The Fundamentals of Effective Positioning

Fundamentals of Effective Positioning

Positioning is one of the most powerful — and most misused — tools in marketing. It’s not a tagline, a clever campaign, or the latest buzzword tossed around in a boardroom. Positioning is the strategic lens through which customers understand who you are, what you stand for, and why you matter.

When done well, it becomes the foundation of every message, product decision, and go-to-market motion. When done poorly, it creates confusion, weak differentiation, and a brand that feels interchangeable. Despite its importance, positioning is often treated as a quick creative exercise rather than a rigorous strategic discipline — which is why so many companies get it wrong.

In this post, I break down the eight rules that define effective positioning — the principles that separate brands that own a place in the customer’s mind from those that simply blend into the noise. Whether you’re refining an established brand or shaping a new one, these rules will give you a practical framework to sharpen your strategy and communicate with clarity and conviction.

How I Discovered Positioning (And Why It Still Matters Today)

My father constantly exposed us to new ideas and experiences. He would show up with a new book, or with a musical instrument, or would show us how to make drawings using Chinese ink.

I was in middle school back in the early 80s when he brought a book: Positioning – the battle for your mind by Al Ries and Jack Trout. It´s a classic. I found the book fascinating. The concept of positioning mixed strategy, psychology, and marketing. I was hooked. More importantly, I found my calling. I would become a marketer.

Fast forward to 2025, when Laura Ries, Al´s daughter, continues her legacy with her book The Strategic Enemy. A good book that reinforces some of the key aspects of positioning with some new stories that illustrate the key points. The book sparked the idea of writing a blog post about my perspective on positioning.

What Positioning Actually Is — And Why Most People Misunderstand It

Marketers often confuse positioning with messaging or branding, but it is something deeper. Positioning is not something you do right before a product launch or when writing a press release. It´s way more strategic than that.

Positioning is the act of establishing a single, clear idea in the customer’s mind relative to alternatives.

This definition includes three very important elements:

1. A single idea — Great positioning demands discipline: you must choose one idea to stand for, even if it means letting go of other strengths or messages you’d love to highlight. The sharper and more singular the idea, the easier it is for customers to remember and repeat — and the harder it is for competitors to copy.

2. In the customer’s mind —Positioning isn’t what you say you are; it’s what customers actually come to believe over time. You earn that place in their mind through consistent proof, repeated experience, and a message that resonates with their priorities—not your internal desires or aspirations.

3. Relative to competition —Customers don’t evaluate your brand in a vacuum; they compare you to alternatives, whether direct competitors or substitutes. Effective positioning makes that comparison obvious and favorable by carving out a space where you are meaningfully different, not just descriptively unique.

Because positioning is always relative to competition, you must define the category you play in — the frame that determines which competitors you’re being compared against and what “winning” in that space actually means.

Laura Ries´ book offers an excellent example: Everready owned the category of batteries for flashlights. When the Mallory battery company launched a new set of alkaline batteries driven by the need from Kodak´s to power its energy hungry Instamatic camera with built-in flash. In 1965 the Duracell brand name is introduced and is a home run.

EverReady tried to compete with Duracell in the alkaline battery but their brand meant regular batteries in the mind of consumers. In 1980 they changed the name of its alkaline battery line from “Eveready Alkaline Power Cell” to “Energizer”. It was easier to launch a new brand in a new category than to change the current brand positioning in the customer´s minds.

Levi´s has a similar story. The company was launching a line of khakis. They knew Levi´s was positioned as the original denim jeans brand, so Levi´s Khakis would not work. Their new brand, Dockers, owned the category for a long time.

8 Rules for Effective Positioning

These principles hold up across industries, decades, and categories.

1. Focus on a Narrow Target  – Effective positioning starts by focusing on a well-defined, minimum-viable market. You can’t win by trying to appeal to everyone; you win by resonating deeply with someone.

2. Anchor in Emotion – People make buying decisions based on emotions and justify with logic. The best positioning taps into a core emotional driver—security, pride, belonging, confidence, ease—not just functional benefits.

3. Make It Visually Ownable – A strong position becomes instantly recognizable through iconic visuals (a visual hammer, as Laura Ries calls it) —colors, visuals, symbols, or design cues that reinforce your idea without needing words.

4. Make It Instantly memorable – If customers can’t quickly recall what you stand for, your positioning isn’t working. Clarity, simplicity, repetition, and distinctiveness are what lodge ideas into memory. Good positioning is memorable.

5. Commit for the Long Term –Positioning only becomes powerful through consistency over years—or decades. Frequent changes dilute credibility and prevent your idea from taking root. BMW has been the ultimate driving machine since 1974.

6. Keep It Brutally Simple – The best positions are brutally simple. If you need a paragraph to explain your idea, you don’t have one. Simplicity makes it easier for customers (and employees) to repeat and act on it.

7. Stand Out Clearly – Positioning must be unique.If your statement could be swapped with a competitor’s name without losing meaning, it’s not real differentiation. A position must make you unmistakably distinct.

8. Focus on Valuable Differentiation – Differentiation is not enough. Your differentiation must matter to the customer—not just to your team. Effective positioning highlights a unique advantage that improves the customer’s life or business in a real, compelling way.

One of the best examples of positioning is from Lexus. When Toyota was launching the new brand in 1989 they launched it with an ad for the LS 400 which featured 15 champagne glasses stacked on the hood, which remained undisturbed as the car reached 145 mph on a dyno. The ad was striking, a memorable and visual proof of the car’s refined engineering and smooth ride. By 1991 Lexus was the number one import car in the US.

Why Every Strong Position Needs a Strategic Enemy

A strategic enemy gives your positioning contrast — and contrast creates clarity.

A strategic enemy is the market force, competitor, or entrenched idea you deliberately position yourself against to clarify who you are and why you matter. By defining what you are not, you make it easier for customers to understand what you are.

Choose your enemies carefully ´cause they will define you” -U2

This contrast sharpens your differentiation, creates tension that attracts attention, and gives your brand a clear narrative to rally around. In a crowded market, choosing the right enemy is often the fastest way to carve out mental space and build a position that sticks.

Some examples of clear strategic enemies (from the book)

  • Siebel CRM vs Salesforce – ¨No Software¨ positioned Salesforce as the leader in SaaS, even though Salesforce was neither the first nor the leader in SaaS, and technically it is still software.
  • Kibble vs Farmer’s Dog – Farmer´s dog positioned against kibble promoting longer life for your pets.
  • Uber vs Taxi – Uber positions taxis as old, expensive, unsafe, and inconvenient

Some of the most effective uses of strategic-enemy positioning don’t pit one product against another—they pit one idea against its opposite. Strong positioning defines not only what you stand for, but also what you stand against, creating a sharp contrast that makes your message easier to understand.

“Pro-Life” is a powerful example. The label frames supporters as defenders of life, which implicitly positions the opposing side as “anti-life,” even though the actual debate is about who gets to make the decision (the government or the parents). By choosing a morally charged idea as their banner, the movement reframed the entire conversation and defined its enemy on its own terms.

The term “Designated Driver” works the same way. It doesn’t just describe the sober person—it also forces everyone else into the opposite role: the “designated drinker.” The contrast makes the choice impossibly clear and socially reinforced: you’re either the driver or you’re not. If you drink, you can´t drive.

How Strategy, Positioning, and Brand Actually Fit Together

The three terms are interrelated and often confused. They work together to drive results. It all starts with strategy and positioning. Strategy is the system of choices (where to play/how to win/capabilities/resources) that delivers your position and makes it profitable. Strategy answers what choices let us consistently deliver and defend that advantage? (segments, offerings, pricing, channels, ops, partnerships, capabilities, cost structure).

We already defined Positioning as the competitive place you choose to occupy in the customer’s mind vs. alternatives. It provides the north star for brand expression.

Brand is the total set of meanings and memories people have about you (promise, personality, experiences, symbols). Brand assets make the position salient, credible, and sticky. A tagline is a short, memorable phrase that captures the essence of a brand’s promise or personality. The tagline expresses that idea, the brand position, in a concise, emotionally resonant way.

Southwest Airlines built a strategy around a low-cost, no-frills airline. Their positioning was to be as affordable and enjoyable for the everyday traveler as driving. They weren’t competing with legacy carriers on luxury or global reach—they were competing with cars and buses by offering fast, friendly, low-fare transportation.

They operationalized the strategy with a hub-and-spoke model, a single type of aircraft to simplify operations, no meals, and an employee culture that supported the strategy. Every operational choice reinforced the positioning, creating a tightly aligned system where strategy, positioning, culture, and execution supported one another and made Southwest’s low-cost, high-efficiency model nearly impossible for competitors to copy.

Positioning Is Not a Marketing Task — It’s a Strategic One

Two important points to make here to close this blog post. First, positioning is not just a message or a tag line; it´s part of a business system.

Second, and more critically, positioning is not an exercise that the communications or the marketing team can own. It´s inherently tied to corporate strategy. Positioning is a strategic process that impacts the entire company.

If your position doesn’t shape your product, pricing, culture, and operations, it isn’t a position — it’s just a slogan.

Stop the Content Machine – The Seven Deadly Sins of Content Marketing

Stop the Content Machines

Every minute, 4.5 million blog posts are published. Yet most go unread.

Content marketing started as a revolutionary idea: educate, don’t just sell. But somewhere along the way, the mission changed — from teaching to churning. The content machine took over.

When done right, inbound marketing builds trust and a steady flow of qualified opportunities especially when you are trying to educate potential customers about a new technology, a new approach, or to establish expertise. But somewhere along the way, the mission changed. What began as a way to build expertise has turned into a production race

“Content Marketing is the only marketing left.

– Seth Godin
Continue reading “Stop the Content Machine – The Seven Deadly Sins of Content Marketing”

The Risks of Following a Blue Ocean Strategy

Blue Ocean Strategy

Adopting a Blue Ocean Strategy, pivoting to a brand-new markets without competitors, is, for many, the holy grail of corporate strategy. Who does not want to make competitors irrelevant and to in grow a vast, blue, new market uncontested? It it smooth sailing or is it too good to be true?

Pursuing a Blue Ocean strategy can be a great choice for many companies, but it is not without risks or challenges. It’s also not easy. Otherwise, every company would pursue a blue ocean. Let’s start with the definition of blue ocean and then let’s explore the challenges and risks in pursuing such a strategy. Continue reading “The Risks of Following a Blue Ocean Strategy”

Writing well is an essential business skill

Knowledge is useless unless you know how to communicate it – in writing.

We live in a world where most communication happens in 140 character messages, 7 second videos and short text messages. It’s easy to forget how important is good writing as an essential and personal skill.

I have been inspired by David Ogilvy, the father of advertising. His story is really interesting. His teachings fundamental. His books are some of the first every marketer should read. In the Unpublished David Ogilvy, I found great advice by the master.

The better you write, the higher you will go in Ogilvy and Mather. People who think well, write well.Continue reading “Writing well is an essential business skill”

What is Product Marketing and why is it so Important?

What is Product Marketing?

What is Product Marketing? Why is such an important function so misunderstood?

One of the biggest challenges for marketers today is that we are too often focused on the most tactical aspects of the job: promotion, contacts, reach, social marketing, etc.

We forget that the most important part of marketing, the source of value, is our understanding of customers, what customers want, and how to align your products to their needs and how they buy. Most marketing teams don’t have anyone dedicated to this function.

This is especially important in B2B because buying processes are more complex, there are usually more buyers involved, and products tend to be more technically complex.  To solve this problem, a relatively new function has been created, which is often referred to as product, audience or solutions marketing.
Continue reading “What is Product Marketing and why is it so Important?”

RadioShack Strategy: A Lesson for Business Leaders

Strategy example: Radio Shack

RadioShack lost its focus and pursued a path where they had no significant advantage in a highly competitive field. In other words, RadioShack’s strategy was the wrong one.

The company fell into the “Large Market” trap. The same trap many entrepreneurs fall into. We see it on Shark Tank, I see it in strategy discussions in large companies. What is this trap and how to escape it? read on…

Continue reading “RadioShack Strategy: A Lesson for Business Leaders”

Are We Doing Content Marketing Right?

Are we failing at content marketing?

Without question, Content Marketing is one of the hottest topics today. But we are in the early days. Are we doing content marketing right?

A few weeks ago, I had the opportunity to participate in a Content Marketing panel at the Texas Marketing Summit in Houston. The other panelists provided with great insight. I also came to the conclusion that our understanding of Content Marketing is in its infancy, much like social media was 8 years ago.

It seems we still have much to learn and to improve as marketers. Sometimes it feels we are failing. Are you failing too?

Let’s Start With the Basics.

To understand the right way to do content marketing, let’s be clear about what it is not:

  • Content marketing is not new – it’s been around for a long time
  • Content marketing is not a strategy – it should support your existing strategy
  • Content marketing is not a program – but it should influence your marketing programs
  • Content marketing should not be a department in marketing – all of marketing should embrace it
  • Content marketing is not a tool or a set of tools – tools support it and enable it
  • Content marketing is not publishing blog posts, slideshare decks, and Instagram posts

If your view of content marketing falls under one of the bullets above, you are limiting your success. Content marketing is far more powerful than that. Continue reading “Are We Doing Content Marketing Right?”

10 Business Lessons from Carlos Slim

What are the secrets to Carlos Slim Success

As I write this, Carlos Slim Helú is the second richest man in the World, according to Forbes, following Bill Gates by a ‘mere’ $2 billion dollars. Carlos was number one in 2010 and 2011. Everyone knows how Bill made his fortune, as the founder of Microsoft, and much has been written about him. But what drives Carlos Slim’s success, and what are the strategies that make his companies so successful seem to be more of a mystery.

When companies struggle, they usually blame increased competition and unfavorable economic conditions. Carlos Slim seems to thrive on downturns and recessions.

Slim’s business portfolio, under the holding company Grupo Carso, is much more diversified: it includes real estate, retail, telecom, mining, financial services, tobacco, aluminum, tires, copper, insurance, restaurants, oil and gas, paper, hotels, and more.

People in Mexico say you can’t live a day of your life without somehow giving money to Slim’s empire. He has also made significant investments in the US. In 1997, Carlos purchased 3% of Apple for $17 a share. He has made significant investments in Saks and the New York Times and in business that have gone south like Prodigy and CompUSA.

Carlos is 75 but he has been very aware of technology advances and has positioned his companies to take most advantage of them: “Technology is going to transform people’s lives and society everywhere in the world. My main task is to understand what’s going on and try to see where we can fit in.Continue reading “10 Business Lessons from Carlos Slim”

The Top 5 Challenges Marketers Face Today

Marketing challenges

There are 5 key marketing challenges every marketer is facing today and must be ready to solve to be effective.

Marketing seems like an easy profession for most people. But marketers know there are many challenges marketers face. Marketing is getting broader but also harder every day. Every function within marketing has its own challenges, but these impact every marketer:

 

Marketing Challenge 1: How to break through the noise.

Ads are everywhere. Attention spans are shorter. Everyone is ignoring banner ads. There is too much noise on social media. Everyone is selling ‘solutions’ promising lower costs, more time. Everything is on sale.

All this makes it harder and harder for marketers to deliver their message to prospective buyers. How do I get my message across?
Continue reading “The Top 5 Challenges Marketers Face Today”

Product, Audience, and Solutions Marketing – Which One is Right for You?

What is Solutions Marketing Audience Marketing

Solutions Marketing is a buzzword used by marketers quite often. A buzzword not because it is not an important or a valuable concept, but because it has been both misunderstood and overused, like Big Data and Social Business.

Years ago I heard VP of Marketing at a large company explain solution marketing to his team as bundling two or more products. This is one of the worst, but also one of the most common definitions. When the concept is not understood it can result in very ineffective communications.

A very large technology company spent a significant amount of money to have a significant presence at a tradeshow where it introduced itself as offering “Enterprise Systems and Solutions”. Imagine an auto dealer introducing itself as a “personal transportation solutions company” instead of the much simpler and easier to understand “car dealer”.

What is Solutions Marketing?

Here is my definition: A solution is a complete offering what will solve a customer problem.

  • ‘A complete offering’ means it must include all the products, services, parts, training and any other element a customer needs to solve a problem. In many cases it will require including partner offerings.
  • ‘Will solve’ implies the company is standing behind the complete solution. It has tested it, and provides customer service and a guarantee for the solution as a whole and not only for its individual components.
  • ‘Customer’ in ‘customer problem’ implies solutions need to be defined by customers, independently of how the company is organized, how the products are defined or what are the company priorities.
  • Customer Problem‘ requires us to understand why customers buy our products, what is the intent, what are the complete requirements and the alternatives being considered.

Continue reading “Product, Audience, and Solutions Marketing – Which One is Right for You?”