Positioning in Marketing – Definition, Benefits, Types, Steps, and Examples

What is Positioning in Marketing?

In marketing, positioning is a strategic approach where companies work to shape a distinct and memorable image of their product or brand in the minds of their desired customers. This involves crafting a unique identity in comparison to other products or competitors in the market.

Think of it as the process of creating a mental space in your customers’ heads, making them think of your product in a certain awesome way. This helps your brand establish its identity and stand apart from competitors.

To simplify, positioning is the smart strategy you use to make your brand or product special in the eyes of your customers. It’s like finding the perfect place for your brand to shine in the market.

Benefits of Positioning

Positioning is about carving a lasting impression on your desired audience, thereby influencing how they perceive your product or brand. This mental image should be both distinctive and compelling. Here are five key benefits of effective product positioning for businesses:


Positioning allows a company to stand out in a crowded marketplace. It highlights what makes your product or brand unique and sets you apart from competitors. This differentiation can attract more customers and foster brand loyalty.

Read More: Target Market – Definition, Steps

Targeted Marketing

Positioning helps in identifying and targeting the right audience. By understanding your product’s unique value and the specific needs of your target market, you can tailor your marketing efforts more effectively.

Increased Credibility

A well-positioned product or brand enhances credibility in the eyes of consumers. When you consistently deliver on your positioning promises, it builds trust and strengthens your brand’s reputation.

Enhanced Customer Loyalty

Effective positioning resonates with your audience, creating a strong emotional connection. Satisfied customers who identify with your brand are more likely to become loyal advocates, driving repeat business.

Read More: 4 Strategies For Market Targeting

Competitive Advantage

Positioning enables you to communicate why your product is superior or more desirable than others in the market. This competitive advantage can lead to higher market share and profitability.

Types of Positioning in Marketing

It is like creating a unique personality for your offering that sets it apart in a crowded marketplace. Here are seven types of positioning strategies in marketing:


This strategy emphasizes the superior quality of your product compared to competitors. It’s about convincing customers that your offering is a top-notch choice in terms of reliability, durability, and overall excellence. Brands like Apple often use this approach.

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Price-based positioning revolves around affordability. It showcases your product as a budget-friendly option that doesn’t compromise on value. Companies like Walmart excel in this strategy, offering “Everyday Low Prices.”


This strategy targets specific user categories. You focus on tailoring your product to cater to the unique needs and preferences of a particular group, such as children, students, or professionals.


Here, your product’s positioning centers on how it’s used. You associate it with specific situations or needs. For example, marketing a smartphone as perfect for gaming or a laptop designed for business professionals.

Read More: 10 Examples of Behavioral Segmentation


This strategy aligns your product with specific events or occasions, making it the ideal choice for those moments. Think of products marketed for weddings, holidays, or back-to-school shopping.


With competitor-based positioning, you aim to differentiate your product by highlighting its advantages over rival offerings. This might involve showcasing better features, price, or quality compared to your competitors.


Value-based positioning focuses on the benefits your product provides. You communicate how it meets customers’ needs and offers more value for their money. For example, toothpaste brands often emphasize features like cavity protection and fresh breath.

Read More: Behavioral Segmentation – Definition, Features

Steps To Create An Effective Positioning Strategy

Creating a distinct position is essential for businesses to make their products or brands stand out in the minds of consumers. To create an effective positioning strategy, consider these six simple steps:

Know Your Audience

First, understand who your target customers are, what they need, and what they care about. Knowing their preferences, problems, and desires will help you tailor your positioning to resonate with them.

Analyze Competitors

Identify your main competitors and study how they position their products. This analysis helps you discover gaps in the market where your product can shine and differentiate itself.

Read More: Psychographic Segmentation – Definition

Choose Your Position

Decide on the unique position you want your product to occupy in customers’ minds. This could be based on quality, price, user category, use cases, occasions, or value. Make sure it aligns with your target audience’s needs.

Create a Clear Message

Craft a compelling message that communicates your chosen position effectively. This message should be concise and easy for customers to understand. It should highlight the key benefits of your product and why it’s the best choice.

Implement Marketing Programs

Once your positioning message is ready, align your marketing efforts, including product development, pricing, promotion, and distribution, with this message. Ensure consistency across all touchpoints.

Read More: 4 Market Segmentation Types 

Monitor and Adapt

Continuously evaluate how well your positioning strategy is working. Keep an eye on customer feedback, sales data, and market trends. If needed, be ready to adjust your strategy to stay relevant and competitive.

Examples of Positioning

Now, let’s explore some examples including how different companies are employing this strategy and how they have established their unique position in the market. Here are five examples of various companies, highlighting their positioning base, strategy, and performance:

Apple – Quality and Innovation

  • Positioning Base: Apple positions itself based on the quality and innovation of its products, such as iPhones and MacBooks.
  • How They Do It: Apple consistently releases products known for their sleek design, cutting-edge technology, and user-friendly interfaces. They create a perception of exclusivity and superiority through their marketing.
  • Performance: Apple’s positioning as a premium brand has allowed them to command higher prices for their products. They have a dedicated customer base that values quality and innovation, leading to strong sales and profits.

Read More: 15 Examples of Demographic Segmentation

McDonald’s – Convenience and Fast Service

  • Positioning Base: McDonald’s positions itself as a fast-food restaurant that offers convenient and quick service.
  • How They Do It: They have a standardized menu with familiar items, fast drive-thru services, and a focus on consistency in taste and quality.
  • Performance: McDonald’s is one of the most recognized fast-food chains globally, and its position as a convenient and fast option has contributed to its success and widespread popularity.

Tesla – Innovation and Sustainability

  • Positioning Base: Tesla positions itself as an innovative and sustainable electric vehicle (EV) company.
  • How They Do It: Tesla continuously pushes the boundaries of EV technology, focusing on performance, energy efficiency, and sustainability. They market themselves as pioneers in the green automotive industry.
  • Performance: Tesla’s market position has garnered significant attention and a loyal customer base. They have disrupted the automotive industry and are among the leaders in EV sales.

Read More: 10 Examples of Geographic Segmentation

Coca-Cola – Happiness

  • Positioning Base: Coca-Cola positions itself as a beverage that brings happiness and joy.
  • How They Do It: Coca-Cola’s marketing campaigns often revolve around themes of happiness, togetherness, and sharing moments. Their iconic holiday ads are a great example.
  • Performance: Coca-Cola’s position as a source of happiness has made it one of the most recognizable and beloved brands worldwide, contributing to its enduring success.

Volvo – Safety

  • Positioning Base: Volvo positions itself as a car manufacturer that prioritizes safety above all else.
  • How They Do It: Volvo invests heavily in safety features and technologies, and its marketing emphasizes the protection of drivers and passengers.
  • Performance: Volvo’s safety position has helped establish it as a reputable and reliable brand, particularly among families and safety-conscious consumers.

Read Next: 10 Examples of Behavioral Segmentation

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