What Is Positioning Strategy? 4 Types of Positioning Strategies

A positioning strategy—also known as a market or brand positioning strategy—is a type of marketing strategy that focuses on distinguishing a brand from its competitors. The goal of a positioning strategy is to influence consumer perception by effectively communicating a brand’s competitive advantage.

The concept of positioning rose in popularity in 1969 after the publication of Positioning: A Battle for Your Mind, written by Jack Trout and Al Ries. There are several types of effective market positioning strategies for reaching your target audience, including product positioning and competitive positioning.

Successful branding hinges on a company’s understanding of the market and its target audience. Here are the key components that make up an effective positioning strategy:

1. 1. Channel: Your channel is how customers interact with your brand. Depending on your business model, your channel may be your sales team or your marketing team. Use market research to collect metrics on consumer desires and behaviors, then leverage this information to best connect with your customer.
2. 2. Customer: Every successful positioning strategy must have a firm grasp on the target market and customer needs. Knowing your target demographic will help guide decision-making when developing marketing plans. This understanding is crucial for ensuring that you’re using the correct pricing strategy to maximize profitability.
3. 3. Competition: Evaluate your market position relative to your direct competitors. A positioning map (also known as a perceptual map) helps visualize where your company stands in customers' minds and can be a key tool for informing your overall business strategy.

Here are several effective positioning strategies.

1. 1. Product price: A reliable differentiation strategy is to link your product with a competitive price point.
2. 2. Unique value proposition: What is your product's unique value proposition? Highlight the features and benefits of your product as uniquely equipped to meet the specific needs of your customer base.
3. 3. Product quality: Customers are accustomed to paying more for higher product quality, whether real or perceived. This strategy is especially successful in the luxury market, where high quality, limited availability, and famous brand ambassadors influence purchase decisions.
4. 4. Competitive positioning: This strategy involves directly comparing your product with your competitors’ to show how yours is better or unique.

After doing the research and deciding on a positioning strategy, it is important to communicate this to key stakeholders internally in a brand positioning statement and to work with marketing teams to create messaging accordingly.

When a company changes its positioning strategy, it is known as repositioning. The need for a new positioning strategy can happen for many reasons during a product's lifecycle, including a change in consumer desires, new entrants, or changes in technology.

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