What is a "market positioning" strategy in merchandising?

A "market positioning" strategy in merchandising is fundamentally about defining how a product or brand occupies a distinct place in the minds of consumers relative to competitors. This involves identifying unique qualities or features that differentiate the product from others in the market. By clearly defining what sets a product apart—whether through quality, value, design, or other attributes—businesses can effectively communicate their unique offerings to the targeted audience.

This approach is essential for successful merchandising, as it helps consumers understand why they should choose a particular product over others, creating a competitive edge. The emphasis is not merely on the product itself but on the perception it creates in the market landscape, shaping customer preferences and driving sales.

In contrast, strategies focused on pricing competition, employee training, or simply increasing product features do not capture the essence of market positioning and do not specifically address how a product is perceived in relation to its competitors. Those aspects might play a role in overall marketing strategies, but they do not define the unique positioning that a product claims in the marketplace.