How Product Positioning Grows Brands

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Product positioning focuses on what your target audience thinks about your product, while branding focuses on how your audience perceives your brand. It’s a great way to make your messaging clearer and more effective.

Several factors influence what we expect when we try a new product. These include:
But here’s the thing: It doesn’t matter if your brand is a strong and meaningful representation of what you offer unless you’re communicating that message correctly.
In addition to the above, you must consider product positioning. This means where your product is on store shelves to drive sales.

This isn’t to say that you need to create a one-size-fits-all approach to positioning; instead, you should be strategic and understand that different positioning strategies are necessary to meet the needs of different types of products.

What will I learn? show

What Is Product Positioning?

What Is Product Positioning

How Product Positioning Grows Brands
In reality, many stores sell items that are positioned incorrectly. This can be a problem because:

  1. Your customers might walk away if they think the item is unavailable or in stock.
  2. They might return to other stores if they don’t see your product.
  3. You’ll lose money because you can’t convert a sale into a repeat customer.

The point is that your story is the foundation of every aspect of your business, including your marketing, sales, product, and customer experience.

Positioning is a fundamental part of retail marketing and sales. It refers to placing your products in stores and on websites.
When you know what your brand represents and the messages you’re trying to communicate, it’s time to create a clear product positioning statement. This is the foundation of your marketing and advertising efforts. It’s also the basis of every decision, from designing your packaging to setting your prices.
4. Advertising Data collection isn’t always accessible, but it doesn’t take much effort. For example, when you create an account with Google Analytics, you can start tracking your product positioning in seconds.

Product Positioning Definition

If you’re planning to release a new product or launch a new category, it makes sense to start writing your PPSs. These PPSs will act as a roadmap for developing the new product.
You can use the above example to position your product. Your product can be a luxury mattress, and you can position it to compete against the Casper and Sealy brands. Or, you could position your product to be more utilitarian, competing with the Emma Original.

  1. First, what do you want your target audience to think about your product or service?
  2. Next, how will you go about attracting those customers?

How Is Product Positioning Different From Branding?

Product Positioning Vs Branding

If we are already familiar with a brand, we often expect it’s high-quality and will get what we pay for.
Your brand and positioning should help your audience understand your value, how it differs from other products, and why it’s worth their time. Your positioning should resonate with your target market.

In this case, you don’t want to compete with competitors selling at a higher price. You should position your product at the lowest possible price to differentiate your products from others.
The next consideration is price. When it comes to pricing, there are two types of positioning. One type is called discount positioning. This is where you position your product at the bottom of the range of prices.

  • What do I represent?
  • How will my customers perceive me?
  • What image do I want them to see?
  • What kind of message am I trying to communicate?

In other words, your product positioning strategy must be:
The vast majority of people who have bought products they’d expected to be high-quality end up returning them to the store.

To position your product, you need to define and clarify what makes it unique and how your audience will benefit from using your product. This is the essence of product positioning.
A product positioning strategy can include everything from how to differentiate your product from the competition to communicating your product’s value to potential customers and conveying the product’s benefits to current customers.
For instance, an expensive product that’s been highly rated by a reputable source may be perceived as having lower quality than a cheaper one that’s received a lower rating.
To succeed, it’s essential to articulate your product’s benefits to the world. This may seem simple, but it can be pretty challenging.

In marketing, “product positioning” refers to how products are positioned in stores or on the web. Product positioning is about getting customers to notice your product, and choosing the right place to put it is critical to increasing its visibility and driving sales.
Product positioning involves creating a clear message that resonates with your audience. It’s the foundation of your marketing strategy, and it has two parts: It’s not always easy to figure out your positioning, but the payoff will be worth the effort.
Analytics is the science of collecting, storing, and analysing data. You can collect data about your products in any number of ways. For example, you could ask shoppers to rate your products on a scale of 1-10, based on how much they like them, or track when someone clicks the “buy” button on your website.

  • Defining your brand
  • Setting the tone of your communication
  • Explaining your offering
  • Reaching the right customers
  • Communicating your brand’s purpose

Why Is Product Positioning Important?

Why Is Product Positioning Important

While it may seem counterintuitive, products with higher ratings generally have lower perceived value than products with lower ratings. This is because we are more aware of lower-rated products and may also expect more negative qualities from them. For example, we may expect poor customer service or a product that’s cheaply made.
Ask yourself:
It helps to know the best-selling products in your industry to decide what your audience likes. For example, the best-selling mattress in the United States is the Sealy, which sells for about 00. The best-selling mattress in Europe is the Emma Original, which sells for about £250.

Brand Positioning

The following video shows how you can get an idea of your product’s best price point and some examples of the best-selling products on the web.
You’ll start by defining your brand so you know what it stands for. It’s not enough to have a great product—you need to sell it to the right people in the right way.

One example of brand positioning is the way a company positions its products. For example, Apple’s iPhone is positioned as a luxury phone, while Samsung’s Galaxy S9 is positioned as a low-cost smartphone. Apple positions its products to stand out and appear high-end, while Samsung positions its products to appear to be cost-effective.
While higher prices usually indicate higher perceived quality, this isn’t always the case. It depends on how much money we’re willing to spend.


We often expect a new product to be promoted heavily by advertisers, even when the advertising may not be relevant to us.
By using analytics.
Product positioning is how you describe your product and how it fits in the marketplace. It’s your company’s strategy for attracting customers and the foundation of your marketing and advertising efforts.

1. Price
A product positioning statement (PPS) describes what you want to accomplish with a product. It should give the end user an understanding of your products, services, and brand.
The best way to overcome your expected impressions of new products is to try them yourself. Make sure to consider the factors listed above when assessing the value of any product.

What’s The Best Price Point For Your Product?

3. Social Proof
Here’s an example of a company that does this well: 

How To Choose A Product Positioning Strategy

Product positioning is essentially the process of taking all the different factors that make up a product — such as what it does, how it works, and whom it targets — and making them work together to create a compelling narrative for the business.
But it doesn’t have to be complicated! There are simple ways to develop a product positioning strategy, no matter what product you’re working with.
The second type is premium positioning. This is where you position your product at the top of the range of prices. Here, you’re competing against other brands sold at a higher price. So, you don’t want to compete on price. Instead, you want to position your product as the best-quality option among various options.
You don’t need to develop a catchy phrase or slogan to position your product. It’s more about clarifying your vision and ensuring that your positioning is consistent throughout your marketing and sales channels.
Once you start analysing your data, you can see what’s working and what isn’t. It can help you determine whether your positioning is helping or hurting your business.

How to Develop a Product Positioning Strategy?

To understand why this is the case, it’s essential to know a product positioning strategy. So, let’s dive into it.
Think of it this way, when you shop online or in a physical store, you’re looking for products or services that you might need. You may also want to learn more about the products or services you’re interested in before buying them. Similarly, when someone searches for something online or looks through the ads in a magazine or newspaper, they do the same thing – searching for products or services they might need.
It’s important to note that, when it comes to positioning, it’s not just about product price. The positioning also depends on your company’s brand, whether it’s a luxury or utilitarian brand, and what you sell.
It can include how to communicate the benefits of your product to your target market. It can also include your brand’s overall tone and personality and the messaging that appeals to your audience. If we see other people using a product, we assume it must be excellent and worthy of our attention.

Here are some other things that can go into a product positioning strategy:

  1. Strategic
  2. Unique
  3. Flexible

Remember, a good positioning strategy won’t be successful if you choose the wrong position for your product. Finding a position that appeals to your audience and is within your product’s price range would be best.

What Do Product Positioning Strategies Include?

Your positioning should be unique to your product or service. If you’re unclear about your positioning, you might end up with a product that’s too similar to another product or service. Or worse, your positioning might be so vague that it doesn’t inspire anyone to buy your product.
Product positioning is about communicating a product’s benefits to consumers. The most important thing is to get it right since it is your primary selling tool.
If you sell a luxury product, you probably want to position it at the top of the market with the highest possible price. However, if you sell a more utilitarian product, like a mattress, you may want to position it at the bottom of the market at a more affordable price.

  • Target Market: A product positioning strategy should consider your target audience and where you want to take your product.
  • Key Differentiators: This differentiates your product from the competition and is one of the most critical aspects of your product positioning strategy.
  • Brand Personality: What is the brand’s overall personality? What kind of tone and voice do you want to use? What kind of messaging is going to resonate best with your target audience?
  • Product Benefits: What are the benefits of your product to your target market?
  • Customer Experience: How does your product enhance the overall customer experience, from when someone discovers your product to when they buy it?
  • And much more!

What is a Product Positioning Statement?

What Is A Positioning Statement Marketing

Overcoming your expected impression of a new product is surprisingly easy. Try out the product and assess its value for yourself. You’ll find that the difference between what you expect and what you receive is often very slight.
At the end of the day, whether you’re a seasoned entrepreneur or a first-time startup founder, you need a product positioning strategy. It’s the single most crucial element to any business — and it’s one of the biggest mistakes entrepreneurs make.

  • Why you exist: what makes your product unique, why your customers should care, and the value proposition for your products
  • How do your products differ from the competition’s
  • Why your customers should choose your products over others
  • How your products solve customer problems
  • How they compare with similar products
  • How do you expect to grow your market share?
  • What differentiates your products from your competitors
  • Who your customers are and how they use your products
  • The features your customers want to see in new products and updates to your existing products.

A PPS is a written statement describing your company’s position on a topic or issue. For example, it might include the following elements:
An effective positioning strategy will increase your visibility in search engines and help you stand out against competitors. When you get down to it, a positioning strategy is about deciding what a business stands for and what products and services it sells. 

What Influences How a Product is Perceived?

Factors Affecting Consumer Perception

Let’s take a closer look at product positioning.

What Are Our Expectations When We Try New Products?

Once you have a clear idea of your brand and the best position for your product, it’s time to consider your audience.
Product positioning is the strategic placement of your products in the marketplace, where you’ll emphasise a specific type of customer. This is your key to success—the kind of customers you want to attract, the messages you’ll send, and how you’ll present your offering.
The positioning also includes product images and colours. Choosing the right colour palette and images that are consistent with your brand’s image is essential. If you want to create an image of a luxury phone, you might want to use a sleek, clean, and simple design. On the other hand, if you’re selling a more utilitarian phone, you might choose a design that conveys simplicity and reliability.
So, before you jump into positioning, you must first figure out what your brand stands for and how that defines who you are.
Amazon. They’ve mastered the art of positioning, and they do it well. They sell everything from books and electronics to pet supplies and toys. Their positioning strategy works well because they don’t compete on price. They’re all about customer satisfaction and convenience, which sets them apart from other retailers.

Does A Higher Price Mean Higher Quality?
There are many things you should consider when deciding on your product positioning.
It’s not just about the product but also about the positioning. A great product is only half the story – a perfectly positioned product is the other half of the equation.
How do you know if your positioning is effective?

How Can I Overcome My Expected Impression of a New Product?

Do Products with Higher Ratings Have Higher Perceptions?

The above example also shows how you can apply positioning to your product. For example, if you’re selling a luxury mattress, you’ll want to position it in high-end stores and away from competing brands. On the other hand, if your mattress sells reasonably, you can position it in mid-level stores.
In the marketing field, product positioning is the process of identifying the value proposition offered by a product. In other words, product positioning determines what makes a product unique or better than the competition and is an integral part of every company’s marketing strategy.
When building a brand, product positioning is a critical component. If you don’t get it right, your products will never achieve the success you want.
PPSs can be written for existing products, new products, or new product categories. Some companies write them for these areas simultaneously, while others may do so over time.
Product positioning involves:

2. Brand Recognition
If your audience is interested in luxury, you can position your product at the top of the market. If your audience is interested in budget, you can position your product at the bottom of the market.


The first thing you must consider is the brand itself. How you position your product concerning other products in the same category will depend on what image you want to convey.
Your expectations heavily influence your perception of products. If you’re familiar with the product, expectations might be higher, resulting in more positive perceptions. However, if you’re unfamiliar with the product, expectations tend to be lower, and your perception is likely less favourable.
When we compare products at a discount, we assume they’re less valuable than those we buy at the total price.
To grow your business, you must understand how to position your brand. What does it mean to position your brand? How do you go about doing it? What are the tools and resources you need to position your brand correctly?

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