What is market positioning?

Market positioning refers to the process of establishing a brand's identity and differentiating it from competitors in the minds of consumers. This involves defining how a brand is perceived relative to its competitors based on attributes such as quality, features, customer service, or price. Effective market positioning allows a brand to occupy a distinctive space in the marketplace, making it more memorable and appealing to its target audience.

By focusing on establishing a unique value proposition and highlighting what sets the brand apart, businesses can influence consumer perceptions and preferences. This can lead to increased brand loyalty and a stronger competitive advantage, as consumers are more likely to choose a brand that they perceive as uniquely meeting their needs.

In contrast, other options center around different aspects of marketing strategy. While setting prices is important in a competitive market, it does not directly relate to positioning itself. Increasing market share and expanding into new markets are strategic growth objectives, but they do not encompass the core essence of positioning, which is specifically about perception and differentiation in relation to competitors.