Penetrating an already established market is one of the biggest struggles for any startup business. Startups have to secure a spot in the market and compete with big and developed companies just so they can continue their business and thrive. Although this struggle is more prominent to startup businesses, even established businesses go through this difficulty whenever they venture outside their specific target market. You may also see Statement Examples.
Market position is the consumers’ perception of a brand in relation to its competitors. Meaning, it is how the consumers view a certain product compared to its competition. For example, almost 50% of the target population of Brand X think that it is more cheaper compared to Brand Y. In the consumers’ point of view, Brand X’s position is a cheaper alternative to Brand Y. You may also see Strategy Statement Examples.
On the other hand, market positioning is the process in which the brand establishes its identity or image so that consumers’ view them in a certain way. For example, a fast food chain may position itself as a provider of cheap and instant meals or a car manufacturer may position itself as a maker of high end, luxury vehicles, and so on. You may also see Copyright Statement Example.
A positioning statement expresses how a company defines its business or how a brand identifies itself. In other words, it is a written expression that distinguishes a brand from its competitors. It articulates how the company or brand satisfies a particular need of the consumers in ways that competitors can’t.
For some companies, it sets the direction of the strategies used to plan the business that is why it is directly related the marketing strategies of the company. It not only takes into account the unique features of the product or service, it also takes into consideration the way consumers perceive the business itself. Its main purpose is to guide the business’ marketing, production, and operational decisions and keep it on track.
For example, Amazon.com’s positioning statement when it was still almost exclusively selling books in 2001,
“For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.”
When Zipcar.com was established in 2000, they used this positioning statement:
“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.”
However, a positioning statement is internal. It drives your business’ strategies and gives direction as to the path where the business’ should venture. It is not externally facing; it is for internal alignment only. You may also see Business Statement Example.
Notice in the definition of both market position and positioning, it emphasizes on the perception of the consumers, meaning how you relay or translate your business to your consumers. The statement that translates the positioning statement to your consumers and helps them form their own perception of your business is called a tagline. The tagline is consumer-facing or externally facing– it is a catchy and memorable statement of the brand that states both its benefit and personality. You may also see Work Statement Examples.
A perfect example is Nike’s commonly quoted tagline, “Just do it,” Apple’s “Think different”, McDonald’s “I’m lovin’ it” and last but definitely not the least, Harley-Davidson’s “American by birth. Rebel by choice.”
1. Positioning Statement – is the description of the company’s objectives for a specific strategy. It helps set the business apart from its competition. It also sets the direction of the business, it’s branding and marketing strategies. It is usually one or two sentences long and clearly captures the benefits the product or brand delivers.
2. Mission Statement – describes the company’s functions, market and competitive advantage. It includes the smart goals and philosophies behind the business. Aside from that, it also defines and explains the purpose and motivation to provide products and/or services. It relays the core values and life goals of the business to its employees in order to help make better decisions and choices.
There are four elements for a successful positioning statement:
This is where you determine the true attributes of your consumers. You include the demographic information of your consumers such as job title, gender, education level, salary, marital status, annual income, etc. You may also include the business goals, values, ambitions of your consumers. Through this, you will be able to classify your target costumers and you’ll know who your costumes are and what group they belong. However, you don’t need to include all of this information in your positioning statement, it is just a way to identify your target costumers.
Answer this question: What is the summary of the character and demographic description of the target customers your brand wants to approach and attract?
What category does your brand compete in and what way do your costumes relate to your brand?
Identify the industry or category your brand operates on. You also have to determine the aspects or context in which you provide for your consumers. Explain how your brand can be of use for the consumers, how you can fill their needs, etc.
Explain how your consumers can benefit from your company, and specify what benefits they can get from you. Determine what make you different and more satisfactory to your consumers against your competitors. Since you won’t be the sole provider of the products and/or services, separate yourself from your competitors’ narrative and make your business stand out; present specific ways that make you better than your competitors. You may also see Legal Statement.
What is the most meaningful– be it emotional or rational, benefit your target customers can get from you and not from your competition?
Presenting the specific ways you deliver your products and/or services to your consumers. Give relatable and easily understandable specifics on what makes you fulfill your promise and convince your consumers to invest or purchase from your business. You may also see Objective Statement.
To test your skills in creating a positioning statement, here is an easy worksheet for you:
A positioning statement helps establish a clear and beneficial relationship between the company and its target consumers. It explains the specific objectives and how the company or brand defines itself from its competitors. The positioning statement allows the company to have a sense of direction in how to present itself to consumers.
The positioning statement also helps shape the marketing strategies of the company. It helps the marketing team come up with a catchy tagline since should be based on the positioning statement. Aside from that, it is the defining characteristics the consumers will see the company for rest of its existence.
