Market Positioning Strategy

Positioning is the place your brand occupies in the customer’s mind relative to competitors. Positioning is not what you do to the product. It is what you do to the mind of the prospect.

The Battle for Mind Space

Customers cannot remember every option in a category. They remember a few. Positioning theory, developed by Al Ries and Jack Trout, states that the brand that first occupies a clear position in the customer’s mind often wins that position permanently.
Think about these examples:
  • Volvo owns “safety” in automobiles
  • FedEx owns “overnight delivery” in shipping
  • Walmart owns “low prices” in retail
These positions were established early and defended consistently.

Positioning Strategies for Online Businesses

You can position your online business using several approaches:
1. Benefit Positioning Own a specific outcome or benefit. “The fastest way to build a website.” “The most affordable email marketing tool.”
2. User Positioning Own a specific customer segment. “The project management tool for designers.” “The accounting software for freelancers.”
3. Competitive Positioning Position directly against a well-known alternative. “The simple alternative to complex CRM systems.” “The affordable alternative to enterprise marketing platforms.”
4. Quality or Price Positioning Occupy a position on the quality-price spectrum. “Premium coaching for serious entrepreneurs.” “Free tools for beginners on a budget.”
5. Attribute Positioning Own a specific feature or characteristic. “The only platform with built-in AI writing assistance.” “The course with live weekly coaching calls.”

The Perceptual Map

A perceptual map is a visual tool that plots competitors based on two key dimensions relevant to your market. For example, you might map competitors on “Price” (low to high) and “Complexity” (simple to advanced).
To create your perceptual map:
  1. Choose two dimensions that matter most to your customers
  2. Plot where major competitors fall on these dimensions
  3. Identify empty spaces where no competitor currently sits
  4. Position your business to occupy that open space
This exercise reveals opportunities to differentiate that you might not see when simply listing competitor features.
PreviousNext