Product Positioning – The Basics

As consumerism increases, so do the resources available to meet those needs and wants. There are numerous businesses in every market niche almost offering the same product with the same features as other products already on the market, but what makes them unique and varied is the one feature they can highlight about their brand that offers a function at a particular cost to a predetermined target audience of customers that no other brand is offering.

That’s when the product’s market positioning enters the picture.

Product positioning, a marketing tactic related to differentiation, is used to explain how your product differs from similar products on the market. In essence, this explains why and how your product is unique in its field. It can be defined as a consumer’s opinion of a brand in comparison to rival brands that offer comparable services.

This marketing strategy lets the brand to identify its niche, monitor its competitors’ activities to maintain differentiation, and select a promotional approach among the intended market for the product.

Types of Positioning


The likelihood that a consumer will choose a product is greatly influenced by its price. The type of the product, the necessity for it, and how well it fulfils the purpose all have a significant impact on how much the buyers are willing to pay for it.

The majority of luxury things fall into this category and are expensive, but necessities are frequently inexpensive, have justifiable qualities, and can accomplish the task with ease. The likelihood that customers will favour low-priced goods is higher.


In some instances, the product’s quality and durability can defeat price competition. The client can use more of their purchasing power to obtain a product with a higher quality ranking in the market when the product quality assurance sometimes exceeds the price barrier.

There are almost same prices for the product, but if one has better qualities, the buyer is more inclined to choose it. Therefore, it is accurate to state that a product is priced lower than those of its competitors.


There are numerous items in the market that fall into the same category. Based on how well they can demonstrate how their products are different from those of competitors, differentiation can aid in evaluating the market position of their items.

For instance, Complan, Horlicks, and Bournvita are all healthy drinks for kids, yet despite belonging to the same general category, they each assert that their products have unique traits and advantages.

Complan is said to increase children’s height. Horlicks promotes itself as a beverage that makes kids stronger, smarter, and taller. In order to support their claim that it includes Vitamin D, which is necessary for calcium absorption, Bournvita presents scientific evidence.


The importance of this feature in winning over customers cannot be overstated. Because of their hectic lifestyles, customers are more likely to choose solutions that are convenient and readily available to them.

The new positioning foundation for businesses is provided by e-commerce companies with quality assurances, user-friendly mobile applications for brand names, and simple return policies.

To eliminate physical contact and enable sales to distant clients, this also makes businesses a part of the race by enabling them to have a specialised virtual space for them.

Customer Service

The effectiveness and usability of the items and equipment used for grievance redressal can be used as an excellent marketing strategy. Customers gain knowledge of the brand and trust that, if they choose it, it will help them with their problems.

In fields like hospitality and education, providing customers with helpful advice and cordial manners can be essential. These fields are the result of positive interactions and individual advantages.

Targeted Customers

Having a targeted consumer base and positioning the product among them based on particular groups becomes essential for the brand and the product. It could be based on factors like age, socioeconomic class, educational background, or even career.

To get the product noticed by and be beneficial for the target group, it can be useful to explain the application and relevance of the product and the brand to that group.

For a specific product of a specific brand, placement in the market can take many different forms. Product positioning is a deliberate process, but when done well, it may have significant long-term benefits for the company.

Product Positioning – The Benefits

Creates Competition

A positive brand image of the product can be created in the customers’ minds by strategically positioning the product. This aids in establishing a devoted customer base, which in turn can help gain an advantage over other businesses in the market.

Insofar as developing additional marketing strategies through the provision of gratis and promotional goods can benefit from this favourable perception of the brand. Being a constant competitor will inevitably need the business to embrace new strategies and monitor any needed advancement.

Improves Sales

By utilising positioning in conjunction with other analytics marketing methods, sales of the product can be increased. Giving relevant incentives, free samples, membership advantages, etc. can help in both retaining the loyal customer base and breaking into the market of other customers. Once the product and brand have established a loyal client base, the launch of new items by the same company becomes easier.

Understands Customer Needs

Gaining a specific place in the market for a brand requires some effort on the part of the brand to thoroughly grasp the needs of its intended audience. It becomes simpler for businesses to interact with clients about their products and distinctive qualities (other than those already mentioned) through proper integrated practises and product positioning.

Additionally, this can be utilised to determine the kinds of products and variations of those products that the majority of customers are searching for, allowing for thoughtful consideration of the demands and desires of the client while retaining them.

Examples of Product Positioning


Tesla is a luxury brand that sells automobiles for a price that is far greater than that of their rivals. Yet is a well-known brand, and their main marketing and sales approach is to ignore price in favour of focusing on the features and quality of their cars, which are unique in the market among other luxury car manufacturers and are powered by petrol rather than electricity like theirs. They have a broad range and are green since they are electric. Despite being a luxury brand, this business uses extensive promotion to highlight its advantages.


Dove is effectively positioned in the market compared to its rivals. Basically, this is concerned with offering its goods while considering the true beauty of women. They became more well-known thanks to their effort to end beauty contests, which made their name stand out as a company that rejects all beauty ideals and prejudices. Additionally, they assert that the goodness of the fusion of science and nature has gone into their products, making them ideal for everyone.


Starbucks markets itself as an exceedingly flawless coffee shop that offers premium, creamy coffee. In order to run their coffee shops on their property, they have also formed strategic partnerships with other companies. Starbucks has also generated a lot of social media buzz by making their drinks highly personalised and writing the customer’s name on them as part of its brand culture. They were able to convey that getting a coffee can be a fun and joyful experience for the clients in this way.

There is brand positioning practically everywhere. Some instances of effective brand positioning include naming Colgate to replace the word toothpaste and naming Xerox to replace the word photocopy. This enables the brand to build a devoted consumer base and stand out from competing products.

Although position strategies must be modified and revised frequently, with the right application, comprehension, and investment in them, the brand’s image and popularity within the targeted audience can be successfully enhanced.



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