Market positioning

Market positioning is the process of establishing a distinct image and identity for a brand or product in the minds of target customers relative to competing offerings, shaping perceptions of value and differentiation (Ries A., Trout J. 1981, p.2)^[1]. Volvo owns "safety." BMW owns "driving performance." Walmart owns "low prices." These associations didn't happen by accident—they resulted from deliberate positioning strategies that carved out mental real estate in consumers' minds. Once established, strong positions become difficult for competitors to dislodge.

Al Ries and Jack Trout popularized positioning in their 1981 book, arguing that in an overcommunicated society, the mind rejects confusion and accepts only what matches prior knowledge. The battle isn't for shelf space or advertising share—it's for position in the prospect's mind. Companies must find open positions, or reposition competitors, to win.

The positioning concept

Positioning involves strategic choices:

Mental real estate

Perceptual space. Customers organize competing products in mental categories and hierarchies. Positioning determines where your offering lands in that mental map^[2].

Simplification. Overcommunicated consumers simplify by categorizing. Positioning harnesses this by providing a clear, simple concept the mind can grasp and file.

Relative placement. Position is always relative to alternatives. You can't just say "we're high quality"—you must be higher quality than specific competitors in ways that matter to target customers.

Differentiation foundation

Points of difference. What makes you different from competitors? Technical features, service quality, convenience, image, price—differentiation can occur on many dimensions.

Points of parity. Where must you match competitors? Category norms establish baseline expectations. A car must have safety features to compete; that's parity, not differentiation.

Credible claims. Positioning must be believable and deliverable. Claiming "highest quality" means nothing if customers don't perceive it or the product doesn't deliver^[3].

Positioning strategies

Several approaches can establish position:

Attribute positioning

Feature focus. Position based on a specific attribute or benefit. Crest positions on cavity prevention. Duracell positions on long-lasting power.

Single-attribute focus. Attempting to own multiple attributes often dilutes positioning. Strong brands typically own one clear benefit in consumers' minds.

Benefit positioning

Problem-solution. Position as the solution to a specific customer problem. Head & Shoulders solves dandruff. FedEx solves the need for guaranteed overnight delivery.

Emotional benefits. Beyond functional benefits, position on emotional outcomes—status, security, belonging, self-expression^[4].

Competitor positioning

Against the leader. Position directly against the market leader. Avis's "We try harder" acknowledged Hertz's leadership while claiming superior effort.

Creating new categories. Rather than compete in existing categories, create a new category you can lead. Energy drinks didn't compete with colas—they created a new space.

Price positioning

Premium pricing. Signal quality through high prices. Luxury brands explicitly charge more to reinforce exclusivity.

Value positioning. Offer acceptable quality at lower prices. Walmart and Southwest Airlines built empires on value positioning.

Price-quality relationship. Position along the price-quality continuum where target customers perceive best value^[5].

Use/application positioning

Usage occasion. Position for specific usage situations. Gatorade for athletic performance. Nyquil for nighttime cold relief.

User positioning. Position for specific user types. Apple originally positioned for creative professionals. Miller Lite positioned for people who wanted beer without feeling full.

Developing a positioning strategy

Systematic positioning requires:

Market analysis

Competitive mapping. Identify how competitors are positioned. What positions are occupied? What's open?

Customer research. Understand how customers perceive alternatives, what attributes matter, and what unmet needs exist^[6].

Segment identification. Different segments value different benefits. Position differently for different targets, or choose segments whose needs match your strengths.

Strategic choices

Frame of reference. Define the competitive set—who are you compared against? Choosing your frame determines which competitors you face and which category norms apply.

Point of difference selection. Choose differentiators that are important to target customers, deliverable by your offering, and sustainable against competitive response.

Positioning statement. Articulate position concisely: For [target customers], [brand] is the [frame of reference] that [point of difference] because [reason to believe].

Implementation

Consistent execution. Every customer touchpoint should reinforce the position—product design, packaging, advertising, pricing, distribution, service^[7].

Internal alignment. Employees must understand and deliver the position. Internal communication and training ensure consistency.

Long-term commitment. Positions take time to establish and shouldn't change frequently. Consistency builds associations; change confuses.

Repositioning

Sometimes positions must change:

Market evolution. Changing customer preferences, new competitors, or technological shifts may render current positions obsolete.

Poor initial positioning. If original positioning didn't resonate, repositioning may be necessary—though starting fresh is often easier than changing established perceptions^[8].

Competitive attack. When competitors claim your position successfully, repositioning to defend or find new ground becomes necessary.

Expansion requirements. Growth may require moving beyond original narrow positions to appeal to broader audiences.

Common positioning errors

Pitfalls to avoid:

Underpositioning. Failing to establish any clear position. The brand is just another option without distinctive meaning.

Overpositioning. Creating an overly narrow position that limits the target market. Positioning as "luxury" may exclude most potential customers.

Confused positioning. Attempting to stand for too many things creates confusion. Customers can't remember multiple associations.

Doubtful positioning. Claims customers don't believe undermine rather than strengthen position.

Market positioning — recommended articles

Marketing strategy — Brand management — Competitive advantage — Market segmentation

References

• Ries A., Trout J. (1981), Positioning: The Battle for Your Mind, McGraw-Hill.
• Kotler P., Keller K.L. (2016), Marketing Management, 15th Edition, Pearson.
• Aaker D.A. (1996), Building Strong Brands, Free Press.
• Keller K.L. (2013), Strategic Brand Management, 4th Edition, Pearson.

Footnotes

1. ↑ Ries A., Trout J. (1981), Positioning, p.2
2. ↑ Kotler P., Keller K.L. (2016), Marketing Management, pp.312-324
3. ↑ Aaker D.A. (1996), Building Strong Brands, pp.78-92
4. ↑ Keller K.L. (2013), Strategic Brand Management, pp.134-148
5. ↑ Ries A., Trout J. (1981), Positioning, pp.56-78
6. ↑ Kotler P., Keller K.L. (2016), Marketing Management, pp.345-356
7. ↑ Aaker D.A. (1996), Building Strong Brands, pp.112-126
8. ↑ Keller K.L. (2013), Strategic Brand Management, pp.178-192

Author: Sławomir Wawak