What Is Product Positioning? Definition and Template (2024)

What is product positioning?

Product positioning is the process of creating an image or identity for a product in the minds of the target market. It involves shaping the way consumers perceive a product in relation to its competitors. Effective product positioning can help a business differentiate itself from its competitors and create a unique selling proposition.

Product positioning statement

A product positioning statement is a brief description that outlines the target market, the category in which the product competes, and the unique benefit or value proposition it offers to consumers. It serves as a guide for all marketing and communication efforts related to the product.

Product vs. brand vs. market positioning

Brand positioning

Brand positioning focuses on creating a distinct image and reputation for the brand as a whole. It defines how the brand wants to be perceived by consumers and sets the tone for all marketing activities.

Market positioning

Market positioning involves identifying and targeting specific segments within the overall market. It aims to create a unique position for the product within those segments, based on their needs and preferences.

Product positioning examples

Smart Bedding: An example of effective product positioning

Smart Bedding positioned itself as a high-quality, eco-friendly bedding brand targeting environmentally conscious consumers. By emphasizing its sustainable materials and luxurious feel, the brand carved out a unique position in the crowded bedding market.

How small businesses can position products to compete

1. Understand your customers

Small businesses should conduct thorough market research to understand their target customers’ needs, preferences, and pain points. This knowledge will guide the product positioning strategy.

2. Explore the market landscape

Analyze the competitive landscape to identify gaps and opportunities for your product. Understanding where your product fits in the market will help you position it effectively.

3. Evaluate your product (SWOT analysis)

Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of your product to identify its unique selling points and areas for improvement. This analysis will inform your product positioning strategy.

4. Write a positioning statement and plan your marketing

Develop a clear and compelling positioning statement that articulates the unique value proposition of your product. Use this statement as a guide for all marketing and communication efforts.

Positioning templates

1. Product positioning matrix

A product positioning matrix is a visual tool that helps businesses compare their products to competitors based on key attributes. This template can help identify areas of differentiation and opportunities for positioning.

2. Perceptual maps

Perceptual maps visually represent how consumers perceive different brands or products in relation to each other. Small businesses can use perceptual maps to identify gaps in the market and position their products accordingly.

3. Brand positioning template

A brand positioning template outlines the key elements of a brand’s positioning strategy, including the target market, competitive frame of reference, points of difference, and points of parity. This template can guide small businesses in developing a clear brand positioning strategy.

Pole position

Product positioning is like a race for the pole position – the most advantageous position on the starting grid. A well-positioned product can gain a competitive edge and stand out from the competition.

Product positioning FAQ

What is positioning, and why is it important?

Positioning is the process of creating a distinct image or identity for a product in the minds of consumers. It is important because it helps businesses differentiate themselves from competitors and communicate their unique value to customers.

What are the 4 main components of product positioning?

The four main components of product positioning are target market, category, unique value proposition, and competition. These components help businesses define the position they want their product to occupy in the market.

What is product positioning apex?

Product positioning apex refers to the highest point of differentiation and advantage that a product can achieve in the minds of consumers. It represents the most advantageous position a product can occupy in the market.