Support overall strategy

Creating a clear positioning for a brand/product in the marketplace is often an integral part of an organization’s overall marketing strategy. (For example, some firms have a strategy of building strong brands and product positioning helps achieve that result.)
Differentiate offerings

Clear positioning helps the consumer differentiate between competitive offerings (as well as between similar offerings from the same brand). As we know, part of the key to marketing success is the ability to differentiate on some important features/benefits to the target consumer.
Competitive position

Having a number of clearly positioned products/brands increases the competitive strength of the organization in the marketplace. Their brand equity is stronger and they ‘own’ more market space.
Increase sales and customer loyalty

Brands/products that are well understood by consumers will typically generate higher sales levels, as they are seen as the ideal product solution for particular consumer needs. As a result, these customers become less likely to switch to competitive offerings.
Avoid cannibalization

Positioning allows the firm to place more products in a related category, with a reduced risk of cannibalization. This is because consumers will perceive the difference between the firm’s similar offerings, rather than viewing them generically.
Clear communication and consistency

With clear positioning goals the firm can ensure that its IMC mix remains consistent, as opposed to the possibility of focusing on different benefits and offers with various campaigns over time.
Reduce price sensitivity

If a product/brand is clearly positioned as having distinct advantages over its competition, then consumers will see greater value and will become less sensitive to prices and competitive sales promotions.
Good for low-involvement purchases