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Positioning is developing a product and brand image in the minds of customers or developing a perception in the customers' mind of the experience they will have from purchasing your product or service.  The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business' marketing mix.

Effective positioning involves a good understanding of the positions occupied by competing products and the benefits sought by the target market. It also requires identifying the differential advantage with which it will deliver the required benefits to the market against the competition.

Businesses which fail to implement effective positioning strategies can fail to establish a clear perception of their business in customer's minds and hence lose ground in the market to competitors that have a clear position.

For example, Ferrari is positioned in the prestige segment of the car market with a differential advantage based on high performance and exclusivity.

Some other car industry examples of strong positioning are following:

• Volvo - safety, quality medium to high price
• Mercedes - luxury and high price
• Holden - quality family cars medium price
• Hyundai - low price