How is a positioning strategy/statement used to inform a company’s marketing mix?

Update

Table of Contents

A positioning statement refers to statement that tells a brands target consumer why the product is unique from other similar products in the market and the customers needs that it fulfills. The statement typically provides the central focus and direction of a company, and the unique reputation they intend to create for the brand. Generally, a brand positioning statement is a crucial element to any marketing plan in order to set a product apart or differentiate it from the competition. It is like a slogan and will often be captured in advertisements primary to appeal to target consumers and compel them to take action and consequently increase sales. 

Back to: MARKETING, SALES, ADVERTISING, & PR

How does a Positioning Statement Work?

A positioning statement might appear simple but it is a well thought through process and a product of positioning in a marketing plan. Positioning is when the marketing department deliberates on the image they want to create and the direction they need to take in order to occupy a certain market. A positioning statement is the slogan that guides that direction. However, Positioning should not be confused with branding. Whereas, positioning identifies the target market and differentiates the product from competition, Branding on the other hand is about personality and the entire market perception about the product. Simply put, Branding helps drive the point in a positioning statement and product differentiation. 

What is the History of the Positioning Statement? 

There is not a clear authority that states the origin and adoption of positioning statements as a marketing strategy. However, some renowned marketing scholars suggest that the concepts traces back to the period following World War I. It is believed that positioning statements influenced marketing greatly in the 1920s but was not codified as a distinctive strategy until the 1950s and 60s. American advertising agencies, for instance J. Walter Thompson (JWT), focused on building personality, image and identity of brands from as early as 1915 which are concepts comparable to brand positioning. For instance, when JWT was contracted to handle the marketing for LUX soap, they repositioned the product to be associated with fine fabric and consequently expensive clothing. Initially the traditional view was that the soap is meant for only woolen garment. Renowned marketing guru David Ogilvy is credited for developing the concept of positioning in marketing in the mid-50s. Ogilvys creative marketing teams were well versed with the concept and assisted several brands in occupying certain niche markets with their products. For instance, in 1957 they positioned Dove as beauty soap for women with dry skin. Later, in 1961 they successfully positioned SAAB as the best winter car. Interestingly, the positioning still works decades later and is more of a slogan for those companies to date. Also, other marketing scholars like Al Ries and John Francis Jack Trout are credited for devising positioning statements as a marketing concept. However, the assertion is challenged by others scholars such as Stephen A. Fox who disagrees and states that the duo only built on what already existed and made it a trademark. 

Purpose of a Positioning Statement 

Crafting a positioning statement serves numerous purposes in a marketing department some include:  

1. Commits the marketing team to research and understand their target customer attributes and needs relative to the product.
2. A positioning statement enables a companys marketing team to identify their product differently from the competing product and subsequently weigh on competitive pressure.
3. A positioning statement informs the marketing team the appropriate communication channel that will effectively reach the target consumers.
4. Most importantly, a positioning statement helps the marketing team to convey the value added aspect of a product to the target market and what differentiates it from other similar products.
5. Helps the marketing team deliberate and set the product pricing on certain grounds. For instance, if the target consumer is a low income earner, then the pricing will be set a little below the market average since low income earners are more concerned about pricing rather than quality most probably.

Developing the Positioning Statement 

Drafting a positioning statement is part of a broader marketing plan that typically follows three steps namely segmentation, targeting and positioning. The procedure is sometimes referred to as the S-T-P method:

• Market Segmentation - involves the marketing team grouping consumers into categories or segments.
• Target market - involves choosing one of the categories or segments to be the focus that will drive sales for a particular product.

Positioning This is where the creative marketing team identifies that aspect that differentiates the product from other similar competing products in the market. Product positioning identifies certain features relative to the competition such as;

• Functional positions looks at what problems does the product solve, the benefit it provides and the general perception by stakeholders.
• A symbolic position tries to identify a product image enhancement, creating a unique identity and a social meaningfulness.
• An experiential position, on the other hand, identifies both sensory and cognitive stimulation provided by the product.

Components to a Positioning Statement 

There are four basic elements or components to a positioning statement:

• Target Audience who uses the product more often? They should be mentioned in the statement.
• Frame of Reference - the market category in which the product is categorized should be mentioned so that consumers are aware on how to refer to the product
• Benefit What is that most appealing benefit that a brand completely provides that drives consumers to take action.
• Reason to Believe how has the brand been living up to what it promises, is there a convincing proof that drives customer loyalty.

It is good to encourage constructive criticism by the marketing team and subsequently incorporate the same to into drafting a positioning statement. Considering the above components, a template for a position statement could look like below; 

For (target audience), (brand/product name) is the (frame of reference) that delivers (benefit) because only (brand name) is reason to believe). 

The wordings to a positioning statement don't have to exactly match the above template but should at least contain all the components identified in brackets. Also, the statement should be clear according to how the company wishes the product to be perceived in the market. Below is an example of Amazon positioning statement that was used exclusively in 2011: 

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. 

Guidelines for Crafting Effective Positioning Statements 

While drafting a positioning statement below are some guidelines to consider:

• It should be simple to read and memorize by the target consumers.
• It should create a clear picture that distinguishes the product from competitors.
• The statement should be brutally honest and the product should deliver what the statement claims.
• The brand should be the only one claiming the stated position and owning it.
• It should be flexible to market changes and give room for growth to allow the position to be changed.
• The statements should be able to assist the marketing department evaluate whether decisions made are in line with the brands positioning.

Important Questions to ask when examining your positioning statement

Once a positioning statement has been drafted its better to leave it for a while, probably for a fortnight, and then the marketing team can later to evaluate it on certain criteria. Below are some suggestions:

How is a positioning strategy connected to the marketing mix?

Why is positioning an important part of marketing mix?

What is positioning in marketing mix example?

How are positioning statements used?