What is market position and how does it work?

business strategy

The advertising principle of positioning is the strategy or tactic of marketing a product by placing it in a market niche. The goal is to create a need for your product, rather than just promote its features and benefits. By targeting one specific group, you can use their needs as an opportunity to establish your company’s expertise in that area.

You will then be able to provide products and services tailored specifically for them; this will set you apart from competitors who are not as well-versed in that particular field. This article discusses what positioning marketing is, how it works, an example of how it can be used, and the benefits of positioning marketing.

What is market position?

The first step to understanding what market position is, you need to understand its definition. Market positioning refers to how well your products and services stand out against competitors’ offerings. This could include everything from pricing strategy, product or business model innovation, quality, and customer service practices.

With so many aspects involved in determining your company’s success, it might be easy for a small change elsewhere in the equation to create major shifts across the board. For instance, if new features or changes made on one part of an online store lead to increased conversion rates then those improvements will carry over to every aspect of the business.

What it boils down to is that companies with strong market positions have more loyal customers who ultimately buy their product or service again and again, which then leads them into becoming repeat buyers whose needs can only be met by one provider–you! Market positioning also helps your company stay ahead of competitors because you’ll always keep evolving while others might stagnate after reaching initial success. This means less time spent trying to play catch up on things like pricing adjustments or new features, giving you more time and energy for other aspects of your business.

As a company, it can be difficult to maintain your competitive position in today’s climate, but with the help of market positioning, you’ll always have an edge that will give you more opportunities for success than other companies who might not have taken the time and effort needed to create one. What are some examples of companies that use this strategy successfully?

Some notable businesses that take advantage of their industry’s growth, or lack thereof through innovative strategies include Amazon, Apple Inc., Tesla Motors, Alibaba Group Holding Ltd., Netflix (NFLX) Corporation Facebook (FB), Google Inc. (GOOGL). These businesses were able to keep up with trends and offer new products at reasonable prices while maintaining loyalty from customers because they had built themselves into a market positioning.

Why it's important?

target audience

Market positioning is a way to identify the target market for an item or service. Why it’s important? It depends on whom you’re marketing to as well as what they value.

For example, if you are looking at starting up your own pet food company and your main goal would be to provide high-quality food that can also help with weight loss, then knowing your audience will guide how much fat content should be in each meal.

This ensures that not only does this person feel satisfied after their meal but they also have enough energy and stamina for the rest of their day!

If you’re looking to advertise this new food, then knowing your audience will guide where and how you are going to do so. For example, if the consumers of these high-quality pet foods want a natural organic diet without any preservatives or artificial flavors then advertising on sites like goop for higher-income families would be best.

However, if they care more about feeding their pets healthy recipes that also serve as an appetite suppressant then it would make sense to market in parenting magazines geared towards middle-class moms with young kids. Knowing what motivates people is key when trying to figure out their values and desires which can ultimately lead to success!

The three types of market positioning

The three types of market positioning are Product Differentiation, Brand Themes, and Societal Norms.

The first one is the most complex type because it requires identifying what your product offers that others do not offer.

The second one is simplest to understand as it means selecting a theme for your business or brand based on consumer desires such as environmentalism or home decorating.

The third type of positioning refers to how you present yourself in society, which can be done through advertising campaigns, social media, or sponsorships.

The key element when determining what type of positioning will work best with your company is making sure there’s enough demand for it from consumers before starting an expensive project like marketing research.

Product Differentiation

Product differentiation is the process of distinguishing a product or service from other products in a way that makes it more attractive to certain consumers. Product differentiation can be achieved through either tangible, physical differences (such as weight), intangible factors such as branding, marketing, and pricing strategies, and/or functional aspects like durability for example.

The key element when determining what type of positioning will work best with your company is making sure there’s enough demand for it from consumers before starting an expensive project like marketing research.

It’s important not only to identify the needs you fulfill better than anybody else on the market but also those people who are most likely interested in them – this can include specific demographics or customer personas you have created beforehand using tools like Google Keyword Planner.

A good example of Product Differentiation is the airline company JetBlue which offers free WiFi on all flights and complimentary non-alcoholic beverages for purchase to its passengers, in addition to having a unique blue branded logo that distinguishes them from other airlines.

A bad example of Product differentiation would be Walmart’s “Everyday Low Prices” slogan because it doesn’t make their products more attractive than competitors’. In order words, Everyday low prices are not enough by themselves (or they are too similar) as there’s nothing special about the price point at which Walmart sells things that sets them apart from any other store. It could also mean shoppers have found comparable deals elsewhere or just think different stores offer better quality.

The more money you’re willing to put into Product Differentiation, the greater your chances will be of competing with other brands by getting consumers interested in what makes your product or service different from everyone else’s on the market.

Brand Themes

brand or product

Brand themes are a way of organizing and conveying the values or personality of an organization, which may encompass its culture and mission. Branding is often used as a part of brand themes because it provides awareness to consumers about what your company stands for.

A good example of Brand Themes is how Target positions itself as more family-friendly than Walmart with their “Expect More Pay Less” slogan that can be seen in each store location.

This type of positioning would work well with companies who want to emphasize their core values, like being environmentally friendly (like TOMS shoes) or those who have something else they need to communicate about themselves beyond just price points such as Stella & Dot jewelry whose goal is to empower women globally.

A bad Brand theme would be a company that is known for being natural and organic like Whole Foods, yet has an odd slogan that doesn’t reflect their values such as “Simply uncomplicated.” This Brand Themes might work better with stores or restaurants that want to emphasize convenience (like McDonald’s) because this type of positioning could attract more people in general without emphasizing anything specific about the store itself.

Brand themes are important because they help you stand out from your competitors by conveying what makes your brand different so when consumers come across it they know right away why it stands out from the rest on the market. It can also give new customers insights into your organization and its values before deciding whether or not to purchase something, which is why Brand Themes should be carefully thought out before implementation.

Societal Norms

Societal norms are often put into place to maintain a sense of order in society. Societal norms can also be seen as barriers that people feel they have to conform to even if they don’t want to, which is why breaking them has so much power.

Societal Norms are important because it tells us how we should behave and what our expectations for others should be based on whom you’re interacting with or the situation at hand.

Societal Norms provide guidelines and comfort levels for individuals when considering their actions during interactions with other people or groups of people – this way there’s an understanding about what behaviors would be considered appropriate versus not appropriate depending on where you are in society (i.e., schools vs workplace).

Societal Norms can be seen as a barrier for people because they tell us what we should expect from others and sometimes these Societal norms don’t allow for individuality or diversity, which is why breaking Societal Norms has so much power. Societal norms are also important because they tell us what behaviors we can expect from others and whether or not these Socidences Norms will allow for individuality.

A good example of Societal Norms is the “No Shirt, No Shoes, No Service” policy that is enforced by many restaurants and stores. This Societal Norm tells us to dress appropriately in order from head-to-toe when visiting a place of business because it’s disrespectful if you don’t do this – the Societal Norms are there so we know what behavior is appropriate when interacting with others within society.

How to identify your company's target market

create a positioning statement

You can identify your company’s target market by first identifying the market segments that it would like to target. How you reach a particular segment will vary depending on what information they’re looking for and how much money they are willing to spend.

Once you’ve identified your company’s market, look at the competition in those markets and see what differentiates them from each other or your own product/service offering. What is their positioning? How do their products stack up against yours based on price point, quality, value-add features, etc? Once you understand more about who has been successful with similar offerings as yours, decide if there are ways to incorporate any of these tactics into your marketing strategy:

  • Develop brand awareness through sponsored events
  • Leverage social media networks
  • Get customer referrals
  • Use targeted ads to boost sales from specific audiences
  • Develop a well-defined value proposition, which is the reason people should buy your product over someone else’s. How does it compare? How will they be better off with what you’re offering? How do I know if this company is right for me? What are my options and prices etc.?

Market research

Market Research is a vital part of any business’ success. Market research can help you understand your customer’s needs, their perceptions of the product, and how they view the brand. Marketers use this information to develop an effective marketing strategy that includes pricing, packaging, or advertising for instance.

Market position is not just about positioning your company with other competitors; it also refers to where you want to be positioned in the market:

Are you going after low-cost customers? High-end ones? Or do you plan on being a niche player with high margins? These questions are all tied back into understanding what market segmentation is and determining who your potential audience might be before anything else happens as well as thinking through ways that will appeal to them whether it be through price, service or quality.

Marketers use market research to help them understand what types of people are their target audience and whom they need to appeal to for the business’s product or service is going to succeed.

Market Research Methods

positioning strategies

The qualitative data gathered from these methods provide insight into customers’ attitudes. Surveys offer a broad overview but don’t provide deep insights that would come from an interview with one customer; Focus Groups are just as good at providing overall sentiment while giving more depth when it comes down to specific topics-especially if you’re looking for feedback on prototypes or ideas before proceeding further.

Interviews allow marketers to ask a specific person in-depth questions about their thoughts and feelings on the subject. Market researchers also look at statistics to help them get an idea of trends or patterns that might be happening within a certain population.

Market research methods can provide valuable information for any company looking to enter, re-position themselves, or better understand who they are as it relates to what segmentation is needed for success.

Market Research helps identify customer needs so your products/services will have greater appeal; uncovering potential new markets (niches) where you’ll find customers more receptive than those currently being served by competitors; revealing barriers against entering into other segments which you may not yet know to exist but could potentially serve with some modification; identifying ways in which current marketing messages need adjusting to reaffirm your company’s positioning.

Market research is vital for a business regardless of size and if done correctly can be the key to success in an ever-changing competitive market.

Positioning statement and positioning strategy

Having a good position statement and positioning strategy is vital to any positive marketing campaign. A good position statement helps you to clarify your company’s goals and the positioning strategy helps guide decision-making about how best to achieve those goals.

Ensure your positioning strategy is in line with your brand strategy and core values.


Market positioning is a person or company’s standing in the eyes of their customers. Market position can be maintained by either focusing on developing strong relationships with existing clients, attracting new ones through advertising and expanding to other markets (i.e., geographic locations).

Ultimately, it takes time and effort to establish market positions for one’s a product/service but companies that are successful at doing so will reap rich rewards!

Note: Make sure you create an effective positioning statement that fits your target market.

About MySource Solutions

MySource outsourcing company is the leading provider of outsourcing services in North America. We help companies reduce costs and increase their bottom line through our innovative solutions, which include a wide variety of business process outsourcing (BPO), customer service, back-office operations, and more. 

Outsourcing services have become an increasingly popular choice for businesses looking to grow while maintaining control over their budget.

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