpensive, but bacon and eggs are different because they are slow and expensive. The instant breakfast doesn’t compete with bacon and eggs. That’s positioning.

To do your own positioning diagram, start with creative thinking about how you can divide your market in terms of variables that make strategic sense. In the example below I decided to organize the automobile market according to two factors: economical versus expensive, and practical versus fun. If I were looking to position specific cars with this, I’d put a luxury SUV on one extreme as practical and expensive; and a Mini-Cooper on another, as economical but fun.

I hope you can see how this kind of positioning diagram can lead to strategic thinking. What kinds of cars compete against the Mini-Cooper? What kinds of cars compete in the luxury SUV area? I hope you can also see how the positioning will help set marketing strategy, marketing messaging, and so forth.

We could take this diagram and develop a formal positioning statement for the Mini-Cooper:

For people who like fun-to-drive sporty cars but can’t afford to spend what a Porsche costs, the Mini-Cooper S offers a small car with great cornering and good acceleration that costs only about $30,000.

You may notice that the positioning diagram example here is a lot like the competitive matrix that appears in many business plans. That similarity is not an accident. The competitive matrix that appears in many plans and pitches is a direct descendent of the positioning diagram that Philip Kotler first popularized in the 1970s and 1980s.

What I wrote in an earlier discussion of the competitive matrix also applies here, with positioning:

“Don’t, please, discount [this] as an internal tool to help with strategy development and specifics of designing products. For this use, you don’t worry about showing how what you have is better; you use it to look for holes in the market, and needs that aren’t covered, so you can lead product development toward solutions that are better business opportunities.”

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So which do you include in your business plan: competitive matrix, positioning statement, positioning diagram, or two or even three of these components? As with so many elements of a good business plan, this depends on the exact goal of your plan and the nature of your business.

If your plan is to serve as background information for raising angel investment, then you’ll need a pitch deck ; and either your positioning diagram or your competitive matrix will be one slide in the deck. Don’t give your investors both.

If you use the more trendy competitive matrix, include it in the part of the presentation that you’re using to explain and develop your product, product positioning, or marketing. Put it close to your relevant information, and be flexible, because the flow of a pitch depends on the specifics. If you use the more traditional positioning diagram, keep it close to strategy or marketing strategy.

Within the plan itself, in that case, include the formal verbal positioning statement as part of marketing strategy. Done right, it’s concise and communicates strategy very well. Set it aside as a “positioning statement.” That specific phrase will be meaningful to people who have studied marketing.

If you’re doing a lean business plan, use the positioning statement and the positioning diagram to help with strategy development. It fits into strategy or tactics, and concrete specific actions to react to your competitive positioning could easily be milestones.

Content Author: Tim Berry

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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The Complete Guide to Positioning in Marketing

Learn how to improve your positioning in marketing. We cover the benefits of positioning, types of positioning, examples, how to create a positioning strategy.

Ella Goldfeld

Manager of the Experts Success Team at Mayple

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Natalie Stenge

Natalie is a content writer and manager who is passionate about using her craft to empower others. She thrives on team dynamic, great coffee, and excellent content. One of these days, she might even get to her own content ideas.

Updated November 20, 2023.

The Complete Guide to Positioning in Marketing main image

There are probably hundreds or even thousands of companies that provide products or services similar to yours. They give similar promises and offer similar benefits, and thus they have a similar position in the mind of the average consumer.

Such a situation makes the consumer wonder why they should go for one company instead of another. They might feel like all the options are the same. As a business owner, your job is to show why your products are not the same as others’ products and why you can provide unique value to customers about your competitors.

The process of positioning is crucial for your marketing strategy and marketing efforts. This guide will help you learn how to distinguish yourself from your competition in the consumers’ minds, thus getting ahead of your competition in a highly competitive market.

What does positioning mean in marketing?

Positioning is one of the 4 P’s of the marketing mix and refers to the process influencing the consumer perception of your brand or a specific product you offer. More specifically, positioning is the process of creating a specific image of your brand with which your target customers will associate you, thus distinguishing you from your competitors.

As Ries & Trout say, “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.”

Positioning is all about choices - choosing your place in the market. For example, a car manufacturer may emphasize the practicality of its cars, positioning them as quality vehicles for the average consumer instead of costly status symbols. Likewise, a fast food chain may position itself as a palace to get inexpensive and quick meals, unlike high-end restaurants.

On the other hand, a fashion brand may position its clothes as high-end status symbols with completely unique design choices. This would make it stand apart from other clothing manufacturers.

No matter what business you run, positioning is invaluable for showing consumers why they should pick your brand out of all the others. You need to create a distinct image and make it stick in your consumers’ minds to have a lasting impact and ensure they don’t forget you and the value you bring.

Positioning is somewhat similar to processes such as branding, value proposition, messaging, and differentiation. However, there are some key differences that we need to highlight to understand better what positioning is.

Positioning vs. branding

Branding refers to creating a unique logo, tagline, or slogan to create an original brand image . You can think of the McDonald’s logo and the recognizable “I’m lovin’ it” slogan. These two elements are unique to the company and instantly recognizable.

Positioning is similar, but its main focus is on creating a specific image or idea of your brand in your customers’ minds. For example, you might try to position your company’s products as more practical when compared to your competitors.

Positioning vs. value proposition

Positioning can also be confused with a value proposition. A value proposition is a promise you make to your customers regarding the benefits, use, and quality of your products or services. So a value proposition might be a part of the positioning, but it is not the same process.

Positioning vs. messaging

While positioning involves outlining the uniqueness of your products and services in comparison to your competitors, messaging is when you communicate how you’ll fulfill your promises to your target audience.

Positioning vs. differentiation

Since positioning is to a great extent about how different your product is from the competition, it might be easy to confuse it with differentiation. However, differentiation is a tactic you use to make a specific offer or product stand out and get more interest from the target audience.

The benefits of positioning in marketing

Now that we know what positioning is, we should examine its benefits in greater detail. Here are all the benefits of having good positioning.

Have a stronger position in the market

When you create a positive image of your company in consumers’ minds and associate your business with a certain value, you’ll attract more customers.

A successful positioning campaign will cement your position not only in consumers’ minds but also in the target market. The goal is to have consumers believe that your products and services provide more value than those of your competitors.

g2-grid-semrush

Increase sales

Improved positioning can lead to greater sales. Having a relevant offer and communicating information about your company effectively may allow you to get a bigger piece of your existing market and expand to new markets.

Better market to your target audience

Positioning also allows you to reach out to your target audience and better capture their imagination. This will allow you to market your products and services to your target buyers better. You will be able to address their needs and pain points effectively, thus turning them into more loyal customers.

Build a stronger brand

Positioning goes hand in hand with branding. While branding will give you a recognizable logo and slogan, positioning will ensure that your brand is associated with a certain value and that your (potential) customers see it in a certain way. And together they are part of an overall branding strategy .

You might position your business as one that provides convenience at a reasonable price. Such clear positioning will result in a strong brand because you’ll show that you have a clear focus and target demographic. Customers who prefer this kind of service or goods will know where to look for them.

Every brand must have a specific focus. A brand that tries to cater to everyone will end up catering to no one. And a great branding freelancer will be able to help you take your first-party data and create a brand that attracts your ideal customer.

Types of positioning in marketing

There are different types of positioning depending on what you want to focus on in your business. Let’s look at each one in detail.

For most consumers, a product’s price is a determining factor when they have to decide if they’ll buy something or not. A company that offers affordable products with reasonable quality will most likely have lots of success with customers if it positions itself as a low-cost brand with decent products.

A good example of this is Dollar Shave Club compared to Gillette. Even though Gillette was the leading company in the razor blade market, Dollar Shave Club took over a decent chunk of their market due to their unusually low prices and good quality.

dollar-shave-club-price

The cheapest razor cartridge from Dollar Shave Club is only $0.20, which swayed many customers to their side. This enabled Dollar Shave Club to successfully take on a giant like Gillette. They have positioned their business around a competitive pricing strategy and it worked. They were acquired by Unilever in 2016 for a whopping $1 billion .

Quality is the determining factor for companies that sell products in the same price range. Think of the reason people buy Volvos - they are more expensive but are significantly better quality-wise than other cars. Consumers for whom product price is not an issue will want to get the highest possible quality.

volvo-safety

Chipotle and Taco Bell are good examples of this. Chipotle was able to get a good part of the market share when it focused on quality instead of price.

Competitors

When positioning your brand, you must also emphasize the ways in which you’re better than your competition. This can refer to your superior customer service, top-notch experts that you hire, or better standards of production.

Convenience

Sometimes your biggest strength might be the convenience you offer to your customers. It can refer to the sheer number of your stores or office, accessibility, multiple-platform support, or ease of use of your application(s).

A convenience-based positioning strategy attracts busy customers, who are often willing to pay extra to save time. And while it can get you greater profits, it can also cost more. For example, if you’re offering a mobile app and a desktop version of the app, you can get more customers, but you’ll need to spend more on development.

Customer needs

If you want to get and retain customers, you must be ready to quickly and efficiently meet their needs. Consumers are generally happy to pay a premium price if they know that any problem they might have with the product will be solved quickly and efficiently.

On the other hand, If consumers perceive you as cold and disinterested, they’ll rather opt for someone else, even if your goods or services are top-notch.

Positioning your company around your customer and their needs is a powerful strategy that helps cement your position in the market.

Product use

Another thing you can focus on is the intended use of your product(s) and its characteristics. It’s impossible to create products that customers can use for everything and in every situation, so you have to focus on a particular characteristic and use it to stand out.

For example, Volvo emphasizes the safety of its vehicles, and drivers who prioritize that characteristic know where to turn when buying a car. On the other hand, drivers that prefer reliability will turn to Toyota, as the company positions itself as a manufacturer of reliable cars.

Examples of positioning in marketing

Now that you know the different types of positioning here are a few great examples from the world’s most famous brands. These examples will deepen your understanding of positioning and they might give you some useful ideas you can use in your marketing efforts.

1. Tinder and Bumble

Tinder and Bumble are two of the biggest names in the dating industry and they rely on different positioning strategies to attract new users and retain the ones that they have.

Tinder tries to position itself as a leader in the industry by drawing attention to its large number of users ( 75 million and counting) and its long presence in the market. That’s an important factor for potential users who would like to have a wide pool of potential dating partners.

tinder-vs-bumble

On the other hand, Bumble uses its unconventional approach to position itself as a game changer in the industry. Bumble is specific because it only lets women initiate conversations, and it also offers users to look for friendships and business connections.

Therefore, Bumble relies on differentiation to stand out from the competition and present itself as an innovative alternative to its competition.

2. Apple Music and Spotify

Apple Music and Spotify are bitter rivals when it comes to music streaming. Even though their services are similar, their positioning strategies are quite different.

Spotify relies on a price-based strategy. While it has a premium option that makes it very similar to Apple Music, it also offers a free plan that attracts many users. Additionally, it offers a great degree of personalization that allows users to enjoy their favorite music and discover new artists with only a few clicks.

Apple Music focuses on its status as a prestigious service. It emphasizes its impressive catalog of 60 million songs and exclusive features such as on-screen lyrics and music videos, which Spotify offers for only a few songs.

3. Walmart and Target

The rivalry between Target and Walmart can also give us a great example of different positioning strategies. While both chains offer similar products and prices, their positioning is vastly different.

Walmart competes on price and offers the best-priced goods in the market. This has some drawbacks and it has earned them an interesting reputation but customers know that if they want to get the best deals they should go to Walmart.

On the other hand, Target focuses more on customer experience and product quality. Target stores tend to be better organized, and the customers find the experience much more enjoyable than the one they might get at Walmart.

4. Popeyes vs. Chick-Fil-A

Both companies serve tasty fried chicken but with very different approaches. Popeyes focuses on differentiation, while Chick-Fil-A focuses on its quality and customer service.

190819-think-chick-fil-a-popeyes-ew-524p

Popeyes’ main focus is on home style, Cajun recipes, and food that are different from many other similar chains. This allows them to stand out from the crowd and be recognizable for their food.

Chick-Fil-A emphasizes the quality and general appeal of its food to position itself. However, their strategy is hybrid because they also rely on customer service . They don’t brag about it, but they let their employees’ actions speak for themselves, so they’re recognized as a place where customers feel well-treated.

How to create an effective positioning strategy

Here is a step-by-step process for creating an effective market positioning strategy for your business.

1. Define your current position

Before you dive deep into the positioning process, you must first determine your current position in the market. Do prospective customers see your products as just another thing on the market, or do they see them as something unique? Conduct some research to determine how your products are perceived by your target audience.

After that, you must determine who your potential and ideal customers are and how you can connect to the typical buyer persona. If you have a wide range of products, segmenting your customers is also a good idea. This will help you create campaigns that cater to specific market segments.

2. Analyze your competitors

Competitor analysis is just as important as analyzing your own position in the target market. Conduct a SWOT analysis to see how you stack up against your competitors. Identify the weaknesses you need to address, as well as the strengths you should emphasize.

SWOT-analysis

Pro tip : take note of your competitors' marketing channels, tactics, and advertising campaigns, and record all of those in your marketing plan . Refer back when you need fresh ideas of what works in your target market.

3. Create a positioning map

Positioning maps are a visual representation of how you compare to your competition based on certain attributes and values they find important. It’s a super helpful tool that helps you see a clear picture of the strengths and weaknesses you and your competitors have.

mayple-competitor-map

4. Tweak your current position

Once you know what you need to work on, you can start tweaking your position. Emphasize your strengths compared to your competitors and convince your potential customers that your business is the place to go if they’re looking for a certain value.

This value should be the one you’ve identified as your strong point and decided to push forward as a factor that differentiates you from the competition. This should also be the value you associate with your customers’ needs.

5. Create a positioning statement

Your positioning statement should be one or two sentences long and briefly state your mission and goals. It should emphasize your uniqueness compared to your competition.

It consists of three elements - what you do, who your target audience is, and the greatest benefit that your product provides.

positioning-statement

For example, here’s a compelling positioning statement from Amazon: “Our vision is to be the Earth’s most customer-centric company, to build a place where people can come to find and discover anything they might want to buy online.”

This statement summarizes their goals and proof of the statement has become self-evident. Amazon offers basically anything you might want to buy, it’s all available at the click of the mouse, and it's delivered to your doorstep.

6. Create a tagline

A tagline is better known as a slogan. A good slogan can be almost synonymous with your brand and will do an excellent job showing your customers what they can expect from your company.

We’re all aware of slogans such as “Just do it” from Nike or “Because you’re worth it” from L’Oreal. Those slogans are instantly recognizable and tell consumers exactly what they can expect from the companies.

nike-just-do-it

7. Test your marketing positioning

Once you’ve prepared everything essential for positioning, it’s time to put it to the test. It takes time until your customers’ perception of your business changes into what you want it to be. This allows you to track the progress of your positioning campaign and make changes.

Don’t expect your positioning campaign to be effective immediately. It’s almost impossible to do everything perfectly right away, so embrace the effort and know that it’s a process.

Looking to position your company?

If you’re serious about standing out and conquering your competition, you need to have a successful positioning strategy.

It could seem daunting but you don’t have to do it alone. Hire the perfect marketing consultant through Mayple and get the job done. Get started now and start working on a killer positioning plan!

What is the meaning of market positioning?

Market positioning refers to shaping the consumer perception of your brand, company, or products. Brands position themselves by creating an image or identity of the brand or product so that consumers view it in a certain way. It’s an important part of your marketing mix and serves to strengthen your brand and improve sales.

What is the importance of market positioning?

The objective of market positioning is to stand out from the competitors and show your uniqueness to the customers. It associates your company with certain values and characteristics, and people will know they should turn to you if they’re looking for those values and characteristics.

It's important for companies that want to develop better messaging for their target segment, improve their current market position, and increase sales.

What is meant by positioning in marketing?

Positioning is how consumers see your brand. In other words, it refers to the values you want your customer base to associate you with. It can also refer to how consumers see your product in relation to other products on the market. Good positioning makes your product unique in the eyes of your target segment and helps display the benefit it provides for them.

What are the 5 positioning strategies?

The five positioning strategies are: quality positioning, convenience positioning, customer needs positioning, product positioning, and competitive positioning.

What are the 4 types of product positioning?

There are four types of product positioning: price-based positioning, lifestyle-based positioning, characteristics-based positioning, and quality-based positioning. You can also use a combination of two types of product positioning together to make your product stand out in the market.

What is an example of positioning?

Volvo is a good example of positioning in the car industry. The company emphasizes the safety of its vehicles, so consumers who prioritize that characteristic know that Volvo is the best option for them.

Why is positioning important?

Positioning helps you boost sales, attract your target audience, and create a unique image of your company. This makes you a recognizable force in the target market and cements your position in your customers’ minds.

What are the 4 Cs of positioning?

The four Cs of positioning are clarity, consistency, competitiveness, and credibility. They tell what your main focus should be when working on your positioning. They were created by David Jobber and John Fahy in their book "Foundations of Marketing" (2009).

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Market Positioning

Published on :

21 Aug, 2024

Blog Author :

Edited by :

Reviewed by :

Dheeraj Vaidya

What Is Market Positioning?

Market Positioning refers to creating a unique proposition for a product, brand, or enterprise in the minds of prospective customers, distinguishing it from competitors. It involves interpreting and meeting the requirements and preferences of target customers and presenting the product or service offering in a unique and attractive manner.

Market Positioning

Businesses adopt various strategies to differentiate its product, service, or brand from other companies. Thus, they can capture a sizable portion of the niche market (Serviceable Obtainable Market) with robust positioning strategies. However, it is not a one-time action but a rigorous and continuous process of building a brand or product image in the target market .

Table of contents

Market positioning explained, advantages and disadvantages, market positioning vs product positioning vs brand positioning, frequently asked questions (faqs), recommended articles.

  • Market positioning refers to the process of employing strategies to get target consumers to perceive a brand or product in a different light (more favorable) compared to its competitors' offerings.
  • It is a systematic approach to building a brand or product image, acquiring the target consumer base, and strengthening customer loyalty or trust over a period.
  • The different positioning strategies are pricing, differentiation, user group, customer service, convenience, and quality positioning.
  • It is different from product positioning and brand positioning. Product positioning focuses on developing competitive products or services, while brand positioning aims to nurture an emotional connection between customers and the brand.

Market Positioning enables businesses to establish a competitive advantage and a distinct value proposition in the market. It can be achieved through various strategies, such as emphasizing specific features, appealing to certain customer segments, or highlighting particular benefits. When done effectively, it attracts the desired customer base and fosters brand loyalty.

Market positioning, targeting, and segmentation is an inevitable part of customer acquisition for firms in the current competitive scenario. Effective positioning in marketing is a systematic approach based on the following steps:

  • Determine the brand's current position, including its markets, target audience, mission, vision, Unique Selling Proposition (USP), and problem-solving ability
  • Conduct competitor analysis, i.e., analyze market acquisition, strengths, and weaknesses
  • Compare and find the features that differentiate a product or service from that of the competitors
  • Summarize and present the identified unique feature or benefit to form a positioning statement for the brand
  • Add a slogan or tagline that justifies the brand's positioning statement to inform and attract potential customers
  • Test the positioning strategy using various qualitative and quantitative research tactics to understand customer responses

Such strategies are typically based on algorithms. Companies may use cluster analysis or conjoint analysis to derive conclusions to determine their views on market positioning in a business plan. In cluster analysis, companies club a set of identical attributes like similar features, needs, or uses to develop a product and target the customer segment that values these attributes. However, a mix of different characteristics, such as benefits, uses, or features, is considered together in a conjoint analysis. This helps design a product or service that attracts customers who prefer a combination of these factors.

Successful positioning in marketing requires a clear interpretation of the target audience and their choices, as well as a consistent and compelling brand message. It involves various strategies:

  • Preemptive : This is a positioning strategy where the company promotes itself as the first (pioneer) to offer a specific product, service, benefit, or feature.
  • Value-Based or Pricing : Per this positioning type, the company emphasizes the affordability and cost-effectiveness of a product or service to target price-conscious customers.
  • Quality : This approach focuses on the product or service offering's superiority, reliability, and performance to appeal to customers seeking quality or premium products and services.
  • Differentiation : The differentiation positioning highlights the unique features or attributes that set a product or service apart from its competitors.
  • Niche : Under this positioning tactic, a brand offers a specialized product or service to target and cater to a specific, well-defined market segment with a refined customer base .
  • User group : This method involves positioning a product based on its target user groups, such as women, senior citizens, or infants.
  • Convenience : Companies adhering to this strategy use convenience positioning to promote their product or service. Convenience is attached to a specific attribute, such as availability, top-notch service, high usability, or anything else that makes the product or service seem convenient and effortless to customers.
  • Customer Service : This strategy is commonly adopted by all kinds of businesses. Both services and products can be covered under this category. It aims to address specific customer needs or problems by focusing on maintaining a user-friendly approach, ensuring effective communication, and offering adequate support from time to time.
  • Social Media : Social media is one of the biggest marketing channels in today’s times. Companies often target social media users by constantly running ads, campaigns, and events online. They may also use targeted advertising techniques to prompt customers to view their products and services.

Many brands we know today have successfully adopted market placing strategies, including Starbucks, Apple, Amazon, and Tesla, to create a distinguished image. Let us study some relevant examples.

Suppose there are two leading chains of restaurants in a country, A Group of Restaurants and B Group of Hotels and Restaurants . While A is known for its quality food and superior taste, B is known for its warm hospitality and polite and helpful staff. Hence, the A Group of Restaurants adopts a quality positioning strategy, and the B Group of Hotels and Restaurants positions itself to showcase and highlight its customer service proposition.

Example #2 - Zara's Market Positioning As Affordable Fast Fashion

Inditex is known for its fast-fashion options. The company replicates the trending designs in a cheaper version to offer affordable, fast fashion across various brands like Zara, Zara Home, and others. The company has around 5,900 stores across 85 countries, producing approximately 840 million garments every year. Moreover, the company opens almost 500 stores every year. Since Inditex positioned itself as a pioneer in the affordable fashion garments category, it increased its revenue .

Over the past five years, Inditex has demonstrated remarkable growth, with its overall sales surging from 9.4 billion euros annually to an impressive 13.8 billion euros. The company's profits have also substantially increased during the same period, reaching nearly 2 billion euros annually. Inditex has expanded its workforce to 110,000 employees, up from approximately 80,000 in 2007. These achievements are even more remarkable considering the challenging economic conditions in Spain, marked by real estate and debt crises following the global financial downturn.

Market positioning is a potent tool that needs continuous monitoring and adjustment to align with dynamic market conditions and customer preferences. Let us go through its various benefits and drawbacks:

: Effective market positioning distinguishes a brand's product or service from its competitors, attracting more customers and increasing market share. : A narrow positioning may restrict the brand's market reach, potentially overlooking other customer segments or emerging opportunities.
: The brands can concentrate marketing efforts toward specific customer segments, expanding their reach toward the targeted audience. : Competitors may respond by adjusting their positioning or launching similar products, hampering the impact of the brand's positioning efforts.
: Clear positioning establishes a solid and recognizable brand identity, improving brand recall and customer loyalty. : Market dynamics and customer preferences can evolve rapidly, making it challenging to maintain relevance and adapt positioning strategies accordingly.
: Well-defined market positioning justifies premium pricing for a unique value proposition, potentially leading to higher profit margins. : Developing and implementing effective market positioning strategies can be resource-intensive, particularly for small businesses with limited budgets.
: Understanding the market position can better guide product development to meet the target audience's needs and preferences. : Misaligned market positioning with the actual product or service offering can lead to negative customer perceptions and harm the brand's reputation.
: It directs the team while outlining the factors that cannot be compromised, aiding effective decision-making. : Such strategies do not guarantee customer base acquisition.
: Since such positioning efforts rely on effective market research, the exercise may backfire in case of limited or non-reliable research data.

Market positioning, product positioning, and brand positioning are distinct concepts that play crucial roles in how a company presents itself and its offerings in the market. To succeed in a competitive market environment, companies must consider all three aspects since they collectively contribute to effective marketing and differentiation strategies. However, they differ in the following ways:

Market positioning is a strategic approach that differentiates a company from its competitors within a specific market or industry.Product positioning is the process of shaping consumers' perceptions of a specific product or service.Brand positioning focuses on the perception and image a company creates for its brand as a whole in the minds of consumers.
Identifying and effectively communicating the unique value proposition of the company to its target customers is the primary purpose.Defining the unique features, benefits, and value of the product compared to competing alternatives and effectively communicating this positioning to the target audience is the primary purpose.The purpose is to define the brand's unique features, values, and positioning in a way that sets it apart from competitors and fosters strong brand loyalty.
Differentiating a product, service, feature, function, or brand from its competitors’ products is the focus area. It focuses on fulfilling needs or closing demand gaps by offering customers the products they need. It fills an emotional gap by establishing a connection between the brand name and customers and enhancing customer experience. 
A high market share, brand recognition, and customer loyalty indicate effective market positioning.A high market share indicates effective product positioning. A strong brand presence, emotional connection, and brand recall reflect good brand positioning. 

Market segmentation, targeting, and positioning are crucial steps followed in this sequence while finalizing a company or brand’s marketing mix.

A market positioning statement is a brief one- or two-liner idea that explains the unique proposition. It highlights the differentiating features or benefits a company's product or service offers compared to those offered by competitors. The purpose of this statement is to establish communication with existing and prospective customers and attract them to facilitate conversions.

While market targeting determines the potential customers or market segments a business must ideally cater to, market positioning is a systematic approach to building a brand perception or unique selling proposition to attract the target audience.

A positioning statement should be precise, catchy, and informative. While writing such a statement, the following aspects should be considered: - Sticking to the unique attribute of the product or service - Addressing the target audience - Adopting a problem-solving approach or explaining how the product, service, features, benefits, or uses cater to the customers' specific needs

This article has been a guide to What Is Market Positioning. We explain its examples, types, advantages, and comparison with Product & Brand Positioning. You may also find some useful articles here -

  • Total Addressable Market
  • Product Marketing
  • Marketing Mix

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Market Positioning: 5 Types of Market Positioning Strategies

Written by MasterClass

Last updated: Feb 14, 2023 • 4 min read

Market positioning is the strategic differentiation of a product to make it more valuable in the minds of consumers. A strong market positioning strategy will identify a clear value proposition and have a strong marketing strategy for building and communicating a brand’s identity.

market position business plan

Product Marketing Alliance

What is positioning? Market, product, and brand positioning explained

What does positioning mean in marketing.

A positioning strategy is a set of actions and processes that are designed to improve the image and visibility of a brand, company, or product.

Product marketers should plan for how people in the market will think about their product, as truly the only product positioning that counts is what your customers think as the product has a life of its own. If a customer isn’t thinking about it, your product doesn’t occupy that position.

Successful positioning strategies not only focus on where the product is today but how the product could potentially progress to where you would ideally like it to be in the near future.

Businesses use marketing to communicate their market position to customers and influence their perception of the brand’s products or services. Marketing establishes the brand identity, influencing consumer perceptions of its position in the market relative to the alternatives available from competitors.

“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.”

(Ries & Trout, 2001)

How does positioning differ from other marketing activities?

Positioning is often confused with several product marketing exercises. Let's take a look at each in turn and clear up any misconceptions.

Positioning vs. messaging

Positioning outlines why your product is unique in comparison to market alternatives. Messaging describes to your target segments what you’ll do to deliver on the promises made in your positioning statement.

Positioning vs. value proposition

A value proposition is different from positioning in that it's a promise you make to your customer and describes the benefits your product or service will bring to your target audience.

Positioning vs. differentiation

Positioning refers to acquiring space in the mind of the consumer. On the other hand, differentiation is a tactic commonly used by companies to make their offering stand out and appeal to their target market more effectively.

Positioning vs. branding

Branding is when a company creates a specific image of a product via the combination of logos, taglines, slogans, and various advertising strategies.

For example, Nike has the tick, the ‘Just Do It’ slogan, and a range of inspirational advertising campaigns. Psitioning, though, focuses more on the way that a product is viewed by the consumer in comparison to other brands.

What are the different types of positioning in marketing?

You can position your product in several ways. Here are the most common approaches to positioning in marketing:

  • Customer needs : Knowing your target market and how you will fulfill their specific needs .
  • Product price : Positioning your brand/product as competitively priced
  • Product quality: Positioning your brand/product as high quality
  • Product use and application: Associating your brand/product with a specific use
  • Competitors: Positioning your brand as better than your competitors

What does market positioning mean?

Market positioning is a strategic exercise we use to establish the image of a brand or product in a consumer’s mind.

This is achieved through the four Ps: promotion, price, place, and product. The more detailed your positioning strategy is at defining the Ps, the more effective the strategy will be.

Looking to get started with a product positioning template? Download yours for free 👇

market position business plan

Why is market positioning important?

Positioning can make or break a product, do it right and you’ll have a receptive audience, confident they’ve made the right decision despite a slew of other options. Do it wrong and you’ll be lucky if your product registers with consumers at all.

Market positioning is integral to your company’s branding and how your target market perceives you.

It should embody your core values and communicate your principles to customers. Forming a successful product positioning strategy is one of the most fundamental elements of marketing because it allows your business the opportunity to differentiate itself from its competitors.

Well-executed product positioning also helps internal teams such as sales, marketing, and customer success in delivering exciting customer experiences, oftentimes leading to an upturn in customer retention and stronger advocacy programs .

How does market positioning help you connect with customers?

The objective of market positioning is to get customers to view your product and brand as the leader in your respective market.

When market positioning is well executed and completed correctly, this opens up the opportunity for you to connect with your customers. People are interested in purchasing products that resonate with them. If consumers think your product is capable of delivering the benefits they’re looking for, then the likelihood is they’ll buy your product ahead of others that are available.

April Dunford, Founder of Ambient Strategy , explains how to master positioning for growth .

Examples of market positioning

  • A ladies' shoe company might position its products as a status symbol,
  • A fast-food chain that serves sandwiches might position itself as the healthier fast-food option, or
  • A car company might position itself as the safest option for a family.

What is a brand positioning strategy?

Brand positioning is the process of defining how your brand is perceived in the minds of its target audience, relative to competitors.

In other words, it's about carving out a unique space in the market by communicating the brand’s distinctive value and benefits. The goal here is to ensure that when a customer thinks of a particular need or problem, they immediately think of your brand as the best solution.

Effective brand positioning involves identifying the brand's key differentiators—qualities that set it apart from competitors—and clearly articulating these in a way that resonates with the target audience.

This could involve aspects like quality, price, innovation, customer service, or brand personality. The positioning should be consistently reflected in all brand communications, from advertising to customer interactions, ensuring a cohesive and memorable brand image.

To help you get started, we have brand positioning strategy that you can download right here .

What are the three levels of brand positioning?

There are three types of positioning strategies: comparative, differentiation, and segmentation.

Comparative positioning

Comparative positioning is when a company compares its product or service with alternatives that are available to its target demographic.

This helps to establish the brand's USPs, while highlighting their value when compared against other companies in the market.

Differentiation positioning

Differentiation positioning is when a company focuses on features that can’t be copied by a market rival. Any such feature that meets this criteria can be used to ‘differentiate’ the brand from its competitors.

This approach is useful because it allows companies to earmark a particular feature they’re able to offer, that others cannot.

Segmentation positioning

If a company is targeting more than one target audience, segmentation positioning is beneficial in that it helps address the specific needs of each group.

In practice, segmentation positioning focuses on dividing a broader market into distinct segments based on specific characteristics, needs, or behaviors, and then tailoring your brand's positioning to resonate with each segment.

This approach ensures that your brand message is highly relevant to the particular group you are targeting, making your product or service more appealing.

Why is brand positioning important?

Brand positioning plays an important role in helping you stand out from other companies offering similar products. When done well, it also ensures that your marketing messages resonate with your intended audience . By understanding your customers' needs and preferences, you can tailor your messaging to highlight the benefits that matter most to them, making your brand more relevant and appealing.

But not only that, a well-defined brand position serves as a strategic guide for product development, marketing, and customer service. It helps ensure that all aspects of your business are aligned with your brand’s identity and goals.

Brand positioning in practice: Apple

A powerful example of brand positioning that everyone can understand is Apple.

Apple’s brand positioning revolves around its status as a premium brand that combines innovation, simplicity, and design excellence. The company consistently presents its products as cutting-edge and user-friendly, appealing to both tech enthusiasts and everyday users. Apple’s sleek, minimalist design and intuitive functionality set it apart from competitors, making its products highly desirable and easy to use.

What's more, despite being a tech company, Apple has managed to successfully position itself as a lifestyle brand, symbolizing sophistication and status.

This positioning allows it to command premium prices, as customers perceive their products as high-quality and aspirational. The consistent, user-centric experience across all touchpoints, from product design to retail stores, reinforces Apple’s strong brand identity and loyalty among consumers.

What is product positioning?

Product positioning is a strategic exercise we use to find a product or service’s place in the market. Positioning defines what makes your product different from the others on the market so you can focus on messaging and effectively explain its value to potential customers.

What are the 4 main components of a product positioning statement?

A positioning statement can be split into four segments: the target, the category, the differentiator, and the payoff.

1. The target - It’s important to establish the target before you begin working on your marketing activity. The target market ought to be based on essential criteria including demographics, geography, psychographics, pains, customer needs, and so on.

2. Category - When prospective customers are evaluating a purchase, they need a frame of reference. You need to outline the category in which your brand will be competing. For example, technology, fashion, etc. Providing context for your customer will help establish brand relevance. gives the brand relevance to the customer.

3. Differentiation - When writing a positioning statement, include a solitary point of differentiation; it’s regarded that multiple benefits or features shouldn’t be included as differentiators for your product. This is because the unique features or benefits of your product/service will support the main differentiator.

Remember, don’t use a bold claim that your product is the "the global leader" as your point of differentiation. Instead, explain in detail why you’re the global leader.

Also, ensure you differentiate your product from your customer’s perspective and not a business angle. While having a healthy market share or a large turnover may appeal to you , this isn’t relevant to your customer.

4. The payoff - This part of your positioning statement ties your differentiation to the needs or goals of the target market.

Here, it’s essential to communicate to your target personas exactly how your differentiator will address their user needs.

To reinforce our earlier point, a successful positioning statement hinges on an in-depth understanding of your target market. Any understanding needs to be based on bona fide market research - never rely on internal assumptions.

Positioning vs. narrative design

Product positioning contextualizes a product’s value for customers so they can understand what it brings to the table. Narrative design is when companies create a story for a product in an attempt to engage a buyer persona.

Marcus Andrews explores the differences between the two in an article in which he suggests why narrative design will replace brand positioning .

What are some examples of product positioning?

Now we’ve covered product positioning in some detail, let’s take a look at it in action. Below are a few examples of businesses that have successfully positioned themselves into a gap in the very same market as their competitors.

Delta & JetBlue

When Delta stopped serving peanuts and reduced their legroom, JetBlue entered the market and positioned itself front and center as the airline with gourmet snacks and ample legroom.

Chipotle & Taco Bell

Although both of these brands essentially sell Mexican fast food, Chipotle entered the same market, competing with quality instead of price. One of the company’s adverts stated, “We’re not afraid to say we’re real chickens.” A tagline that positioned the brand as superior in quality to its rival, Taco Bell.

Bumble & Tinder

Bumble was positioned as a dating app that empowers women. After the founder had a negative experience with some of the men on Tinder, she designed the app so that only female users could initiate first contact. Bumble has now also expanded beyond dating and allows users to seek friendship or professional connections.

The Coca-Cola Company & Mother Energy Drinks

This is a slightly different example in that Coca-Cola was essentially fighting against its own positioning of a product in the market, but it’s a great lesson in repositioning.

In 2006 Coca-Cola launched the Mother Energy drink into the Australian market.

The launch campaign was pretty successful, however, the taste of Mother Energy Drink just wasn’t as good as the leading competitors, and repeat purchases were low.

Due to its already high brand awareness and no doubt how much they threw at marketing the brand, Coca-Cola decided to reposition the product. They completely changed the packaging, increased the size of the can, and improved the taste of the energy drink.

The relaunch of the product featured the line – “New Mother, tastes nothing like the old one.” They didn’t shy away from the fact the drink was performing poorly and even poked a bit of fun at themselves in the process.

Ultimately, they successfully repositioned an energy drink that now competes with the two leading energy drinks in the market – V and Red Bull.

How to develop a positioning strategy

Creating a positioning statement.

A positioning statement is a one or two-sentence declaration that identifies your product’s unique value to customers in relation to your main competitors.

They’re used to ensure a company’s marketing efforts are in sync with the brand and value proposition and are avenues for communicating these messages to the target clientele.

Before crafting your positioning statement you need to ask:

  • Who is your target customer?
  • What category does your product or service belong in?
  • What’s the biggest, unique benefit your product or service offers?
  • Can you prove that benefit?

From there, you can create a compelling positioning statement.

What are the key components of a positioning statement?

When building out your positioning statement, there are several key components you need to consider:

  • Target audience : Provide a clear identification of the specific segment of the market you are addressing. This includes demographic, psychographic, and behavioral characteristics that define your ideal customer.
  • Market definition : A brief description of the category in which your brand or product competes. This helps to establish the context for your positioning and clarifies what kind of solution you offer.
  • Unique Value Proposition (UVP) : The core benefit or promise that sets your brand apart from competitors. This should highlight what makes your product or service different and better in a way that resonates with the target audience.
  • Differentiation : Specific attributes or qualities that make your brand distinct. This could include features, benefits, or brand values that are unique to your offering and give your brand a competitive edge.
  • Reason to Believe : Supporting evidence or proof points that back up your unique value proposition. This might include product features, customer testimonials, brand heritage, or any other factors that build credibility and trust.

Your positioning statement should follow this simple formula:

Positioning statement examples

To understand positioning statements in practice, let's look at some examples for three household name brands.

For creative professionals and tech enthusiasts who seek cutting-edge technology and seamless user experience, Apple is the premium electronics brand that offers innovative, beautifully designed products, because of its commitment to quality, simplicity, and ecosystem integration.

For consumers who want to purchase a wide range of products online with quick delivery, Amazon provides a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovation, and commitment to operational excellence.

For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike's commitment to innovation and investment in the latest technologies.

Lara McCaskill, Senior Manager of Product Marketing at LinkedIn , revealed how she developed positioning statements, during her time at Stitch Fix:

“Positioning is the simplest distillation of how your product is uniquely suited to address a specific customer need and how they will benefit from it. The goal is to keep it simple and concise and then bolster it with value props.
“I’ve tried in vain to stuff my key value props into a positioning statement and it’s never worked. I end up with a mouthful of marketing jargon that isn’t concise or fails to clearly convey the essence of why customers should care about the product.
“A framework that I like to use is What, Who, and Why:
What it is: Using very clear and even plain language, messaging that you’d likely never put in front of a customer.
Who it’s for: Who is the customer that will benefit from this? Be specific about them. Speak to their specific needs and motivations.
Why it matters: This is where you elaborate on what is in it for the customer, how this maps back to what your brand and product do, and how it benefits the customer.
“It’s important to get granular here, as oftentimes the initial benefit or value prop is surface level. For example, when developing value props at Stitch Fix, we knew that the service saves people time and is convenient.
“But so many products promise the allure of time savings, so we sought to think about why a customer actually cares about saving time.
“For Stitch Fix customers, this was so they can spend their time doing something else, likely more enjoyable than the problem your product is solving for. Identify what that thing is.
Value props: What are the unique attributes that your product has and what is it solving for your customer?
What core desires does your product tap into?
“Once you’ve developed the positioning, from the what and why it’s great to have options. There’s never a clear-cut single positioning statement and set of value props for each product. Creating options that index in various directions can help align stakeholders on the direction you want to go.
“As a product marketer, you are usually the closest person to the positioning and the work that it informs. Your stakeholders are looking to your expertise to develop this, and it’s key to enforce that positioning is not customer-facing messaging.
“I intentionally write positioning in the third person and with plain language to avoid any misinterpretation - I don’t want to see my positioning verbatim in marketing collateral.
“To help contextualize this for stakeholders, I like to include real-world examples of how each option would manifest in a marketing campaign. I’ll mock up sample email copy or paid ads to help stakeholders visualize how each of the options comes to life in your marketing strategy.”

It’s not enough to just position your brand to appeal to a certain customer, once you’ve crafted your statement, it’s time to put it to the test. Experiment with it, and ask your customers for feedback on whether or not it achieves its intended goal - and don't ever stop this feedback cycle.

What is a perceptual map and why is it useful for brands?

A perceptual product positioning map is a graphical representation of how your product compares with the competition. They’re designed to compare essential features, including price, features, etc.

This article was updated on August 1, 2024

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Positioning

By Entrepreneur Staff

Positioning Definition:

How you differentiate your product or service from that of your competitors and then determine which market niche to fill

Positioning helps establish your product's or service's identity within the eyes of the purchaser. A company's positioning strategy is affected by a number of variables related to customers' motivations and requirements, as well as by its competitors' actions.

Before you position your product or service, you should answer the following strategic questions about your market and your products or services:

  • What's your customer really buying from you? Remember that McDonald's isn't just selling burgers and fries. It sells fast food that tastes the same, no matter when or where it's ordered, in an environment that's clean and friendly to families.
  • How's your product or service different from those of your competitors? A cheeseburger is a cheeseburger, you may think. But look how McDonald's, Burger King and Wendy's differentiate their fast food. They offer different side dishes (onion rings at Burger King, french-fried potatoes at McDonald's), different toys with kids' meals (a big incentive for the under-age-10 set), and different ways of cooking their burgers (Burger King's are broiled, McDonald's, grilled).
  • What makes your product or service unique? In New England, McDonald's is the only fast-food chain to offer lobster rolls (a lobster salad sandwich served in a grilled hot-dog roll) in the summer.

Once you've answered these strategic questions based on your market research, you can then begin to develop a positioning strategy for your business plan. A positioning statement for a business plan doesn't have to be long or elaborate, but it does need to point out who your target market is, how you'll reach them, what they're really buying from you, who your competitors are, and what your USP (unique selling proposition) is.

Remember, the right image packs a powerful marketing punch. To make it work for you, follow these steps:

  • Create a positioning statement for your company. In one or two sentences, describe what distinguishes you from your competition.
  • Test your positioning statement. Does it appeal to your target audience? Refine it until it speaks directly to their wants and needs.
  • Use the positioning statement in every written communication to customers.
  • Create image-marketing materials that communicate your positioning. Don't skimp.
  • Include your team in the image-marketing plan. Help employees understand how to communicate your positioning to customers.

More from Marketing

Competition.

Rivalry in business, as for customers or markets

Competitive Analysis

Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service

Competitive Intelligence

The process of gathering actionable information on your business's competitive environment

Competitive Matrix

A chart that compares your product or service to your competitor(s)

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The segmentation, targeting, positioning (STP) marketing model

Author's avatar

How to use Segmentation, Targeting, and Positioning (STP) to develop marketing strategies

Today, the STP marketing model (Segmentation, Targeting, Positioning) is a familiar strategic approach in modern marketing. It is one of the most commonly applied marketing models in practice, with marketing leaders crediting it for efficient, streamlined communications practice.

STP marketing focuses on commercial effectiveness, selecting the most valuable segments for a business and then developing a marketing mix and product positioning strategy for each customer group.

As Martech continues to develop, so do opportunities for segmentation, targeting, and positioning. So whether you're brand new to STP or a seasoned veteran, it can be useful to take stock and double-check you're utilizing every chance you get to reach, interact with, convert, and engage customers.

STP model

But, how do you know which customer segments to focus on? We recommend using personas to identify your most valuable customers. Download our free Marketing buyer persona template and checklist for recommendations on how to build effective personas.

Download your free guide to access a 13-point checklist you can use as a template for structuring your personas, plus learn the key questions you need to ask to check the quality of your personas.

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The STP marketing model

The STP model is useful when creating marketing communications plans since it helps marketers to prioritize propositions and then develop and deliver personalized and relevant messages to engage with different audiences. The three-step funnel consists of market segmentation, market targeting, and product positioning.

Within your research-based market segmentation phase, you are aiming to identify a basis for the segmentation of your target customers, and determine important characteristics to differentiate each market segment.

When creating your targeting and positioning strategy, you must evaluate the potential and commercial attractiveness of each segment, and then develop detailed product positioning for each selected segment, including a tailored marketing mix based on your knowledge of that segment.

STP marketing funnel

STP marketing as a planning tool

Segmentation, targeting, and positioning is an audience-focused rather than product-focused approach to marketing communications, which helps deliver more relevant messages to commercially appealing audiences.

STP is a critical strategy and planning tool, featured in our RACE Planning Framework. RACE supports marketers, managers, and business owners to create a 90-day marketing plan across each stage of their marketing funnel.

So, while STP sits within the planning activities, the benefits of effective segmentation, targeting and positioning can be felt across the types of customers you reach, interact with, convert, and engage.

2022 RACE Diagram

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Applying Segmentation, Targeting and Positioning to digital communications

STP marketing is relevant to digital marketing too at a more tactical communications level. For example, applying marketing personas can help develop more relevant digital communications as shown by these alternative tactical email customer segmentation approaches .

This visual from Dave Chaffey of Smart Insights in his book Digital Marketing: Strategy. Implementation and practice shows how Segmentation, Targeting and Positioning apply to digital marketing strategy.

market position business plan

It reminds us how digital channels offer new options for targeting audiences that weren't available previously, but we need to reserve sufficient budget for. For example:

  • Search intent as searchers type keywords when comparing products they are interested in buying
  • Interest-based targeting in Facebook, e.g. Prospecting for those interested in Gardening, Gym membership, or Golf
  • Targeting through email personalization and on-site personalization based on profile, behavior (e.g. content consumed)

There are also new opportunities to make a brand more compelling through offering new types of value to consumers based on a digital value proposition  or what Jay Baer has called Youtility. This can be via content or interactive tools on websites or mobile apps.

How to use STP marketing?

Through segmentation, you can identify niches with specific needs, mature markets to find new customers, deliver more focused and effective marketing messages.

The needs of each segment are the same, so marketing messages should be designed for each segment to emphasise relevant benefits and features required rather than one size fits all for all customer types. This approach is more efficient, delivering the right mix to the same group of people, rather than a scattergun approach.

You can segment your existing markets based on nearly any variable, as long as it’s effective as the examples below show:

Well-known ways to segment your audience include:

1. demographics.

Breakdown by any combination: age, gender, income, education, ethnicity, marital status, education, household (or business), size, length of residence, type of residence, or even profession/occupation.

An example is Firefox who sells 'coolest things', aimed at a younger male audience. Though, Moshi Monsters, however, is targeted to parents with fun, safe and educational space for younger audiences.

2. Psychographics

This refers to 'personality and emotions' based on behavior, linked to purchase choices, including attitudes, lifestyle, hobbies, risk aversion, personality, and leadership traits. magazines read and TV. While demographics explain 'who' your buyer is, psychographics inform you 'why' your customer buys.

There are a few different ways you can gather data to help form psychographic profiles for your typical customers.

  • Interviews : Talk to a few people that are broadly representative of your target audience. In-depth interviews let you gather useful qualitative data to really understand what makes your customers tick. The problem is they can be expensive and difficult to conduct, and the small sample size means they may not always be representative of the people you are trying to target.
  • Surveys : Surveys let you reach more people than interviews, but it can be harder to get as insightful answers.
  • Customer data: You may have data on what your customers tend to purchase from you, such as data coming from loyalty cards if an FMCG brand or from online purchase history if you are an e-commerce business. You can use this data to generate insights into what kind of products your customers are interested in and what is likely to make them purchase. For example, does discounting vastly increase their propensity to purchase? In which case they might be quite spontaneous.

An example is Virgin Holidays who use segmentation, positioning and targeting to promote their holidays to 6 different audiences.

Virignholidayssegments

3. Lifestyle

This refers to Hobbies, recreational pursuits, entertainment, vacations, and other non-work time pursuits.

Companies such as on and off-line magazine will target those with specific hobbies i.e. FourFourTwo for football fans.

Some hobbies are large and well established, and thus relatively easy to target, such as the football fan example. However, some businesses have found great success targeting very small niches very effectively. A great example is the explosion in 'prepping' related businesses, which has gone from a little heard-of fringe activity to a billion-dollar industry in recent years. Apparently now 3.2 million Americans identify as doomsday preppers . A great way to start researching and targeting these kind of niches is Reddit, where people create subReddits to share information about a given interest or hobby.

4. Belief and values

Refers to Religious, political, nationalistic, and cultural beliefs and values.

The Islamic Bank of Britain offers Sharia-compliant banking which meets specific religious requirements.

A strange but interesting example of religious demographics influencing marketing that you might not have guessed is that Mormons are really into 'multi-level marketing'. They're far more likely to be engaged in the practice than any other US group.

Going the extra mile with demographic research can lead to discovering new marketing opportunities and thinking outside the box. For example, did you know the median age of Cadilla Blackwing customers is 10 years younger than that of “regular” Cadillac customers?

5. Life stages

Life stages are the Chronological benchmarking of people’s lives at different stages.

An example is Saga holidays which are only available for people aged 50+. They claim a large enough segment to focus on this life stage.

6. Geography

Drill down by   Country, region, area, metropolitan or rural location, population density or even climate.

An example is Neiman Marcus, the upmarket department store chain in the USA now delivers to the UK.

7. Behaviour

Refers to the nature of the purchase, brand loyalty, usage level, benefits sought, distribution channels used, and reaction to marketing factors.

In a B2B environment, the benefits sought are often about ‘how soon can it be delivered?’ which includes the ‘last-minute’ segment -  the planning in advance segment.

An example is Parcelmonkey.co.uk who offers same-day, next day and international parcel deliveries.

Benefit is the use and satisfaction gained by the consumer.

Smythson Stationery offer similar products to other stationery companies, but their clients want the benefit of their signature packaging: tissue-lined Nile Blue boxes and tied with navy ribbon!

Market targeting

The list below refers to what’s needed to evaluate the potential and commercial attractiveness of each segment.

  • Criteria size: The market must be large enough to justify segmenting. If the market is small, it may make it smaller.
  • Difference: Measurable differences must exist between segments.
  • Money: Anticipated profits must exceed the costs of additional marketing plans and other changes.
  • Accessible: Each segment must be accessible to your team and the segment must be able to receive your marketing messages
  • Focus on different benefits:  Different segments must need different benefits.

Product positioning

Positioning maps are the last element of the STP process. For this to work, you need two variables to illustrate the market overview.

In the example here, I’ve taken some cars available in the UK. This isn’t a detailed product position map, more of an illustration. If there were no cars in one segment it could indicate a market opportunity.

positioning map

Expanding on the extremely basic example above, you can unpack the market by mapping your competitors onto a matrix based on key factors that determine purchase.

stp-model-positioning-map-example

This chart is not meant to be any kind of accurate representation of the car market, but rather just illustrate how you could use a product positioning map to analyze your own business's current position in the market, and identify opportunities.

For example, as you can see in the gap below, we've identified a possible opportunity in the market for low-priced family cars.

positioning-map-gap-in-the-market-example

We're not saying this gap actually exists, I'm sure you could think of cars that fit this category, as the car market is an extremely developed and competitive market. However, it does show how you can use the tool to identify gaps in your own market.

An example of a company using STP marketing?

Any time you suspect there are significant, measurable differences in your market, you should consider STP. Especially if you have to create a range of different messages for different groups.

Example groupings for segmentation

A good example of segmentation is BT Plc, the UK’s largest telecoms company. BT has adopted STP marketing for its varied customer groups; ranging from individual consumers to B2B services for its competitors.

Identifying and defining your target audience is key to efficiently growing your customer base. But to fully benefit from your strategy, you need to set objectives and optimize your marketing activities to achieve your goals.

What to watch for in segmentation, positioning, and targeting marketing strategy

  • Make sure the market is large enough to matter and customers can be easily contacted.
  • Apply market research to ensure your approach will add value to the existing customer experience, above and beyond competitors.
  • As Martech continues to become more sophisticated, to support digital marketers' wants and needs, consider the developments in relation to your product/service.

Original reference sources

Lancaster G. and Massingham, L. (1988)  Essentials of Marketing . Maidenhead, Berkshire, England.  McGraw-Hill.

Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies.  Journal of Marketing . (Vol. 21, Issue 1, July). p3-8.

Author's avatar

By Annmarie Hanlon

Annmarie Hanlon PhD is an academic and practitioner in strategic digital marketing and the application of social media for business. Dr Hanlon has expertise in the strategic application of social media for business and the move from digitization, to digitalization and digital transformation for business. Her expertise spans consumer touch points, online customer service, the use of reviews, the role of influencers, online engagement and digital content. You can follow her update on Twitter https://twitter.com/annmariehanlon

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Positioning in Marketing: Carving Out Your Business Niche

by Cydney Hatch • October 3, 2018

market position business plan

No matter what sector you’re in, it’s a safe bet that you’re facing stiff competition these days. The reality of today’s competitive online marketplace means that most businesses now compete with one another on a global scale. That means that to succeed, you need to differentiate yourself from every other company in your sector. 

Does that sound like a tall order? It all comes down to learning how to define your business and carving out a unique niche for yourself. That’s all part of a process known as positioning marketing — and it is very much within your reach.

Intrigued? This article will explain exactly what you need to do to make a name for yourself, establish your brand  in your given industry, and set up positioning strategies. Keep reading to find out how to successfully use positioning in marketing to grow your business and stand apart from the competition.

What is Market Positioning?

Market positioning is the process of defining your business’s brand and associating that brand with a particular set of values. The goal behind market positioning is not only to increase sales but also to create a clear public perception of what your brand stands for.

This isn’t just a matter of creating positive associations with your brand. It’s a matter of creating highly specific, unique associations. You want to ensure that whenever consumers see your logo, they think about what differentiates your company from the rest.

Think about what happens, for example, when most people see a Rolls-Royce logo. They immediately think of luxury, high quality, and status. They may picture themselves behind the wheel of a Rolls-Royce and think, with pleasure, of what they’d do and how they’d feel. It’s not just a positive connection — it’s a very unique set of associations.

In contrast, think about what happens when people see a McDonald’s logo. They might think about fun, flavor, and low-cost relaxation. They may remember all the times they’ve visited McDonald’s throughout their lives and think fondly about the good times they’ve had there with their friends. 

The McDonald’s logo brings up very different associations from the Rolls-Royce logo. But both are positive and strong, and both create connections between consumers and the brand. That’s the goal of market positioning. 

What Are the Key Elements of Market Positioning?

An effective market positioning strategy will use what are known as the four P’s — promotion, price, place, and product. Here’s how those P’s operate.

This is where consumers can buy your products or services. Most businesses will benefit from making their products available in several different places. Ideally, your customers should be able to buy products from you in-store, at trade shows, and in a variety of online locations. You can sell your products through apps, affiliate marketing, and third-party vendors.

Remember that the places your products are sold should reflect positively on your brand. If you’re using a third-party vendor, make sure that their website or store shares the same values as your business does. You want to create a consistent image of your brand. Imagine how confusing it would be to find your favorite fast food hamburgers, for example, being sold in an upscale French restaurant. Go for a coherent, reliable market position that sends a clear message to consumers.

This refers to the cost of your product. Ideally, your price should remain fairly stable across different locations. There may be some fluctuation, but you’ll want consumers to associate your brand with a certain price range. If customers think of you as an affordable brand, for example, you’ll want to make sure that you maintain that image. 

Your price is a key aspect of your brand positioning effort. This does not necessarily mean that you need to offer low-cost products; as we saw with the Rolls-Royce example, some consumers place a high value on luxury goods. However, it does mean that your pricing should be consistent and clear.

This includes all of the products your company provides. A fast food company like McDonald’s or Burger King, for example, provides hamburgers, chicken nuggets, French fries, and a range of other foods. An automotive business like Ford provides cars, trucks, and other motor vehicles. 

Typically, each company has a few stand-out products that consumers associate closely with their brand. They then build on those core products over time. McDonald’s may be best-known for their hamburgers and French fries but they are becoming known for their salads and coffees, as well. 

Your business’ products should be recognizable and reliable, but you should never let your offerings grow stale. Keep an eye on the market as demands change so that you’ll have the flexibility to meet demands without losing your brand positioning.

This covers all of the marketing efforts that a business uses to inform connect with consumers. Everything from social media marketing to billboards falls into this broad category.

Promotion doesn’t just inform consumers about your new products — it also helps to achieve brand positioning. Your promotional style, the visuals and the language that you choose, and even the medium that you use for advertising, all help to establish a clear brand voice.

How to Apply Market Positioning Strategy

The more narrowly you can define how each of the four P’s apply to your brand, the better. After all, the overarching goals should be to stand out from the competition and present a clear, consistent image of your business. Let’s look at how some leading brands do this.

Audi and Tesla

Audi and Tesla both position themselves as high-priced, luxury status symbols. Beyond this similarity, though, the two brands differ significantly. Audi is a long-standing luxury auto brand, while Tesla is a trendy and sometimes rowdy upstart. Tesla’s products are designed to be eco-friendly, whereas Audi’s are not.

The cars will appeal to a different clientele, and this difference will be reflected in their promotional material.

Wendy’s and Starbucks

Wendy’s positions itself as an affordable place to get cheap meals. Starbucks positions itself as an upscale coffee shop and purveyor of beverages and snacks. As far as pricing and products, the two businesses are far from each other.

Their promotional materials are, likewise, very different from each other. They are designed to appeal to different consumers. Wendy’s advertisements usually promote the company’s new hamburgers, emphasizing their low price and their intense flavor.

Starbucks, in contrast, stresses the company’s luxurious offerings. One typical advertisement contains the following value proposition statements:

  • The best coffee
  • Rich & smooth flavors
  • The finest milk used
  • Natural and clean
  • 100% recycled paper use

The message is clear: Starbucks is promising customers that they will receive high-quality, eco-conscious, and upscale products which they will thoroughly enjoy. In contrast to most Wendy’s ads, the Starbucks ad does not advertise low prices or talk about good deals. Instead, it focuses on the quality of the products and the value that the product will contribute to your life.

The places where Starbucks products are sold are usually upscale, while Wendy’s could be less so. Even though both companies provide food and beverages, they have effectively positioned themselves very differently and each has a very different target market , so much that they are not competing with each other.

Building a Market Positioning Strategy

Positioning your brand is not a one-time proposition. It takes constant energy and effort. Every business will need to create  ongoing marketing initiatives so that consumers retain their impression of the company and the brand. Ideally, you should be constantly reinforcing your target market’s impressions of your business and brand.

How, exactly, does that work? We’ll get into the steps to building an effective market positioning strategy below.

What Is a Market Positioning Strategy?

The purpose of a great market positioning strategy is to take your marketing efforts  to the next level and educate consumers about your products and services. We’ve seen how Starbucks uses its marketing to sell its products and its overall ethos. Every business can similarly use market positioning.

Successful brand positioning will entail using the correct brand values, messaging, and outreach. Market positioning is a complex process, and it will look slightly different for each business. Here are some of the key elements that should be involved in the process.

Steps to an Effective Marketing Position Strategy

It’s impossible to overstate the fact that each business is different. There is no simple, one-size-fits-all approach to market positioning strategy. Nevertheless, some basic steps apply to most businesses. Keep reading for our step-by-step guide to crafting the best possible market positioning strategy for your business. 

market position business plan

Step One: Create a Positioning Statement

Your positioning statement defines the brand identity that your business aims to present. In short, it is the center of your business’s identity, setting out your values and your overall ethos. 

Your positioning statement also sets out a plan for winning over consumers. It identifies who, exactly, your target audience is. At the same time, it identifies their major pain points and then explains how they will be resolved by your business.

Several key elements are involved in creating a great positioning statement. That includes:

  • Deciding on your target audience
  • Determining where your target market should be
  • Crafting a unique value proposition statement
  • Create content  to support your value proposition statement

It can be helpful to see what a business  like Amazon presents as a value proposition statement: “For internet users who want things fast and easy, Amazon.com is a retail database that provides instant access to millions of items. Unlike traditional retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.”

Your positioning statement is going to be your guide, going forward, for all of the  key marketing and advertising decisions  that your business is responsible for making. It will continuously inform every choice that you make to positively impact your potential customer’s perception of your brand. 

How can you tell whether you’ve effectively created a market positioning strategy? Here’s how you’ll know if you haven’t done it right. One of the biggest red flags to watch for, indicating that you have neglected your market positioning strategy, is that there is a disconnect from your target audience. If your audience is confused by you, there’s a good chance that you misunderstand yourself on some level.

If you are struggling to figure out what your positioning statement should look like, ask yourself the following questions:

  • Do you have a clear definition of your business?
  • Have you clearly explained how your company is differentiated from other companies in the same sector?
  • Does your positioning statement contain a unique value proposition?
  • Does your positioning statement define the people in your target audience and explain their most relevant needs?
  • Can you apply your positioning statement consistently across all of the areas of your business? 
  • Is your positioning statement clear and easy to understand for your target audience and other consumers?
  • Can you deliver on the promises made in your positioning statement?

Hopefully, you should be able to answer the questions above in a positive manner. If not, they should give you a roadmap to the areas that require improvement. It can be difficult to solve all of these issues alone, of course. Sometimes, it’s a good idea to consult with experts who can offer their know-how in the field.

Step Two: Simplify and Tagline

Once you have a strong brand positioning statement you can then create a tagline, or better known as a slogan, to use externally for potential customer messaging. Instead of using the positioning statement, this is a shorter, snappier version of what you want your customers to know.

For example, here are some business taglines:

  • Home Depot: “You can do it. We can help.”
  • L’Oreal: “Because you’re worth it.”
  • Nike: “Just do it.”
  • Southwest Airlines: “The short-haul, no-frills, and low-priced airline.”
  • State Farm: “Like a good neighbor, State Farm is there.”
  • Target: “Expect more. Pay less.”
  • Walmart: “Always low prices. Always.”

By simplifying your positioning statement, you can easily use these in other marketing efforts to get your business point across a lot sexier than an internal, longer, and detailed positioning statement.

Step Three: Competitor Analysis  

Investigating and analyzing the competition helps to determine the strengths and weaknesses of your own business but also helps you carve out your positioning in the market.

Understanding the differences between a business and its competitors is central to finding gaps in the market that can be filled. So, when you are looking at your competitors consider the following:

  • Competitor objectives: Market share and growth rate
  • Competitor history:  Past marketing efforts, cultural factors, market trends, messaging, and engagement
  • Competitor strategy:  White papers, promotional campaigns, advertisements
  • Competitor audience:  Engagement, social media, features, collaborations

By understanding where your competition stands, you will better know the direction you need to go to make yourself stand out. Why be like everyone else when you can construct a positioning strategy that does things better than your competition?

Step Four: Find Current Position

After you figure out where your competition is, you might want to then understand where your business currently stands. When you understand this, you can properly compete for your market share. You cannot grow without a starting point, so define where you are with the same competition analysis questions we discussed earlier.

Step Five: Develop Your Unique Position

Since you have all the data ready to have a holistic understanding of your market, audience, and competition, you should have a better idea of who you are, who you are not, and who you want to be to the best target audience. At this point, you will be able to create strong marketing plan strategies that can effectively position your business in the market.

Make sure your marketing efforts and messaging are always reflecting your mission and positioning statement.

Step Six: Positioning in Advertisements

Advertisements  are usually the first and most impactful places businesses position themselves.

Again, when creating advertisements and other content, ask yourself: Is my business and value proposition being shared clearly? If you are a facial skincare business, for example, you must determine who you are targeting and what customer needs are.  If the intended target is trying to help teenage girls overcome acne issues, the content in your advertisements might need to include:

  • Value statements: We help acne — easy use, customer testimonials, and success stories
  • Young design: Feminine, bright, youthful, possible influencer they would recognize
  • Young female models: Personal connection so they can see themselves in the product
  • Comparison statements: We are different from St. Ives or other over the counter scrubs, we use different technology
  • Quick usage: Text us at 1888ACNE to get 10% off, manage your mobile-friendly account online

To note the importance of positioning, this same type of advertisement might not work for a skincare company that wants to help women’s skin look younger.

Every marketing effort you make needs to intimately be a part of your positioning statement and mission.

Test Your Market Positioning

At Disruptive, we truly believe  you should test everything  and continue to do so throughout your business career. Testing includes qualitative and quantitative data gathering that can include focus groups, surveys, and  laddering interviews .

Based on the findings of these tests, you can solidify your positioning in marketing and transform your marketing efforts. When you have a strong internal message, it can become the blueprint for the development of all that’s creative.

Now, if you find that your positioning in marketing is a bit off, you can always reposition. Let’s take a look at that process in the next section.

What Is Market Repositioning?

Unfortunately, no matter how beautifully craft your marketing positioning, people will have their ideas of what your business is. Positioning is not something you do, but rather, is the result of your customer’s perception of what you do.

So, like any marketing effort, you should be prepared to adapt and change your market position as needed. By examining the essence of what you are and comparing it with what your customers want, things might need to change. Hence, repositioning.

Market repositioning is when a company changes its existing brand or product status in the marketplace. Repositioning is usually done due to declining performance or major shifts in the environment.

It is best to see what worked and what did not work in your previous marketing efforts to best reposition yourself in the market. It also be might that you do not need to rehaul all of your positioning in marketing. Many companies, instead of repositioning, choose to launch a new product or brand because of the high cost and effort required to successfully reposition a brand or product.

By examining the essence of what you are and comparing it with what your customers want, the doors open to building a business with a strong positioning in the mind of the customer.

Positioned for Success

Positioning is often used nowadays as a broad synonym for marketing strategy, but positioning in marketing should be thought of as an element of strategy, not as the strategy itself.

Positioning is — and should be — intimately connected to the concept of “target market.” With the above elements and a solid understanding of positioning, you should be able to carve a strong place out for your business! If you focus on the potential customer, target market, and put in the efforts to see how they work together for your positioning, you will come out on top!

Working With the Experts

By now, you should have a good sense of how market positioning works. But that doesn’t necessarily mean that you’re ready to carry it out on your own.

Ideally, business leaders should have a solid understanding of marketing strategies but should also feel comfortable outsourcing the research, pricing, and nitty-gritty implementation to others. That’s why so many businesses are turning to Disruptive Advertising to perfect their market positioning strategy. Get in touch today to start a conversation about what we can do for your business.

Cydney Hatch

Cydney Hatch

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Product Positioning 101: Expert Insights, Examples, and Tips

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Carlos González De Villaumbrosia

Updated: September 16, 2024 - 23 min read

“ Market positioning is the primary reason why the release of the first iPhone was so iconic. Three familiar devices that people cared about — an iPod, a phone, and an internet communicator — all merged into one. ”

— Mariana Abdala , VP of Product at Product School

In 2007, Steve Jobs walked onto the stage and made history with a single sentence: “Today, Apple is going to reinvent the phone.” But what made this launch truly revolutionary wasn’t just the technology; it was how Apple positioned the iPhone in the market.

Jobs knew that the key to success wasn’t simply creating a new phone. The world already had phones. 

What he saw was an opportunity to solve a deeper problem — how to seamlessly integrate music, communication, and the internet into a single device. By tapping into people’s familiarity with iPods, phones, and computers, Jobs didn’t just introduce a product — he redefined what a phone could be. 

Apple’s product positioning turned a sleek piece of technology into a cultural icon.

This shows the power of aligning a product with customer needs, shaping its perception, and daring to play with positioning. Now, let's dive into what product positioning is, why it matters, and how to do it right.

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What Is Product Positioning?

Product positioning is about defining why a product or service is valuable to a specific audience. It gives context for how to market and sell the product effectively and helps ensure all decisions are aligned to create a consistent and successful customer experience.

Think of it like opening a restaurant. The location, menu, pricing, and overall vibe all contribute to how it's positioned. If you aim to create a high-end dining experience, you’d choose an upscale location and set the prices and ambiance to match.

In product marketing, positioning works similarly. It helps highlight the key benefits of a product for the right audience and ensures every step taken—whether in development or marketing—supports the growth of that product.

For example, Tesla positions its cars as not just electric vehicles, but as cutting-edge, eco-friendly, luxury cars. By emphasizing innovation, advanced technology, and sustainability, Tesla appeals to customers who value both high performance and environmental responsibility. This clear positioning has helped them dominate the electric car market while differentiating themselves from traditional automakers.

Why Is Product Marketing Positioning so Important?

Product positioning is crucial because it defines how a product is perceived in the market. It has a direct impact on its success. Without a well-thought-out positioning strategy, even a great product can struggle to find its audience or stand out among competitors.

First, (1) positioning helps clarify the unique value a product offers . 

It ensures that customers understand not just what the product does but why the thing it does is so important to their lives. This differentiation is essential. For instance, in the smartphone market, where devices share many similar features, positioning plays a huge role. Apple's positioning of the iPhone as a premium product that merges design, functionality, and innovation allows it to command higher prices and cultivate strong brand loyalty.

Second, (2) positioning informs every aspect of a business strategy , from product development to marketing communications. It shapes how you talk about your product, where and how you sell it, and how you build customer relationships. By providing a coherent message and product experience , effective positioning fosters relationships and credibility. You’re giving your customers a chance to know, like, and trust you.

Finally, (3) positioning supports long-term growth . As markets evolve and customer needs shift, a clear positioning strategy helps maintain relevance. It gives companies the flexibility to adjust their messaging or product features without losing their core identity. This long-term clarity allows for smoother adaptations to trends or rising degrees of disruptions.

6 Steps to Successful Product Positioning Strategy

1. understand your target audience .

In order to position your product effectively, it’s crucial to gain a deep understanding of your target audience. Here are some of the most popular and effective practices product teams use to better grasp their audience:

Surveys are a direct way to gather insights from your audience. Use tools like Google Forms or Proddy Award winners in Dovetail or Typeform . You can use these tools to ask specific questions about their needs, preferences, and pain points. Include both quantitative (multiple-choice) and qualitative (open-ended) questions to get a comprehensive view.

Customer Interviews

Many product teams conduct direct interviews with customers to gain personal, in-depth feedback. These teams prepare open-ended questions to allow for deep conversations about customers’ experiences, decision-making processes, and specific needs that can shape product positioning.

Create Buyer Personas

Many product teams conduct direct interviews with customers to gain personal, in-depth feedback. These teams prepare open-ended questions to allow for deep conversations about customers’ experiences, decision-making processes, and specific needs that can be used to create a depiction of the company's ideal customer. 

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Use Market Research and Product Analytics

Market research tools like Google Trends , Statista , or Nielsen help gather industry insights and understand broader market trends. Combine this with product analytics to see how your audience engages with content and products, helping you refine your positioning.

Monitor Customer Feedback and Reviews

Analyzing customer feedback is another common practice among product teams. They monitor reviews, social media mentions, and customer service interactions to uncover recurring themes in praise or complaints. This helps refine their positioning based on real product experiences.

Conduct Focus Groups

Some teams bring together small groups of potential customers for focused discussions on the product. Focus groups provide immediate feedback in a collaborative setting, where participants share ideas and opinions, helping teams test product concepts or marketing messages before a broader launch.

Analyze Competitor Audiences

To gain a competitive edge, product teams often analyze their competitors’ audiences using tools like SimilarWeb or SEMrush . By understanding who competitors are targeting, they can either position their product to appeal to a similar demographic or find untapped market segments.

Social Listening

Social listening is widely adopted by product teams to track brand and industry mentions across social media platforms. Using tools like Hootsuite or Brandwatch , they keep a pulse on customer conversations and sentiment, allowing them to adjust their positioning to align with real-time trends and concerns.

Leverage Customer Journey Mapping

Product teams frequently create digital journey maps to outline the steps customers take from awareness to purchase. By mapping this journey, they can identify key moments where their product positioning will have the greatest impact, ensuring their messaging resonates throughout the buying process.

Using a mix of these practices will give you a detailed understanding of your audience. By combining at least a few you to craft a product positioning strategy that is both data-driven and customer-focused.

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2. Analyze the Competition Before Using Product Positioning Framework

Competitor analysis is key to building a strong product positioning strategy. Senior product managers know that understanding how competitors position their products can directly shape their own product marketing positioning. 

By spotting gaps in the market, teams can find ways to stand out and showcase what makes their product special. Here’s a look at how product teams typically approach competitor analysis and the benefits that come with it.

1. Competitor Product Audits

Product teams often start with a comprehensive audit of competitor products. 

This involves a deep dive into the features, pricing models, customer reviews, and overall market positioning of rival offerings. By closely examining how competitors frame their product benefits and the problems they claim to solve, teams can identify areas where their own product may offer better value.

How teams approach it :

They use a product comparison template to identify use needs and evaluate other players in the market.

They break down competitor products into core feature sets and compare them to their own product.

They assess user feedback through reviews and testimonials to spot pain points or unmet needs that competitors may not be addressing.

They use tools like G2 or Capterra to see what customers say without filters about competing products.

Allows teams to pinpoint competitive advantages or weaknesses in the market.

Helps refine product marketing positioning by understanding how competitors resonate with customers.

Informs decisions on pricing, messaging, and feature prioritization based on real-world data.

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Winning products get to the core of a user need—and then solve it better than the competition. Use this template to identify your user need and evaluate other players in the market.

2. Feature Gap Analysis

This method focuses on identifying gaps between what competitors offer and what the market demands. Teams compare the feature sets of competing products to their own, mapping out areas where the competition may fall short. This analysis can reveal opportunities to enhance the product positioning strategy by adding or highlighting features that competitors lack.

They use efficient, tried-and-true product feature analysis template that help them understand how their features stack up against the competition.

Teams often use competitive intelligence tools like Crayon or Klue to track competitor feature updates in real-time.

They create side-by-side feature comparison matrices, which are simple tables that list competing products and their features, to visualize gaps in functionality, performance, or user experience.

Offers actionable insights to improve product differentiation.

Provides opportunities to market underdeveloped or overlooked features as unique selling points (USPs).

Guides development teams in prioritizing enhancements that address competitor weaknesses and boost product marketing positioning.

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3. Pricing Analysis

Competitor analysis isn’t just about features — pricing plays a crucial role in product positioning. Teams analyze competitor pricing models to determine how value is communicated and perceived. 

Product pricing includes not only the sticker price but also bundling strategies, subscription models, and pricing tiers. Understanding the pricing landscape allows teams to either compete directly on price or strategically differentiate based on value.

Teams review competitor pricing structures, noting differences in premium vs. entry-level models.

They often benchmark their own product’s pricing against both direct competitors and indirect alternatives to assess competitiveness.

Some teams use A/B testing to experiment with different pricing models that may resonate better with the target audience.

Helps identify if competing on price is viable or if emphasizing value will yield a stronger position.

Informs pricing strategy adjustments to align with customer expectations and competitive positioning.

Enhances the overall product positioning strategy by reinforcing the relationship between price and perceived value.

4. Competitor SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

A competitor SWOT analysis offers a high-level view of the competitive landscape. It helps teams assess where their product fits. This popular framework helps product managers identify not just where competitors are strong, but where opportunities exist to outmaneuver them.

Teams conduct SWOT analyses by categorizing each competitor’s strengths, weaknesses, opportunities, and threats.

This often involves gathering data from customer feedback , sales data, and competitor performance metrics.

SWOT is used in tandem with internal reviews of the product marketing strategy to see where improvements or adjustments can be made.

Provides a structured, strategic overview that informs both immediate tactical decisions and long-term product positioning strategy.

Helps clarify opportunities to disrupt a market or capitalize on a competitor’s weaknesses.

Encourages a proactive approach to market changes.

Competitor analysis is not a one-time effort—it’s an ongoing practice. Having it built into your core activities allows product teams to stay ahead of market trends and continuously refine product positioning strategy. 

3. Define Your Unique Value Proposition (UVP)

Successful product teams know that nailing down a clear Unique Value Proposition (UVP) is the foundation of good product positioning. Your UVP is what makes your product stand out—why your product is better or different than the rest. To do this, teams zero in on the key benefits that really matter to their audience. Ask yourself: Why should someone choose this product over a competitor’s? It’s all about solving the right problem for the right customer.

Once the UVP is locked in, teams create a clear, concise Product Positioning Statement. This statement becomes the backbone of your messaging. It should answer three things: who your product is for, what it does, and why it’s better than the alternatives. No need for fancy words—just be direct. A good positioning statement acts like a filter for every marketing message, ad, or communication piece.

Practical Tips Successful Teams Use :

Customer-Centric Focus : Instead of focusing on features, think about benefits. What problem are you solving? Successful teams always frame their UVP and positioning statement around the customer’s pain points, not just what the product does.

Use Real Data : Don’t guess—use real feedback from surveys, interviews, or analytics to shape your UVP. Teams that Excel pull insights from user data to understand what resonates with customers and align their messaging accordingly.

Keep It Simple : The most effective positioning statements are simple and to the point. Avoid jargon or vague claims. It’s tempting to want to say everything, but focus on the few benefits that truly set your product apart.

Test and Refine : Smart teams don’t just stop after writing a positioning statement. They test it with internal teams or customers, gather feedback, and refine it over time. Positioning evolves, especially as the market and customer needs change.

By honing in on a strong UVP and crafting a sharp positioning statement, product teams lay the groundwork for messaging that cuts through the noise and hits the mark.

Let’s look at some well-known companies and their unique value propositions (UVPs) to see how they’ve nailed their product positioning. These examples of product positioning highlight what makes them stand out and why they’re effective.

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1. Apple – “Think Different” Apple’s UVP revolves around innovation, design, and a seamless user experience. They position their products not just as functional devices, but as lifestyle statements. Whether it’s the iPhone or MacBook, Apple consistently communicates that their products are for those who value creativity, simplicity, and premium quality.

blog images: Product Positioning example 1 - Apple

Why It Works : Apple doesn’t focus on tech specs—they focus on the experience. Their UVP resonates with a broad audience by making their products aspirational. They effectively blend emotional appeal with practical benefits like ease of use and integration across devices. This positioning has created a loyal customer base that perceives Apple as a premium, innovative brand.

2. Tesla – “The Future is Sustainable” Tesla positions its cars as cutting-edge electric vehicles (EVs), with a focus on innovation, sustainability, and luxury. Their UVP isn’t just about electric cars—it’s about transforming the future of transportation. Tesla appeals to environmentally conscious consumers who also want high performance and advanced technology.

Why It Works : Tesla’s UVP stands out because it aligns with larger global trends toward sustainability, while also emphasizing performance and luxury. This dual focus sets Tesla apart from other EV manufacturers, making them synonymous with innovation and eco-friendly luxury.

3. Slack – “Where Work Happens/Flows” Slack’s UVP focuses on improving workplace communication. They position their platform as the hub for teamwork, where conversations, files, and tools come together in one place. As they say, they want to ‘ make work life simpler, more pleasant, and more productive’. 

Why It Works : Slack’s UVP speaks directly to the frustrations of scattered communication and endless emails. By emphasizing a seamless, all-in-one platform, they’ve successfully positioned themselves as the go-to tool for efficient team collaboration. It’s clear, relatable, and solves a real pain point for businesses.

4. Align Your Product with the Right Market Segments

To align your product with the right market segments, successful product teams start by breaking their market into clear, manageable groups. These segments can be based on common characteristics like age, location, income, or job role. But the most effective teams go a step further, digging into psychographics—factors like lifestyle, values, and specific pain points.

For example, in the case of a fitness app, your audience isn’t just “people who exercise.” You’d likely have distinct segments like casual users who want to stay fit and serious athletes focused on maximizing performance. 

Each of these segments has different needs. Recognizing those differences allows teams to craft messaging and product features that address the specific group.

Going deeper with segmentation makes your positioning sharper. It lets you focus on the real drivers behind why different groups might choose your product. Ultimately, the more tailored and specific your segments are, the better you can position.

5. Tailor Your Marketing and Messaging

Once you’ve segmented your audience, the next step is to (1) tailor your messaging . This is where successful product teams get granular. They create specific messages that speak directly to each segment. 

For instance, the fitness app’s messaging for casual users might focus on ease of use and a balanced lifestyle. Messaging for athletes, on the other hand, would highlight performance tracking, goal-setting features, and personalized workout plans.

(2) Consistency across all marketing channels is essential here. Teams ensure that the tone, visuals, and benefits emphasized in their ads, social media, and website all align with each segment’s needs. 

Again, for casual exercisers, the visuals might show diverse people working out in everyday environments. The messaging would focus on simplicity and convenience. For the competitive athlete segment, the visuals could include intense training sessions, features that foster competition, and data-driven results.

Finally, teams rely heavily on (3) data-driven insights to keep refining these segments. They continuously track OKRs and KPIs like engagement rates, conversion rates, and customer lifetime value across different segments. By identifying which segments are growing, which are underperforming, and where opportunities lie, they can adapt their product positioning strategy. This gives them a leeway to keep their messaging aligned with shifting customer expectations.

5. Test and Iterate

Nothing is set in stone. At least not in today’s market and especially not in product positioning. 

Successful product teams know that positioning is never a “set it and forget it” task. As markets evolve, consumer needs shift, and new competitors emerge. Teams must be agile and constantly adapt their approach. This means staying open to iteration and embracing faster, more agile methods of gathering feedback and refining strategy.

Agile product teams understand that their product positioning strategy needs to be flexible. What worked last year—or even last quarter—might not resonate today. Trends change, and so do customer expectations.

Teams that remain static risk being outpaced by competitors who can pivot quickly. This is why adaptability is critical. Teams continuously collect data, analyze results, and aren’t afraid to make changes to messaging, features, or even target segments when necessary.

To stay ahead, successful product teams adopt an iterative approach. This starts with testing. 

When launching a new positioning or marketing message, they run tests across different customer segments and digital channels—whether it's A/B testing a landing page headline or experimenting with different ad creatives. Instead of committing to a single direction, they use these tests to gather insights on what resonates best with each audience.

For example, a team launching a new product may test multiple versions of their positioning statement—one focusing on ease of use, another highlighting advanced features, and a third emphasizing price advantage. By comparing which version drives the highest engagement or conversions, they can fine-tune their positioning for maximum impact.

5 Standout Product Positioning Examples

Here’s a deeper look into the product positioning strategies of each of the companies mentioned, offering more practical insights into their success:

1. Amazon – Customer-Centric Positioning

Blog images: product positioning example 2 - Amazon

Amazon’s entire business revolves around customer-centricity . It’s what makes them the leader in e-commerce. Their core focus is on convenience, low prices, and fast delivery, but it’s the customer-first culture that drives their positioning. 

For example, with innovations like Prime, 1-click purchasing, and personalized recommendations, Amazon ensures that its services constantly evolve based on customer needs. They track user behavior, preferences, and buying patterns meticulously. This allows them to provide personalized experiences at scale.

Amazon constantly innovates to remove friction from the customer journey. Their obsession with customer service and ability to adjust to market trends has made them the go-to platform for almost everything. 

If you wonder why or how, well… Their product positioning is aligned around customer convenience entirely.

2. HubSpot – All-in-One Growth Platform

HubSpot positions itself as a solution for businesses looking to "Grow Better" through inbound marketing. They emphasize their integrated platform, which includes CRM, sales tools, marketing automation, and customer service solutions. 

HubSpot’s positioning strategy sets them apart by focusing on simplicity while providing ‘nearly everything’ . They make complex marketing and sales processes manageable for small to medium-sized businesses. These businesses don’t tend to look elsewhere to meet varying business needs – Hubspot has it all.

Their UVP is clear: “Everything you need to grow your business, all in one place.”  

This resonates with companies that don’t want to juggle multiple software solutions but instead prefer a single, stout, and easy-to-use platform.

HubSpot’s success lies in its ability to address both efficiency and growth in its messaging. They’ve built a product suite that eliminates the need for businesses to integrate separate tools. This all-in-one approach appeals to startups and growing businesses that want simplicity without sacrificing the ability to scale.

3. Nike – Performance and Innovation 

Nike’s positioning is driven by the emotions of doing sports, as seen in the numerous Nike ads shared by the Business Insider . Their tagline “Just Do It” speaks to the emotional core of their strategy. Nike sells the promise of self-improvement, tapping into the belief that anyone can achieve greatness if they just go for it . 

Their product positioning is about performance and innovation — from their use of cutting-edge materials to their partnerships with top athletes. However, by fostering relationships with the ‘big sports names’ they’re also sharing stories of everyone’s idols. The stories that are filled with success, failure, sacrifice, and greatness — something their prospective buyers want to hear and read about

Nike’s marketing doesn’t focus solely on the technical aspects of their products; instead, they emphasize how their products help you push your limits and perform at your best.

Emotional storytelling makes them a global leader. They successfully market to both professional athletes and everyday fitness enthusiasts. They appeal to a wide audience by promoting the idea that everyone can achieve their best self through sport.

4. Airbnb – Authentic Travel Experiences

Blog image: Product positioning example 3 - Airbnb

Airbnb has created a niche with its user-based positioning by focusing on authentic, personalized travel experiences. They’ve shifted the perception of travel from traditional hotels to unique, homely accommodations. Their positioning revolves around the idea that staying with locals gives travelers a more authentic connection to the place they’re visiting.

Airbnb taps into the desire for personalized, immersive experiences . They open the door to meaningful travel, whether you’re looking for a beachfront bungalow or an urban loft.

Customizable, authentic, and personal– Airbnb’s product positioning addresses these evolving needs. Their positioning appeals to those looking to live like locals and escape traditional hospitality chains.

5. Michelin – Quality and Expertise in Travel

Michelin has positioned itself as more than just a tire company. They’ve built a reputation around expertise in travel and automotive care. 

Their Michelin Guides and star ratings for restaurants reinforce their identity as trusted advisors for travel and dining. This brand positioning ensures that Michelin is associated with premium quality and reliability .

They don’t just sell tires. They sell the confidence that you’re getting the best​ experience — including tires.

The Role of the Product Marketing Manager in Product Positioning

A Product Marketing Manager (PMM) plays a central role in defining and implementing a company’s product positioning strategy. 

Their responsibility is to ensure the product is clearly differentiated in the market. In essence, they are the bridge between product development, sales, and the customer.

PMM’s Key Responsibilities in Product Positioning:

At the heart of effective product positioning is understanding the market. PMMs (1) conduct extensive market research to grasp customer needs, industry trends, and competitor strategies. By identifying gaps where competitors fall short, PMMs can carve out a unique space for their products in the market. 

PMMs are responsible for crafting the (2) positioning statement — a concise summary of the product’s value, its target audience, and why it stands out from the competition. This positioning statement serves as the North Star for all internal teams. It aligns marketing, sales, and customer success teams with a shared understanding of the product’s key benefits.

Once the product positioning is established, the PMM develops a (3) go-to-market strategy that includes clear, compelling messaging. The PMM ensures that the key benefits and value propositions are emphasized in every interaction with potential customers.

PMMs are (4) key collaborators across departments. They work closely with the product team to ensure the product features and roadmap align with the positioning. At the same time, they partner with sales to provide them with the right tools, training, and messaging to successfully communicate the product’s value to potential customers. They also collaborate with customer success teams to refine positioning based on user feedback and ongoing market dynamics.

Lastly, PMMs constantly (5) monitor how well the market is responding to the product’s positioning. By using customer feedback loops , analytics , and product comparisons , they track performance and adjust messaging or positioning as needed. This agility ensures that the product remains relevant in a changing market and continues to meet customer needs effectively.

Job Requirements Linked to Product Positioning:

Market Research Skills : PMMs need experience with market research methodologies, including customer surveys, competitive analysis, and data analytics tools, to gather and analyze data that inform positioning strategies.

Strategic Thinking and Messaging : A solid understanding of how to craft positioning statements and develop marketing strategies that communicate product value to various customer segments. They should be able to distill complex product features into clear, compelling messages.

Cross-Functional Collaboration : PMMs must have strong communication and collaboration skills, as they work with multiple teams including sales, product development, and marketing. Being able to convey the positioning strategy effectively to internal stakeholders is critical.

Customer-Centric Operating Mindset : A deep understanding of customer behavior and pain points is essential. PMMs are expected to use this knowledge to inform product positioning and help ensure the product aligns with customer needs.

Analytical and Data Skills : PMMs should be adept at using data to refine positioning strategies. Familiarity with tools like Google Analytics, market research platforms, or customer feedback software is often required to monitor positioning effectiveness and make data-driven decisions.

Storytelling and Content Creation: Writing product briefs, positioning statements, and go-to-market content are core parts of the role. PMMs must be able to craft compelling narratives that resonate with both internal teams and the target audience.

Propel Your Product with Strategic Product Positioning

Product positioning is about more than just standing out — it’s about shaping how your product is seen. If done right, it sparks a connection with your audience and sets a solid foundation for long-term growth without unnecessary twists and turns. 

As you've seen in the examples from companies like Amazon, HubSpot, and Airbnb, nailing down your product’s unique value and communicating it effectively can position your product decisively.

Now, the next step is yours. Take the insights you’ve gathered here and apply them to your own product. Start by understanding your audience on a deeper level, refine your messaging, and continuously test and iterate. Market dynamics change fast, but with the right positioning strategy, you can ensure your product is just where it needs to be.

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Why the art of brand positioning needs the science of investment.

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Yates Jarvis, Principal of 2 Visions , shows senior leaders how to hit their e-commerce goals and build DTC expertise.

Let’s talk about something I see all too often: E-commerce companies thinking that marketing is where they can pivot their actual brand positioning. It’s too common a pitfall to believe a clever campaign can make up for a weak brand position. If the underlying position isn’t strong, all that marketing does is highlight the cracks in your brand’s foundation. And this will be obvious via stalled growth and frustrating performance.

Marketing Doesn’t Create Positioning; It Exposes It

I’ve watched marketing leaders throw money at campaigns, expecting to shape how people see them. But the fact is, marketing doesn’t create your position. It exposes it. If your foundation is shaky, marketing will shine a light on that weakness, not cover it up.

The Camera Analogy

Think of marketing like a camera. It’s going to capture whatever’s in front of it, warts and all. If your brand’s position isn’t strong, if it’s not clearly defined, marketing will just amplify that. No amount of ad spend is going to change what’s fundamentally not there in the first place. So, before you invest in the next advertising campaign or spend time updating your homepage, step back and ask: Where do we actually stand in the market right now? Be honest about it because your customers sure will be.

The Cost Of Forcing A Position

We’ve all seen companies try to force a position they haven’t earned. You may have even been in the unenviable position of being told to accomplish such a feat. It’s a horribly unsatisfying task to peddle what we don’t even have to offer. Your ad return will remain flat. Your UX return will remain flat. Your position in the market simply will not be strengthened when marketing has nothing to lean on.

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Apple’s update decision—bad news confirmed for millions of iphone users, trump vs. harris 2024 polls: harris’ lead hits 6-point record high in latest survey, laying the groundwork for effective marketing.

Now, if you’ve taken a good, hard look at your position and realized it’s not where you want it to be, it’s not the end of the road. It just means you’ve got some work to do before your marketing can really take off. We like to think of this as laying the groundwork—building the foundation that your marketing can stand on.

Define The Position You Want

The rule to fix all of this is simple. Be special or become special. If you don’t have what it takes as a brand quite yet, build a plan to get there! This could save you years of wasted marketing spend.

Here’s what I suggest: Start by defining the position you wish you could have. What’s the ideal place for your brand in the market? Do you want to be seen as the most innovative, the most trusted or maybe the most premium? Write that down.

Map Out What It Takes To Get There

Now trace it backward, asking: What would it take to make that position a reality? It could be, for instance, a celebrity endorsement, a design award or 30 more years in business. Even if it doesn’t seem feasible to achieve quickly, it’s okay. Whatever it is, list it out.

Prioritize And Plan Your Investments

Once you’ve got that list, it’s time to prioritize. Some things will take serious investment, while others might be easier to tackle. Group them by cost, impact, how quickly you can achieve them and strategic imperative.

Execute, And Align Your Team

You can opt to move first on the quick wins or go right after a big strategic investment. Either way, it’s important to have a plan here. Schedule out these investments, make them in a timely manner, and keep your marketing team in the loop.

Once you’ve been able to invest in your positioning, the rest of your company—from product to marketing to customer service—can reinforce your new strengths.

Remember that your brand’s position is the foundation on which everything else is built. Without a solid position, even the best marketing efforts will fall flat. So, take the time to define, invest in and solidify your position—because when your brand is truly special, your marketing will finally have the impact you’ve wanted to bet on.

Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?

Yates Jarvis

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  • News for Boeing

Boeing: Poised for Recovery with Strong Market Position and Improving Execution

Citi analyst Jason Gursky maintained a Buy rating on Boeing ( BA – Research Report ) yesterday and set a price target of $224.00.

Jason Gursky has given his Buy rating due to a combination of factors involving Boeing’s enduring commercial market position and robust defense demand. Despite the recent challenges including a pandemic, workforce issues, and regulatory scrutiny, Gursky sees these setbacks as temporary obstacles. He expresses confidence in the company’s path toward improvement, emphasizing the near completion of labor negotiations and potential for positive news flow. The labor dispute is not expected to be prolonged, which aligns with the economic motivations of both parties involved. The crux of Gursky’s optimistic outlook is Boeing’s strong backlog in the commercial sector stretching into the 2030s and the current geopolitical climate bolstering defense demand, both of which provide substantial revenue visibility. Moreover, with the pandemic-induced workforce depletion being gradually overcome, productivity is anticipated to rebound. Gursky does not perceive any structural impairment in Boeing’s business model when compared to the pre-2019 era. He acknowledges there are hurdles to surpass but with new leadership and a focused management team, Boeing is poised to improve its execution, cash generation, and reduce debt, all of which underpin his Buy recommendation.

In another report released on September 13, UBS also maintained a Buy rating on the stock with a $240.00 price target.

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Boeing (BA) Company Description:

Founded in 1916, The Boeing Co. is the world’s largest aerospace company, which manufactures and sells airplanes, rockets, satellites, human space flights and launch systems, and missiles worldwide. It also provides leasing and product support services. Its products include operates through the following segments: Commercial Airplanes; Defense, Space and Security; Global Services; and Boeing Capital.

Read More on BA:

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  • Moody’s places Boeing on review for downgrade after worker strike
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Report: More Than 4 Million Older Workers Have Left the Workforce Since 2020

The silver tsunami is already making waves. and businesses in the trade and service industries will soon find it even harder to find workers, according to a new report..

A storm is brewing for the U.S. labor market .

As older employees  retire , they are set to create more job openings than younger generations can fill. And according to a new report by the workforce analytics firm Lightcast, about five million workers have already left the job market since 2020, more than 80 percent of whom were older than 55.

This " Silver Tsunami " of older workers leaving the workforce has far-reaching implications for the labor market. "Just as the Baby Boomers' entrance into the labor market created a surge in the number of available workers, their retirement is leaving behind a workforce whose numbers are not keeping pace with the US population," the report said.

The U.S. will gain 18 million people by 2032, according to the Congressional Budget Office . Yet, the job market will only add 2.3 million workers in the same stretch of time, the Bureau of Labor Statistics estimates . 

This means population growth will "outpace labor force growth" almost eight to one, per Lightcast.

A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta

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The Fed Is Still Banking on a Labor Market Miracle

The Federal Reserve is poised to lower interest rates this week. Recent jobs data have been a reminder that a soft landing is not yet assured.

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Jerome Powell carries an armload of documents across a hearing room.

By Jeanna Smialek

An object in motion stays in motion. Is a labor market trend that’s well underway any different?

That’s the question looming for officials at the Federal Reserve as they try to pull off a feat that has never really been accomplished before: gently cooling an economy that was experiencing rip-roaring inflation without tanking the job market in the process.

So far, the Fed's attempt at a soft landing has worked out better than just about anyone, including central bankers themselves, expected. Inflation has cooled significantly, with the Consumer Price Index down to 2.5 percent from a peak of 9.1 percent just two years ago. And even with the Fed’s policy interest rate at its highest level in more than two decades, consumer spending has held up and overall growth has continued to chug along.

Fed officials are eager to keep it going. That is why all signals suggest that they will lower interest rates at the conclusion of their meeting on Wednesday — and the only real question is whether they will cut them by a typical quarter of a percentage point or by a half percentage point. They are also likely to forecast that they will lower interest rates further before the end of the year, perhaps predicting that they will cut them by a full point from their current 5.33 percent.

But even as the Fed turns an important corner on its fight against inflation, real risks remain. And those center on the labor market.

Unemployment has been slowly, but steadily, rising. Wage growth has been consistently slowing. Job openings have come down, and hiring rates have come down along with them. And while all of those developments are what the Fed wanted — the point of this exercise was to slow an overheated job market and prevent it from fueling future inflation — central bankers have been clear that they do not want to see it continue.

“We do not seek or welcome further cooling in labor market conditions,” Jerome H. Powell, the Fed chair, said in his latest speech .

Unemployment and Underemployment Rise

The jobless rate historically jumps during recessions.

Wage Growth Is Cooling Steadily

After spiking in 2022, wage gains for rank-and-file workers have been coming down.

Job Openings Fall, Just as More People Look for Them

After years in which jobs were much more plentiful than available workers, that ratio is on the cusp of flipping.

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Business | Working Strategies: 9 Tips for a Tight(ening)…

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Business | Working Strategies: 9 Tips for a Tight(ening) Job Market

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Are we headed for a tight job market? Are we in one now?

Although we’ll need the magic of hindsight to find out, we do have data to help direct us in the meantime.

For example, as a nation we’re holding steady with the unemployment rate, which is low (4.3%). We’re also continuing to add jobs (89,000 in July and 142,000 in August), and employers are generally stating they are not planning any major layoffs.

Those are good indicators of a healthy job market. But there’s always another side to the coin. In this case, it relates to employer hesitation in adding workers.

For example, although we’re gaining jobs, the pace of that growth has slowed. Likewise, the number of postings has declined and the length of time between interviews and offers seems to be inching up again.

Reasons for slowing down would naturally vary from employer to employer but there are shared concerns around common issues. Inflation, the likely (but uncertain) interest rate cuts anticipated for the coming year, and the presidential election could all contribute to slowing or even stopping the hiring process for employers.

These are normal responses to uncertainty and not necessarily concerning. But if you’re a job seeker who still thinks it’s a hot market for workers, you’ll want to adjust your thinking.

The following tips will provide a throw-back reminder of what to do when the job market is less accommodating than it has been in the recent past.

If you’re working now

1. Delay a job change. Unless your position is miserable or on the verge of collapse, give yourself a few months or at least until after the election before making any moves.

2. Consider cross-training. You won’t become invaluable or impervious to layoff, but being able to switch departments could buffer you if your employer hits a rough patch.

3. Find an internal mentor. Having another perspective can be invaluable in any circumstance, but especially so if your workplace starts to wobble.

If you’re job seeking now

4. Review your job goal. Have you been shooting for something a couple of levels higher than your past position? Remember that employers might be more risk-averse, wanting certainty that someone can handle the job without much of an on-ramp.

5. Freshen your dates. Being unemployed for months or even years isn’t necessarily a problem, but showing nothing to indicate added value since your last job could be. Internships, certifications, part-time jobs and side hustles in the field would be the gold standard, but even an online class can demonstrate refreshed skills and commitment to the related work.

6. Don’t over-rely on postings. The tighter the job market, the less likely an employer will broadly advertise an opening — or advertise at all. It’s a matter of not wanting to be inundated with responses, and perhaps of not needing to market when candidates might already be knocking on the door. Not seeing a posting doesn’t mean there’s not an opening. To reverse the process, create a list of places you’d like to work, then reach out to department managers or current employees to ask about future hiring plans.

Whether or not you’re working or job seeking now

7. Increase your savings. This is obviously easier for someone with a paycheck, so the application of this step will be varied. But any steps you can take to set aside money or reduce expenses will help if the job market does contract.

8. Increase your networking. Regardless of what’s happening in the broader economy, the fastest and most certain way into a job has always been through contacts and friends. To increase your networking, you might actively connect with new people or simply re-connect with those you already know. Then, if something does happen, everyone in that circle of connections will have better options for recovering, including you.

9. Get involved in something. If you’re on a job-family-sleep-job schedule, it might seem difficult to wedge something else in. Even so, having a class or volunteer role or even a hobby such as a biking club can provide the “extra” employers like to see in their candidates; it can also provide another pool of networking relationships. These benefits are even more true for job seekers who are currently unemployed.

Amy Lindgren owns a career consulting firm in St. Paul. She can be reached at [email protected] .

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How Nizhny Novgorod became the trade center of the Russian Empire 

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“St. Petersburg is Russia’s head, Moscow is its heart and Nizhny Novgorod is its pocket.” This old Russian saying is probably the most succinct way of explaining the meaning and importance of the trading that took place in Nizhny Novgorod.

Why did Nizhny Novgorod become a center of commerce?

The city is very conveniently located at the confluence of two major rivers, the Volga and Oka, which run across the whole of Russia and flow into the Caspian Sea. In addition, the Volga was the only arterial waterway linking the West with the East. Nizhny Novgorod, moreover, was on the railway network, so one could travel to the Caucasus, Persia, Turkey, Central Asia and even India and China from there. Thanks to its geographical position, the city had always been a thriving trade hub and archeologists have found Arabic and Byzantine artifacts proving that it had trading links with the East as early as the 13th-14th centuries. The first documented fairs and gatherings of merchants go back to the 16th century.

Nizhny Novgorod at the end of the 19th century

Nizhny Novgorod at the end of the 19th century

Initially, fairs were held not in the city itself, but by the walls of the Makaryev Monastery lower down the Volga. They were temporary affairs and lasted one or two days. In the 17th century, however, Tsar Aleksey Mikhaylovich established a five-day duty-free period for trade, thus attracting even more merchants. These often stayed for longer periods, paying tax to the treasury outside the period of exemption.

In the early 19th century, it became clear that the space near the monastery was not big enough to accommodate all comers and, furthermore, the makeshift rows of wooden shopping booths burned down at one point. By that time, the Nizhny Novgorod Fair had already become incredibly important, bringing an enormous amount of money to the state treasury. 

View of the fair at the end of the 19th century

View of the fair at the end of the 19th century

The fair was moved to Nizhny Novgorod proper - to the point of land where the Volga and Oka converge. Emperor Alexander I postponed repairs in his own palace to allocate six million rubles for the construction of a new building for the fair. And he didn’t lose out - merchants brought merchandise worth 24 million rubles to the first fair, which opened on the new site in 1817, with the figure increasing to 57 million rubles by 1846.

One of the buildings of the Gostiny Dvor (indoor market) in Nizhny Novgorod

One of the buildings of the Gostiny Dvor (indoor market) in Nizhny Novgorod

Contemporaries called the Nizhny Novgorod Fair the “trading court of Europe and Asia”. Foreigners sold their wares wholesale to local merchants and manufacturers and 90 percent of all goods from the East passed through the Nizhny Novgorod Fair, from where they were distributed throughout Russia. In turn, foreign merchants bought goods from Europeans and Russians.

What was bought and sold at the Nizhny Novgorod Fair?

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General view of the fair, chromolithograph, 1896

By the 1850s, up to 700 foreign merchants would attend the Nizhny Novgorod Fair. At the same time, the volume of trade with Asia in the middle of the 19th century exceeded turnover with Western Europe by one-and-a-half to three times.

One of the main items of trade was tea from China. In the 1880s, between 800 and 900 poods (a Russian unit of weight equal to about 16.38 kilograms) of tea worth 42 million rubles were brought to Russia every year. There were even separate Asian trading pavilions in the style of Chinese pagodas at the fair.

Chinese pavilions at the fair, late 19th century

Chinese pavilions at the fair, late 19th century

In return, the Chinese bought the furs and skins of all kinds of animals; from foxes, squirrels and muskrats to sheep and cow hide.

From Iran, handmade rugs, silks, cotton fabrics, as well as a wide range of dry foodstuffs - walnuts, pistachios, dried pitted and unpitted apricots, almonds, prunes, millet and rice - were brought to Russia. And the Persians themselves took back wool, metal and leather goods, porcelain, writing paper and many other things.

Pyotr Vereshchagin. Lower Bazaar in Nizhny Novgorod, 1860s

Pyotr Vereshchagin. Lower Bazaar in Nizhny Novgorod, 1860s

Russia also exported sugar, linen, hemp, cotton and leather goods, wool, wood, metals and much more to the East. The variety of merchandise was astounding. In the 1820s, Russian official Yegor Meyendorff gave a list of the goods purchased by Bukhara merchants: “The goods exported from Russia include cochineal [a red dye - ed.], cloves, sugar, tin, red and blue sandalwood, cloths, red Kungur, Kazan and Arzamas leather, wax, some honey, iron, copper, steel, gold thread, small mirrors, otter skin, pearls, Russian nankeen [cotton fabric - Russia Beyond], cast-iron cauldrons, needles, coral, plush, cotton headscarves, brocade, small glassware and a small quantity of Russian canvas…”  

Fishing also became a very important article of trade. “Fishing for beluga, sturgeon, stellate sturgeon, catfish and some other fish species was almost completely monopolized by Russian merchants throughout the Southern Caspian,” according to historians A.A. Ivanova and A.V. Ivanov.

Fishing boat of the Murmansk fishery industry

Fishing boat of the Murmansk fishery industry

Over time, products from new developing industries, including metallurgy and textile   manufacturing, were added to the exports. They included inexpensive chintz manufactured at the famous Shuya factories in Ivanovo Region. And, in the 1880s-1890s, trading in oil and oil products even began here.

market position business plan

The machinery section at the fair in 1896

With the passage of time, bank branches were opened at the fair, the services of lawyers became available and exchange dealings were transacted. The fair was a very important event for major Russian merchants and manufacturers. But self-employed artisans and representatives of the arts and crafts industry also took a very active part. Spinning-wheels, wooden spoons, folk costumes, painted trays, crockery, lace - the work of the best artisans from all over Russia was represented. They, in turn, would spend the whole year preparing for the fair and would try to bring their best wares.

The handicrafts section in 1896

The handicrafts section in 1896

How the fair was organized

Jules Verne's ‘Michael Strogoff’ describes the Nizhny Novgorod Fair as follows: “This plain was now covered with booths symmetrically arranged in such a manner as to leave avenues broad enough to allow the crowd to pass without a crush. Each group of these booths of all sizes and shapes formed a separate quarter particularly dedicated to some special branch of commerce. There was the iron quarter, the furriers’ quarter, the woolen quarter, the wood merchants quarter, the weavers’ quarter, the dried fish quarter, etc… In the avenues and long alleys there was already a large assemblage of people… An extraordinary mixture of Europeans and Asiatics, talking, wrangling, haranguing and bargaining… On one of the open spaces between the quarters of this temporary city were numbers of mountebanks of every description; harlequins and acrobats deafening the visitors with the noise of their instruments and their vociferous cries… In the long avenues, the bear showmen accompanied their four-footed dancers, menageries resounded with the hoarse cries of animals…”

General view of the fair during spring high water on the River Oka, 1890

General view of the fair during spring high water on the River Oka, 1890

From the mid-19th century onwards, the official duration of the fair was a little over a month, but, in practice, trading continued from July to September. The fair was an occasion for general festivity in the city - more than 200,000 people would arrive in Nizhny Novgorod during the period of trading and there would be a circus and a theater and performing musicians. Electricity and water supply were brought to the site of the fair in the 1870s-1880s. The fair had a positive impact on the whole of the city - Nizhny Novgorod had convenient infrastructure facilities, and hotels and inns were extensively built. One of the first tram lines in Russia was inaugurated there in 1896.

Eastern traders at the  fair

Eastern traders at the fair

There were also two cathedrals at the site of the fair - the ‘Staroyarmarochny’ (“Old Fair”) Transfiguration Cathedral, which opened in 1822. The architect was Auguste de Montferrand (who later built St. Isaac’s Cathedral in St. Petersburg with a very similar colonnaded drum under the main dome). 

The ‘Staroyarmarochny’ (“Old Fair”) Transfiguration Cathedral

The ‘Staroyarmarochny’ (“Old Fair”) Transfiguration Cathedral

In 1881, Emperor Alexander III himself, along with his spouse and son, the future Nicholas II, were present at the inauguration of the Alexander Nevsky ‘Novoyarmarochny’ (“New Fair”) Cathedral. Construction of a new main fair building, in the Russian style, was completed in the same year (the similar GUM department store on the Red Square appeared later). All three buildings survive to this day. 

The fair’s principal building

The fair’s principal building

In 1896, the All-Russia Industrial and Art Exhibition was held in the grounds of the Nizhny Novgorod Fair - the biggest such exhibition in the history of the Russian Empire. More than 100 temporary pavilions were built for it. The first Russian motor car, as well as engineer Vladimir Shukhov’s steel lattice structures, were on display at the exhibition.

16th All-Russia Industrial and Art Exhibition in Nizhny Novgorod, 1896

16th All-Russia Industrial and Art Exhibition in Nizhny Novgorod, 1896

After the 1917 Revolution, the fair continued to function for a time, but it was not as popular as before - and there was no longer any freedom of trade, the latter having been fully placed in the hands of the state. In 1929, the Bolsheviks finally closed down “this capitalist, socially hostile phenomenon”. Many of the fair’s buildings were demolished - or converted into residential housing. 

One of the last Nizhny Novgorod fairs in the Soviet time, 1924

One of the last Nizhny Novgorod fairs in the Soviet time, 1924

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