Product Positioning

Product positioning is a specific marketing strategy that highlights the benefits of a product or service with a particular focus on the target demographic and what makes its offering unique when compared to competitors. 

Product positioning can be clarified by asking specific questions, for example, why should consumers purchase your product over the competition’s? What makes your product special? How do you want consumers to think of your product? What do you want your product’s brand identity to be?

There are three things that businesses need to understand to ensure effective product positioning¹:

The target audience

First, it’s important to determine what customers want, now and in the future. To achieve this, marketing teams and researchers often gather demographic data such as age, gender, location, and consumer habits from the target market segment they aim to reach.

For example, Nike targets a wide range of consumers with its running shoes, from professional athletes to casual fitness enthusiasts. Nike gathers data on factors like age, fitness level, and lifestyle, as well as consumers' fitness goals (e.g., running marathons or simply jogging for health). Nike’s understanding of its audience allows it to segment its products accordingly, offering specialized shoes for different types of runners—those who prioritize speed, comfort, or injury prevention.

The market as a whole

But, there are other running shoes out there. What can Nike do to make sure consumers pick them? Companies will regularly conduct market research to analyze the alternatives to their product. This may involve interacting directly with consumers through surveys and focus groups. 

By identifying strengths and pain points, businesses can gain insight as to how they can build their product to be the ultimate solution. For example, in the early 1970s, Nike identified a gap in track shoe selection. Through their competitor and market analysis, they found that the greater market lacked a comfortable and light track shoe. They differentiated their product by making it both affordable and more durable than that of competitors.²

The product

Nike understands its wide consumer base, and they also have a great grasp on who their competitors are. Getting to the specifics, why should the consumer choose the Nike race shoe over another brand? 

This comes down to the differentiating factor of their product—the unique selling proposition—which then informs how the item will be marketed. The unique selling proposition can refer to anything from a long list of differentiators. Perhaps it’s the price (cheaper compared to competitors), the quality (of better quality or more luxurious than other options), or even its suitability (why it fulfills the needs of the target audience better than its competitors). 

In 2021, Nike launched a campaign titled “Play New” which featured regular people trying, and failing, at their sport. It was meant to demonstrate the joy of learning something new and all of the hard work and dedication that goes in to becoming ‘great.’ This campaign reinforced the brand's suitability for the everyday consumer, illustrating that it is accessible to all athletes—not just the superstars.3 Not only that, Nike integrates this concept into its brand positioning, with aspirational messaging (e.g., "Just Do It") consistently aligning with the everyday athlete persona.