Why Your Small Business Needs A Positioning Statement

A positioning statement is an internal tool that briefly describes a product or service and how it fulfils a particular need of the target market.

In other words, it communicates in a few sentences, the value your product or service brings to your target customers and how it differs from the competition.

This may come as a surprise to you, but a positioning statement is not the same as a slogan or tagline. Slogans and tag lines are customer facing and catchy.

Positioning statements are used within the business and most times form the foundation from which tag lines/slogans can be crafted.

There are a few crucial reasons businesses should craft their positioning statement.

1. It helps to align your marketing efforts with the business’s brand and value proposition.
2. It leads you to critically assess your market, your competitors and understand where your business fits in.
3. Likewise, it helps you understand why customers would buy your product or service from their point of view.
4. A positioning statement helps you better communicate the value you’re offering to your target business
5. A positioning statement helps you make key decisions that affect your prospects’ perception of your brand

Thus, a positioning statement makes it easier and more cost-effective to position your offering in the minds of customers.

Since you are better aware of who your customers are, what their problems are, who your competitors are, and how your product or service solves that problem more effectively.

Simple Way To Create Your Positioning Statement (Using Templates)

Template 1:

Geoffrey Moore offers one way of formulating a positioning statement:

For (target customer) who (statement of the need or opportunity), the (product name) is a (product category) that (statement of key benefit; also called a compelling reason to believe). Unlike (primary competitive alternative), our product (statement of primary differentiation).

Read More: How To Set Clear Business Foundations

Template 2:

HubSpot offers another way to craft a positioning statement:

For (your target market) who (target market need), (your brand name) provides (main benefit that differentiates your offering from competitors) because (reason why target market should believe your differentiation statement.)

You can adjust any of the two templates above to fit your business and create a positioning statement for your small business.

Here are a few examples to inspire you:

1. Coca-Cola Positioning Statement:

“For individuals looking for high-quality beverages, Coca-Cola offers a wide range of the most refreshing options — each creates a positive experience for customers when they enjoy a Coca-Cola brand drink. Unlike other beverage options, Coca-Cola products inspire happiness and make a positive difference in customers’ lives, and the brand is intensely focused on the needs of consumers and customers.”

2. Nike Positioning Statement:

“For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike’s commitment to innovation and investment in the latest technologies.”

Do you have any questions/observations you’d like to share? Share in the comments section below.

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