- The four parts of the positioning statement are target market, frame of reference, the differentiator and the payoff
- A target audience is a particular subset of that larger target market who are the subject of its particular marketing campaigns.
- The positioning statement is for internal use and should not appear in any marketing cop
A product’s positioning is defined as its rank or perception in the minds of consumers, when compared to competitors’ products. Another related term is brand repositioning which is defined as the process of changing a brand’s position within the market. Positioning helps to acquire that market while repositioning a brand can help you seize market opportunities or maintain declining product sales by boosting sluggish product sales.
The 4 elements of the positioning statement
- Target Market: Before firing during a mission, a soldier must be aware of the location and nature of the target; otherwise, they risk using all of their ammunition on the incorrect target and endangering themselves. Here, marketing makes use of the same philosophy. Target market and target audience are two terms that are important in this context. A target market is a more inclusive term for all the individuals you believe will be drawn to your brand.
A company’s target audience is a particular subset of that larger target market who are the subject of its particular marketing campaigns. The target market should be determined using the available criteria, such as demographics, geography, psychographics, pains, needs, etc. Everyone or inclusive all people are not credible criteria for identifying target markets; there should be a level of specificity.
Read also: Target Market vs Target Audience: What are the 4 key differences?
- Category/ Frame of Reference (FOR): For curiosity and convenience, potential customers need a frame of reference when evaluating a product before making a purchase. This frame of reference is what is known in marketing as the product category, which signifies the market space or need that the product best fits. When shopping online, categories are frequently used in conjunction with filters to find products.
In addition to other characteristics, categories can be based on things like cost, functionality, and geographic divisions. Examples of typical categories include electronics, auto parts, and home appliances. Additionally, they may be geographical, such as the USA, UK, Africa, etc. If the context of your offer is unclear to potential customers, they won’t take the time to consider it and might get confused in the process.
- Differentiation/Point of Difference (POD): Differentiation, which is based on a product’s benefits or distinctive qualities, helps to set it apart from rival products. The unique benefits or characteristics will support the key differentiator. It is not advisable to use flimsy differentiators like “the industry or global leader”. Instead, justify your position as the industry or global leader.
Marketers often use a differentiation strategy to draw customers by offering something distinctly different from what their rivals might be offering in the market. Implementing a differentiation strategy has as its primary objective boosting competitive advantage.
- The Payoff/ Reason to Believe: This refers to the strongest evidence that a business keeps its promises, and is important in creating a connection between the differentiation and the goals or needs of the target audience. It is imperative for a company to explain to its target market how its differentiator will enable them to accomplish their objectives.
To have a meaningful positioning, the company must have a complete understanding of its target market, based on factual market research.
An example of positioning statement for Rensyl Integral can be:
Rensyl Integral provides business strategy consulting services [category] categorized as organizational strategy, sales and marketing strategy as well as people management strategy for [target] global market leaders and their c-suite executives [differentiator] by focusing on optimizing company processes with their people in order to yield better workplace performance [payoff] because brand success relies primarily on the quality of linkage between their people and the processes.This is a crucial point to reiterate: the positioning statement is for internal use and should not appear in any marketing copy. A positioning statement outlines the target market and depicts how a company wants the public to view it or its products.
Read also: What is brand repositioning strategy?