Market Positioning: How to Create an Effective Market Positioning Strategy

Digital Advertising

What is Market Positioning? To create an effective marketing strategy, it’s essential to understand the definition of market positioning. While there are several definitions, we will give you my take on this topic.

It’s all about understanding your target customers and their pain points to solve them with a product or service. You need to know what they want before you can start marketing to them effectively.

Many companies struggle with the process of positioning themselves in their market. But with these tips on what you should consider when it comes time for marketing and branding your company, you’ll be able to figure out how best to position yourself in the marketplace.

What is Market Positioning?

It is a strategy that allows an organization to position its products or services in the minds of consumers.

Market positioning is a way to place your product or service in the marketplace so that customers will come looking for it.

Market positioning is a strategic marketing plan used to differentiate a business from its competitors. It’s also called competitive marketing strategy or product positioning, and it involves finding the right place in your industry for your product based on target market perceptions.

Market positioning is how businesses define their product or service in terms of differentiation from the competition.

The process of identifying the unique place a company occupies in a customer’s mind relative to competitive offerings.

Market Positioning is the level of importance you place on your product compared to similar products.

Market positioning is the art of creating a specific position in the market for your business, product, or service.

Market positioning is a tool that helps you figure out where your business lies in the competitive industry.

Though Market Positioning is a common strategy among businesses, it deserves greater understanding.

What is Market Repositioning?

Market Repositioning is a powerful marketing technique in which a company uses the current situation to grow and expand its market. It usually involves improving or modifying products on the market according to how consumers currently react to them.

Market Repositioning is a process where you change what the market perceives your product or service as. A new brand and name can rebrand it, emphasizing its benefits and features over the competition.

Market Repositioning is a strategy that focuses on improving an existing product’s image, features, or brand.

Market Repositioning is a process where marketers look at positioning their products in the market.

In marketing, repositioning is a process that involves the adjustment of the image of an existing product, service, or brand to respond to changes in market conditions. Repositioning consists of both marketing communications and product design elements.

Repositioning is a strategy that companies use to change the way consumers view their brand, product, or service.

Types of Positioning Strategies

There are two types of positioning strategies. One is the perceptual map, and the other is the niche differentiation strategy.

There are two main types of positioning strategies, namely competitive and suggestive.

Three main types of positioning strategies include first-mover, differentiation, and cost. The first mover is the act of being the first to enter a market with innovation. Differentiation strategy focuses on creating new value for customers.

  • Competitive
  • Differentiation
  • Focus
  • Product line extension
  • Brand Positioning
  • Competitive Positioning
  • Product-Market Fit
  • Place-Product Fit
  • Market Leader
  • Differentiation
  • Focus, or Niche Marketing
  • Low-Cost Provider
  • Head-to-head competition:
  • Product differentiation:
  • Market segmentation:
  • Brand positioning
  • The Unique Selling Proposition
  • The Value Proposition
  • The Personality or Image of the Brand
  • Target Market Segmentation and Differentiation
  • Product Positioning
  • Market Segmentation
  • Brand Positioning
  • Target Marketing
  • Positioning to meet customer’s needs
  • Positioning for competitive advantage
  • Cost positioning

A Perceptual Map in Market Positioning

Perceptual maps are a great way to analyze the market position and identify opportunities. They help us become aware of the other things that influence consumers’ choices.

The way to improve market position is by changing the perception of both customers and competitors.

The perceptual map provides a way to visualize the patterns in which your product is similar to and different from your competitors.

An effective market positioning strategy allows you to take advantage of three primary ways customers view your product. Your company’s position should reflect the benefits, price points, and brand personality associated with these views.

A perceptual map is the most helpful tool to identify and evaluate a company’s position in place.

How to Build an Effective Market Positioning Strategy?

An effective market positioning strategy should include these elements

  • Core competencies, capabilities, and value propositions
  • Target customer segments or accounts
  • Unique value proposition amongst competing offerings in the market
  • Price points for target customers to afford while generating ROI for the business.

When considering price points, it’s essential to consider where you are targeting (niche markets within a more significant industry).

The most straightforward way to create an effective marketing positioning strategy is through identifying your potential customers’ unmet needs and how those needs can be fulfilled.

Defining these unmet customer needs for your product or service and any competitive advantages you have will allow you to formulate a clear message that communicates what sets you apart from the competition and how the customer will benefit from using your product or services.

It then comes down to understanding your customers better than anyone else – which should not be too hard since it’s their unmet need that will dictate where should go next with this proposal!

Benefits of positioning in marketing

  • Positioning is a way to differentiate your product from others
  • It creates an emotional connection with the consumer
  • Positioning can be used to build brand loyalty
  • Positioning is a way to differentiate your product from the competition
  • When done correctly, positioning can help you grow your market share and increase sales
  • A brand’s position in its market should be supported by advertising, public relations, and other marketing communications
  • The key to successful positioning is understanding who your target customer is and what they want
  • It helps to improve your brand’s visibility
  • It can help you get more clicks on your ads and website
  • You’re able to reach a wider audience with positioning, which means more potential customers for your business
  • Positioning is the number one way of making sure that people will find what they’re looking for when they search online
  • Target a specific audience
  • Establish a unique identity
  • Provide a memorable experience
  • Build customer loyalty
  • Positioning can help you differentiate your product from the competition
  • It will create a clear image of what makes your company different and better than others
  • A good positioning strategy will give customers an emotional reason to buy from you, not just a logical one
  • Positioning is more about how people feel about your brand rather than how they think about it
  • Positioning is a marketing strategy that helps companies communicate their value to the market
  • Businesses need to figure out what they want to be known for and who their target audience is
  • There are four types of positioning: product, price, promotion, and place
  • Product positioning communicates how a company makes its products better than competitors’ offerings
  • Price positioning sets a price point about competitors’ prices
  • Promotion positioning focuses on how an organization can promote itself differently from other organizations in the industry
  • Positioning is the act of creating a unique and meaningful place for your product in the minds of consumers
  • It helps you stand out from competitors by differentiating yourself, so people will remember you when they need what you offer
  • Your positioning strategy should be based on who your target market is and what they want to hear about themselves
  • It attracts attention
  • Increases the chance of a sale
  • Increases your company’s visibility and credibility
  • It makes it easier to plan an advertising campaign
  • It’s a more effective way of marketing
  • You can increase your brand awareness
  • It will help you reach new customers who are not aware of your product or service.
  • Positioning helps you create a unique identity for your company
  • The position of a product in the market determines how it is perceived
  • Positioning can be used to differentiate products and take them into new markets
  • It helps create an image for the product that will influence its success in the marketplace
  • There are four different types of positioning: focus, differentiation, cost leadership, and innovation

Steps to create an effective positioning strategy

  • Define your company’s target market
  • Identify the most critical features of your product or service
  • Write a compelling tagline that speaks to your target audience
  • Analyze what other companies in your industry are doing and how you can be different
  • Develop a list of benefits for customers, including any guarantees you offer
  • Research the competition within your industry and identify their positionings
  • Make a list of what you want to be known for, including strengths and weaknesses
  • Develop a positioning statement that is clear, concise, differentiated from competitors, and compelling enough to stand out in the marketplace
  • Consider your company’s strengths and weaknesses
  • Identify the needs of your target market
  • Develop a positioning statement that highlights your product or service’s benefits to the target audience while differentiating it from competitors
  • Create an integrated communications strategy to support this positioning statement
  • Define your target market
  • Identify the key features and benefits of your product or service
  • Create a compelling value proposition for this segment of customers
  • Develop an appropriate positioning strategy to communicate with your target market
  • Identify the value proposition
  • Create a positioning statement
  • Determine how to position your product or service in the market relative to its competition
  • Develop messages that convey your positioning strategy and align with essential customer needs
  • Determine your positioning
  • Define your target market
  • Create a set of benefits for that target market
  • Write down the key messages you want to communicate about yourself, your company, and your product or service.
  • Identify potential obstacles in communicating with this audience and how you will overcome them.
  • Identify the key messages that speak to your audience and differentiate your company from competitors.
  • Develop a marketing plan with these messaging points in mind
  • Define the problem you are solving for them
  • Brainstorm all possible solutions to that problem
  • Rank those solutions by how well they solve the problem and how much they will cost you to implement
  • Choose one solution to pursue
  • Define your brand’s unique selling proposition
  • Identify the target audience for your product or service
  • Conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats
  • Create a positioning statement that outlines what you do best and who you serve
  • Position yourself as the solution to their pain points
  • Identify and address any objections that people might have about you or your product
  • Create a clear and concise value proposition for why someone should choose you over others in the same field


We’re here to help you create a Market Positioning Strategy that will differentiate your company from others in the same space and drive more sales. Contact us today for our consultation services. Our expert team can support you through all of the steps in creating an effective strategy so that it’s easier than ever to achieve your goals!

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