When Quizno’s first became a true mass-market brand, they anchored their advertising message on the “MMMM…Toasty” slogan (the slogan has changed over the years). They had positioned themselves in the crowded US sub-sandwich market as the one place to get a toasted sandwich. Yes — believe it or not — they broke through the clutter with promises of warmed bread.

So how did competitors respond? Subway, the largest player in the market, quickly followed suit by buying commercial toasters for all of their stores and launching a competitive me-too advertising campaign. By the time they were able to execute, it was too late and Quizno’s had already positioned themselves in the mind of the consumer with a differentiated product.

Positioning is a powerful concept from consumer behavior theory. It’s literally how we think about products, services, and companies relative to others in a given market.  Quizno’s chose to differentiate themselves on a product feature, but there is more to positioning than features.  As you think about positioning, ask yourself: Are we going to win with the best product? Are we going to serve broad needs or are we going to do one scenario really well?  Are we going to have the best customer service? Lowest prices? Most value per dollar? Are we going to focus narrowly on small businesses or win with a specific industry like financial services?

At blist, we’re positioning ourselves in the crowded Web 2.0 market as the best place to “Share your web lists.”   We’re deeply committed to delivering the best consumer experience, from a great product that makes sharing easy, to excellent customer service and support.  We’re all about the total package (or value proposition for you marketers out there).

We’d love to hear your stories in the comments. How do you position yourself against the competition? Do you make product and strategic decisions based on that positioning?