What are the types of product positioning?
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
May 7, 2022
What are the types of product positioning?
As we explored above, there are several different types of product positioning — the one
you choose all depends on your target users’ wants and needs.
The most commonly used positioning strategies are:
Price-based positioning
The price of a product is one of the first tools customers use to compare their options. Not
only is cost very important in both the b2b and b2c space, but a product’s price also speaks
volumes about its position in the market.
Price-based positioning refers to offering your products at a competitive or lower price
versus others in the market. And, most often, consumers choose these products
based purely on price — without considering or comparing the other options. The best example
of price-based positioning can be found in the grocery store, where promotions help brands
compete on cost savings head-to-head.
Lifestyle-based positioning
Brands may also define their market position by associating their product with a certain
usage or lifestyle. A finance app, for example, can either be advertised as helping grow your
personal wealth through high-risk trading and investments — appealing to a certain fast-paced
lifestyle — or it can be positioned as a savings aid for families who want to put a little aside
each month.
Products may contain the same or similar features, but the benefits of using those features
will be explained (positioned) differently.
Characteristics-based positioning
Reliability, performance, efficiency, sustainability, aesthetics, and novelty — these are all
characteristics that help create a unique positioning for a product. Positioning your product
based on these characteristics encourages consumers to develop a certain brand image based
on what your product can offer. Just look at how car brands position themselves: Volvo is about
safety, Toyota is reliability, and so on.
Quality- or prestige-based positioning
Remember how we said that price can be a positioning tool? Well, prestige positioning is
when brands avoid competing on price — using their higher fees to suggest a product of higher
quality or status. A watch is always a watch, and yet Rolex has secured and forever protected its
space in the luxury watch market.
What is an example of product positioning?
We shared a couple of product positioning examples above, but let’s look at a very well-
known brand/product positioning in more detail.
Nike is one of the world’s most prominent brands and their products have become known
as competitive sportswear for everyone (not just elite athletes). Instead of simply positioning
itself as a manufacturer of shoes and sportswear, Nike positions itself as a company that
provides athletes of all walks of life with high-quality, fashionable apparel. Better still, these
products perform under the most extreme conditions and inspire athletes to excel.
Looking to the tech space, we see great examples of characteristic-based positioning
everywhere: "Voted brand with best-performing laptops for three years in a row. The highest-
rated HD i10 core processor notebook currently on the market."
Companies use various tactics and strategies to promote their products or services to
consumers. One such strategy is product positioning, which outlines benefits consumers can
gain from buying a product and determines your marketing strategy. In this article, we discuss
the uses of product positioning and explore the various types with examples.
What is product positioning used for?
Product positioning is a description of a product or service and explains how it fulfills a
specific need, want or desire that's missing from the target audience. Sometimes called the
positioning statement, it's an essential element of marketing because it creates and defines a
company's intentions while emphasizing how its brand is identifiable and unique compared to
similar competitors.
The position statement represents the brand's identity and the value that it provides to
consumers. It's a customer-focused strategy that includes core elements like brand image,
special features, quality and identity. A product positioning marketing initiative uses the core
elements of the practice and expands on it with individualized details to make it even more
defined and specialized.
Types of product positioning examples
Here are eight types of product positioning examples:
Quality product positioning
A quality-based product positioning initiative emphasizes the quality of the product as its
key selling point. This kind of position could apply to a product or a service, making it a common
choice for businesses to use. When emphasizing quality, companies often compare it to the
quality of a competitor who provides a similar product.
Example: "We thrive on quality. Best in the business. Our new line of silk duvets, sheets and
pillowcases are of the highest quality. Offering a 30% higher thread count than the leading
competitor."
Variety product positioning
A variety-based product positioning marketing campaign emphasizes how a business offers
variety with their products, which gives customers multiple options. Though this type of
position sees more frequent use with products, it also has applications for services as well. To
emphasize the large variety that they offer, a company might compare how they have a wider
selection of products than other competitors, or they might explain why each of their options is
unique and unlike anything else.
Example: "No one offers more variety than we do. With over 15 new ice cream flavors,
from honey butter pecan to mint agave, you can find a flavor for every occasion. Get yours in a
variety of sizes, so you can enjoy as much ice cream as you want, when you want it."
Performance product positioning
Performance-based product positioning focuses primarily on how well a product performs.
This type of position is concerned less about the aesthetic and focuses more on how something
functions. Performance positioning applies primarily to a physical product, though it can apply
to a digital product as well. Performance positioning marketing may or may not make a direct
comparison to similar competitors, though it often describes how it's the best performing
product available.
Example: "Voted brand with best-performing computers for three years in a row. Fulfill all
your computer needs with our latest PC model, the Aero 2000, the highest-rated HD i10 core
processor notebook currently on the market. Enjoy its unparalleled performance and style."
Efficiency product positioning
Efficiency-based product positioning places most of the focus on how well the service or
product makes the consumer's life more efficient and easier. This could apply to products and
services since both can demonstrate high efficiency. This type of product positioning speaks to
the intuitive nature of the product and how it can help someone be more productive or make a
task less tedious. Efficiency product positioning can even apply to digital products.
Example: "Number one on the app store in software optimization. Download our recently
updated application for guaranteed smoother transitions, higher video quality and no upload
delays. Compatible with all smart devices."
Aesthetic product positioning
Aesthetic-based product positioning primarily focuses on emphasizing how the look and
appearance of a product fits a unique and distinctive image that appeals to a specific
demographic of people. This type of product positioning doesn't really need to make any
comparisons to other products since it offers its own unique charm. In this way, it simply
showcases what kind of aesthetic their products possess.
Example: "Check out our new fall collection with the charm and sophistication you're after.
You'll love our new rose embellished pearl necklaces, 1920s frilled Cambridge blouses, and
vintage, hand-sewn plaid skirts. We have the styles, looks and accessories you won't find
anywhere else."
Reliability product positioning
Reliability-based product positioning serves to emphasize how products or services are
reliable. Trust is an important aspect of this marketing strategy because people usually trust
reliable products and services. This product positioning style may also make comparisons to
similar companies to demonstrate why their goods are more reliable than others, or it might
explain why their goods are the most reliable in the current market. Older companies
sometimes use this type of product positioning because it corresponds with their successful
longevity, which represents a steady customer base.
Example: "Trusted since 1935, you can now enjoy the luxuries of our latest bedroom
collections. New look but same reliable pieces that'll last for years to come."
Sustainability product positioning
Sustainability-based product positioning primarily focuses on describing how their
products are sustainable and reusable. Eco-friendly companies usually employ this type of
product positioning strategy because it allows them to show how their services and products
are safe for the environment and communities. This type of product positioning may sometimes
use company comparisons, typically for companies that aren't sustainable.
Example: "Our new straws are biodegradable and completely organic. Say no to plastics
and textiles that can't decompose. Enjoy your favorite beverages while helping save the planet."
Do-it-yourself product positioning
The do-it-yourself, or DIY, product positioning marketing strategy typically pertains to
products and explains how a consumer can easily use or put together a product. This type of
product position emphasizes a user's intelligence and personal capabilities, but also provides a
product that's made to be fairly simple to use. However, this can depend on the specific
product and how difficult it may be to assemble.
Example: "Explore our wildly popular DIY wallpapers, which only take five minutes to
install. No painter needed, simply remove the adhesive and then roll it up your walls. Give your
home the look you've always wanted with no hassle and no mess."
