Your positioning statement has an effect on every element of your branding and how your target market perceives you. It has an impact on everything your company shows and communicates with your target audience regarding your product and brand.
Effective positioning statement benefits your internal teams as well – it enables sales representatives, marketing, and service and support teams to deliver more enjoyable and on-brand experiences to consumers. When people browse your company’s website, click on an advertisement, or visit your social media profile, each piece of information should express the company’s core values and brand statement effectively.
What is a positioning statement?
A position statement presents how a particular product, service, or brand addresses a specific customer demand in a manner that its competitors do not. Positioning is the process of determining a product’s (or service’s or brand’s) proper market niche and establishing it in that space. Having a solid positioning statement is critical when developing marketing strategies.
The positioning statement is a succinct summary of how a company (its brand or product) exceeds the competition in meeting customer requirements. It is sometimes known as a differentiation statement or unique selling proposition (USP). All department related choices should be guided by your corporation’s positioning statement to ensure they remain faithful to the company’s brand. It addresses the issue, “How do we want the market to view us?”
Value proposition vs. positioning statement
Value proposition and positioning statement are critical components of B2B marketing strategy. However, the two are separate concepts and should not be confused.
A value proposition is a comprehensive, multi-page brand statement that outlines how and why your product, service, or brand is better than the competitors in your current market. It is prepared for and shared with various stakeholders, like valuable customers and investors.
On the other hand, positioning statements should be developed following the value proposition. Because it highlights the most critical components of the VP. The positioning statement is a succinct, concentrated description of a product, service, or brand’s core benefits and competitive advantage. It is an in-company document that explains the company’s goals and strategy.
The positioning statement focuses on the competition
The value proposition is a wide-ranging strategy. It relates directly to the value proposition of your product, service or solution. It provides a high-level overview of the benefits your customers will receive from partnering with your business. It focuses exclusively on the advantages and value given.
Typically, positioning statements are considerably more targeted. Therefore, after developing a value proposition, you should create a positioning statement. Consider the following:
- A value proposition describes the benefits that your consumers will receive from collaborating with you.
- A positioning statement expresses how you want your buyers to feel about your brand. It is more concerned with and focused on competitive distinction than offered benefits.
Importance of the positioning statement
If you’re planning to launch a new product or service, you may have spent weeks or even months considering what would differentiate your offering from the competition. You may try to find a way that helps you establish a distinctive brand identity that will help you stand out from the rest. I know, everybody is striving to have great product positioning statements. However, this is hard work to do.
Originality (differentiation) is not the only factor to consider about promoting to a niche market. You must still ensure that your marketing materials are consistent with your brand’s overall identity. It is critical that you do so since brand presentation has been shown to improve sales by 25%.
This is precisely the problem that a positioning statement seeks to rectify.
The positioning statement acts as a reference for all brand-related choices – whether they pertain to strategy, marketing, sales tools, or product design. You must ensure that all components of your brand operate well together toward a common purpose.
Marketing positioning statement
The positioning statement is a strategy used by marketing teams to connect marketing activities with the other elements of your brand and the value you offer. PS is a great tool for understanding the requirements your product (good or service) fulfills and how that affects your ideal customer profiles. It is critical to the entire marketing strategy and assists companies in focusing on what is truly essential to them.
Advantages of generating a positioning statement
A positioning statement explains how your brand is distinct from competitors. The goal of positioning is to establish an enticing image that puts an emphasis on a brand’s distinct qualities. Additionally, marketers can develop a positioning statement for companies and some specific products.
The ideal customer must have a compelling motive to purchase the goods or conduct business with the seller company. Positioning statements frequently evolve into brand slogans and are used in marketing to distinct market segments. The objective is to boost sales by engaging the needs of the ideal customer.
Take note that a positioning statement is not identical to a mission statement. A PS is not visible to the public. However, internal teams utilize it to gain a deeper understanding during marketing research. They use it to understand their product or service and how they add value to the target customers.
A positioning statement is beneficial because it provides an identity for a product or company brand. The customer should understand the brand, product, or business. If the company’s mission is to save customers money, the phrase should suggest a price value.
Similarly, if the product is intended to appeal to the customer’s desire to look intelligent, the statement should emphasize that the product will assist him in accomplishing this goal. A strong statement differentiates the product from others that may appeal to the same sort of buyer or meet the same demand.
Customers frequently do not purchase things if they do not understand why they are beneficial. A positioning statement explains why buyers should purchase a product. Each product and service has a set of advantages that are often derived from its characteristics.
Marketers use product positioning statements to reintroduce a brand by emphasizing fresh benefits. In comparison, the advantages themselves are not necessarily new. Typically, positioning statements emphasize a certain benefit, such as speed of service or durability.
Focusing on the target market
Because marketers must first identify their ideal customer, a positioning statement assists businesses in narrowing their focus. However, before marketing managers can design a statement, they must understand the ideal customer’s key demands to make a marketing decision.
What differentiates the target customer from other groups? Let’s give an example.
Why some people prefer a premium vehicle over an economy vehicle may have nothing to do with transportation. There are too many distinct market segments to be analyzed, and they all have unique criteria. A customer from the premium market category that likes economy vehicles may have the financial resources to acquire an advanced model. Such customers may want long-term savings rather than using a luxury vehicle, that’s all.
Because a positioning statement influences a customer’s impression of a product, it assists marketers in determining price. If the marketing team wants to appeal to low-income earners who prioritize money above quality, prices will almost certainly be slightly lower than market norms. In comparison, specialist items that stress exclusivity and superior quality are typically more expensive.
The traditional target market for these items is the affluent consumer who wants the “best of the best.” Therefore, premium pricing is often advantageous for products and brands with new technology or characteristics, such as organic foods. So, there are two types of positioning statements; Brand and product positioning statements. Let’s examine both separately.
Brand positioning statements
Whether you’ve been developing a new brand or revising an old one, your brand positioning statement will set the tone for the rest of your work. Successful brand positioning statements serve as the “backbone” of your marketing activities. They influence everything from product development and promotion strategies to how you respond to the phone at work.
What is a brand positioning statement?
A brand positioning statement articulates precisely what your business does, for whom, and how you differentiate yourself. The goal is to carve out a distinct niche for your brand among consumers within your industry. While you may sell to a large market and provide a number of advantages, your customer should understand your primary distinctive value ( brand positioning), which the other benefits complement.
A brand positioning statement summarizes your business’s mission and distinguishes you from the competition. It should emphasize how we want our clients to feel and think about our brand as a result of their interaction with us. It is an inside statement that drives your business decisions in accordance with your desired market perception.
Your brand positioning statement is the overarching strategic statement that underpins all marketing campaigns. It will assist you in developing marketing messages that instill a sense of worth in the minds of your buyers. Your positioning must be distinct, useful, and exclusively yours.
Advantages of the brand positioning statement
The following are some of the advantages of having a good brand positioning strategy.
Building a brand reputation
By communicating precisely what you want your target market to know about your brand, you make it simple for them to understand the benefits of doing business with you. Customers will quickly begin to relate your brand to your solid brand positioning statement. This brand recognition and clarity will be beneficial when the customers weigh your alternatives.
A strong brand positioning statement will enable you to develop a devoted core audience. Customers who value your distinguishing features will become brand advocates. You just need to give them a clear brand perception.
Differentiation of markets
If there is no distinction, every company’s marketing literature will tout the same product characteristics. The target market would have a tough time distinguishing the two and making a choice. To effectively market your items, you must explain their worth.
If you are a skincare specialist, your customers want to know how your solutions will improve their appearance. Your brand positioning formula should be distinct from those of your competitors.
Competition on non-price-related criteria
While competitive pricing is one strategy for brand positioning, it is not always the best option. It is critical to compete on non-price-related criteria. Keep in mind that you can still locate the identical goods at a lower price elsewhere.
However, when you place a premium on other aspects such as quality, support, and customer service, you become increasingly difficult to replace.
A well-executed positioning strategy elicits an emotional reaction from your target market. Even in a data-driven society, we still make purchase decisions based on our emotions.
Effective brand positioning statement results in a compelling customer-centric value offer. You must explain to your consumers the value you provide. You should make it very obvious to them what benefit they will gain from acquiring your products (goods, solutions, or services). This may be accomplished by making an effective marketing decision. Your marketing strategy should be informing them of your product’s benefits and characteristics.
There has to be a consistency between your brand statement and marketing message. If your positioning statement is crystal clear, your brand components and messaging will be on target to support it. Consistency makes it simpler to establish a foothold in the target market.
Marketing strategy’s direction
The brand positioning statement can serve as a reference document for your marketing staff while they work on the marketing plan.
Product positioning statements
A solid product positioning statement provides essential information about your business. Product positioning communicates how your product alleviates your target customer’s pain points and why they should pick your product over other alternatives. In addition, it ensures that your marketing activities are consistent with your company brand and the value proposition of your product.
What is a product positioning statement?
A product positioning statement is a succinct summary of your target market and the product you provide them. It’s an internal tool that keeps all teams at your organization on the same page regarding how to communicate the value of your product to users.
Your marketing department will refer to your product positioning statement when developing campaigns, and your sales team will utilize it as a starting point for conversations with prospective customers.
A detailed, well-researched, and successful product positioning statement aligns your business with the way you want your prospective customers and market category to view your product and, more broadly, your brand.
Advantages of the product positioning statement
Product positioning is a critical component of any comprehensive marketing plan or strategy. It entails developing and conveying to targeted clients the unique characteristics of your product. Without a strong positioning plan and execution, the likelihood of people purchasing from you is, at best, random.
Competition and differentiation
Typically, positioning strategy begins with a positioning statement. The statement establishes the framework for creating the most marketable solution and effectively advertising it.
A strong statement consists of two essential components. One is the expression of the primary features that differentiate your product or goods from those of competitors. The other factor is the market to whom your items appeal. In essence, you create an alignment that enables you to effectively express your value offer to the optimal client markets.
Determining the target market
Product positioning is centered on the requirements and desires of your consumers. You cannot create innovative, high-quality, high-tech products in a black hole. By developing a position, you take into account the customer’s benefits in both product development and promotion. This emphasis is advantageous while operating in a highly competitive market. By allocating your time, money, and attention to consumers who appreciate your products, you can ensure long-term success.
The competitive landscape is the primary factor that influences positioning. You would not need to position your brand if there were no competition. However, you should carve out a distinct market category for your company and products in normal competitive sectors. Because, even if you have a high-quality product, ten different businesses might position themselves at the same point.
Bear in mind that a solid product positioning strategy should be focused on customers. Concentrating on product durability, assured customer pleasure, creating loyal relationships, or ecologically friendly items may be more effective at establishing a niche market.
While a product positioning statement is mostly used for internal marketing purposes, it also serves as a guide for what you tell clients. If you utilize promotion to convey a high-quality image, for example, you stake your reputation on that assumption.
Having a sense of obligation and a sense of urgency to follow through is frequently beneficial in motivating a business and its personnel. It may hold you accountable for product issues and the need to innovate in order to stay ahead of rivals.
Final words on positioning statements
Once you’ve developed a good positioning plan, it’s time to put it into action. Begin within the four walls of your corporation. Each employee must comprehend and embody your stance in all they do. To do this, begin by documenting all of your customer interactions and ensuring that each of those contact points communicates the position you’ve selected.
A positioning statement enables you to carve yourself a distinct niche in the market. A well-defined, consistent strategy for product and brand positioning that connects with your customers may help you stand out in the market.
Brands may harmonize their message, stories, graphics, personalities, components and of course, products in order to provide a unified frame of reference. Your marketing strategy won’t be complete without a powerful positioning statement.