Product Positioning: Definition, Strategies and Examples
Quick Answer
Product positioning defines how a product is perceived in the minds of target consumers relative to competitors. An effective positioning strategy creates a distinctive, valued place in the market through clear messaging and differentiation.
What Is Product Positioning?
Product positioning refers to the deliberate strategy of shaping how a product is perceived in the minds of target customers relative to competing offerings. It is about creating a clear, distinctive, and desirable image in the consumer's mind — not just what the product is, but what it means and who it is for.
Positioning is the third stage of the STP (Segmentation, Targeting, Positioning) framework and translates the abstract targeting decision into concrete marketing mix decisions.
The Positioning Statement
A positioning statement is an internal strategic tool that articulates a brand's position. It typically follows this structure:
For [target customer], [brand name] is the [category] that [key benefit/differentiator] because [reason to believe].
Example: For fitness enthusiasts who want to track their health holistically, Garmin is the fitness wearables brand that offers the most advanced GPS and health monitoring because of its 30-year heritage in precision GPS technology.
Positioning Strategies
| Strategy | Description | Example |
|---|---|---|
| Attribute-based | Positioned on a specific product attribute or feature | Volvo: safety |
| Benefit-based | Positioned on the benefit delivered to the user | Colgate: cavity protection |
| Use/Application | Positioned for a specific use occasion | Gatorade: sports performance hydration |
| User-based | Associated with a specific type of user | Lululemon: professional, aspirational athletes |
| Competitor-based | Positioned relative to a specific rival | Avis vs. Hertz |
| Price/Quality | Positioned at a specific price-quality tier | Aldi (value), Waitrose (premium) |
Perceptual Mapping
A perceptual map is a two-dimensional visual tool that plots brands in a market according to how consumers perceive them on two key dimensions — typically price and quality, or traditional vs. modern.
By plotting where their brand and competitors sit, marketers can identify:
- Gaps in the market where no brand is positioned
- Overcrowded positions with intense competition
- Their current vs. desired position
Repositioning
Sometimes a brand's current market position becomes untenable — due to changing consumer preferences, competitive moves, or reputational damage. Repositioning is the deliberate effort to change how consumers perceive a brand.
Classic examples include Burberry repositioning from working-class utility to British luxury fashion, and Old Spice repositioning from an aging brand to youthful and humorous through its viral campaign.
Consistent Execution Across the Marketing Mix
Positioning is only effective if it is consistently delivered across all elements of the marketing mix:
- Product: Design, quality, and features must deliver the positioning promise
- Price: Must be consistent with the price-quality position
- Place: Distribution channels must match the brand's image
- Promotion: All communications must reinforce the positioning consistently
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Written by
Editorial Team
Expert writers in international business and economics education.
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