Your company's positioning strategy is how you differentiate yourself in delivering value to your customers from your competitors. The five different positioning strategies you should consider for your company are market positioning, product positioning, brand positioning, price positioning, and competitor-based positioning. Understanding how these strategies relate to one another is essential for your brand's success.

In this article, I will give an in-depth overview of each of the strategies, as well as the steps to develop your positioning strategy, examples of positioning strategies, and how a Positioning Perceptual Map can be used while developing your positioning strategy.

5 Types of Positioning Strategies

The five types of positioning strategies I will be examining in this article are:

• Market Positioning

• Product Positioning

• Brand Positioning

• Price Positioning

• Competitor-based Positioning

Market Positioning

Developing a market positioning strategy is a critical component of a company's business strategy. The strategy will determine how prospective customers and clients view your brand or product. Market positioning involves actively establishing brand identity. Successful brands like Rolex and Lamborghini have made market positioning an integral part of their business strategies. They established their brands as luxury status symbols, delivering quality at high prices.

To develop an effective positioning strategy, you must have a clear idea of what you want to sell. If you have many competing products on your shelves, the strategy will help you determine which niche you should own. For example, take a look at the cereal aisle. You'll notice there are a lot of different brands with different ingredients, prices, and audiences. The price of one brand may be higher than another brand's, but that doesn't mean that the latter product is better.

Once you've identified the best way to position your product or service in the marketplace, you should develop a marketing strategy based on the four Ps: product, price, promotion, and place. As you gain more information and data, you can revise your positioning. This way, you can ensure that you're targeting the right audience.

The strategy should define what makes your product unique and different from your competitors. It should also state the benefits of your product or service for the customer. A successful positioning strategy will include evidence to support the claims made. For example, don't just claim that your product is the fastest or highest quality, but rather explain how it achieves that. This requires an in-depth understanding of the market and the competition.

In general, your market positioning strategy will determine your product's position among your target consumers. This includes its pricing, and distribution channels, as well as its features and benefits. You should also consider your target demographic as you build your marketing strategy.

Product Positioning

A product positioning strategy is an essential part of the marketing process. It articulates the value of the product and emphasizes the benefits it provides to customers. To do this, organizations use several methods, including communication channels, pricing, and product quality. The process of product positioning involves determining the right target audience, determining the benefits of the product, and determining the right price. To understand the benefits of a product positioning strategy, you should look at examples.

While some marketing strategies focus on targeting a specific market segment, product positioning is integral to any marketing plan. Ultimately, your positioning strategy will influence whether or not potential customers will buy your product. The purpose of product positioning is to create an impression in the mind of consumers that enables the product to differentiate itself from competitors.

The most common positioning strategy is to associate a product characteristic with a benefit for the customer. For example, in the car market, Toyota and Honda have focused on economy and reliability, which have helped them become market leaders. Volvo, meanwhile, has focused on safety and durability. By focusing on these benefits, consumers can become more interested in your product.

A product positioning strategy must include a strong focus on competitive advantage and a strong delineation of benefits and needs. The strategy must also make adjustments to reflect current trends. The objective is to make the product selection process as customer-centric as possible. If it's not meeting the needs of the customer, he/she will move on to another brand.

Developing an effective product positioning strategy is a long-term process that must be continually adjusted. The first step of the process is to understand your target audience. The target audience is essential because it helps you create a solid base for your product positioning strategy. The second step is to use customer insights to determine your positioning.

What is Brand Positioning?

Many professional services firms find it difficult to differentiate themselves from their competitors. A successful brand positioning strategy can help these organizations differentiate themselves from their competitors. However, this strategy should be kept in mind: selling yourself as the best at something, for example, is generally not a successful primary brand positioning strategy. It is best used as a competitive advantage or loyalty incentive, and it is not a strong enough selling point for most consumers. Of course, some customers will be looking for the best, so it is important to be specific about what you do best.

One of the most powerful methods of brand positioning is by using customer data. The most successful companies focus on customer needs and wants, rather than on the products themselves. This allows companies to differentiate themselves from their competitors, drive brand awareness, and justify pricing. A well-designed brand positioning strategy will boost the bottom line. Here are some strategies that can help you create a brand positioning strategy.

Map out your brand's positioning in terms of quality, cost, voice, exclusivity, and message-market fit. You should also consider how the brand is perceived in different contexts. For example, you can determine whether you have a professional image, or an informal one. You can also include the tone of your communication.

While a competitive pricing strategy can make a company more competitive, it can also lead to a less positive impression of the brand. Moreover, it can also trigger price wars.

To check out some specific examples of brand positioning, check out my “Brand Positioning Examples” blog post.

Looking at two different types of brand positioning: Core brand and Surround brand

There are several key differences between a core and surround brand. A core brand is the primary, or central, brand associated with a company or product. The core brand represents the overall identity of the company or product. In contrast, a surround brand is a secondary brand that is associated with a company or product, but is not the primary or central brand. Surround brands are usually used to target specific markets or segments.

There are several key benefits of a surround brand strategy. First, it allows companies to create a more customized and targeted approach to marketing. Second, it can help companies better manage their overall brand identity. Finally, a surround brand strategy can help companies achieve economies of scale.

While a surround brand strategy can offer many benefits, there are also some potential challenges. First, it can be difficult to create and manage a successful surround brand strategy. Second, a surround brand strategy can potentially dilute the overall brand identity of a company or product. Finally, a surround brand strategy may increase marketing and advertising costs.

Despite the challenges, a surround brand strategy can be a powerful tool for companies looking to reach specific markets or segments. When done correctly, a surround brand strategy can help companies better manage their overall brand identity while also achieving economies of scale.

Price Positioning

A pricing positioning strategy focuses on the relationship between price and quality and the perception of value among consumers. A higher-priced product may position itself as high-quality, whereas a lower-priced product may position itself as affordable. For instance, designer jeans may boast about their quality, but jeans from department stores are accessible to all.

A pricing positioning strategy should be consistent across all channels of the value chain. The strategy should also be aligned with business and marketing plans. The objective is to establish a competitive position that differentiates your product from your competition and allows you to charge a higher price for it. There are many different price positioning strategies a business can use to achieve its pricing goals.

One strategy is called customer value-oriented pricing. It allows businesses to differentiate themselves from competitors by focusing on the needs of their customers. The strategy involves defining the product market, competition, and design. By using customer value-oriented pricing, firms will achieve a competitive edge. Pricing is a vital part of business.

Another pricing strategy is called economy pricing. It is useful for companies with low overheads. By selling a product for a lower price than its competitors, these companies can achieve a high market share. However, small businesses often struggle to sell enough volume to stay profitable. The economy pricing strategy helps them undercut competitors with a similar product.

Competitor-based Positioning

Competitor-based positioning is a popular marketing technique that relies on comparing a brand to its competition. This helps brands highlight the differences in their products or services that make them appear favorable to consumers. By comparing a brand to its competition, a company can point out what it does differently and how it is better than the competition.

One common approach to competing with competitors is to offer lower prices. This strategy can help a business gain a large customer base, but it can also be counterproductive if customers perceive your products or services to be inferior. To avoid this trap, a company must strategically position itself better than its competitors and match its products with superior production.

How to Develop a Positioning Strategy

When it comes to developing a positioning strategy, there are a few key things to keep in mind.

First, you need to understand what your product or service is and what it offers. This will help you determine how to best position it in the marketplace.

Secondly, you need to research your competition and understand their positioning strategies. This will give you a good idea of what's working and what isn't.

Finally, you need to test different positioning strategies to see which one resonates best with your target market. By doing all of these things, you'll be well on your way to developing a strong positioning strategy for your business.

Examples of Positioning Strategies

Every company you interact with on a daily basis is executing multiple positioning strategies. Let’s look at two well-known brands and their different positioning strategies, Starbucks and Life Time Fitness.

Positioning Strategy Example: Starbucks

Starbucks has built a strong reputation as a high-quality coffee brand. In order to maintain this positioning, Starbucks carefully selects many very specific details around its customer experience, including the locations for its stores and where it sources its coffee beans. For example, the company avoids saturation in any one market, instead opting for a more strategic approach that allows it to maintain its premium image. By targeting affluent areas and avoiding direct competition with other coffee brands, Starbucks has been able to keep its prices higher than the average cup of coffee. This has helped the company continue to grow, even in the face of recessionary pressures.

Over the years, Starbucks has also expanded its product offerings beyond coffee. The company now sells a wide range of food and drink items, including sandwiches, pastries, and salads. This has helped to broaden its customer base and appeal to a wider range of consumers. However, Starbucks' focus on quality remains unchanged. The company still sources its coffee beans from the best growers in the world and roast them to perfection. This attention to detail is what sets Starbucks apart from the competition and helps it maintain its position as a premium coffee brand.

Looking to the future, Starbucks plans to continue its expansion into new markets. The company is also experimenting with new store formats, such as express locations and drive-thru only locations. This flexibility will allow Starbucks to keep growing while meeting the needs of its customers. With a strong brand and innovative business model, Starbucks is well positioned for continued success.

Positioning Strategy Example: Life Time Fitness

Life Time Fitness is a health club company headquartered in my home state of Minnesota. I had the opportunity to work for Life Time Fitness as their Senior Social Media Manager for over three years back in 2009-2012, so I have first-hand knowledge of the brand’s positioning strategies.

Life Time Fitness operates over 130 clubs across the United States and Canada.  This is far less than many of the other popular health club companies in the United States.  However, Life Time’'s strategy is to offer a differentiated customer experience by providing more than just a gym. Life Time Fitness clubs offer a variety of services and amenities, including fitness classes, personal training, child care, spa services, and more. This strategy has helped the company to grow rapidly and become one of the largest health club companies in the world.

Despite the company's success, Life Time has not been content to simply coast on its reputation. Continued investments are now expanding its reach and adding new features and services. In recent years, the company has added several new product lines, including a line of health food products, work-based locations, and now health-focused living communities.

The company's focus on customer experience has paid off. Life Time Fitness has been consistently ranked as one of the top health club companies in the world. It is also one of the most profitable companies in the industry, with an annual revenue of over $2 billion.

A Look At The Positioning Perceptual Map Tool

When you are working through your positioning strategies, there is a helpful tool called the “Positioning Perceptual Map” that helps you visualize your position in the market from the eyes of the customer. Let’s take a deeper look at this tool.

What is a Positioning Perception Map

A positioning perceptual map is a tool that can be used to understand how consumers perceive a company or brand in relation to its competitors. It can be used to identify opportunities and threats, and to develop strategies for improving brand positioning.

There are a few different ways to create a positioning perception map. One common approach is to use surveys to ask consumers how they perceive the company or brand in relation to its competitors. Another approach is to use market research data, such as sales data or customer satisfaction surveys.

Once the data has been gathered, it can be plotted on a graph. The x-axis represents the company or brand, and the y-axis represents the level of perception. The further away from the center, the higher the level of perception.

There are a few things to keep in mind when interpreting a positioning perception map. First, it is important to consider the context in which the data was gathered. For example, if the data was gathered during a time of economic recession, it is likely that the results will be different than if the data was gathered during a time of economic growth. Second, it is important to consider the target audience. For example, if the target audience is young adults, the results may be different than if the target audience is seniors.

Finally, it is important to remember that a positioning perception map is just a tool. It should be used in conjunction with other market research data to make decisions about brand positioning.

When used correctly, a positioning perception map can be a valuable tool for understanding how consumers perceive a company or brand. It can help to identify opportunities and threats, and to develop strategies for improving brand positioning.

Let’s Work Together on Your Positioning Strategies

If you are an established small-to-mid sized company, or a startup looking for your position in the marketplace, I can help. I offer coaching and consulting sessions to help get your strategies in order. Reach out to me via my contact form so we can start discussing how we can work together so you can start 2023 strong!