positioning

If a brand is where a product lives in a consumer’s head then positioning is the tool to proactively manage that perception.  A good positioning needs to capture what makes a brand superior in a way that is believable and relevant to customers. 

As part of this, positioning takes into account:

·        Target audience

·        Category membership

·        Point of differentiation

Each of these elements needs to be considered as part of the whole, because the decisions made impact each other.  For example, the point of differentiation needs to be relevant to the category that is selected.

Many times, this will be summarized in a positioning statement.  But that’s not the only way to do things.  Some companies may choose to use a simple 1-page write up as recommended in Obviously Awesome.

Example of positioning statement:

To <target customer> our brand is the <category> that <point of difference>.

Whatever you end up doing, it needs to be grounded in the customer’s perspective (rather than a product or company centric approach).

Why does positioning matter

Positioning provides the foundation for how customers will view and evaluate your brand.  It gives the competitive context and key differentiators of why you are the best to meet their needs.

The positioning also serves as a foundational tool for several functions including marketing (along with sales, customer success, customer service, etc.).  The positioning informs messaging, marketing campaigns, product roadmaps, and more.

Target audience

The target audience is who you intend to reach with your marketing efforts (and sell your product or service to).  Audiences should be combined when they share the same underlying needs.  Otherwise, you can have different positioning for different target audiences.

Category membership

The category is the set of products that you compete with.  Establishing membership in the category is really important because it sets baseline expectations of consumer’s goals related to consumption of the category.  There are almost always multiple categories that you can position your product within.  For example, Coke could be positioned as part of the cola category or part of the broader refreshments category.

Point of Difference

Selecting the point of difference takes into account the strengths of the brand relative to other offerings in the category selected.  It also needs to be grounded in the consumers motivations for using the brand.  The category leader may often select the dominant benefit that motivates category use, while challenger brands select a more niche benefit where they have a competitive strength.

Examples of positioning

Starbucks

For individuals who want a premium coffee experience, Starbucks leads the coffee industry with its luxury blend of coffee beans and wide range of products.

Porsche

For the discerning driver who demands top performance, Porsche leads the sports car industry with its line of performance driven vehicles of exceptional quality.

Executing against your positioning

There are several obvious areas where your positioning comes to life.  As a marketer, these can span the board of product, place, price, and promotion.  Branding and messaging should flow from the positioning.

Positioning across different segments

Your positioning should relate back to the segments that you decided to target.  You can have different positioning for different segments of the market.  However, you will want to keep this to a minimum because there are real practical considerations in ability to reach the market in distinct ways.  Your team also has limited marketing resources and will want to focus on the best opportunities.

Refining your positioning

As you evaluate your positioning consider a few different approaches.

·        Is the statement compelling if you substitute a competitors brand for your own?  If so consider adjusting the positioning to identify a unique competitive advantage.

·        Is it clear who would buy the brand and why?  If not, try to be more specific.

·        Is it clear why the target should use the brand to achieve a goal?  If not there needs to be a stronger link between the target’s goals and the point of difference.

Good positioning vs. bad positioning

How do you know if you have good positioning vs. bad positioning?  This should be understood in the context of company performance relative to goals, KPIs, and insights.  All this is in addition to a solid understanding of the customer and their needs.

If your team spends most of their time explaining the category that could be a clue that you’re setting the wrong context for your product (unless it absolutely has to be a new to market category).  Or if you close deals but later have a high churn rate that could indicate that customers are buying for a value that the product does not deliver and you should reconsider repositioning.

Positioning is critical to success and evolves over time.  It should be revisited periodically because customer needs, competition, capabilities, and more can shift over time.  Landing a good positioning will make everything else easier as you work to grow your brand.  And a bad positioning can ruin any chances of success.

When things are going well it’s time to fight hard and cement your leadership position.  If they’re going poorly then it might just be time to revisit your positioning.

Book recommendation

Obviously Awesome

https://amzn.to/41mHAzP (paid Amazon affiliate link)

This is a fantastic book that breaks down positioning with real world examples and a practical approach.  If you want to do positioning work that makes an impact in your company read this cover to cover.