While marketing a business takes thoughtful planning, implementation, feedback and adjustment, developing a clear positioning statement can make your efforts easier and more successful. This is because the positioning statement helps guide your tactical marketing efforts and internal operations to work together for better outcomes.
4 Steps to Create a Successful Positioning Statement
When creating your market position statement, focusing on these four elements will help ensure you have a quality end result.
1) Identify and articulate the profile of your most profitable customer
Take an inventory of your past and current customers. Which ones have provided you with the most sustained and profitable business? Identify them and list out what you know about them.
For example, a B2C business would want to list socioeconomic characteristics – demographics such as age, gender, education level, income level, marital status, occupation, or average size of family.
Highlight the characteristics they have in common to create your optimal customer profile.
This is the target market that you offer the best solutions to fit their situations/needs. Remember – keep it narrow! You are not eliminating others who may purchase your offerings - just focusing your efforts and resources towards those most closely aligned with your business success.
2) What / Who is Your Competition?
Potential customers have a wide range of methods to research buying solutions and comparing competing offerings. This increases the importance of clear, concise messaging that enables the researcher to find, and easily understand, your business offerings and how they differ from your competition. So find out where you stand.
3) Why Are You Different and Better for Your Target Customer?
Now that you have clearly identified your target customer and competition, define how your company offerings are superior to the other alternatives.
Begin by brainstorming a list of all the ways your company and its products/services are different and better than the competitions. Next, prioritize this list by the perceived value to your target customer. (You may want to survey them to find out which have the most value to them.) Select the top two or three differentiators -- you'll need these for the next step.
4) Write your Market Positioning Statement
This is a short statement describing your business and its remarkable qualities -- what you offer and how it uniquely solves your target customer's problem. It must be a memorable phrase - one you can use when introducing your company.
Remember – shorter is better!
Have it contain the top two or three distinguishing aspects you identified in the step above, coupled with the specific characteristics of your target customer. Test it out on many people to ensure that employees, customers and those you meet can all recite it with ease.
Using our previous example, the firm might have found that their personalized knowledge of the client’s situation, quick response and ability to work to prevent legal hassles was most valued by their clients. Their statement might read – Our business offers highly personalized legal expertise and rapid, proactive response to small for- profit environmental lobbying organizations.
In conclusion, taking the time to go through these four steps helps gain the perspective and understanding necessary for creating market positioning statement. Ultimately, your positioning statement can be used as a guide for your company’s culture, marketing efforts and allocation of time and resources. A laser like focus on your preferred target customer will increase the return on your marketing efforts, the top line and ultimately impact the long-term success of your business.
Thanks for reading! If you have questions or need help with positioning your business, please Contact us.
This is Blog 2 of a three part series on Rebranding. The first post is "When is Rebranding the Answer?"
It’s the beginning of a new year and you plan to make some changes to your business. And one of them is to rebrand as you revitalize or expand.
So what steps do you need to take? As you work through the process of creating a new brand, please keep in mind the definition of a “brand” as defined by Seth Godin:
“A brand is the set of expectations, memories, stories and relationships that,
taken together, account for a consumer’s decision to choose one product or
service over another.”
1) Understand your current image
Using that definition, the first step to successful rebranding is finding out what current customers, employees and key stakeholders REALLY think of your organization and the brand that represents it.
When gathering this feedback, pay particular attention to:
2) Identify Brand Characteristics
Once the feedback is collected, the next step is to identify the key characteristics of the new brand.
The output from this analysis will be a statement of brand attributes.
3) Get Creative
Now the fun begins! Set up a brainstorming session to generate options for the desired brand name, logo, tag-line and/or other branding symbols. Then, keeping in mind target customers’ demographics and perspectives, narrow the brainstorm list down to 2-3 potentials. Even if you hire an outside agency, be sure to invite key employees, management and stakeholders to participate in this process – they can be sources of creative ideas and their participation will help to increase buy-in and support.
4) Check Availability
Sometimes everyone’s favorite option isn’t available, so be sure to check the availability and suitability of the final choices.
Here’s an example of what can happen if you skip this step.
A local Pesticide company wanted a new look to reflect a change in management. The old branding included a dark brown logo of a tank. The updated look included lighter colors, predominantly yellow. Seemed like a good change. But when they implemented the new branding, they ordered new yellow shirts for the service crew. Unfortunately, the shirts showed dirt and sweat easily; the technicians disliked them for this and customer impressions were poor. After a while, the company listened, reversing their decision and returning to brown shirts, but this could have been avoided by involving key individuals in the rebranding creation process.
When selecting your new brand, remember to test before full implementation takes place.
Does the new brand convey the right message?
Is the tag line appropriate?
Does the logo have a hidden (unintended) meaning or symbol?
Testing may seem time consuming, but even well established companies have made the mistake of not testing and incurred embarrassment and negative impacts.
What can happen:
When Airbnb unveiled this logo, it generated a wave of criticism for its design.
Some likened it to a triangular paperclip or something else unintended.
6) Plan Implementation
Finally, the devil is in the details! Take the time to plan for every aspect of implementing the new brand. The best branding is consistent; therefore updating everything customers come in contact with is important. Often it is advisable to include a “soft launch” before announcing your new brand.
Our third and final blog entitled the Nitty Gritty Rebranding Checklist will include a handy list of common items to update during your implementation phase. Please watch for it!
Thanks for reading, and as always comments and additional thoughts are appreciated. If you have questions concerning your rebranding efforts please contact us!
About our Blog:
Marketing Tips is dedicated to providing busy professionals and local businesses with information on marketing trends, strategy and tactics in a way that is both accurate and easy to read.