Product Positioning

« Back to Glossary Index

Product positioning is a kind of marketing that introduces the advantages of a company’s product to a specific target end-user. Market research groups can identify which audiences are targeted based on positive responses to a product. Studies can also determine which product benefits are most attractive to them. Understanding this information helps simplify marketing and drive more leads and sales. It also helps differentiate products or services from market competition. Product positioning is an essential part of any marketing plan, but it is not necessarily restricted to one end-user.

Product Positioning includes how product managers communicate product benefits to their customers. Positioning helps product managers base their product marketing efforts on the actual value of the company’s features and functions. Product managers’ ability to articulate the key benefits of their product and the issues it addresses is critical to business success. However, the product manager may find their company’s product positioning strategy ambiguous. Perhaps this is because ownership is unclear, or the vision is changing. Their colleagues in sales and marketing are likely to be strong advocates for the work. Effective positioning makes it possible to carefully design meaningful information to create more value for our customers.

What Is the Importance of Product Positioning?

It helps them maintain the foundation of their marketing strategy and ensures that their marketing efforts, information, and promotions resonate with their customers and understand how their products are the best choice for their needs. As well as driving more leads and sales, it can also help differentiate their services and products from the competition. In addition to targeting their primary audience effectively, product positioning can also help them catch those secondary audiences interested in their product in different ways; By using customized marketing information that interests them.

How To Develop a Product Positioning Strategy?

Product positioning is a cross-functional effort. It usually involves close cooperation between product management and product marketing to determine the nature of its products. Product managers will need to pool their knowledge in the following areas;

Understanding Customer

The positioning strategy of product managers should be concise to capture who their customers are and what they need. Describe the attributes of their target customers, including demographic, psychological, and geographic details. The product manager also provides insight into the significant issues the customer is trying to address. Use their role profiles to inform them of their positioning strategies and help broader teams relate to their customers.

Conducting Market Research

The Product Manager needs to know what the customer’s options are. Study direct and indirect competitors to see how they serve their customers’ needs. Market research should also include direct interaction with potential clients to gather ideas, such as surveys, empathy sessions, or, focus groups. It will allow product managers to differentiate their products from competitors and help explain to potential customers why their solutions are the best choice for solving their problems.

How Does Product Positioning Help the Product Manager?

Product teams need to understand some of the most compelling products on the market. They also need to communicate clearly the value of their products in a particularly engaging way. Positioning allows the product manager to quickly and accurately articulate the key benefits of their product and how it addresses their customers’ pain points.


Knowing the target audience and describing the advantages of a product to them in a compelling manner is the primary step to a strong marketing program. To take advantage of market research and effective product positioning, a company does not need a large marketing budget.

Product Positioning
Scroll to top