What Is Product Positioning? Definition and Guide

what is product positioning

What is product positioning?

Product positioning is a form of marketing that presents the benefits of your product to a particular target audience. Through market research and focus groups, marketers can determine which audience to target based on favorable responses to the product.

Research can also determine which product benefits are the most appealing to them. Knowing this information helps streamline marketing efforts and create effective marketing messages that drive more leads and sales. It also helps differentiate the product or service from the competition in the marketplace.

Product positioning is an important component of any marketing plan, but it doesn’t have to be limited to one audience. For example, a product may have a main target audience and also a secondary audience that is also interested in the product, but perhaps in a different way.

Each audience will find the product appealing for different reasons, which is why it’s important to tailor marketing messages to focus on the benefits each audience values most.

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Examples of product positioning

Product positioning can involve a number of different elements. A product can be positioned in a favorable way for a target audience through advertising, the channels advertised through, the product packaging, and even the way the product is priced.

For example, market research may have revealed that the product is popular among mothers. What do they like about the product? What should be highlighted about the product to attract them? And where should the product be advertised to reach them?

With the answers to these questions, an effective marketing campaign can be created to send benefit-driven messages to the target audience wherever they may be (such as Facebook, where targeted ads can be purchased based on demographics and interests).

Production positioning for small businesses

While larger corporations have the budgets for extensive market research, small businesses may have a difficult time coming up with the time or money to do it in depth.

Instead of running focus groups and doing tons of research, a small business owner can simply ask their network for their opinions. If they collect information on customers and their purchases, future product positioning strategies can be based on actual sales data. This may even be more effective than basing product positioning on the opinions of potential customers, such as in a focus group, because this positioning is based on real behavior rather than speculation.

A huge marketing budget is not necessary to take advantage of market research and effective product positioning. Understanding the target audience and how to communicate the benefits of a product to them in a compelling way is the first step toward a solid marketing plan.

Product Positioning FAQ

What are some examples of product positioning?

  • Apple: Premium, High-End Technology
  • Nike: Performance and Style
  • Starbucks: Premium Coffee Experience
  • McDonald's: Affordable Fast Food
  • Walmart: Low-Price Retailer
  • Mercedes Benz: Luxury Automobiles
  • Red Bull: Energy Drink for Adventure and Excitement
  • Rolex: Prestige and Luxury
  • Amazon: Convenience and Value
  • Coca-Cola: Refreshment and Happiness

What are the 4 main components of product positioning?

  • Target Market: Identifying the target market and understanding their needs, wants, and preferences.  
  • Unique Selling Proposition (USP): Developing a unique selling proposition that clearly distinguishes the product from its competitors.
  • Brand Identity: Creating an identity that resonates with the target market and builds loyalty.
  • Communication Strategy: Developing a communication strategy that effectively conveys the brand’s message.

What is product positioning apex?

Product positioning apex is a strategic marketing process of positioning a product or service in the minds of consumers against competing products or services. It involves creating an image, perception or identity of a certain product or service in the minds of consumers, which helps differentiate it from similar offerings in the marketplace. Product positioning apex helps to identify the unique selling points of a certain product or service and differentiate it from others in the market. It also helps create a brand identity, which can be used to build brand loyalty and generate repeat sales.

What is positioning and why is it important?

Positioning is the process of creating an image or identity in the minds of consumers for a brand, product, or service. It is a way of differentiating a product or service from similar offerings in the market. Positioning is important because it helps to create a competitive advantage by allowing a company to stand out in the minds of customers. By positioning a product or service effectively, companies are able to better target their customers and create a unique value proposition. This, in turn, can help to increase sales and market share.