How To Use 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.

Product Positioning

Why is product positioning important?

Understanding your target market will help you better understand which features will appeal to them and identify who they are. Through the creation of compelling messages that increase leads and sales, this can help you streamline your marketing efforts. Additionally, it can assist you in identifying the areas where your goods and services outperform those of your rivals.

What is product positioning?

Product positioning is a marketing tactic that informs your target market of the advantages of your product. Additionally, it demonstrates how your product fits into its market and has an impact on the rest of your marketing strategy. Product positioning is a strategy that can be used in both established and emerging markets. The challenge in emerging markets is persuading a consumer to fulfill an unmet or unidentified need. For the same product or service, businesses might create multiple product positions for both primary and secondary target audiences. Product positioning may influence or be influenced by:

How to use product positioning in business

Learn how to implement a product positioning strategy in your company using the following steps:

1. Understand the customer

Start by identifying your target customers and audience. Specify the characteristics of your ideal customer, including their demographics, behaviors, psychological makeup, and geographic location. Create personas and share them with the team or organization. You can also consider the issues or aspects of a customer’s lives they are attempting to solve. By examining the variables that affect decision-making, such as the following, you can try to predict how your target customer will transition from their current behavior and products to alternatives.

2. Analyze the market

For guidance on identifying what makes your product distinctive, research the alternatives a consumer has to it. Take note of the products they offer, the features those products possess, the price, and their marketing strategies as you research both direct and indirect competitors.

You can also determine the maturity of your product market. A product in a mature market has many rivals that are similar to it. A product may be in a new niche market if it has few or no direct competitors. You can decide if you need to persuade customers that they need an innovative product or if they should choose a new one from a crowd by knowing the market’s maturity level.

3. Assess the product

Determine what makes it distinctive using the information you have gathered about your target market, your industry, and your competitors. To determine what the product does well and where improvements can be made, you may perform a SWOT analysis (success, weakness, opportunities, and threats). Pay attention to components like distinctive qualities and additional elements like product packaging or cost. This analysis makes sure that your branding, marketing, and messages are in line with the experience of a user. It also helps customers make informed purchasing decisions.

4. Create a product positioning statement

After collecting all your data, craft a product positioning statement. This succinct summary outlines your target market, the product’s unique selling proposition, and why customers should care. Think of this as your product pitch, or how you would introduce the product to prospective investors. A product positioning statement template may look like:

The [general type of product or service] is a [specific product/solution] that solves this by [reason it benefits the customer] for [specific target audience] who [need/want].

5. Create a customer-centric tagline

Create a tagline that is focused on the needs of the target market using your product positioning statement. Depending on the audience you’re writing for, you might use more flamboyant or informal language like slang or idioms.

6. Use advertising channels

Utilize your customer-focused tagline and product positioning analysis to market your products through a variety of channels, including social media, television networks, print publications, and other places. This can help you determine whether your analysis of product positioning was accurate and, if so, allow you to adjust your marketing plan.

Tips for using product positioning in business

Consider the following advice as you work to maximize the impact of your product positioning strategy:

Conduct customer research

To get customer feedback on your product, use focus groups and market analysis. You can meet with actual customers to learn what they want and need rather than just focusing on a hypothetical audience. Invite individuals who you believe to be in your target market to test your product so you can get their feedback.

Get their initial and second opinions, as well as information on how the product will benefit them and what alternatives they may use. This can assist you in determining whether you have chosen the right target market and are emphasizing the most crucial features. Following such meetings, you can realign your product positioning strategy accordingly.

Use a template

To most clearly define each component of your product positioning strategy, think about using a template. These templates let you compare different iterations and communicate your positioning to other teams or stakeholders. Some template styles may include:

Examples of product positioning

These fictitious examples of product positioning demonstrate how developing a strategy may be effective in businesses in the real world:

Beauty products

A new line of lip stains from Glimmer Cosmetics only fades 24 hours after application if water is present. Their target market is a consumer who uses lip color products between the ages of teens and 40, according to their research and marketing departments. They believe that the main motivator for customers to choose their lip stain over rivals is “pull.”

They discover from their analysis of the market that there are numerous competitors in the mature lip stain market. They discover that numerous businesses offer 24-hour lip stains in a range of hues. The analysis of the product reveals that the only other provider of a no-fade formula that requires an activating agent, such as water, is Glimmer Cosmetics. They gather feedback from beauty influencers who said the product performed as anticipated after a product test launch.

Glitter Cosmetics used this information to develop a product positioning statement that reads: “For young adult lip stain consumers who need a longer lasting product, Glimmer Cosmetics 24-hour stress-free lip stain solves this problem by providing daily coverage that you can remove only with water.” They next come up with the following slogan for the target market: 24-hour stress-free lip stain—take the guesswork out of your beauty regimen. “.


An innovative milkshake straw made of chocolate and marshmallows was developed by Anthony & Ingrid Candies. They determine that their customers might be mostly children, with a secondary group of customers who enjoy sweets of all ages. They discover that there is a market for edible straws, but it is not one that offers chocolate marshmallow straws. They find they dont have any direct competitors.

By enhancing the milkshakes with additional flavors, they believe they can persuade consumers to purchase the product. The straw itself is too sticky to touch, and the flavors are distracting, but they don’t disintegrate in the shake or the drinker’s mouth until they take a bite, according to testing done in their attached ice cream parlor.

They make a few adjustments to the recipe and create a product positioning statement that reads: “An edible marshmallow and chocolate straw that solves this by offering an alternative to wasteful plastic straws is for children and sweet lovers alike who want to enhance their milkshake drinking experience.” The company then develops a tagline for their customers that reads, “Choc-Marsh Straws—sip, swallow, and snack.” “.


What is product positioning with example?

It’s done to influence consumer decision-making based on brand perception and product attributes. Let’s take the automobile industry, for example. Volvo is likely to be chosen by someone who is concerned about safety because of the company’s positioning However, a different client who values dependability would choose Toyota.

What are the 4 main components of product positioning?

As an illustration, a handbag manufacturer might present itself as a high-end status symbol. A TV manufacturer might advertise their model as the most advanced and cutting-edge. A chain of fast food restaurants might advertise that it offers affordable fare.

What are the 3 stages of positioning a product?

The target, the category, the differentiator, and the payoff are the four components that make up the definition of a positioning statement.

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