How to create a market positioning strategy: Types and steps

Your business is struggling to stand out in a crowded market. The product is stellar, and your current customers are satisfied; however, acquiring new customers seems nearly impossible, especially when compared to competitors. You may have a market position problem.

Without a defined market position, it's difficult to communicate value, attract the right customers, build customer loyalty, or create a lasting competitive advantage. A strong market positioning strategy is crucial for differentiating your brand and driving growth.

The strategy you choose will help build your brand image and boost visibility among your target audience. But how do you know which type of market positioning strategy to choose? 

This guide will outline the key types of market positioning and how to create your own to drive business. Read on for a step-by-step guide to market positioning strategy and presenting your brand in the best way possible. 

A market positioning strategy is a plan that defines how a brand wants to be perceived by its target audience relative to competitors. It helps differentiate your brand, build loyalty, attract new customers, and drive revenue in a competitive market.

A strong market positioning strategy defines your unique value, resonates with your target audience, and differentiates your brand from competitors. It transforms everyday products into iconic brands—like Starbucks or Apple.

Positioning statements go beyond a catchy slogan; they shape how customers perceive and interact with your business. Without them, your message lacks impact. With them, you build trust, loyalty, and sustainable growth through clear, authentic brand differentiation.

Several common types of market position strategies exist, ranging from price-based positioning to brand personality positioning. We’ll explain each strategy type and share an example of a brand that uses it. 

Here are some examples of market positioning strategies.

This market positioning strategy uses price as the primary differentiator. Some brands, like Walmart, position themselves as low-cost leaders by emphasizing affordability and value. Others, like Rolex, adopt premium pricing to signal exclusivity and attract a luxury-focused audience.

Quality-based positioning emphasizes superior product quality, craftsmanship, or durability to stand out. Take Apple, for example. Apple markets high-quality, premium technology to everyday users. Product positioning has played a big role in Apple’s success through the years.  

A differentiation strategy highlights a brand’s unique product features, innovations, or capabilities to attract the right customers. A prime example of a business using differentiation positioning is Tesla. Tesla highlights its advanced EV technology and self-driving capabilities to connect with its target audience.

Benefit-based positioning highlights a key benefit that a product provides. Colgate, the toothpaste brand, is a great example. It guarantees stronger, healthier teeth with advanced protection. Benefit-based positioning works well for companies that sell products in saturated markets.

Some brands stand out for their exceptional customer service experiences. For example, Zappos, the online shoe retailer, is renowned for outstanding customer support and free returns. Customers know that they can count on a positive shopping experience when shopping at Zappos.

Competitor-based positioning pits a brand against a competitor. Positioning in direct contrast to a competitor can help foster brand loyalty among customers. An example of competitor-based positioning is Pepsi vs. Coca-Cola and Coke’s slogan, “The Choice of a New Generation.” 

Niche market positioning involves targeting a smaller audience with specialized needs or preferences. Niche markets respond well to this type of brand positioning strategy as it highlights a brand's unique features. Lush is a primary example of targeting a niche market. This brand sells handmade, eco-friendly cosmetics for ethical consumers.  

Brand personality positioning creates an emotional connection with an audience based on brand identity. Think Harley-Davidson, for example. The Harley-Davidson motorcycle brand was built on evoking feelings of freedom, rebellion, and adventure in its customer base. This brand positioning works well for companies whose products naturally evoke emotion.

Now that you understand what a market positioning strategy is and the different types, let’s discuss how to create this strategy from scratch. We’ll guide you through the process step by step to ensure your brand is set up for success.

To develop a robust market positioning strategy, start with thorough market research. This involves gathering data on your target audience, including their preferences, needs, attitudes, and behaviors. Tools like surveys, interviews, and customer data can help you identify your products’ ideal audience and what problems you solve for them.

Focus on demographics, buyer behavior, and psychographics to pinpoint your ideal customers. From there, create two to three buyer personas to guide product development, messaging, and pricing for concept testing. Conducting this research and collecting quality audience data early on provides a clear understanding of your audience and competitors, laying the foundation for an effective and targeted market position.

To stand out, you need to understand your competition. Use market research surveys to learn how your target audience views competing brands, including their strengths, weaknesses, and product preferences. Ask questions like: Which brands come to mind? Have they purchased from competitors? How satisfied were they?

This insight helps you identify market gaps and define your unique value proposition. Competitive analysis ensures your positioning is relevant and aligned with customer expectations, reducing the risk of missed opportunities or misaligned messaging.

SurveyMonkey market research surveys help you understand what your target audience thinks about your competitors and their products. Typical market research survey template questions are:

With a clear understanding of your market, customers, and competitors, it’s time to define your value proposition. 

A simple and effective approach to crafting your value proposition uses three questions developed by the Harvard Business School Institute for Strategy and Competitiveness:

Thoughtful answers to these three questions create the foundation for a value proposition that balances the needs of your customers, the realities of the market, and your company’s revenue goals.

This statement should clearly convey your unique benefits and differentiate you from competitors. Use product positioning surveys to test your ideas with your target audience, ensuring your message resonates and gives you a competitive edge.

To position your brand effectively, you need to define both what sets you apart and what qualifies you to compete in the market.

Points of differentiation (PODs) are the unique benefits or features that make your brand stand out—these are what drive preference and loyalty.

Points of parity (POPs) are the must-have qualities that ensure you're seen as a credible option in your market.

Focus on points of differentiation that resonate with your target market and support them with evidence. Achieving the right balance between points of differentiation and parity allows you to stand out while remaining relevant.

After defining your value proposition, develop a clear and concise market positioning statement that aligns with it and resonates with your target market. This statement should outline:

A strong positioning statement is authentic, customer-focused, and memorable. Keep it brief, use clear language, make a promise to your audience, and highlight what makes you different. Once written, share it company-wide to ensure consistency—and be open to revisiting it as your market evolves.

The next step is to ensure that all marketing and communication efforts consistently reinforce your brand’s positioning. This includes maintaining a consistent brand voice and a cohesive visual identity, as well as selecting the most effective channels to reach your target audience.

Your messaging should clearly reflect your chosen positioning strategy. For instance, if you’ve adopted a price-based positioning strategy, tailor your messaging to appeal to either cost-conscious or luxury-seeking consumers. Consistently highlight affordability or exclusivity across all marketing materials to align with and strengthen your brand position.

Your visual identity is often the first impression your brand makes and plays a crucial role in shaping how customers perceive you.

A well-crafted visual identity, encompassing elements such as your logo, colors, and typography, creates a brand image that is recognizable, consistent, and relatable.

A cohesive brand experience builds trust and customer loyalty. In fact, according to CXL, “consistent branding can increase a company’s revenue by up to 23%.”

A great brand positioning strategy doesn't end at launch—it requires ongoing evaluation to ensure it continues to deliver results. Track key metrics such as brand awareness, customer perception, and market share to evaluate performance over time.

In addition, gather customer feedback and analyze market trends to stay ahead of shifts in the competitive landscape. Be ready to adapt your positioning strategy as needed to maintain relevance and stay competitive.

Evidence of the value of successful market positioning is readily available in our daily lives. Brands that have gained iconic status have done so by effectively positioning themselves in engaging and inspiring ways—even if they’re selling products that are largely everyday commodities.

Starbucks is a prime example. Countless restaurants, stores, and, yes, coffee shops sell a wide array of java. Yet in a crowded market, Starbucks found the right blend of good coffee, a wide array of offerings, distinctive branding, and an inviting yet bustling atmosphere to position itself in ways that garner deep devotion among its customers—devotion so deep that those customers will pay more for a cup of coffee at Starbucks than they are willing to at less distinctive competitors.

Apple is another classic example. Plenty of personal computers and electronic devices are on the market, most of which are considerably less expensive than Apple products. Yet Apple has maintained and grown the value of its iOS products by staking claim to market positioning anchored by clean and beautiful design, simplicity, and cool and engaging branding that customers love.

Surveys are a cost-effective way to get quick responses, relevant data, and insights from your target audience about your market position and brand health.

Panel study surveys track your target audience’s perceptions over time. By surveying your target audience at different points in time, also known as a longitudinal study, you will be the first to know about their changing perceptions. Your brand identity, competitor brands, packaging, and pricing are just a few of the market trends you can track over time. When surveyed correctly, you can trust that the results you get are clear and actionable. 

Concept testing surveys will enable you to quickly test your new idea and determine if you have a winning product that will sell. It’s been noted that nearly 95% of new product launches fail each year. Early insights save you time and money and prevent damage to your brand’s identity.

Market research is critical to positioning your company and brand as a leader. You can use interviews, market research surveys, observations, customer comments, and other data to gain clear insights into how to succeed and stay in your customers' minds.

The first step is to understand your customers in detail so you can effectively address and solve their problems. This process begins by identifying your target audience, asking the right questions, and ensuring that you have high-quality data you can rely on.

Undoubtedly, developing a strong market positioning strategy requires effort and focus. But the payoff can be huge. By clearly establishing a distinctive and recognizable position, you can leverage your strengths, address weaknesses, and build a brand that customers love. SurveyMonkey for Marketers enables teams to collect customer feedback in real-time.