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What is Positioning in Business?

Positioning refers to the place a brand occupies in the minds of the customers relative to competitors. It's a strategic exercise that involves creating a unique, consistent, and recognized customer perception about a brand.

Types of Positioning Strategies

Positioning strategies can be divided into two main types: internal and external. Internal positioning involves using comparative analysis to understand a product’s strengths and weaknesses. External positioning involves tailoring marketing messages to target a specific segment or demographic.

Benefits of Positioning Strategies

Positioning strategies bring numerous advantages to businesses. They help companies create a unique niche, establish customer loyalty, increase brand recognition, and present a clear, defined message to potential customers. They can also set a company apart from its competitors, which helps to differentiate its products and services. Positioning strategies also help businesses to be more efficient when creating marketing campaigns.

Pros of Positioning Strategies

  • Clear communication: Positioning strategies allow companies to communicate their messages to their target audience in an effective way.
  • Increased recognition: Positioning strategies help customers to recognize a company’s products or services.
  • Competitive advantage: Positioning strategies can help companies to differentiate their offerings from competitors’.
  • Improved customer loyalty: Positioning strategies help to create a loyal customer base by presenting targeted messages to customers.

Cons of Positioning Strategies

  • Restricted customer base: Positioning strategies can restrict the customer base by focusing too much on a particular segment.
  • Loss of momentum: Without careful monitoring, companies risk losing momentum if their positioning strategy becomes stagnant.
  • Time-consuming: Implementing a positioning strategy can be time-consuming, as it involves market research and analysis.
  • Inability to stay ahead of competition: Companies’ positioning strategies can be quickly overtaken by their competitors.


Positioning strategies are an effective way for companies to create a unique identity and increase brand recognition. By carefully analyzing customer segments and understanding the competitive landscape, businesses can create strategies that give them a competitive advantage and help them to stand out from their competitors. However, companies must be mindful of the drawbacks of positioning strategies and be prepared to update their strategies as the market changes.

Frequently Asked Questions

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