Differentiation and Positioning are the last steps of the 

marketing
strategy.

What is positioning?

Positioning is a strategic process that marketers use to

determine the place or “niche” an offering should occupy in a
given market, relative to other customer alternatives. Marketers
use the positioning process to identify the distinctive place they
want a product or service to hold in the minds of a target market
segment. Effective positioning is always aimed at a specific
target segment. In fact, positioning tailors the generally focused
value proposition to the needs and interests of a particular target
segment.Positioning can be subtle and hard to detect, but it can
also be easy to spot when it conforms to your perceptions as a
consumer.

For example A fast-food restaurant chain may position itself

as the provider of cheap meals

What is Differentiation?

Differentiation is closely related to positioning. Differentiation is the

process companies use to make a product or service stand out from
its competitors in ways that provide unique value to the customer.
Differentiation identifies a set of characteristics and benefits that
make a product different and better for a target audience.
Differentiation is at work any time you’re choosing between two
products in the same category.

For example, when you’re buying a shoe, why do you choose

Bata, Apex, lotto, or Bay emporium? Is it because of the
good quality? The cost?

The Differentiation/Positioning Connection

Positioning and differentiation are connected in important

ways. Effective positioning for a product or service is based on
the differentiating characteristics or qualities that make the
product/service better than the competition in the minds of the
target segment. Positioning and differentiation are strategic
activities: marketers work to create a desired position for a
product or service in the market, rather than waiting for it to be
created by customers, the public, or competitors. The end result
of positioning is the successful creation of a market-focused value
proposition:

Differentiation and positioning are two consecutive and highly

related elements that occupy a prime importance in a company’s
marketing strategy. They both have the same objective and are
closely related to each other because product or service is
positioned on the basis of its distinct features or qualities.
Differentiation is considered effective only when it creates enough
position for the product offered for sale within the target market.

The concept of differentiation and positioning is applicable to all

industries but is of special importance in a market with heavy
competition. The purpose is to make the customers aware and
realize what we can deliver those others can’t and how and why
the unique capability of our product has value for them. To know
whether the product is differentiated and well positioned, keep an
eye on sales numbers and customers’ engagement with your
product. Finally, if the numbers are not satisfactory, doing a little
bit more research and changing or adding one or more new
features might work.