Product vs. Company Positioning

It's important to be clear about whether you are positioning a product or a company. The answer to this question will shape your entire positioning strategy.

Single-Product Companies

For companies with only one product, it's usually best to have the same positioning for both the product and the company. This simplifies the message and makes it easier for customers to understand what you do. In this case, the company brand and the product brand are often the same.

Multi-Product Companies

For companies with multiple products, product positioning and company positioning are separate but related concepts.

• Product positioning is focused on a specific product and its target audience. It answers the question, "Why should a customer choose this product?"
• Company positioning is a broader umbrella that encompasses all of the company's products. It answers the question, "Why should a customer choose to do business with this company?"

The decision of whether to start with product or company positioning depends on the business model.

• If most customers first encounter the company through a specific product, it's best to start with that product's positioning.
• If the company primarily sells a bundle of products together, it's better to start with the company positioning.

The positioning process outlined in this book can be used for either a product or a company.

Related Concepts:

• Start with Your Best Customers