Examples of Positioning in Marketing

Value Positioning

Some small companies use value positioning strategies. They price their products at or below industry averages, according to Quick MBA, a popular online reference site. Value positioning in marketing appeals to consumers who are sensitive to price changes. Marketers may target low- to middle-income consumers or just appeal to cost-conscious buyers. The value positioning strategy tends to work well during recessions or slower economic periods. The downside is that smaller companies usually can't achieve value leader status in an industry. Larger companies enjoy economies of scale, meaning they have lower average unit costs because they buy in higher volumes.

Quality Positioning

Small businesses also may assume a quality positioning stance in the market. This means they focus on offering the highest quality products possible. This type of strategy is common with companies that have superior engineering departments. A smaller company may be a leader in a particular type of technology. Hence, it naturally uses quality as its core competency. Many entrepreneurs in technical industries position themselves as quality leaders. Small business owners usually price their products above industry averages when using quality positioning strategies. The reason is that they need to recoup the extra costs associated with product research, engineering and production.

Demographics-Related Positioning

Marketers also use various demographics such as age and gender for positioning in marketing. For example, a small vitamin manufacturer may create vitamins that appeal to consumers 50 and older. The company's advertising messages may center around special nutritional requirements of older Americans. Similarly, other companies employ gender-related positioning strategies. Their products may be targeted predominately toward men or women. For example, some companies target women with their cigarettes and beverages.

Competitive Positioning

Small companies also may use competitive positioning strategies. The objective of a competitive positioning strategy is to reposition the competition in the minds of consumers, according to Quick MBA. This type of positioning is common when there are two strong competitors in an industry. A company may use comparative advertising to demonstrate that its brands are superior. Hence, it attempts to alter the image a competitor wishes to portray and put itself in that top position. Business owners often use competitive positioning strategies as counterstrategies. For example, a software company known for its customer service may advertise to counter a competitor's claim that the competitor's customer service is superior.