Market Positioning Statement Definition
Market positioning statement is a description of the target market and is a situation which determines how the company wants the market to perceive its offerings. Positioning statement is an internal tool for marketers. Every marketing and product related decision needs to be in alignment with the positioning statement. A good positioning statement maintains focus on the brand as well as its value proposition and you can easily work on marketing strategy and tactics.
Importance of Positioning Statement in Marketing
Effective market positioning statement imposes a positive impact over the capability of lead generation of a business and is very helpful in determining as to how well a product, brand or service will be perceived by potential customers. It allows an organization to understand the benefits of its offerings to target customers. Additionally, a unique positioning statement states how the offering is different from other competitors in the market.
How to Write Positioning Statement Properly
The major purpose of writing a positioning statement is to assure that all marketing activities for a group of the customer are clear and consistent. In order to write a positioning statement, it is important to follow some simple steps which include:
- Selecting the target group upon which the company needs to focus on.
- Develop a list, writing down the customer needs, your business intends to serve.
- List all the benefits of products and services which uniquely fulfills the needs and wants of the customer group.
- Evaluate the positioning statement of the company and ensuring that it is clear, simple and consistent.
- Spreading the word out by consistently conveying the positioning message in every aspect that the business is doing for the customer group.
EquiBrand Consultant recommends the following template for writing a positioning statement in a proper manner.
For [Mention Your Target Market], [Proudct X] is the [Point of Differentiation] among the [Competitive Market] because [reasons to believe]
Target Market is the detail of the segments you are targeting
Product X is the name of your product or brand name
PoD is your offerings that solve the problems of target customers better the competitors
FoR is the marketplace you are competing in.
Reason to Believe is the evidence and proof of what you are providing is fulfilling customer’s needs better than competitors.
Market Positioning Statement Examples
Zipcar.com. To urban-dwelling, educated techno-savvy consumers, when you use Zipcar car-sharing service instead of owning a car, you save money while reducing your carbon footprint.
Volvo: For upscale American families, Volvo is the family automobile that offers maximum safety.
Volvo was historically popular for safety; however, in 2011 the company lost this marketing edge because of different campaigns like ‘All-New Naughty Volvo S60’. This campaign did not buy the attention of the public to the innovation and safety features of the car. As a matter of fact, Volvo changed its brand positioning from Safety First and the new model was based on luxury and performance. This led to a decline in sales as safety was a relevant and unique position for Volvo. Concentrating upon safety provided the brand with a differentiating and consistent theme for communication, building a reputation and making the brand memorable.
Lyft vs. Uber
Both Lyft and Uber were ride-share applications and mostly have similar offerings; however, their brand positioning is very different from each other. Uber pioneered this market and started with black executive Lincoln Towncars. It had a sleek logo and jet black branding. Initially, the service was luxurious, expensive and cold; however, with new offerings like UberPool and UberX, anyone was able to call for a ride and travel by a Prius for a few dollars.
On the other hand, Lyft introduced and the cars were embellished with a bright pink fuzzy moustache. Riders were instructed to sit at the front seat and make a conversation with the drivers for which they were also billed as fun and interesting.
Though Lyft offered a lot what Uber has pioneered into; however, it took its services in the next direction which helped them become different and distinct.
Market Positioning Statement vs Tagline
A positioning statement is the collection of information about the target audience; the product is offering to them, comparing it with competitors and designing a unique selling proposition (USP). On the other side, taglines tend to express the value of a product or service so as to improve the position and appearance of the brand. Taglines tend to portray who the company is and what they have to offer.
Some popular taglines are:
- Nike “Just Do It’: This tagline made the brand more than just athletic apparel provider. It started embodying the state of mind. It encourages the thought that it is not necessary to be an athlete to stay in shape. It takes very simply if you want to do just do it.
- Apple ‘Think Different’: The initial Apple slogan included “Here’s to the Crazy Ones, Think Different”. This was a tribute to visionaries who wanted to challenge the status quo and change thoughts.
- L’Oreal “Because You’re Worth It’: The tagline was based upon the thought that women wear makeup so that they appear to be beautiful so that they feel wanted, desirable and worth it. This tagline is basically about what image the product can give to its users.