A positioning statement is an important document for every business owner. This document identifies the target audience, the problem the business can solve for them, and the value proposition offered to the audience. It ensures that every member of the business describes the product the same way and targets the preferred audience.
Product positioning statements include information about the what, where and why of products. Each product has its own product positioning statement. They are primarily for internal use although many businesses also use them for external marketing purposes.
Primary Components of a Positioning Statement
Primary components of a positioning statement include information about what you do, who you do it for, and how it solves a customer need. Product position statements include the following elements:
- Definition of the targeted audience or customer
- Value proposition that explains why the customer wants to buy the product or what problem it solves
- Description of the product and categorization
- Primary benefits of the product to the customer
- How the product is different from others (product differentiation)
- Product name and how customers search for the product
Steps to Create a Positioning Statement
The following steps will lead to a clearly defined Positioning Statement.
- Evaluate the company's vision statement which is used to create the Positioning Statement. This new statement will bring the mission of the company to life.
- Identify the target audience and their particular needs, buying patterns, and preferences.
- Determine how an audience searches for the product and use that information to create the product description. Also, categorize the product to make it easy for niche marketing to specific target audiences.
- Determine the primary benefits to the customer and what makes the product unique. This is a real value proposition to customers. Let them know what's in it for them. Forget about features and focus on benefits.
- Create a list of similar products and then determine how the product is different. Compare and contrast the product with the competition and then focus on positive differentiation.
Equipped with this valuable information and research, creating the Product Positioning Statement becomes much easier.
A Product Positioning Statement is the best way to articulate a unique value to the customer in relation to the competition and position a product or service for successful marketing and sales. It is one of the key elements in building name brand recognition for particular products or services and it is a living, breathing document.
It should be updated and enhanced as products and services evolve. Keep the Positioning Statement current for ongoing business success.
Rhonda Day - With over 25 years of experience in the Corporate world with responsibility for creation of business plans, mission statements, marketing ...
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