Competitive positioning is how you distinguish your [new product](https://www.masterclass.com/articles/how-to-market-a-new-product) or service from your competitors’ offerings. As a marketing strategy, it targets your main demographic and establishes your company’s brand. Factors that contribute to competitive positioning include price, value, and packaging—elements that reflect your brand. Incorporating an effective competitive positioning strategy promotes sales, [customer retention](https://www.masterclass.com/articles/customer-retention-guide), and brand awareness. 
Competitive positioning has a few elements, including: 

1. __Competitive analysis__: To determine how your product performs alongside competitors, conduct a competitive analysis. The [SWOT analysis](https://www.masterclass.com/articles/how-to-use-swot-analysis-to-make-business-decisions) framework, which stands for strengths, weaknesses, opportunities, and threats, provides marketing teams with a thorough understanding of a product’s performance in a competitive landscape. As you develop differentiation approaches, create a [positioning strategy](https://www.masterclass.com/articles/positioning-strategy) to identify how your product contributes to the market. 
2. __Market__: Your product’s niche falls into a certain market category with a line of products and services. Market research provides information on the other types of products within your company’s industry. It also indicates the size and scope of your market segment, providing necessary insights for your [brand positioning and strategy](https://www.masterclass.com/articles/how-to-create-a-brand-positioning-strategy). 
3. __Target demographic__: Competitive positioning also considers strategies to boost customer satisfaction. To increase [customer loyalty](https://www.masterclass.com/articles/customer-loyalty) and sales, identify your target market and their needs. Use social media engagement metrics and other [key performance indicators](https://www.masterclass.com/articles/key-performance-indicators-explained) to determine your target audience’s needs and pain points. You can increase conversions by developing marketing campaigns that engage and answer the needs of your target demographic. 
4. __Value method__: A competitive positioning approach outlines how a product line or service provides value to potential customers. Having a clear understanding of your product's value helps your marketing team establish a price point that corresponds to the value proposition. 
Here are four types of positioning strategies that promote [brand awareness](https://www.masterclass.com/articles/what-is-brand-awareness-explained) and drive sales within a competitive market:

1. __Cost leadership__: Lowering the price of your product or service is one way to establish a competitive advantage. The company with the lowest price for a given product in a market establishes its competitive position through affordability. 
2. __Operation excellence__: You can also invest in your company’s operations and individual products for your competitive positioning approach. Companies that distinguish themselves with their operational excellence provide customers with consistent and efficient services. 
3. __Niche positioning__: Targeting a highly specific area within your company’s market is a brand strategy known as niche positioning. A [niche marketing strategy](https://www.masterclass.com/articles/niche-marketing) creates a highly distinct brand image and therefore targets a smaller audience base. 
4. __Product leadership__: Companies with the best product on the market establish competitive positioning through product leadership. Creating a superior product establishes a [competitive advantage](https://www.masterclass.com/articles/what-is-competitive-advantage) because customers recognize the product’s quality.
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Competitive positioning is a marketing strategy that establishes your brand’s uniqueness within your industry. Discover the key elements of competitive positioning and the benefits of implementing this approach in your business strategy. 

Competitive positioning is a marketing strategy that establishes your brand’s uniqueness within your industry. Discover the key elements of competitive positioning and the benefits of implementing this approach in your business strategy. 

Competitive Positioning: 4 Elements of the Marketing Strategy 

Competitive positioning is how you distinguish your <a href='https://www.masterclass.com/articles/how-to-market-a-new-product' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-market-a-new-product","linkCopy":"new product","category":null}'>new product</a> or service from your competitors’ offerings. As a marketing strategy, it targets your main demographic and establishes your company’s brand. Factors that contribute to competitive positioning include price, value, and packaging—elements that reflect your brand. Incorporating an effective competitive positioning strategy promotes sales, <a href='https://www.masterclass.com/articles/customer-retention-guide' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/customer-retention-guide","linkCopy":"customer retention","category":null}'>customer retention</a>, and brand awareness.

What Is Competitive Positioning?

Competitive positioning has a few elements, including: <ol class="mc-m-4"><li class="mc-my-4"> 1. Competitive analysis: To determine how your product performs alongside competitors, conduct a competitive analysis. The <a href='https://www.masterclass.com/articles/how-to-use-swot-analysis-to-make-business-decisions' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-use-swot-analysis-to-make-business-decisions","linkCopy":"SWOT analysis","category":null}'>SWOT analysis</a> framework, which stands for strengths, weaknesses, opportunities, and threats, provides marketing teams with a thorough understanding of a product’s performance in a competitive landscape. As you develop differentiation approaches, create a <a href='https://www.masterclass.com/articles/positioning-strategy' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/positioning-strategy","linkCopy":"positioning strategy","category":null}'>positioning strategy</a> to identify how your product contributes to the market. </li><li class="mc-my-4"> 2. Market: Your product’s niche falls into a certain market category with a line of products and services. Market research provides information on the other types of products within your company’s industry. It also indicates the size and scope of your market segment, providing necessary insights for your <a href='https://www.masterclass.com/articles/how-to-create-a-brand-positioning-strategy' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-create-a-brand-positioning-strategy","linkCopy":"brand positioning and strategy","category":null}'>brand positioning and strategy</a>. </li><li class="mc-my-4"> 3. Target demographic: Competitive positioning also considers strategies to boost customer satisfaction. To increase <a href='https://www.masterclass.com/articles/customer-loyalty' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/customer-loyalty","linkCopy":"customer loyalty","category":null}'>customer loyalty</a> and sales, identify your target market and their needs. Use social media engagement metrics and other <a href='https://www.masterclass.com/articles/key-performance-indicators-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/key-performance-indicators-explained","linkCopy":"key performance indicators","category":null}'>key performance indicators</a> to determine your target audience’s needs and pain points. You can increase conversions by developing marketing campaigns that engage and answer the needs of your target demographic. </li><li class="mc-my-4"> 4. Value method: A competitive positioning approach outlines how a product line or service provides value to potential customers. Having a clear understanding of your product&#39;s value helps your marketing team establish a price point that corresponds to the value proposition. </li></ol>

4 Key Elements of Competitive Positioning 

Here are four types of positioning strategies that promote <a href='https://www.masterclass.com/articles/what-is-brand-awareness-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-brand-awareness-explained","linkCopy":"brand awareness","category":null}'>brand awareness</a> and drive sales within a competitive market:<ol class="mc-m-4"><li class="mc-my-4"> 1. Cost leadership: Lowering the price of your product or service is one way to establish a competitive advantage. The company with the lowest price for a given product in a market establishes its competitive position through affordability. </li><li class="mc-my-4"> 2. Operation excellence: You can also invest in your company’s operations and individual products for your competitive positioning approach. Companies that distinguish themselves with their operational excellence provide customers with consistent and efficient services. </li><li class="mc-my-4"> 3. Niche positioning: Targeting a highly specific area within your company’s market is a brand strategy known as niche positioning. A <a href='https://www.masterclass.com/articles/niche-marketing' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/niche-marketing","linkCopy":"niche marketing strategy","category":null}'>niche marketing strategy</a> creates a highly distinct brand image and therefore targets a smaller audience base. </li><li class="mc-my-4"> 4. Product leadership: Companies with the best product on the market establish competitive positioning through product leadership. Creating a superior product establishes a <a href='https://www.masterclass.com/articles/what-is-competitive-advantage' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-competitive-advantage","linkCopy":"competitive advantage","category":null}'>competitive advantage</a> because customers recognize the product’s quality. </li></ol>

4 Types of Competitive Positioning Strategies 

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Competitive positioning is a marketing strategy that establishes your brand’s uniqueness within your industry. Discover the key elements of competitive positioning and the benefits of implementing this approach in your business strategy.

Competitive positioning is a marketing strategy that establishes your brand’s uniqueness within your industry. Discover the key elements of competitive positioning and the benefits of implementing this approach in your business strategy. 
