The Guide to Effective Positioning

Effective positioning: an easy guide  

In an era of increasing competition and messaging overload, the term "positioning" has become somewhat overused in the business world. Too often, it seems like just another buzzword, but in reality, it is a crucial aspect of business success. 

Through our work with organizations, we at Firma meet many clients who use the term loosely but struggle to translate it into a real competitive advantage. Others believe they have a clear positioning, unaware to the fact it's just a marketing promise that doesn’t differentiate them from competitors. So, what is positioning, and how do you find one that truly sets you apart? 

We’ve gathered key principles, insights, and practical tips to help you identify the positioning that will give you an edge. 

The foundations of positioning

Before diving in, let’s define what we’re looking for: positioning is the art of creating a distinct perception in the minds of your target audience. To be effective, it must be based on a real and meaningful difference from competitors. 

Here are the three essential components of positioning: 

1. Target Market. Identifying your customers, their needs, and the values that drive them
2. Value Proposition. Defining your offerings and solutions that meet the needs of your target market.
3. Differentiation. Establishing what sets you apart from competitors, both in brand and communication as well as in the unique value you offer customers. 

Bottom line:
Strong positioning stems from a deep understanding of your customers and value proposition. It helps differentiate you from competitors and creates a unique perception of your brand. 

Positioning as a creative process 

Effective positioning is the result of a deep creative process. Similar to Business Design, it requires venturing beyond the obvious, identifying hidden opportunities, and daring to think differently. 

Here are three practical tools to help you define your positioning strategy: 

• Challenging Industry Conventions. Every industry has its own "unwritten rules"—assumptions about how things should be done. These conventions may relate to how competitors communicate with customers, product offerings, distribution channels, or pricing models. Sometimes, having the courage to challenge these norms creates a breakthrough positioning opportunity. 

 
For example, in our project with Walla, we identified such an opportunity: while all news websites positioned themselves as authoritative sources ("Israel’s News Site"), we noticed that modern audiences were looking for something different. Walla chose to break from tradition and speak in a more relatable way—using the readers’ own language and presenting content in a style they connect with. 

 
Ask yourself: 
1. What conventions does everyone in your industry take for granted? 
2. What customer needs remain unmet because of these fixed assumptions? 

• Owning the golden standard. Every category has a "gold standard"—the most fundamental and powerful customer need. Instead of reinventing the wheel, sometimes the best approach is to take ownership of an existing core standard and deliver it better than anyone else. Those who choose this strategy must be confident in their ability to provide this standard consistently and at a higher quality than competitors. 
   
  That’s what we did with Migdal. In the insurance world, the most basic need is security. For years, Migdal conveyed this concept through the slogan "It’s good to have Migdal behind you." But the world changed, and customers began looking for more than someone having their back. The new slogan, "Looking ahead", breathed new life into the idea of security by adding a forward-looking, proactive dimension. Migdal no longer just stood behind customers—it now actively supports them with vision, insight, and action. 

 
Ask yourself: 
1. What is the most fundamental need or pain point in your category? This could be functional or emotional—whatever your product addresses best. 
2. Do you have a real advantage that allows you to deliver this "gold standard" better than your competitors? 

• Enhancing user experience. A product or service’s defining moment is when customers actually use it. With a smart positioning, this moment can become even more meaningful – by redesigning, reframing, and deepening the experience of using the product. 
   

  Take Kit Kat, for example. Instead of focusing solely on the chocolate’s taste like its competitors, the brand positioned itself around the concept of a break—"Have a break, have a Kit Kat." The brand wasn’t just selling a snack; it was turning an everyday moment into something sweeter and more meaningful. 

  Our example at Firma is Morning (by Green Invoice). Instead of positioning it merely as an invoicing tool, the new branding transformed Morning into a beloved and seamless bridge between freelances and their work. The name Morning takes ownership on the concept of mornings – that time of day that might be draining and tiring, especially for freelancers, now becomes fun, empowering and magical. This was more than a name change—it was a complete shift in how users perceived the tool’s role in their daily lives. 

   
  Ask yourself: 
  1. In what context or situation do customers use your product? 
  2. How can you make the experience more meaningful and empowering? 

Your positioning needs a core idea 

Positioning never stands alone. It serves the brand’s core idea—the fundamental role and value the brand provides in customers' lives. 

The core idea is the heart of an organization—the real reason it exists. Positioning is how we translate this essence into a sustainable competitive advantage. 

Let’s go further with the Morning example: its core idea is "From chore to charm"—transforming tedious tasks into delightful experiences. The positioning supports this concept by linking audience needs, value proposition, and unique platform capabilities into a strong and differentiating message, with the name itself serving as a storytelling element within a broader, holistic strategy. 

Let’s conclude 

As a Business Design firm, we at Firma see positioning as an integral part of the creative process of business development. It doesn’t just define how a brand is perceived—it influences every customer touchpoint, from product development to service experience and marketing communication. 

The most impactful solutions are often found outside conventional boundaries—precisely where others hesitate to go. That’s why effective positioning requires not just marketing insight but also design thinking and creativity that allow your brand to grow beyond the familiar and expected.