Positioning is the third and final step in the STP (Segmentation–Targeting–Positioning) process. After identifying market segments and selecting target audiences, positioning involves crafting a distinctive place in the minds of customers. This process is not just about product features, but about how consumers perceive the product relative to competitors. Effective positioning helps businesses build stronger brands, differentiate offerings, and create long-term value.


What Is Positioning?

Positioning is defined as the act of designing a company’s offering and image to occupy a distinct and valued place in the minds of target customers (Kotler & Keller, 2016). In simple terms, it is about how a brand is perceived, remembered, and talked about by customers. Unlike product design, which is under a company’s direct control, perception exists in the consumer’s mind, so positioning must be carefully nurtured through messaging, branding, and marketing efforts.


Why Positioning Matters

Positioning helps marketers answer crucial questions such as:

  • What space do we currently occupy in the customer’s mind?
  • What space do we want to occupy?
  • How can we influence perception to achieve our goals?

An effective positioning strategy offers the following benefits:

  • Differentiation from competitors
  • Strong brand recall
  • Clarity in communication and marketing campaigns
  • Enhanced customer loyalty

A well-positioned brand creates a consistent experience across all touchpoints, from advertising to packaging to customer service. For example, Apple has successfully positioned itself as a premium, design-led technology brand focused on innovation and user experience.


The Origins of Positioning

The concept of positioning was popularized by Jack Trout and Al Ries in their landmark book Positioning: The Battle for Your Mind (1981). They argued that in a world overloaded with information, consumers could only retain a few brand associations—and thus marketers must fight to “own” a word or idea in the consumer’s mind.

David Ogilvy, a legendary figure in advertising, also emphasized the importance of positioning early on. For instance, Ogilvy repositioned Dove soap not as a simple cleanser, but as a skincare product with one-quarter moisturizing cream—a message still used today.


Types of Positioning Strategies

There are several ways to approach positioning depending on the product, market, and customer segment. These include:

Strategy Type Description Example
Functional Focuses on solving problems or providing benefits Dyson vacuums = powerful cleaning
Symbolic Appeals to lifestyle, self-image, or social meaning Rolex = prestige and status
Experiential Emphasizes emotions or sensory experiences Disneyland = magical, joyful escape

Additional approaches include:

  • Pre-emptive: Claiming a space before competitors do (e.g., “The original and the best”)
  • Superlative: Using words like “best”, “fastest”, or “safest”
  • User-based: Positioning for a specific group (e.g., children, professionals, seniors)
  • Usage-based: Focused on specific occasions (e.g., Red Bull = energy for sports)
  • Price-based: Competing on affordability or premium status
  • Competitor-based: Positioning directly against competitors (e.g., “We try harder” by Avis)

Choosing the right approach depends on your competitive context, consumer insight, and business strengths.


Positioning Maps

A positioning map, also known as a perceptual map, visually displays how consumers perceive brands along key dimensions such as price, quality, or performance. This tool is useful for identifying market gaps or “white spaces” where a new or repositioned offering could succeed (Dibb & Simkin, 2008).

For example:

  • High price / High quality: Mercedes, Apple
  • Low price / High utility: IKEA, Aldi

If no brand occupies a quadrant—say, high quality but affordable—this might signal an opportunity for innovation or repositioning.


The STP Framework: Segmenting, Targeting, Positioning

The STP model is a foundational tool in modern marketing:

  1. Segmentation: Dividing a market into distinct groups based on shared characteristics (e.g., demographics, needs, behaviors)
  2. Targeting: Selecting the segment(s) you want to serve
  3. Positioning: Crafting a value proposition that resonates with the chosen segment

Positioning brings the STP strategy to life by aligning the marketing mix—product, price, promotion, and place—with a clear brand identity (Kotler et al., 2015).


Key Questions for Crafting a Position

Trout and Ries proposed six key questions to help brands define their position:

  1. What position do you currently own?
  2. What position do you want to own?
  3. Whom must you out-position to own it?
  4. Do you have the resources to do it?
  5. Can you persist long enough to make it work?
  6. Are your marketing tactics aligned with your desired position?

These strategic reflections ensure that positioning is not just a slogan, but a long-term brand commitment.


Writing a Positioning Statement

A positioning statement is a concise description of your target market and how you want them to perceive your brand. It typically follows this structure:

For [target customer], [Brand] is the [product category] that [benefit] because [reason to believe].

Example:
For health-conscious adults, Innocent Drinks is the smoothie brand that offers fresh, natural ingredients because it uses 100% fruit with no added sugar or preservatives.

A positioning statement is not typically public-facing, but it serves as a guiding principle for all marketing and branding decisions.


Examples of Effective Positioning

Volvo is positioned as the safest car brand. Its advertising, engineering, and design all reinforce this image.
Nike goes beyond shoes—it is positioned as a brand that supports athletic achievement and determination (“Just Do It”).
Dove has positioned itself around real beauty and self-esteem, appealing especially to women seeking authenticity in advertising.

These brands use consistent messaging, product design, and emotional storytelling to own a specific space in the consumer’s mind.


The Changing Landscape of Positioning

Traditionally, positioning emphasized product attributes (e.g., size, weight, speed). Today, successful brands often focus on emotional, social, and cultural relevance. Consumers now look for brands that align with their values, support sustainability, or deliver meaningful experiences.

For example, Patagonia is positioned as an environmentally responsible brand. Its commitment to ethical sourcing, environmental causes, and repairable products supports that positioning—and helps differentiate it in a crowded outdoor gear market (Kotler & Armstrong, 2020).


Conclusion

Positioning is not simply about telling customers what your product is—it’s about shaping how they feel and think about it. It defines the mental space your brand occupies in a cluttered market, and it directs how your marketing mix should function. By understanding your target audience and your competitive landscape, you can craft a compelling and sustainable position that drives growth, loyalty, and differentiation.


Bibliography

  • Dibb, S., & Simkin, L. (2008). Market Segmentation Success: Making It Happen!. Routledge.
  • Kotler, P., & Armstrong, G. (2020). Principles of Marketing (18th ed.). Pearson.
  • Kotler, P., Keller, K. L., & Chernev, A. (2016). Marketing Management (15th ed.). Pearson.
  • Ries, A., & Trout, J. (1981). Positioning: The Battle for Your Mind. McGraw-Hill.
  • Ogilvy, D. (1983). Ogilvy on Advertising. Vintage Books.
Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.

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