What Is A Positioning Statement?
Having a great product isn’t enough to stand out in the marketplace. What you need is a compelling message—one that resonates with your target audience and is unique to your business.
How do you ensure that you’re telling the same story to every potential customer across every touchpoint? One key strategy is drafting a positioning statement.
In this article, we’ll explain what a positioning statement is, the purpose of having one, and how to create an effective positioning statement. We will also describe the differences between value propositions and positioning statements, along with taking a look at some examples of positioning statements.
What’s A Positioning Statement?
Positioning statements are concise descriptions of how a product, service, or brand meets potential customer needs better than the existing competition. A positioning statement is also called a unique selling point (UPS) or a statement of differentiation.
Your brand’s statements of differentiation must guide all departmental decisions while remaining true to your brand values. Typically, position statements answer the question: How do I want my brand to be perceived by the public?
Starting a business is a daunting task, but having a great positioning statement can help you to de-position your competitors and scale your business. De-positioning your competitors effectively uses your statement of differentiation to devalue your competitors and remove them from their market space.
What’s The Purpose Of Positioning Statements?
Writing a positioning statement serves multiple purposes in the marketing department, including:
Driving research and understanding of the market interests and needs relative to the product you’re offering
Allowing your marketing and sales team to define the product differently from competing product lines and subsequently improve on areas where your competitors are lacking
Informing marketing teams of the right communication platform that will effectively reach the target audience
Helping marketing and sales teams to inform your prospective customers about the value of your product and what sets your product apart from similar ones in the market
Determining and setting pricing options based on certain factors discovered from market research. For example, if the target audience is a low-income earning segment, then your pricing range should be a little below the market average because low-income earners often care about pricing rather than the quality of a product.
How Do You Create A Great Positioning Statement?
To create a great positioning statement, you can leverage CEO mentoring programs to learn from those who’ve successfully created them before. Here are a few helpful tips for writing a great positioning statement:
Look at what your competitors are doing as a starting point: However, it’s imperative to note that your brand won’t benefit from copying other brands' position statements. However, when you’re framing your messaging, it’s useful to look to other businesses for motivation and insight. Consider strategies from other companies and brainstorm takeaways when you frame your own positioning statement.
Lead with empathy: According to recent research by Genesys, nearly 50% of consumers want brands they frequently do business with to show them empathy. Thus, to create a positioning statement that resonates with your target consumer, you must put yourself in the client's shoes. This way, you’ll connect with your audience and improve your bottom line.
Keep your message concise: The most effective positioning statement gives a ton of information clearly, using just a few words. Thus, your positioning statement must be concise, but comprehensive.
Have a vivid understanding of who your target customer is: Creating an effective positioning statement is impossible if you don’t understand who your target customer is, their pain points, their attributes, and their needs. If you’re not sure what your target audience needs, sending your target audience surveys and analyzing your support data is a great place to start.
Examine your brand values: A recent report by Zendesk shows that nearly half of consumers want to buy products or services from companies that prioritize equity, diversity, and inclusion in their workplaces and communities. The same report also shows that 63% of consumers want to buy from socially responsible brands. Thus, beyond the products or services you’re offering, your positioning statement must give your target audience a sense of your brand values.
Be honest and transparent: An honest positioning statement is transparent. Be real and avoid making promises you can’t fulfill.
How Does A Value Proposition Differ From A Positioning Statement?
Value propositions and positioning statements both share key information about your brand; however, they serve different purposes and audiences.
A value proposition is a wide-ranging document with multiple pages that describes how and why your product is better than your competitors’ products. It’s a summary of a brand’s values and differentiation. A value proposition is shared with external shareholders, such as investors and customers.
Statements of differentiation are created after value propositions. That’s because positioning statements take the most crucial components of value propositions and highlight them. A positioning statement is a brief, focussed description of a product or service.
Examples Of Positioning Statements
Example 1: A Positioning Statement For A Gym
For athletes looking for professional coaches to guide their workouts: “Power Arena is a workout facility that matches every client with a professional personal trainer. Unlike other gyms, our personal trainers will make sure that you’re working out effectively and safely every time you train with us.”
Example 2: A Positioning Statement For A Grocery Store
For people who care about the food they feed their families: “Quickmart is a grocery store that partners with local food producers and farmers to stock our shelves. Unlike big chain grocery stores, you can be sure that our products are organic, local, and sustainably grown.”
Final Thoughts
An effective positioning statement must define the experience you want your target customers to have and then guide the marketing team to find a way to communicate that across your advertising materials. Think about every value and benefit your product or service brings to your target audience and what makes your product or service offerings stand out in the market.
But more importantly, be concise and transparent; don’t promise anything you can’t deliver.