Created: September 20, 2022
Updated: August 16, 2023

Positioning is how a product, company, or brand will be perceived in the market’s mind.

Positions are relative to existing concepts, products, or product categories.
Positions can be conceptual terms such as “expensive” or “easy-to-use”.

April Dunford’s Definition

April Dunford says Positioning defines:

  • How your product
  • Is the best in the world
  • At delivering something
  • That a well-defined set of customers cares a lot about

She says it’s a terrible definition, but she’s just being modest.

Why Positioning Matters

  • A brand can influence its position with design, placement, packaging, and what it compares itself to.
  • What consumers are willing to pay is strongly influenced by it’s position and what it is compared to.

Examples: Supermarket Cola is a low-cost version of Coca-Cola

A product may have multiple positions. E.g.:

  • Tesla Cars have more modern in-car technology than other EVs

  • Tesla Cars are more environmentally friendly than fuel-driven cars

Multiple positions or points of difference allow a brand to create different selling points for different types of buyers.

Related Concepts