What is product positioning? Popular product positioning strategies and models

In a fiercely competitive market, “what is product positioning” becomes a core factor that helps brands differentiate themselves. The following article will analyze popular positioning strategies and models, supporting businesses in building brands and improving business efficiency.

1. What is product positioning? Overview of the concept in Marketing

In Marketing, the question “what is product positioning” is always considered the first step for businesses to determine the brand position in the minds of customers.

Simply put, positioning is the process by which businesses create a clear difference between their products and competitors, thereby occupying a special “gap” in consumer perception.

According to Kotler, positioning is not just about designing a message, but also about how you convey value so that customers remember the brand first when mentioning a need.

To clarify, product positioning models are often applied such as Perceptual Map or 4C model to help businesses visualize competitive advantages. These models play an important role in determining what are the strengths and what factors need to be optimized to stand out in the market.

Along with that, product positioning strategies are deployed in a variety of ways: positioning based on value (price - quality), positioning based on emotions, positioning based on unique features or positioning based on customer experience. Choosing the right strategy helps businesses not only create a first impression but also maintain long-term loyalty.

When asking the question "what is product positioning", marketers and businesses need to see it as an overall strategy, combining market analysis, customer understanding and internal capacity. This is an important foundation for brands to develop sustainably and rise in an increasingly competitive environment.

2. The Role of Product Positioning in Brand Strategy

When talking about product positioning, many people often think it simply refers to determining the product’s place in the market. However, in reality, positioning plays a fundamental role in brand building because it helps businesses create differentiation, connect values with customers, and maintain a long-term competitive advantage.

Within a comprehensive brand strategy, positioning serves as the “guiding compass” for shaping the brand message, selecting communication channels, and designing a consistent customer experience.

2.1. Product Positioning for Startups

For startups, the question of “what product positioning is” becomes a matter of survival. In a highly competitive market, startups must identify a unique selling point to attract customers from the very beginning.

At this stage, choosing the right product positioning strategy—such as value-based positioning or technology-driven differentiation—helps the brand quickly make an impression. Tools like the Perceptual Map are also effective in helping startups understand their current position and identify which market segments they can dominate.

2.2. Product Positioning for Established Businesses

For companies that already have a strong market presence, product positioning serves the purpose of strengthening and expanding the brand. At this point, positioning is not only about demonstrating uniqueness but also about refreshing the brand image, maintaining emotional connections with existing customers, and attracting new potential customers.

Adapting positioning strategies in line with market trends allows businesses to maintain their appeal and avoid becoming outdated.

2.3. Benefits of Applying the Right Product Positioning Model

Understanding what product positioning is and applying the right model brings significant benefits to businesses:

Clear and consistent brand identity in the minds of customers.
Optimized marketing resources by focusing on the right strategies, avoiding spreading efforts too thin, and improving communication effectiveness.
Enhanced brand loyalty, providing a foundation for sustainable long-term market value growth.

Learn more: The 7 Most Effective Steps for Product Positioning

3. Popular Product Positioning Strategies Today

When discussing product positioning, marketers and businesses are often concerned with how to build a distinctive image in customers’ minds.

To achieve this, choosing the right positioning strategy is the key factor. Businesses can adopt different approaches—ranging from pricing and quality to customer experience—in order to create a sustainable competitive advantage.

3.1. Product Positioning Strategy Based on Pricing

This model is commonly applied in highly competitive markets. Businesses choose either a low-price strategy to target mass-market segments or a premium-price strategy to establish a high-end image.

For example:

Xiaomi positions its products using a “value-for-money” strategy by offering affordable pricing with reliable technology.
Apple, on the other hand, differentiates itself by adopting a premium pricing strategy combined with an exclusive, high-end customer experience.

3.2. Product Positioning Strategy Based on Quality

With this strategy, businesses focus on superior product features, durability, or performance. Consumers often associate quality with brand reputation, which helps companies maintain long-term trust.

This approach is particularly effective in markets where competing on price alone is no longer sufficient. By highlighting quality, businesses can explain their positioning more clearly and justify their value proposition to customers.

3.3. Product Positioning Strategy Based on Customer Experience

Today’s customers seek more than just functional value—they increasingly expect emotional and experiential value. Therefore, a seamless and memorable customer journey, from service and support to emotional engagement during product usage, has become a powerful differentiator.

For example:

Starbucks and The Coffee House have succeeded by positioning their products based on the overall experience and community connection, rather than simply focusing on selling coffee.

4. What Is a Product Positioning Model? Common Models Today

Product positioning refers to the process of occupying a unique space in customers’ minds, enabling a brand to stand out and be easily remembered. However, to achieve this effectively, businesses must choose and apply the right positioning model.

These models not only help analyze the market systematically but also assist in developing precise positioning strategies. As a result, brands can create a clear competitive advantage and strengthen their market presence.

4.1. Product Positioning Model Based on the Competitive Matrix

This is one of the most commonly used models, enabling businesses to directly compare their products with competitors based on factors such as price, quality, or features.

By using the competitive matrix, brands can identify market gaps and determine where they can position themselves differently. This is a crucial step in understanding what product positioning is and how to apply it effectively in practice.

4.2. Product Positioning Model Based on Perceived Customer Value

This model focuses on evaluating a product based on customers’ actual perceptions and experiences, rather than relying solely on quantitative measures such as price or specifications.

Businesses need to analyze customer psychology, desires, and expectations to determine how their products deliver unique value.

It is precisely these differences in customer perception that form the foundation for a sustainable product positioning strategy.

4.3. Case Study: Businesses Applying the Product Positioning Model

A prime example is Apple with its perceived value-based positioning strategy. Instead of competing on low prices, Apple emphasizes:

Sophisticated design
Seamless user experience
An exclusive, integrated ecosystem

This clearly demonstrates that understanding and applying the right positioning model can create a sustainable competitive advantage in the long run.

5. Understanding Product Positioning to Build a Sustainable Competitive Advantage

This article on “What Is Product Positioning? Popular Strategies and Models for Effective Product Positioning” highlights that product positioning is not just a marketing concept, but a strategic foundation that enables businesses to create long-term differentiation and maintain a competitive advantage in the market.

It is the key to building trust, establishing a strong and reputable brand image, and driving customer loyalty.

A brand can only achieve sustainable success when it effectively combines product positioning strategies with the right positioning models. By understanding and applying positioning effectively, businesses can stand out in the short term while also maintaining long-term competitive advantages.

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