Reading: Developing Positioning Statements

A Simple Formula

A positioning statement is one sentence that succinctly identifies the target market and spells out what you want them to think about your brand. This statement should include five elements:

1. the target segment
2. the brand name
3. the product/service category or frame of reference in which you are establishing this market position
4. the key points of differentiation
5. The reasons customers should believe the positioning claims.

The brand consultancy EquiBrand recommends the following straightforward formula for writing positioning statements:

Four Alternative Positioning Strategies to consider ^[2]The components of the positioning formula that you, as the marketer, supply are:

• • Target audience: A short description of the customer segment you are trying to reach with this positioning strategy. For example, young urban males, managing partners in law firms, or small business owners in the Pacific Northwest.

  • Product X: The name of your product, service, or brand.

  • Category or frame of reference: The market or category in which you compete. For instance, spectator sporting events, virtual assistant services, or employer pension plans.

  • Points of differentiation/benefits delivered: A clear explanation of both the problem you solve and how you solve it in a way that is different from—and better than—competitors. This highlights the competitive advantage(s) that anchor your positioning strategy. Make sure to articulate not only what sets you apart, but also why those differences matter to customers.

  • Reasons to believe: Proof points or evidence that demonstrate how you deliver on your claims of being different and better.

Here are some concrete examples of companies that use this positioning statement formula:  “To [target audience], Product X is the only [category] that [benefits] because [reasons to believe]” .

Positioning Statement Examples

1. Tesla (Model 3)

To environmentally conscious professionals,
Tesla Model 3 is the only electric vehicle in the mid-size sedan category
that delivers high performance, cutting-edge technology, and zero-emission driving
because it is backed by Tesla’s industry-leading battery innovation, Supercharger network, and track record of redefining sustainable mobility.

2. Apple iPhone

To tech-savvy consumers who value simplicity and status,
the iPhone is the only smartphone
that combines intuitive design, premium hardware, and seamless integration with other devices
because Apple controls the entire ecosystem of hardware, software, and services, ensuring a smooth, reliable user experience.

3. Nike (Running Shoes)

To athletes and fitness enthusiasts,
Nike running shoes are the only sports footwear brand
that inspires peak performance while expressing personal style
because they are designed with advanced cushioning technology and endorsed by world-class athletes.

4. Airbnb

To travelers seeking authentic experiences,
Airbnb is the only travel accommodation platform
that lets you stay in unique homes and connect with local hosts worldwide
because its community-driven model gives access to millions of hosts offering spaces and insider knowledge across 190+ countries.

5. Whole Foods Market

To health-conscious shoppers,
Whole Foods is the only grocery retailer
that offers a wide selection of natural and organic foods
because it enforces strict quality standards, banning artificial preservatives, colors, and flavors.

This clearly worded positioning statement follows the formula closely, even though the “reasons to believe” are added as a second sentence. It presents the competitive advantage (“instant access to over 1.1 million books“) as a clear differentiator, and with this wording we also understand the problem Amazon solves–convenient access to lots of books. The specific reasons to believe are highly desirable benefits for the target audience.

Positioning statements change as companies evolve as Amazon demonstrates. We will examine repositioning later in the chapter.

Here are a few more examples of different brand positioning.

The Tide positioning statement identifies the target audience so specifically that it’s easy to create a vivid mental picture of the customer. The problem Tide solves is very clear: getting close clean. This statement emphasizes the product’s competitive advantage around cleaning power and superior formulation, while promising valued benefits that customers enjoy when they use this product.

The onus here is on the brand to provide these concrete benefits around not “fading and fraying,” but these are definite reasons to believe if indeed the product can deliver and a reason to believe.

Evaluating Positioning Statements

How do you know when a positioning statement is going to be effective? Obviously, positioning statements should contain all the elements in the formula above, since that information is needed to translate the positioning strategy into a well-developed marketing mix.  There are other criteria you should look for, as well. For example, the following:

• Is it tailored to the target market? Too often, positioning statements either leave out the target segment, or else the entire approach isn’t really suited to that unique group. If a positioning statement would work just as well if you plugged in a completely different target segment, then you probably haven’t thought deeply enough about your target’s unique needs and what will make them want your product. Or, you’ve defined your target segment too narrowly, in which case you should revisit whom you’re trying to reach.
• Is it simple, focused, and memorable? A positioning statement that is overly complex will be hard to execute against because it isn’t focused enough to deliver a clear message to the customer. Make sure it is very clear what problem(s) you solve. Use easy-to-understand words instead of jargon that muddles the meaning. If your statement is running long, consider trimming a few differentiators or benefits. It’s actually very good to prune down to the essentials so your meaning is crystal clear. Make every word count!
• Does it provide an unmistakable picture of your product, service, or brand? Your positioning statement should work beautifully for you, but not very well for your competitors. If you can substitute any competitor’s name for your own in the positioning statement—and it still sounds credible—then you need some additional work on your differentiators and competitive advantages. If you are going to own your market niche, it must be a place that no one else can easily occupy.
• Can you deliver on the promise you make? The positioning statement promises some benefits or outcomes to your customers. You must be able to consistently live up to this promise—otherwise you’ll lose credibility, and your offering will stand for something that’s untrustworthy. If you can’t live up to your promise, you need to take another, more realistic look at the offering’s benefits and the customers’ reasons to believe.
• Does it provide helpful direction for designing the marketing mix and other decisions? From the positioning statement, you should have a sense of what types of activities and messages are consistent with that positioning and support the brand you are working to build.

Creation note: This content was updated with the assistance of ChatGPT, a language model developed by OpenAI, and was subsequently reviewed and edited by the author for clarity and accuracy.