Positioning Statement - Explained
What is a Positioning Statement?
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What is Positioning?
Positioning is when the marketing department deliberates on the image they want to create and the direction they need to take in order to occupy a certain market.
What is a Positioning Statement?
A positioning statement refers to statement that tells a brand's target consumer why the product is unique from other similar products in the market and the customers needs that it fulfills.
What is Contained in the Positioning Statement?
The positioning statement typically provides the central focus and direction of a company, and the unique reputation they intend to create for the brand.
How is the Positioning Statement Used?
Generally, a brand positioning statement is a crucial element to any marketing plan in order to set a product apart or differentiate it from the competition. It is like a slogan and will often be captured in advertisements primary to appeal to target consumers and compel them to take action and consequently increase sales.
Back to: MARKETING, SALES, ADVERTISING, & PR
Positioning versus Branding
positioning identifies the target market and differentiates the product from competition. Branding is about personality and the entire market perception about the product. Branding helps drive the point in a positioning statement and product differentiation.
Purpose of a Positioning Statement
Crafting a positioning statement serves numerous purposes in a marketing department some include:
- Commits the marketing team to research and understand their target customer attributes and needs relative to the product.
- A positioning statement enables a companys marketing team to identify their product differently from the competing product and subsequently weigh on competitive pressure.
- A positioning statement informs the marketing team the appropriate communication channel that will effectively reach the target consumers.
- Most importantly, a positioning statement helps the marketing team to convey the value added aspect of a product to the target market and what differentiates it from other similar products.
- Helps the marketing team deliberate and set the product pricing on certain grounds. For instance, if the target consumer is a low income earner, then the pricing will be set a little below the market average since low income earners are more concerned about pricing rather than quality most probably.
Developing the Positioning Statement
Drafting a positioning statement is part of a broader marketing plan that typically follows three steps:
The procedure is sometimes referred to as the S-T-P method:
Market segmentation involves the marketing team grouping consumers into categories or segments.
A target market involves choosing one of the categories or segments to be the focus that will drive sales for a particular product.
This is where the creative marketing team identifies that aspect that differentiates the product from other similar competing products in the market.
Product positioning identifies certain features relative to the competition such as;
- Functional positions looks at what problems does the product solve, the benefit it provides and the general perception by stakeholders.
- A symbolic position tries to identify a product image enhancement, creating a unique identity and a social meaningfulness.
- An experiential position, on the other hand, identifies both sensory and cognitive stimulation provided by the product.
Components of a Positioning Statement
There are four basic elements or components to a positioning statement:
- Target Audience - who uses the product more often?
- Frame of Reference - the market category in which the product is categorized should be mentioned so that consumers are aware on how to refer to the product
- Benefit - What is that most appealing benefit that a brand completely provides that drives consumers to take action.
- Reason to Believe - How has the brand been living up to what it promises, is there a convincing proof that drives customer loyalty.
Guidelines for Crafting Effective Positioning Statements
While drafting a positioning statement below are some guidelines to consider:
- It should be simple to read and memorize by the target consumers.
- It should create a clear picture that distinguishes the product from competitors.
- The statement should be brutally honest and the product should deliver what the statement claims.
- The brand should be the only one claiming the stated position and owning it.
- It should be flexible to market changes and give room for growth to allow the position to be changed.
- The statements should be able to assist the marketing department evaluate whether decisions made are in line with the brands positioning.
- What is a Market?
- What is Target Marketing?
- What is Market Segmentation?
- How Many Segments to Target?
- How Do We Segment Consumer Markets?
- Benefit Segmentation
- How Do We Segment Business Markets?
- Using Data for Market Segmentation
- Buying Power Index
- What is Customer Relationship Management?
- What is Behavioral Targeting?
- What is Positioning?
- What is a Positioning Statement?
- What is a Perceptual Map?
- Cultural Factors Affecting Marketing
- International Marketing is Challenging