For example, a top-quality lounging chair can be differentiated with an expensive price tag, expensive fabrics, a wooden crate for protection during delivery, and a celebrity spokesperson who is known for his good taste (e.g., Kelsey Grammar, a.k.a. Frasier), appealing to high-income consumers.

A new competitor could enter the market with the same target buyer and decide to differentiate their new chair by adding a new extra electronic massage feature, provide similar fabrics, a foam-lined crate, a slightly lower price and celebrity spokespersons who promote value along with quality (e.g., Tony Danza).

Warning

A company must be careful not to "overposition," which can be defined as making promises about features and benefits that the product or business does not always deliver. Overpositioning can also mean making promises about product features and benefits that are not apparent to users/buyers.

You must also avoid "underpositioning," which can be defined as failing to describe all the features and benefits that the product or business delivers or has, or failing to describe distinctive product features and benefits that are apparent to users/buyers.

Also, it's important to avoid confusing people with product or service features and benefits. Features are the descriptors of a product (e.g., colors, smells, shapes, packaging, prices), while benefits are what the product does for its buyers (e.g., satisfaction, more confidence, more beauty, faster task completion). It's often better to single out a few key features, rather than overwhelming the customer with lengthy lists of details.