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The Critical Role of Product Positioning in Marketing Strategies

Mar 16, 2023 | 0 comments

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Mar 16, 2023 | Essays | 0 comments

As defined by David (2008), product positioning is the process by which a company differentiates its products from its competitors. It gives the consumer a targeted response towards the product from the company. Take, for example, the Rolls Royce Company. Whenever one hears of the Rolls Royce, one quickly thinks of the high-end, luxury vehicles. This is the positioning that the company has sought to create. Product positioning is vital in the strategy because it allows the company to make specific plans and allocate sufficient resources in the areas where more rewards will be expected. Product positioning plays the following roles:

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Identifies a niche

A niche is a need or vacancy the product intends to fill. It then is an unidentified need that competitors are yet to fill and therefore necessitates using the company product. Mixpanel, for example, has identified and created a unique niche in social media marketing. The company provides customers with social media marketing tools and techniques for entrepreneurs. The charges are often slightly higher than other companies. However, it remains at the top because customers know that what they are paying for is individualism and uniqueness in their social media presence. Sengupta (2005) insists that before bringing any product to the market, companies need to identify a unique niche that is a target that their product addresses uniquely. This is the basic tenet of marketing their products. The niche is the foundation of positioning.

Distinguishes the company

Product positioning allows the company to stand out from the competition. Consumers can hold to something to distinguish the company’s products from the others. This often draws in consumers who feel they can identify with the company for the creation of a unique product that is suitable just for them. They purchase the products because they feel this company makes healthier, safer and more efficient products than competitors. (David 2003) states that you do not need to find something big to be distinguishable; consumers often respond to even the smallest difference as long as it addresses the target market’s needs. It can be packaging, colour or even texture, but that minor detail creates the required distinguishable marks for the consumer.

Competitive advantage

Positioning allows the company to stand out among other companies with similar products. A company may have a high-quality and durable product, but it is important to note that so do other competitors. According to Viardot (2004), through positioning, companies can show what is different about their products. This way, a company sets a clear space that competitors cannot invade. It sets a distinguishable boundary, which shows its products’ strengths.


Positioning is a vital element of any thorough marketing plan. It highlights the attributes of your products and gives a clear direction which should be used in entering the market. It allows the entry to be far from haphazard but rather planned and structured to meet specific goals within the organization. Typically positioning meets two particular needs in the organization: first, it clearly distinguishes the products from those of competitors for the consumer. This is done by highlighting what is unique. Secondly, it highlights the particular market to which the products appeal, allowing the marketing to be targeted.


David, F. R. (2003). Strategic management: Concepts. Upper Saddle River, N.J: Prentice Hall.

David, F. R. (2008). Strategic management: Concepts and cases. Indianapolis, Ind: Prentice Hall.

Sengupta, S. (2005). Brand positioning: Strategies for competitive advantage. New Delhi: Tata McGraw-Hill

Viardot, E. (2004). Successful marketing strategy for high-tech firms. Boston: Artech House.

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