Positioning in marketing: how to choose the right approach

Every successful brand, product, or service has one thing in common: suitable positioning in marketing.

An effective positioning strategy isn’t about trying to please everyone; it’s about making an intentional choice to appeal to “your” target audience. It’s confidently communicating your brand’s core message and setting the narrative that others will follow. Strong positioning makes your brand stand out in a world full of choices, signaling to your audience unmistakably: “This is the one.”

It’s crucial to understand who you are, what your audience wants, and why it matters in order to create a compelling market positioning strategy. This clarity should fuel every encounter, from ads to customer service, packaging to product design, and brand partnerships to community outreach. When done right, positioning not only builds recognition—it inspires loyalty, advocacy, and, ultimately, growth.

If you’re ready to craft that standout brand, read on to determine the right approach to your positioning strategy that’s impactful, distinct, and unforgettable.

What are the different approaches to positioning your brand, product, or service?

Your positioning approach needs to have a clear, customer-centric focus and consistent execution that aligns with both your identity and your audience’s values. This ensures that your positioning resonates authentically and is perceived as credible in the market, especially over the long term.

While you can choose from many different positioning strategies—based on your overall brand identity or individual products and services—here are some of the most common ones.

Benefit-driven positioning

A benefit positioning strategy highlights how your product’s or service’s unique features meet specific customer needs or solve problems. Instead of just mentioning broad benefits, you need to look closely at the finer details of your offerings from various perspectives to truly understand why your customers need them. Here are the different ways that make benefit positioning more meaningful.

• Functional benefits: These address immediate, practical needs but go beyond superficial claims. Brands must break down each functional aspect into detailed metrics that resonate with the customer’s unique context. For instance, a logistics software platform could emphasize “efficiency” and specific key performance indicators (KPIs), like reducing shipping delays by 20%, with clear documentation to support it.
• Emotional benefits: Positioning should also capture the less tangible emotional appeal, making the brand feel essential to the user’s goals or identity. This can be achieved through detailed customer research and segmentation, linking product benefits to emotional drivers—like reducing stress or improving productivity—which reflect their values.
• Self-expressive benefits: This highlights how utilizing a product or service enables customers to express their desired image to others. This may not be applicable to all products or services, but enterprises leveraging it smartly can achieve better results. For instance, a furniture enterprise can signal that choosing their sleek, minimalist furniture speaks to the customer’s passion for modern, functional design.

Home Instead, a senior home care service, emphasizes its compassionate, personalized approach through benefit positioning. They provide customized care plans, including companionship, meal preparation, and medication reminders, highlighting their functional benefits. Their trained caregivers foster a nurturing environment to reduce loneliness, drawing attention to its emotional benefits. Additionally, choosing Home Instead signifies a commitment to quality care and dignity for loved ones, aligning with values of respect and compassion.

Consistently communicating such advantages across advertising campaigns, website content, and even customer service channels is key. This reinforces the product’s or service’s unique value proposition and keeps your audience informed and involved in your brand’s journey, fostering trust with potential buyers.

You can use Yelp Showcase Ads to directly highlight the benefits of your unique product or service offerings, deals, or promotions in Yelp search results. This ad format is perfect for capturing the attention of potential customers at the consideration stage, making your products stand out with compelling visuals and messages.

Differentiation positioning

Differentiation positioning is all about figuring out where a brand stands compared to others in the market. It often involves highlighting what makes a brand special against its rivals’ weaknesses or finding a unique spot that sets it apart.

A classic example of product positioning against competitors in the fast-food industry is Burger King and McDonald’s. McDonald’s positions itself as the go-to, family-friendly fast-food restaurant, focusing on consistency, convenience, and a wide range of menu options. Their marketing efforts often emphasize the iconic Golden Arches, happy meals, and the overall experience of enjoying food with family and friends.

In contrast, Burger King markets itself as the alternative choice, highlighting its flame-grilled burgers and the “Have It Your Way” slogan, which promotes customization. The brand emphasizes bold flavors and the idea of individuality. Their award-winning advertisement highlighting the addition of no preservatives to the burger gained widespread recognition.

To master differentiation positioning, it’s crucial to deeply understand your competitive landscape and know what makes your brand unique. This comprehensive analysis of your key competitors—examining their market position, audience, strengths, weaknesses, and marketing strategies—empowers you to identify ways to stand out and where your brand can excel.

Another strategy is to aim for a market segment other brands have overlooked. By focusing on what this niche needs, you can become the go-to choice and build a loyal following. This requires understanding the target customers and being ready to adjust offerings and messaging based on their preferences.

Quality-based positioning

Quality positioning is a strategy that establishes a brand, product, or service as the leader in quality and reliability within its industry. This approach emphasizes the superior craftsmanship, materials, processes, or expertise that can set them apart in the industry.

For instance, The Ritz-Carlton is an excellent example of quality positioning by setting a high standard in hospitality. Their messaging emphasizes exceptional guest service and personalized experiences, reinforcing their commitment to luxury.

Quality positioning in marketing is all about truly aiming for excellence and consistently delivering great offerings. You should figure out what makes your products or services stand out from the competition—product quality, precision, performance, durability, functionality, product design, or even excellent customer experience.

While your product or service may have various aspects you take pride in, the key lies in customer perceptions. By connecting your standout qualities to the key benefits that resonate most with your customers, you validate their importance in the quality positioning process. Compare these attributes to those of similar products or services in the market, and prioritize the qualities that provide significant value and give you a competitive advantage.

Price-based positioning

Price positioning isn’t just about stamping on a high or low price tag. It’s a bit more complex than that. You need to analyze what people think your product is worth, how much it costs, and how much customers are willing to spend.

To get this pricing right, you need to dig into things like how sensitive customers are to price changes, group them by their willingness to pay, and figure out what makes your products or services stand out at different price levels.

• Price elasticity: You should conduct a thorough price elasticity analysis to understand how price changes impact demand. Price elasticity can vary significantly across different customer segments; for instance, some segments may respond positively to premium pricing as an indicator of quality, while others may seek the best value for the price.
• Advanced price-based segmentation: This allows brands to target each customer base with tailored price positioning based on their buyer personas. You can implement it through pricing models like tiered pricing (offering different versions or packages for varied budgets) or dynamic pricing, where the price adjusts based on demand or inventory.
• Value justification at every tier: For premium pricing, brands need to provide clear, consistent messaging around quality, exclusivity, or added benefits. For instance, a SaaS platform might demonstrate premium value by offering priority customer support or exclusive product features in its top-tier package.
• Luxury pricing: When targeting high-end markets, brands should emphasize scarcity, exclusivity, and unparalleled quality. Luxury pricing often conveys a status symbol that builds brand prestige, which resonates with consumers who associate higher prices with exceptional exclusivity and craftsmanship.
• Operational efficiency for value-based pricing: To adopt a value-based approach, brands should keep costs down by simplifying their operations and using scalable models. This way, they can offer competitive prices while still maintaining quality. It often requires analyzing the supply chain, using tech assistance to save money, and sometimes outsourcing strategically.

Ikea is a great example of a brand that excels at marketing based on their value-based pricing. Their messaging really highlights the cost savings and quality you can get from their affordable, functional, and stylish furniture.

 

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Similarly, there’s Planet Fitness in the service industry. They market themselves as a budget-friendly gym with the basics when it comes to workout gear, all without any frills. They draw in value-conscious folks by keeping membership fees low and creating an all-inclusive space, setting themselves apart from other fitness clubs.

To succeed with your own price positioning, it’s critical to understand your competition and keep an eye on market trends and how customers feel. Brands that continually analyze and adjust their price positioning based on detailed competitor and consumer data are more likely to maintain alignment with market expectations, creating strong positioning in marketing that withstands shifts in economic conditions.

Customer service-based positioning

A customer service-based positioning strategy places exceptional customer care at the forefront of a brand’s identity. This approach goes beyond simply resolving customer issues; it centers on consistently exceeding expectations, building loyalty, and creating memorable interactions that customers associate with the brand. Such positioning in marketing underscores the company’s commitment to making customers feel valued, supported, and understood. Here’s how emphasizing top-notch customer service can set a brand apart.

Personalized, anticipatory care

Exceptional customer service doesn’t just meet needs; it anticipates them, helping customers before they even ask. Personalizing interactions at each stage—from inquiries to post-purchase support—demonstrates a commitment to individual value, creating a deeper emotional connection with your brand.

For example, Zappos has built its entire brand image around customer service excellence. Known for its “customer-obsessed” approach,” Zappos has positioned itself as a brand that goes the extra mile. Their service reps are empowered to provide solutions beyond the norm—offering overnight shipping, helping customers find the right product, or even sending a bouquet to loyal customers. This high level of care has fostered strong customer loyalty and a brand reputation that’s difficult to replicate.

Proactive problem-solving

Brands that actively anticipate and solve customer issues before they arise are seen as dependable and trustworthy. This strategy includes maintaining quick response times and 24/7 support, proactively educating customers, offering self-help resources, and using data insights to predict and address common pain points.

Expert support that feels effortless

In industries with complex products or services, high-quality customer service means not just answering questions but also breaking down information in ways that help customers feel confident and knowledgeable. Companies that can offer this expertise in an accessible, friendly manner become trusted authorities, creating a brand identity around guidance and reassurance.

Through its Genius Bar, Apple has long demonstrated this. Whether through one-on-one guidance, community workshops, or ongoing customer training, Genius Bar experts help customers get the most from their devices. In navigating the rapidly evolving tech world, Apple provides expert advice and easy-to-follow tips to maintain loyal customers.

Positioning in marketing: 5 tactics to establish and sustain your strong market presence

If you want to stay relevant in the marketplace and strengthen your brand presence, you need to take a strategic approach to positioning your offerings. Understanding your customer preferences and market trends is crucial for enterprises to keep adapting to changing market demands. Here are five tactics for getting it right.

1. Dive deep into market research

A strong market position begins with understanding your audience—and sustaining it requires staying attuned to shifts in their preferences. While initial market research may have given you a solid foundation, ongoing research ensures your brand stays aligned with what matters most to your customers. Conduct regular surveys, focus groups, and social listening to capture changes in demographics, psychographics, and behavioral patterns.

The Old Spice repositioning campaign is a fantastic example of how market research can open up more opportunities for a product and make it more appealing to a broader audience.

In the early 2000s, Old Spice struggled to gain traction among the younger generation. By researching young men’s perceptions, Old Spice repositioned itself from an outdated “dad’s brand” to a confident, youthful brand. Old Spice did this through campaigns like the “The Man Your Man Could Smell Like” campaign that leveraged humor and an over-the-top confident tone, which appealed to young men’s preferences for humor and self-confidence.

Apart from generation-specific repositioning, you can also reposition to fit your expansion strategies to reach a wider audience base. During such times, you can boost your repositioning message with location-based ads, like Yelp Ads, to get noticed by new audiences in different areas. This way, enterprises can send out targeted offers that really speak to local audiences, making them more relevant as they expand into new markets.

2. Scope out the competition

Understanding competitor strategies is vital for positioning in marketing. Conduct a comprehensive competitor audit using Porter’s Five Forces framework to analyze your industry’s competitive intensity and attractiveness. This framework examines five key forces:

• The threat of new entrants
• The bargaining power of suppliers
• The bargaining power of buyers
• The threat of substitute products
• The intensity of competitive rivalry

Understanding these forces can help you identify potential challenges and opportunities within your market. For enterprises with products in multiple categories and multiple locations, using this framework against each of its products or services can help increase sales across each vertical.

With insights from this analysis, consider leveraging Yelp Search Ads to reinforce and improve your visibility where it matters most—at the top of search results and on competitor pages. This placement helps your brand stand out when potential customers are searching for similar offerings, positioning your business as a top choice during critical moments in their buying journey.

3. Find your sweet spot

Your unique selling proposition (USP) is central to sustaining your positioning in marketing. This is where the “three C’s” framework—customer, company, competition—comes into play. By deeply understanding what customers want, where your company excels, and where competitors fall short, you can define a clear and impactful position. This framework helps sharpen your overall brand image and the unique appeal of specific products or services, ensuring they resonate strongly in the market.

A value proposition canvas is another valuable tool for mapping out how your product or service meets customer needs and stands out in the marketplace. It helps you systematically identify customer pains and gains, ensuring your offering addresses these effectively. By aligning your product or service with customer expectations, you can craft a compelling message that resonates and differentiates your brand from competitors.

For instance, Warby Parker positioned itself as a brand delivering high-quality, stylish eyewear at affordable prices by eliminating the middleman. This strategy meets customer expectations and sets Warby Parker apart from traditional eyewear retailers, reinforcing its unique market position.

Regularly revisiting your USP and refining it with insights from the three C’s framework and the value proposition canvas can help maintain a strong market presence.

4. Nail your brand positioning statement

After figuring out your USP and checking out the competition, it’s time to create your positioning statement. This statement should highlight your target audience, your market, what makes you unique, and why people should trust you. Make sure it’s clear and straight to the point while also being believable and something you can stick to in the long run.

It’s also important to test your positioning statement with your target customers. Start by conducting focus groups to gather initial reactions and feedback, then use surveys to collect quantitative data on how well your positioning statement resonates with a larger sample. For example, when positioning a new soft drink, you might test different positioning statements emphasizing various product attributes (e.g., taste, health benefits, energy boost) to see which resonates most with your target market.

5. Keep your positioning tuned to market dynamics

Positioning your offering is not a one-time event; it requires continuous monitoring and adjustment. Set up KPIs and brand health metrics to track how well your brand positioning strategy resonates with your target audience. These might include:

• Brand awareness and recall
• Customer satisfaction
• Customer loyalty
• Market share and growth
• Engagement on social media platforms
• Conversion rates and sales performance
• Net Promoter Score (NPS)
• Customer feedback and reviews

Regular brand audits and tracking studies offer insights into how your brand is perceived, allowing you to stay responsive to shifts in consumer perceptions and sentiment. For instance, if your brand’s NPS declines, it may signal that customers feel your brand isn’t living up to its promise.

Leverage advanced analytics and predictive modeling to spot emerging trends, anticipate shifts in the market, and adjust your positioning accordingly. By keeping a pulse on your position, you ensure a sustained connection with your audience, reinforcing your brand, product, or service’s identity over time.

As you keep an eye on these online metrics, consider monitoring your offline metrics too. Integrate your marketing toolkit with a tool like Foursquare or Cuebiq to track back conversions to your positioning strategies.

Similarly, you can leverage innovative solutions, like the Yelp Conversions API (CAPI), which allows you to connect your first-party data with Yelp’s first-party data. This enables you to precisely track both online and offline conversions. You can see how your campaigns drive real-world results, like store visits or service bookings, so you know how your digital efforts are working.

Knowing when it’s time to reposition is key—if your KPIs reveal declining engagement, stagnant market share, or shifting customer needs, it may be time for a strategic pivot.

The magnetism of positioning: Command attention and earn loyalty

As the market gets more competitive and fast-paced, adapting a strategic positioning in marketing is crucial for brands to make a lasting impression on their target audience. By conducting effective market research, analyzing the competitive landscape, identifying unique selling propositions, and creating compelling positioning statements, marketers can fully harness the potential of their offerings and build strong, lasting connections with customers.

But your journey doesn’t end here. Positioning in marketing is an ongoing process that requires continuous monitoring, testing, and refinement. As you move forward, remember to stay attuned to market changes, gather customer feedback, and adapt your positioning strategy accordingly.

To enhance your marketing toolkit and gain a deeper understanding of your target audience, these consumer research strategies can help you create marketing campaigns that genuinely connect with your audience and drive measurable results.