Product Positioning Strategy

Product Positioning Strategy

The aim of developing and implementing a product positioning strategy in business is to differentiate a product or service from those of other key competitors. In this way, customers will tend to give precedence to particular products when shopping, thereby earning the company an edge above its competitors. When customers prefer buying a given product over other similar competing ones, there is no doubt that the product will emerge powerful in the minds of your target audience.

Product positioning assists in establishing the identity of a particular product or service in the view of buyers. The choice of the product to be positioned depends on the company and its objectives. However, it should be noted that the success of the strategy used to position relies on a wide range of factors related to motivations and needs of the target customers. This implies careful thought should always be given to the process of creating a strategy, evaluating its effectiveness and integration.

What Should a Good Product Positioning Strategy Involve?

The choice of a product positioning strategy is critical in ensuring that a company can effectively distinguish its products or services from the competitors.’ Applying a wrong strategy can have adverse effects on the company’s marketing efforts and bottom line. Therefore, it is always important to know how a good strategy should be formulated for the best results.

Product differentiation

One of the main elements of a good strategy for product positioning is the sustainable competitive advantage of that product. It should emphasize on the features of the particular product, which make it look distinct from that of a key competitor. The competitive edge should be related to long term features of a product for it to be sustainable. An example of a long term product feature is eco-friendliness.

Customer buying criteria

A good strategy for product positioning should also address the important buying criteria of the target customers. Every business has its target market and understands the buying trends of its customers. In order to ensure better product positioning, the strategy should be formulated in a way that meets the shopping needs of customers.


In order to convince customers to buy a particular product over others, the company has to provide reasons to substantiate the claim. An ideal strategy should sell an idea which the company is able to vividly prove to customers. In this way, the product can even appeal to a much wider audience.

Choosing a Product Positioning Strategy

There are various strategies for product positioning that can be adopted by different businesses. One of them is positioning a product against that of a competitor. For it to be effective, there should be a specific superiority claim made by the company. On the other hand, Product positioning can also be done away from the competitor.

A product positioning strategy can also be focused on the benefits of a product to its audience. However, the benefits should emphasize on something unique, which other competing products have not explored or fully integrated. Highlighting a specific attribute (s) of a product can also be an effective positioning strategy.

Comparing a product or service to another in a different category can also be an effective way of enhancing differentiation. For instance, a lotion-manufacturing company can compare its product to a dish-washing soap, claiming it softens the hands while cleaning dishes.

A product can also be positioned based on when or how it is used by the customers. Highlighting the usage occasions for a product or service can also convince customers to consider buying it during such times. Besides, a strategy focused on the unique characteristics of specific customers can also be effective in product positioning.

Creating a Good Product Positioning Strategy

Developing an ideal strategy for product positioning requires that you have a better understanding of the purchasing decisions of your target customers, how your competitors position their products and what your product offers. Generally, an effective product positioning strategy should properly differentiate the product from that of the competitor, address the important buying criteria of target customers and articulate the main attributes of that product. However, it must always undergo testing to ensure that it can meet the set goals.

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