Question

What is market positioning?

Answer 1

Market positioning is how a brand, product, or service is perceived in customers’ minds relative to competitors. It’s the deliberate place you want to occupy in the market — defined by what you stand for, who you serve, and why you’re different and better.

Key elements
- Target audience: who you’re aiming to reach.
- Frame of reference: the category or market you compete in.
- Point(s) of difference (POD): the specific benefits or attributes that make you preferable.
- Reason to believe: evidence or proof that supports your claims.
- Points of parity (POP): attributes you must match to be considered a legitimate choice.

Why it matters
- Guides product development, pricing, messaging, and channels.
- Helps customers quickly understand why they should choose you.
- Creates competitive advantage and drives preference and loyalty.

How to create a positioning
1. Research customers and competitors (needs, perceptions, gaps).
2. Define the target segment and relevant competitive set.
3. Identify meaningful PODs that matter to the target.
4. Craft a clear positioning statement (see template below).
5. Communicate consistently across product, pricing, promotion, and distribution.
6. Monitor and refine based on market feedback and performance metrics.

Positioning statement template
For [target], [brand] is the [category/frame of reference] that [point of difference] because [reason to believe].

Examples
- Volvo: For safety-conscious drivers, Volvo is the premium car brand that emphasizes safety engineering and reliability because of its long history of safety innovation.
- Apple: For creative and tech-savvy users, Apple is the premium consumer electronics brand that delivers elegant design and seamless experiences because of its integrated hardware/software ecosystem.
- IKEA: For budget-conscious shoppers who want stylish furniture, IKEA is the retail brand offering modern design at low prices because of flat-pack manufacturing and global sourcing.

Common pitfalls
- Being vague or trying to be everything to everyone.
- Focusing on features instead of customer benefits.
- Inconsistent execution across touchpoints.
- Ignoring competitors or customer perceptions.

How to measure positioning
- Brand awareness and recognition
- Brand preference and consideration
- Purchase intent and conversion
- Market share and pricing power
- Brand equity and customer loyalty (NPS, retention)

If you want, I can help draft a positioning statement for a specific product or map your brand against competitors.