Positioning statement is a written communication statement which describes a product, brand or service in a way that a perception in created in the customer's mind. Every firm tries to occupy a portion of the mind and heart of their target group using a positioning statement. After targeting a particular group of potential customers based on their segmentation criteria, a firm tries to create a unique positioning of their brands or the firm itself.
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In marketing STP, positioning is the third step done by companies after market segmentation and targeting strategy. The unique positioning can be done by a positioning statement which has the key message the firm wants to deliver, brand benefits, and the additional value that the customer can derive which is not available in other competing brands. In other words, a positioning statement, the Point of Parity (POP) and the Point of Difference (POD) is clearly mentioned. Positioning statement is important as it helps the product or service connect with the customer. Companies follow a step wise process known as a positioning process to build a good positioning statement.
The positioning statement is created so that a product or a service can be distinctly placed in a market so that there is differentiation vis-a-vis the competition. The key elements considered by curating a positioning statement are:
1. Target Audience for which product is made
2. Problem or Need being addressed
3. Product category
4. Value offered by using the product or service
5. Differentiation as compared to competition
Positioning statement is usually found in advertisements. For example, the positioning statement of L’Oreal is, ‘You are worth it.’ L’Oreal has served the premium segment of cosmetics, beauty products, and skin and hair care products. The positioning statement depicts that every user or potential user deserve to reap the benefit of such a better product offerings offered by L’Oreal. It shows that L’Oreal is not only a premium brand but also a value for money.
Hence, this concludes the definition of Positioning Statement along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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