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What is Product Positioning and it’s importance

Aug 04, 2020



What is  Product Positioning and it’s importance

Effective product positioning has become a crucial component of marketing strategies in the ever-evolving business landscape. Positioning your product in the market can make or break its success. In this blog post, we will explore the concept of product positioning and its importance and provide real-life examples to illustrate its impact. By the end, you’ll understand why mastering product positioning is vital for driving consumer engagement, differentiation, and business growth.

What Is Product Positioning?

Product positioning refers to the strategic process of creating a distinct and favourable perception of your product in the minds of consumers. It involves determining the unique value proposition of your offering and positioning it in a way that sets it apart from competitors. Successful product positioning requires a deep understanding of your target audience and their needs and a thorough competitive landscape analysis.

Product positioning is vital in marketing as it aims to sell a product effectively. It refers to a marketing approach that presents the unique features and benefits of a product, service, or venture to the intended target market. Marketers employ tools like market research surveys and focus groups to understand consumer preferences and develop improved marketing strategies.

Thorough research helps identify the offering’s most appealing features and specifications, leading to a more focused and efficient marketing plan. Such plans generate better leads and sales by highlighting the desired aspects of the product. Furthermore, product positioning can extend to different target groups, tailoring campaigns to specific features that resonate with each group.

What is the importance of positioning?

Effective product positioning helps businesses create a unique value proposition, attract the right target audience, and drive customer engagement. We will explore the importance of product positioning and highlight its key benefits.

1. Competitive Advantage:

One of the primary reasons why product positioning is essential is because it provides a competitive advantage. In a crowded marketplace, where consumers are bombarded with numerous choices, product positioning helps your offering stand out. You can differentiate yourself from competitors by highlighting your product’s unique features, benefits, or value. This differentiation gives you an edge and increases your chances of capturing the attention and preference of customers.

2. Targeted Marketing:

Product positioning enables businesses to target their marketing efforts effectively. By understanding the target audience’s needs, preferences, and pain points, you can tailor your messaging and positioning to resonate with them. This targeted approach ensures that your product is seen by the right people most likely to be interested in it. As a result, your marketing campaigns become more efficient, maximizing the return on investment and minimizing wastage.

3. Increased Customer Engagement:

When a product is effectively positioned, it creates a strong connection with consumers. It appeals to their aspirations, desires, or needs, making them more likely to engage with the product. By aligning your positioning strategy with the emotions and motivations of your target audience, you can evoke a positive response and build a loyal customer base. Increased engagement leads to higher customer satisfaction, repeat purchases, and positive word-of-mouth drive business growth.

4. Brand Differentiation:

Product positioning is closely tied to brand differentiation. By positioning your product effectively, you can establish a unique brand identity that sets you apart from competitors. A clear and distinct positioning strategy helps consumers associate specific qualities or values with your brand, making it easier to identify and choose your product. Brand differentiation builds trust, credibility, and loyalty, making it harder for competitors to imitate or replicate your success.

5. Improved Marketing Communication:

When you have a well-defined product positioning strategy, it becomes easier to communicate the value of your product to the target audience. You can craft compelling marketing messages that resonate with consumers and address their needs. Precise positioning allows you to highlight your product’s key benefits and advantages, making it easier for customers to understand and appreciate your offer. Effective marketing communication strengthens your brand’s reputation and increases the likelihood of customer conversion.

What are the Product Positioning Examples?

To gain a better understanding of product positioning, let’s explore a few real-life examples.

1. Volvo – Safety Positioning:

Volvo has positioned itself as a brand synonymous with safety. Their products are designed with advanced safety features to provide the utmost protection to passengers. By emphasizing safety as a core value, Volvo has successfully captured a niche market of safety-conscious consumers who prioritize their and their families well-being.

2. Nike – Performance Positioning:

Nike has positioned itself as a brand that empowers athletes and promotes performance. Their products are associated with innovation, cutting-edge technology, and endorsements from top athletes. Nike’s positioning strategy targets individuals passionate about sports, fitness, and achieving their personal best. Nike has become a dominant force in the athletic apparel and footwear industry by aligning their brand with performance.

3. Apple – Design and Innovation Positioning:

Apple is a brand epitomizing design, simplicity, and innovation. Their products boast sleek aesthetics, user-friendly interfaces, and groundbreaking technology. By focusing on design and innovation, Apple has cultivated a loyal customer base that appreciates the functionality of its products and the overall experience and status associated with owning an Apple device.

4. Coca-Cola – Emotional Connection Positioning:

Coca-Cola has positioned itself as a brand that fosters happiness, togetherness, and emotional connections. Their marketing campaigns often celebrate special moments, spread joy, and create shared experiences. By positioning its product as a symbol of happiness and social bonding, Coca-Cola has created an emotional connection with consumers, making its brand a timeless favourite.

These examples demonstrate how companies employ positioning strategies to differentiate themselves in the market and connect with their target audience. Effective product positioning helps businesses carve out a unique identity and enables them to resonate with customers on a deeper level, ultimately driving brand loyalty and business success.

Product positioning is a vital aspect of marketing that must be considered. It gives businesses a competitive advantage, helps target the right audience, enhances customer engagement, differentiates the brand, and improves marketing communication.

To excel in product positioning, it’s essential to thoroughly understand your target audience, conduct comprehensive market research, and craft a compelling value proposition. You can stay ahead of the competition by continually evaluating and adapting your positioning strategy, meeting consumer needs, and building a solid and enduring brand. Embrace the power of product positioning, and witness its transformative impact on your business’s growth and profitability.


Q1: How does product positioning benefit businesses?

Product positioning offers several benefits to businesses. It helps differentiate their products from competitors, attract the right target audience, create a unique brand identity, drive customer engagement and loyalty, and increase sales and market share.

Q2: What are some key elements of effective product positioning?

Effective product positioning involves understanding the target market, identifying unique product features and benefits, conducting market research, analyzing competitor positioning, developing a compelling value proposition, and communicating the positioning through marketing channels.

Q3: How can I position my product effectively?

To position a product effectively, understand your target audience and their needs. Conduct market research to identify gaps and opportunities in the market. Differentiate your product by highlighting its unique features and benefits. Develop and communicate a clear value proposition through targeted marketing messages and channels.

Q4: Can product positioning be changed over time?

Product positioning can be adjusted or changed over time-based on market dynamics, customer feedback, and business objectives. As market trends and consumer preferences evolve, businesses may need to revisit and refine their product positioning strategies to stay relevant and competitive.

Q5: Is product positioning only important for new products?

No, product positioning is important for both new and existing products. For new products, effective positioning helps establish a strong market presence and gain a competitive edge. For existing products, positioning can be adjusted to meet changing market demands and maintain a strong position in the market.

Q6: How does product positioning relate to branding?

Product positioning and branding are closely intertwined. Product positioning helps create a unique brand identity by defining how the product is perceived in the market. Consistent and effective positioning aligns with the brand’s values, personality, and overall marketing strategy, reinforcing the brand image among consumers.

Q7: What are the key elements of product positioning?

Target Market: Identifying the customers most likely to be interested in and benefit from the product. This involves understanding their demographics, preferences, needs, and behaviors.

Competitive Advantage: Determining the unique features, benefits, or value that sets the product apart. It involves highlighting what makes the product superior or different in the eyes of the target market.

Value Proposition: Creating a compelling message that communicates the product’s key benefits and value to the target market. This includes addressing their pain points, solving their problems, or fulfilling their desires in a way that resonates with them.

Positioning Statement: Crafting a concise and memorable statement that captures the essence of the product’s positioning. This statement should communicate the target market, the product’s unique value proposition, and how it is differentiated from competitors. It serves as a guide for all marketing and communication efforts related to the product.

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