Positioning: The Essence of Marketing Strategy
10 Pages Posted: 16 Jun 2009 Last revised: 10 Nov 2021
Abstract
This note follows the development of a positioning statement for a target market. The exercise includes determining the relevant point of reference (market definition, product category, competitive set) and associated points of parity, the point of difference, and why customers should believe the product or service can deliver on the desired positioning. The appendix contains a description of perceptual mapping, a tool that is often used when making positioning decisions.
Excerpt
UVA-M-0754
Rev. Mar. 12, 2018
Positioning: The Essence of Marketing Strategy
Choosing how to position a product or service is one of the most important decisions a marketer makes. A positioning statement indicates how you want customers to think about your product/service/brand relative to competitors (i.e., the position you want your brand to occupy in the target market's mind). A positioning statement is not your competitive position. In his book, Selling the Invisible, Harry Beckwith states: “A position (or statement of position) is a cold-hearted, no-nonsense statement of how you are perceived in the minds of your prospects. A positioning statement, by contrast expresses how you wish to be perceived. It is the core message you want to deliver in every medium” [emphasis added]. If you do not actively and accurately communicate how you want your product to be positioned in your customers' minds, your customers will position the product themselves, for themselves—perhaps with the “help” of your competitors. This note presents the fundamentals of positioning, as expressed in a positioning statement.
Elements of a Positioning Statement
A positioning statement is not an advertising strategy, a slogan, or tag line. It is an internal document and is often dull and straightforward. But that's the point—a widely communicated and widely accepted positioning statement keeps everyone inside the company aligned with respect to the focal product or service. No embellishments. No hype. The positioning statement guides the development of marketing communications to reach the target customers. It is not a marketing communications piece.
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Keywords: positioning, marketing strategy, competitive strategy
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