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Product Positioning

What is product positioning?

Product positioning is the strategic process of creating a distinct perception and identity for a product in the minds of target customers. It involves shaping how customers perceive and understand the unique value, benefits, and positioning of a product relative to competitors in the market. 

Synonyms: Brand positioning, market positioning

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Why is product positioning important?

Product positioning is important for the following reasons:

  • Competitive Advantage: It creates a distinct and competitive advantage by differentiating the product from competitors in the market.
  • Targeted Marketing: It enables companies to effectively target and engage the right audience, increasing the effectiveness of marketing efforts.
  • Customer Perception: It influences how customers perceive and understand the value and benefits of the product, driving their purchasing decisions.
  • Business Growth: It contributes to business growth by expanding into new markets, attracting new customers, and fostering brand loyalty.

What are two approaches to product positioning?

  • Head-to-Head Positioning: This approach, also known as comparative positioning, involves directly comparing a product to its competitors. The goal is to position the product as equal or superior to competitors in terms of specific attributes, performance, or value. Head-to-head positioning aims to highlight advantages and differentiate the product based on specific features or benefits.
  • Differentiation Positioning: This approach focuses on highlighting unique features, benefits, or qualities of the product that set it apart from competitors. The goal is to position the product as distinct and superior in terms of attributes, performance, or value proposition. Differentiation positioning emphasizes the unique selling points of the product to create a competitive advantage and attract target customers.

How to develop a product positioning strategy? 

Developing a product positioning strategy involves the following steps:

  1. Identify Target Market: Conduct market research, analyze customer demographics, behaviors, and needs to identify the most relevant customer segments.
  2. Conduct Competitive Analysis: Assess competitor offerings, strengths, weaknesses, and market positioning to identify opportunities for differentiation.
  3. Define Unique Value Proposition: Identify the specific customer needs or problems that the product addresses and emphasize the value it provides.
  4. Align Brand Messaging: Craft clear and consistent messaging that communicates the product’s benefits, positioning, and relevance to the target audience.
  5. Monitor and Adapt: Continuously monitor the market, customer feedback, and industry trends to assess the effectiveness of the product positioning strategy. Adapt and refine the positioning based on evolving customer needs, market dynamics, and competitive landscape to maintain a strong market position.


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What is an example of good product positioning?

An example of good product positioning is Apple’s positioning of the iPhone as a premium, innovative, and user-friendly smartphone that offers a seamless integration of hardware, software, and services. Apple focuses on differentiation by emphasizing design, user experience, and ecosystem integration, which has helped them establish a strong market position.

What is product positioning done through?

Product positioning is done through various marketing activities and strategies such as branding, messaging, advertising, packaging, pricing, and customer experience. It involves crafting a distinct identity for the product, effectively communicating its unique value proposition, and aligning the product’s positioning with the desired target market.

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