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.
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