What is product positioning? Examples, strategies, and template

Product positioning is a strategic marketing practice that involves defining how a product is perceived in the market relative to competitors, focusing on perception rather than physical differentiation. It differs from brand positioning as it specifically targets the perception of individual products, which can transform customer choices and retention by shaping product messaging to meet consumer expectations. While differentiation focuses on tangible features, positioning emphasizes the perceptual value and emotional appeal, which can influence purchasing decisions regardless of actual product features. Effective product positioning requires a thorough market analysis, understanding of the competitive landscape, and alignment with target market segments and company values. Tools like perceptual mapping can aid in visualizing market gaps and crowded spaces, guiding companies to optimal positioning strategies. Successful examples, such as Apple, Nike, Lush, Patagonia, and Disney+, demonstrate how well-crafted product positioning can lead to enhanced market presence and consumer loyalty.