A product's position is the way the product is defined by consumers on important attributes. It is the image a product reflects in consumers' minds relative to the competition. Product positioning entails three steps: identifying a set of possible competitive advantages upon which to build a position, choosing the right competitive advantages, and selecting an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market. To the extent that a company can position itself as providing superior value, it gains competitive advantages. If a company positions its product as offering the best quality and service, it must then deliver the promised quality and service. A market offer can be differentiated along the lines of product, services, channels, people, or image. Product differentiation takes place along a continuum. At one extreme we find physical products that allow little variation: steel, aspirin. At the other extreme are products such as autos, clothing etc. that can be differentiated. Once a firm discovers competitive advantages, it must then decide how many differences to promote and which ones. A company should develop a unique selling proposition (USP) and stick to it. Today, as mass markets' fragment into smaller segments, firms' position themselves on more than one attribute. Finally, the full positioning of a brand is called its value propositionthe full mix of benefits upon which the brand is positioned.
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