Difference between Global Product Positioning and Global Brand Positioning
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
June 8, 2022
Difference between Global Product Positioning and Global Brand Positioning
The key difference between product positioning and brand positioning is that product
positioning is the process used to determine how to communicate product attributes to the
target customers based on customer needs whereas brand positioning refers to the rank the
company’s brand possess in relation to the competition in customers’ mind. Both product
positioning and brand positioning are focused on acquiring a space in the mind of the customer,
which is very important due to many substitutes available in the market. How successfully the
company can position itself directly affects profitability and long-term survival of the business.
What is Product Positioning?
Product positioning is the process used to determine how to best communicate product
attributes to the target customers based on customer needs, competitor products and how the
company wants its products to be perceived by the customers. Product positioning is very
important for large scale companies who offer many products in the same category. This assists
such companies to cater to different needs in their target market by providing a wide variety of
choices and minimizing market cannibalization (products of the same company competing
against each other to acquire customers).
E.g. The Coca Cola Company offers a number of products under the soft drinks category,
and each product is different in terms of logo, taste and the target customers.
Coca cola – this is the main corporate product of the company and uses mass marketing
techniques (high volume of sales) and targets young customers
Minute maid – Minute maid is targeted for the health conscious customers who wish to
consume a drink with natural energy
Thumbs up- Coca cola relates this soft drink with energetic and adventurous customers
who love risk taking
Product positioning ensures that customers stay loyal to company’s products since the
product portfolio fills all the need gaps in the market by offering a variety of products and leave
little room for competitor products.
What is Brand Positioning?
Brand positioning refers to the rank the company’s brand possess in relation to the
competition in customers’ mind. The main purpose of brand positioning is to create a unique
impression of the brand in the customer’s mind that makes them desirable to identify, and
prefer it over competition and consume the brand.
Before going further into this discussion, let us see the difference between branding and
positioning. The exercise of branding is focused on differentiating the brand through the brand
logo, attributes and essence whereas positioning is a marketing strategy exercised to acquire a
space in the mind of the customer. In order to position the brand, the company should first
decide the target group of customers who are willing to consume their brand; this will help to
conclude where the market that the brand should ‘fit’ in. This is referred to as the ‘brand
positioning strategy’ and indicates how the company desires the customers to perceive their
brand.
This can be understood via a brand positioning map which shows consumer
perceptions of the company’s brand versus competing brands on attributes that are important
to the customer. The purpose of a positioning strategy is that it allows a company to highlight
specific areas where they can outshine the competition. Thus, in order to decide on their own
position, companies must have a distinct idea of the positioning of their competitor brands as
well.
E.g. the following diagram shows a positioning map of the car brands where the car
brands is divided into 4 main categories as,
Classy and conservative
Classy and sporty
Practical and conservative
Practical and sporty
Figure 1: Brand Positioning Strategy in the car market
Brand positioning is of utmost importance with regard to what the company stands for.
Thus, the way the company positions the brand and communicate it to the customer should be
precise and not confusing. Further, once the brand is positioned, it is important to maintain the
same without tarnishing the brand name. For instance, in the above map, Audi is positioned as
an expensive and classy brand. If Audi decides to launch a low-priced series, this will give a
mixed brand image and brand value and the reputation will suffer as a result.
What is the difference between Product Positioning and Brand Positioning?
Product Positioning vs Brand Positioning
Product positioning is the process used to
determine how to best communicate product
attributes to the target customers based on
customer needs.
Brand positioning refers to the
rank in customers’ mind the
company’s brand possess in relation
to the competition.
Nature
Product positioning is based on
competitive differentiation.
Brand positioning is based on
emotional experience.
Focus
The focus of product positioning is to fill
all the need gaps of the customer base.
Brand positioning is focused on
catering to specific customer needs.
Measure
The success of product positioning can be
measured by market share.
The success of brand
positioning is largely intangible in
nature.
Summary – Product positioning vs Brand Positioning
The difference between product positioning and brand positioning mainly depends on
whether the company focuses on managing and promoting the company’s product portfolio
(product positioning) or attempt to build the company brand name (brand positioning). There
may be many products under a single brand name, and each will have to be managed
differently. In the process of this, the company should ensure that clear and consistent brand
image is communicated to customers at all times.
References
1. “Top 10 Benefits of Product Positioning.” YourArticleLibrary.com: The Next Generation
Library. N.p., 15 Apr. 2015. Web. 20 Apr. 2017.
2. “Product Positioning.” Inc.com. N.p., 29 Nov. 1970. Web. 20 Apr. 2017.
3. Sujan, Mita, and James R. Bettman. “The Effects of Brand Positioning Strategies on
Consumers’ Brand and Category Perceptions: Some Insights from Schema Research.” Journal of
Marketing Research 26.4 (1989): 454. Web.
4. “Branding vs. Positioning: What’s the Difference?” Personal Branding Blog – Stand Out In
Your Career. N.p., n.d. Web. 20 Apr. 2017.
