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What is positioning?
Positioning (or product positioning) is how the product is designed to be perceived in the marketplace by the target market against its main competitors. In other words, it’s basically how consumers understand the product offering and how it differs from similar competitive offerings.
Positioning is built by the organization designing and promoting their product by highlighting various product features, benefits, and/or other competitive advantages. Ideally, firms like to create a clear and distinct product positioning. If they can achieve this positioning goal, then their product becomes the ‘product of choice’ for certain target markets or consumer needs.
Positioning is the final main phase of the overall STP process (which stands for segmentation, targeting and positioning). Positioning is typically more important in cluttered and competitive markets, particularly for low-involvement purchase decisions.
Why does this matter? Because a well-defined product position helps your target audience quickly recognize your product’s unique value. In saturated markets where consumers are bombarded with messages from multiple competitors, a clear positioning can help cut through the noise and simplify purchasing decisions. This clarity can significantly influence the likelihood that customers will select your offering over competing products.
Definition of positioning
Positioning was ‘popularized’ by Trout and Ries in the 1980s. The two authors are still considered experts in the areas of positioning and branding. The following quote was sourced from Ries’ Pieces, a related website, which specializes in branding issues. The website quotes the following positioning definition from Al Ries himself:
- “Positioning is not what you do to the product; it’s what you do to the mind of the prospect. It’s how you differentiate your brand in the mind. Positioning compensates for our over-communicated society by using an oversimplified message to cut through the clutter and get into the mind. Positioning focuses on the perceptions of the prospect not on the reality of the brand.”
As you can see, this view of positioning is strongly related to image and communication and its impact on consumer perception. However, it is important to recognize that a clear market positioning is achieved through combined effort of the entire marketing mix, not just via promotional activities. This is because it is difficult (in the long-term) to convince consumers of the quality, unique features and benefits, and competitive advantages of a product, unless the communication claim has some substance to it.
Holistic perspective: While advertising and branding play a major role, the actual product design, price positioning, distribution (where and how it is sold), and customer experience also contribute to a consumer’s overall impression. If the product or service fails to deliver on its promise, the credibility of the positioning will suffer, potentially harming brand loyalty and customer satisfaction.
Other than that clarification, please note the essence of the definition from Ries: that positioning is a battle for the mind of the consumer. Let’s now look at another definition of positioning as a point of comparison.
- “Positioning can be defined as how a product or a company’s offer appears in the mind of the target customer with respect to other brands in the market. Positioning is critical to brand building because it is responsible for projecting the brand identity and creating the perception and image of the brand in people’s mind.” (Vashisht, 2005)
Note the important similarities of these two positioning definitions: that positioning is in the mind of the target market and that the consumers’ understanding of the product is on a relative or differentiated basis (that is, some comparison to competitors.) Therefore, we can summarize the definition of positioning as being:
- Positioning is the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products.
Key takeaway: Positioning influences whether a consumer sees your product as the best solution, a cheaper or premium alternative, or a niche player that addresses a specific set of needs. By understanding consumer perceptions, companies can refine their positioning strategies to achieve greater market success.
The important aspects of this definition are:
- Positioning is the perception (their knowledge and understanding) of consumers,
- The focus is on the perceptions of the target market,
- Only the key features/benefits can be effectively communicated, and
- Perception, relative to competing products, is very important.
Firms should therefore consider which product attributes (features, price, quality, service levels) are most salient to consumers, and emphasize those that align with the company’s strengths and the target market’s needs. This approach ensures a more meaningful and convincing message that resonates over time.
Positioning and the STP process
Positioning is the third and final major phase of the overall STP (segmentation, targeting and positioning) process. By this stage of the process, the firm would have a good understanding of the overall marketplace and have a sense of what positioning goals would work in this market. (This understanding would have been primarily achieved through the segmentation process and the evaluation and selection of one or more target markets.)
Also, as part of the target market selection phase, the organization would have considered the competitiveness of the various segments and thus would be aware of the competitive offers and their behavior. On the basis of this information, in conjunction with the firm’s strategy and competitive strengths, various positioning options would probably have been considered already.
A key insight here is that positioning choices must reflect both internal strengths and the external market reality. If a company cannot deliver consistently on a premium positioning, for instance, it risks eroding trust among consumers. Conversely, a gap in the market for a lower-priced alternative might provide a strong opportunity if the organization has cost advantages or operational efficiencies.
As a recap, the basic model for the STP process is shown below:
Note: Effective positioning is an ongoing effort. As markets change and consumer preferences shift, marketers need to reevaluate and refine their positioning strategies. By aligning the product’s unique attributes with the most relevant customer needs, and clearly communicating those attributes, a firm can differentiate itself and sustain a competitive advantage over time.
Ries and Trout’s view of positioning
Ries and Trout pioneered the concept of positioning in the 1970s and 1980s, arguing that the primary challenge for marketers is to cut through the clutter of an “over-communicated society” by claiming and defending a unique space in the consumer’s mind. Their approach has shaped decades of marketing strategies and remains influential; however, it has also drawn both support and criticism from contemporary marketers and scholars.
Ries and Trout’s view of positioning emphasizes that positioning is not merely about altering the product itself; rather, it is about influencing how potential customers perceive it in their minds. They argue that in an “over-communicated society,” consumers are bombarded with countless promotional messages, and, to cut through the noise, brands must present a simple, memorable message that clearly differentiates their product from competitors.
According to Ries and Trout, positioning is fundamentally a battle for mental real estate. The goal is to establish a distinct place for the brand in the consumer’s mind—one based on a unique benefit, value, or key attribute that sets it apart from other options.
Importantly, while advertising and communication can help shape these perceptions, Ries and Trout stress that positioning goes beyond marketing messages alone. The entire customer experience—including product features, pricing, distribution, and service—must align with and support the chosen positioning for it to hold credibility in the long run.
Support for Ries and Trout’s Positioning Concept
- Clarity in Competitive Differentiation
Many marketers believe that consumers, inundated by too many messages, benefit from straightforward, memorable brand communications. Ries and Trout’s call for simplicity resonates strongly in an era of short attention spans. - Focus on Mental Perception
Emphasizing the battle for “mental real estate” helps businesses recognize that perception often outweighs product realities in consumer decision-making. Brands that successfully position themselves in a distinct manner (e.g., “safe car,” “luxury brand,” or “low-cost carrier”) can command strong market loyalty. - Consistent Messaging Across Touchpoints
Ries and Trout highlight the necessity for all marketing mix elements to reinforce the chosen position. This unified, single-minded approach provides clarity and consistency, which are essential for lasting brand recognition. - Time-Tested Framework
Despite changing media landscapes, many marketers find Ries and Trout’s principles adaptable and enduring. Positioning—focusing on a single, memorable point of differentiation—continues to serve as a cornerstone in marketing strategy courses and business practice.
Criticism and Evolving Perspectives
- Perceived Oversimplification
Some critics argue that focusing too heavily on a single brand attribute oversimplifies the complex nature of consumer decision-making. Modern consumers often weigh multiple product features, social proof, and brand purpose, suggesting that the traditional one-attribute approach may not capture the full scope of brand resonance. - Digital and Social Media Era
Ries and Trout’s framework emerged in an age dominated by traditional mass-media advertising. Today’s digital environment is more interactive, with user-generated content, social communities, and influencers playing major roles. Critics say that positioning must now incorporate dynamic feedback loops and customer co-creation, areas not deeply addressed in the original model. - Brand as an Ecosystem
Modern branding approaches often view a brand as an ecosystem involving consumer experiences, emotional connections, and social/cultural associations. Ries and Trout’s perspective is sometimes seen as too communication-centric, potentially overlooking deeper emotional or community-driven ties that can shape brand loyalty. - Lack of Emphasis on Evolution
Positioning was initially framed as a relatively fixed concept—staking a claim in consumers’ minds. Yet consumer preferences, cultural values, and competitive landscapes can shift rapidly. Critics note that brands need to be agile and open to repositioning in response to societal or technological changes, which can make the “battle for the mind” more fluid and iterative than Ries and Trout originally proposed.
Current Relevance
While Ries and Trout’s ideas remain foundational in marketing, contemporary marketers often blend their emphasis on clarity and differentiation with broader frameworks. These might include emotional branding, brand purpose, digital engagement strategies, and data-driven marketing. In practice, many firms still rely on the core premise of “mental real estate” to design their messaging but supplement it with ongoing research and relationship-building efforts to ensure their positioning remains relevant over time.