Product Positioning


Understanding Product Positioning

Product positioning is an important aspect of marketing strategy, particularly when the firm operates in a highly competitive market or when they are have a broad range of products.

Positioning (or product positioning) is how the product is designed to be perceived in the marketplace by the target market against its main competitors. In other words, it’s basically how consumers understand the product offering and how it differs from similar competitive offerings.

Positioning is built by the organization designing and promoting their product by highlighting various product features, benefits, and/or other competitive advantages. Ideally, firms like to create a clear and distinct product positioning. If they can achieve this positioning goal, then their product becomes the ‘product of choice’ for certain target markets or consumer needs.

Positioning is the final main phase of the overall STP process (which stands for segmentation, targeting and positioning). Positioning is typically more important in cluttered and competitive markets, particularly for low-involvement purchase decisions.

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Please note that the Market Segmentation Study Guide is a comprehensive review of most topics relating to market segmentation, target markets and positioning for the needs of university-level marketing students. Therefore, if this page does not highlight the particular information that you are looking for, then please use the top-level menu or the search facility to navigate to more relevant topics.