Positioning

What it means

Positioning is the place a brand wants to occupy in customers' minds relative to competitors, such as the fastest, the most personal, the most expert or the cheapest. It is not a slogan but a strategic decision about whom the company exists for and why customers should choose it.

Clear positioning decides which customers the company serves, what it says about itself and what it deliberately does not do. It builds on market segmentation and the value proposition and shows up in the unique selling proposition, price, design, tone of voice and choice of sales channels.

A company trying to be everything to everyone cannot be placed by customers, who then decide on price alone. Strong positioning, by contrast, supports a higher price, because the customer pays for a specific benefit they do not see elsewhere.

How it works in practice

A practical tool is the positioning map: two axes that matter to customers, such as price and degree of personal service, with competitors plotted on them. An empty spot on the map may be an opportunity if customers want it and the company can occupy it credibly.

Positioning carries through every detail: website copy, references, the price list, how enquiries are answered and which jobs the company turns down. An accounting practice positioning itself as a partner for online shops, for instance, writes about VAT on EU sales and integrations with sales platforms.

It is closely tied to pricing strategy. Premium positioning does not fit penetration pricing but rather price skimming or consistently higher prices. A contradiction between message and price confuses customers and erodes trust.

What to watch out for

Positioning must be true and provable. A claim of the fastest response or the best price that the company does not deliver in practice damages its reputation faster than it was built, and in advertising it can amount to an unfair commercial practice.

Frequent repositioning confuses customers. Building a position in people's minds takes years and demands consistency; a change is justified when the market or the company changes, not because a new campaign sounds more exciting.