What does 'positioning' mean in marketing?

Positioning in marketing refers to establishing a brand's place in the minds of consumers, defining how a brand is perceived relative to competitors. This involves creating a unique image and identity for a product or service based on attributes such as quality, features, price, and intended use. Effective positioning helps differentiate a brand in a crowded marketplace and indicates to consumers why they should choose it over alternatives.

By focusing on the consumer's perceptions and needs, companies can develop targeted marketing strategies that communicate their value proposition clearly. A strong positioning strategy leads to enhanced brand loyalty and aids in building long-term relationships with customers. In contrast, concepts like setting product prices, creating marketing channels, or analyzing customer reviews, while important aspects of marketing, do not capture the essence of what positioning truly entails. It is specifically about how consumers view and relate to a brand in the context of their desires and the competitive landscape.