What Is Competitive Positioning And Why Is It Important?

Learn how to get ahead of your competitors in the market!

If you want to differentiate from your competitors in the market, you need to know about Competitive positioning. In simple words, it is a marketing strategy that is used to distinguish your brand or product from your rivals. For instance, there are already so many smartphones on the market; if you also want to launch another one in the market, do you think people will purchase it. If they find something unique, they might end up buying your product. You need to have a marketing strategy in place if you want to be in the market.

Let’s understand Competitive Positioning in detail and its importance as a marketing strategy.

Competitive Positioning: Meaning

Importance Of Competitive Positioning

Defining how you will “differentiate” your service and add value to your market is what competitive positioning is all about. The following factors determine a successful positioning strategy:

  • Market size, competitors, and stage of development
  • Customer segments are groups of prospects who have similar desires and requirements.
  • Competitive landscape analysis: strengths, weaknesses, opportunities, and threats
  • Method for delivering value: How do you provide the most value to your market?

Importance Of Competitive Positioning

Product Value

You may increase sales by enhancing the worth of your company and its product. Every brand must meet its clients’ actual requirements and solve their difficulties. You have the opportunity to stand out from the crowd and possibly enter the ranks of industry leaders.

Customer Retention

If you want to be ahead of the curve customer satisfaction plays an important role. If you want your existing customers to return then study the market and understand the customer requirements.

Increases Sales

The advantages that one company may provide that others cannot is what attracts new customers. Businesses should therefore give unique and valuable offerings in order to improve sales.

How To Define A Customer Positioning Strategy?

Since you know the importance, you need to know how to determine a strategy that will help you to achieve your product value, boost sales and increase customer retention:

Determine your main objectives: You must first identify your goals in order to keep track of their progress. Make a list of short- and long-term objectives.

Study the market: Trends, opponents, and new products are all things you should be aware of. Your mission is to discover what organizations and products clients favor. Examine customer feedback to learn what such products still lack.

Analyze your competitors: For those who wish to develop their business and match client expectations, competitor research is necessary. You can use analysis to determine which aspects of your business need to be improved. As a result, you will constantly be relevant, and creative.

Establish deadlines: You need a time limit for each activity, marketing campaign, and goal to keep track of your progress.

Define your niche: When you’ve found your sweet spot, you may satisfy your clients by offering them advantages that others don’t. Remember that your one-of-a-kind offer is extremely valuable to customers.


When your customers understand how different your input is from the competitors then it is easier to influence their purchasing decisions. Without competitive positioning, it takes a longer time to appeal to your customers and their engagement. Therefore many organizations conclude competing on prices. Sustaining on a particular level also gets difficult in the long run!

If you want to focus more on your target audience, you should also practice differentiated marketing.