How can I stand out from my competitors? Here's how to define and visualize your market position correctly!

Why strong market positioning is essential

In dynamic markets, it is no longer enough to have a good product. What matters is what image your brand leaves in the minds of your target group – and whether this image clearly differs from what your competitors offer. This is precisely the task of market positioning: it creates orientation, differentiates your brand, and gives it a clear profile in the competitive environment.

If you don't take a clear position, you run the risk of appearing arbitrary in comparison. The result: your brand becomes interchangeable. Customers then compare prices above all else – not values, attitudes, or strategic benefits. With convincing positioning, on the other hand, price is put into relative perspective: if the target group understands why your brand is special, price is no longer the focus of the purchase decision. It becomes a secondary consideration as long as the perceived benefits outweigh it.

Strong market positioning...

• anchors your brand as the solution to a specific need....
• builds trust through clarity and consistency....
• strengthens loyalty and reduces price pressure....
• improves the efficiency of your marketing and sales activities.

One thing is clear: only those who know what their brand stands for can communicate credibly and grow.

Make your market position visible in the competitive environment

Simply knowing your own positioning is not enough. It is just as important to present it clearly – especially when you work with teams, stakeholders, or external partners. A proven tool is ideal for this: the coordinate system.

A coordinate system provides a visual map of your market. It shows where your brand stands in relation to your competitors – not based on prices or features, but on perceived characteristics and values. For example, you can show whether your brand is perceived as “innovative and exclusive,” while a competitor may be seen as “established and functional.”

This visual representation highlights strengths, weaknesses, and gaps in the market. It makes it easier to derive strategic measures, for example, to sharpen your communication or for targeted repositioning.

In cosmos, market position is an integral part of the Positioning & Product module. There, you can freely position your brand in the coordinate system, add competitors, and use the visual comparison to make informed decisions.

When is 1 section enough – when do you need 4?

A coordinate system is a helpful tool for visualizing your own market position in comparison to competitors. It shows on two axes how brands are perceived along opposing characteristics. This raises the question: Is a simple, comprehensive representation sufficient – or is a more differentiated analysis with several strategic areas required?

The 1-section coordinate system: visual orientation on two axes

A coordinate system with one section contains a two-dimensional representation with X and Y axes, but only depicts one overall area. The area is not additionally divided into four separate fields. This model is suitable if you:

• want to gain a basic overview of the market environment,
• Need a quick visual classification of your brand in relation to selected competitors
• Are preparing a strategic discussion at C-level without going into too much detail

Examples of axis pairs could be:

• Functional ↔ Emotional (X-axis)
• Mass market ↔ Premium (Y-axis)

Even with just one section, you can highlight differences in brand image—for example, whether your brand is more in the high-quality and innovative sector or in a traditional and price-sensitive segment.

However, the interpretation in this model remains rather descriptive. It shows the position in the market, but does not yet provide any clear statements about which strategic fields are particularly attractive or free.

The 4-section coordinate system: strategic in-depth analysis

If you need a more in-depth analysis – for example, to identify unoccupied market segments (“white spaces”) or to clearly segment competitive clusters – the 4-section model is a good choice. Here, the two axes are used to divide the field into four clearly defined quadrants. This not only provides a picture of the current situation, but also a strategic grid.

This model is particularly useful if you:

• are analyzing complex markets with many players,
• want to evaluate several positioning criteria simultaneously,
• or want to define target group segments and brand strategies.

Examples of axis dimensions could be:

• Innovative ↔ Traditional (X-axis)
• Inexpensive ↔ High-quality (Y-axis)

This can reveal, for example, whether your brand is located in a crowded quadrant or whether there is attractive space for repositioning.

When to use which model?

The decision on which model to use depends on how in-depth you want to analyze your positioning – and which target group you are addressing with the analysis:

1 section:

• Overview
• Simple competitive environment
• Visual communication without depth of detail

4 sections:

• Strategic differentiation, market field analysis
• Strategy development, repositioning

Regardless of the model, the following applies: The selection of axis dimensions must be relevant to the target group, strategically compatible, and clearly contrasting. Only then will the coordinate system provide valid insights for brand management, communication, and differentiation.

Selecting the axis dimensions – what you need to consider

For a coordinate system to be meaningful, the selected dimensions must be well thought out. This is where a common mistake lurks: if you choose arbitrary or overly generic opposites, the analysis will remain superficial and of little use. It is therefore important to consider three key selection criteria:

1. Relevance for the target group
2. The axes should represent characteristics that play an important role in the purchasing decision of your target group. Example: “Low price vs. high quality” may make sense in the B2C sector, but hardly in a B2B enterprise context.
3. Potential for differentiation in the market
4. Not every brand can be a leader everywhere. That's why it's important to select characteristics that credibly set your brand apart from the competition. If everyone is “sustainable,” this dimension will be of little use to you.
5. Strategic connectivity
6. The axes you choose should fit your brand identity and your company's self-image. This is the only way to credibly maintain your positioning in the long term through communication, design, and behavior.

In the 4-section model in particular, the axes must also represent clearly contrasting poles. Only then can the model be read and used intuitively.

Positioning with cosmos – strategic, visual, data-driven

Creating positioning models manually is time-consuming, error-prone, and often difficult to keep up to date. This is where cosmos comes in: As a strategic intelligence platform for brand, marketing, and sales, cosmos provides a structured and modular positioning module.

In the Positioning & Product area, you can:

• Visually represent and analyze your market position
• Integrate and compare relevant competitors
• Define axis dimensions individually
• Link your positioning to other cosmos modules such as TargetLens™ or the KPI Universe
• Share data constellations directly with partners or agencies

Particularly helpful: cosmos allows you to link positioning, target groups, personas, and KPIs to form a holistic strategic overview. This prevents isolated decisions and ensures well-founded and traceable measures across your entire brand and sales strategy.

Fun fact: The invention of market positioning

The term positioning originated in strategic brand management in the 1970s. Marketing experts Al Ries and Jack Trout introduced the concept that every brand must occupy a fixed position in the customer's “mindspace” – regardless of the actual product characteristics. Their classic book “Positioning: The Battle for Your Mind” fundamentally changed the way we think about and manage brands.

Today, the principle is more relevant than ever – especially in saturated markets where the number of comparable products is high but the target group's attention is limited.

Conclusion

A clear, credible, and differentiating market positioning is not a “nice-to-have,” but the basis of every successful brand strategy. It helps you understand the competition, anchor your brand in the minds of your target audience, and use resources in a targeted manner – instead of running random campaigns. With a visual coordination system and data-based tools such as cosmos, you can make this process structured, efficient, and collaborative.

Next step

Try cosmos™ now for free!

– and get started with a clear profile in the market.