Positioning methods are crucial in establishing product differentiation and a unique market position.
Commonly used positioning methods include comparative, differentiated, and value-based positioning.
Comparative Positioning defines the product by comparing it to competitors. In the 1960s, Avis, for instance, positioned itself as the rental car company that "tries harder" than Hertz.
Differentiated Positioning highlights product attributes to set it apart from competitors. Tesla has positioned itself as a pioneer in the electric vehicle industry.
Value-based Positioning centers on value propositions that distinguish a brand by comparing benefits with price.
There are five possible value propositions.
More for More offers high-quality products at premium prices. For example, Rolex.
More for the Same provides comparable quality products as premium brands but at a lower price, like Samsung.
The same for Less offers discounts to attract cost-conscious consumers, such as Walmart.
Less for Much Less targets affordability-focused markets with lower-quality products at rock-bottom prices, like Dollar General.
Finally, "More for Less" aims to offer high-quality products at lower prices, in certain cases, like the Home Depot.