What Is Market Positioning? Definition and Examples

Max 5min read
Market Positioning

I’m sure you’ve heard of the brilliant advertisement by Burger King that says, “Why eat with the clown when you can dine with a king?”. It shows us the comparison between Mcdonald’s ambiance experience versus burger king’s dining experience. It also shows us where both these eateries stand in the market. 

Market positioning is the key to creating a unique identity for your business that sets you apart from the competition. But with so many different strategies and tactics, figuring out where to start can be overwhelming.

Are you tired of blending in with the crowd in your industry? 

Do you want to stand out and be noticed by your target audience? 

Well, it’s time to ask yourself what your market positioning strategy is.

That’s why we’re here to guide you through the exciting and dynamic world of market positioning.

Let’s dive in!

What Is Market Positioning?

Market Positioning Definition:

Market positioning is the process of establishing a unique identity for your business in the minds of your target audience. It’s about creating a perception of your brand that sets you apart from the competition. Your product must resonate with the needs and desires of your customers. 

By positioning your business effectively, you can differentiate yourself in the market, build brand recognition, and drive more sales and revenue.

Benefits of Effective Market Positioning

Firstly, effective marketing positioning helps you to create a strong competitive advantage. By identifying and highlighting their unique strengths, companies can stand out in a crowded market.

Secondly, defining and attracting a target audience becomes easier when you start with effective market positioning strategies. You can tailor the needs and preferences of your customers, leading to higher customer satisfaction and retention rates.

Thirdly, by understanding the value proposition of your products and services, you can optimize the pricing strategies accordingly. This can lead to higher profit margins and a stronger competitive position.

Finally, effective market positioning can help companies to build a strong brand reputation and increase their overall market share. 

Steps for Effective Market Positioning

The first step in creating an effective marketing strategy is understanding your current market position. Once you understand where your product currently stands in the marketplace, you can start trying to curate the next step. 

In the second step, after you’ve understood the status of your product, use competitor analysis and analyze how your competitors are positioning their brand, where they stand, etc.

Once you know all you need to know about your competitors, identify what sets your product or service apart in the third step

The fourth step is identifying your unique value proposition; you must develop a clear and compelling message that resonates with your target audience. 

Choose the right channels, like social media platforms, email marketing, paid advertising, or other channels, to effectively reach your target audience in the fifth step.

Finally, it is essential to continuously monitor and adjust your market positioning strategy based on customer feedback and market trends. This can help you to refine your messaging and stay ahead of competitors.

Examples of Successful Market Positioning

Typical examples of successful market positioning by exceptional brands in various industries are impeccable. Let’s learn from them. 


Known for its innovative and sleek design, Apple has become a cornerstone of its brand positioning strategy. They aim to create products that are simple, elegant, and easy to use. That is what sets them apart from the competition in their industry. 

By positioning itself as a premium brand focusing on user experience, Apple has created a loyal customer base and charged a premium price for its products.


The brand Coca-Cola has been known by one and all as the ultimate refreshment for over a century. They use a combination of marketing tactics such as global sponsorships, storytelling, and iconic branding to connect with their audience. 

Their market positioning strategy includes leveraging their brand heritage and focusing on delivering a consistent and enjoyable product experience.


Popularly known as the leader in the electric vehicle industry, this car-tech brand focuses on innovation, sustainability, and high performance.

Using marketing strategies such as bold messaging, disruptive product launches, and a cult-like fan following,  they create a strong brand identity synonymous with cutting-edge technology and environmental responsibility. 

They have successfully created a market position for themselves as the future of transportation and leveraging the power of word-of-mouth marketing. 


One brand that has successfully positioned itself as a brand that’s all about inspiring athletes and promoting a healthy and active lifestyle has to be Nike. 

Using various marketing strategies like celebrity endorsements, inspirational messaging, and high-quality products, they built a strong emotional connection with their customers.  

Nike’s brand has a powerful brand identity that resonates with people worldwide. They did all this by aligning their brand with the values and aspirations of their target audience. 

Common Mistakes in Market Positioning

Watch for common mistakes you might be making when working with market positioning.

  • Failing to conduct thorough research on the target audience, competition, and market trends
  • Companies may fail to clearly define their unique value proposition or try to position themselves for too many different things simultaneously, leading to confusion and a lack of focus.
  • Failing to differentiate your company from competitors can result in being perceived as just another option in a crowded market.
  • Your market positioning efforts will be undermined if you fail to align your marketing with the company’s position. 
  • Failing to deliver on customer promises can lead to trust and loyalty issues. 
  • If you’re resistant to change, there’s bound to be a loss of relevance of your products. 


Why is market positioning important?

Market positioning is like a compass that guides your business toward success. Without a clear understanding of where you stand in the market and how you differ from your competitors, it’s easy to get lost in the sea of options available to consumers. 

Your brand’s market positioning conveys your core values and principles to your customers, making them relate to your product and positioning it in the market accordingly.

What are the types of marketing positions?

Some of the common types of market positioning are:

  1. Cost/Price Leadership Position: Here, the company plays around with the pricing(making it affordable)  of the products/services to get a position in the market.
  2. Quality: This strategy is where a business positions itself as providing high-quality products or services.
  3. Differentiation: By offering a unique product or service, targeting a specific market segment, or using creative marketing and branding tactics, a business position itself as unique from its competitors.
  4. Convenience: Which customer doesn’t like a convenient option? By offering flexible hours, easy online ordering, or fast delivery options, a brand will position itself as the most convenient option available for its customers.
  5. Niche: This type of market positioning targets a particular user group by offering specialized products or services that cater to a specific need or interest.
What is the difference between market positioning and branding?

Market positioning concerns the businesses’ place in the market, while branding concerns the businesses’ personalities and image. 

Market positioning is how a business establishes a unique identity for itself in the marketplace on the basis of pricing, uniqueness, convenience, etc. 


Creating an emotional connection with your audience using a unique name, design, symbol, or other feature is branding.

Crafting great product requires great tools. Try Chisel today, it's free forever.