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Positioning  
 
Positioning  
How  consumers  view  the  brand’s  distinct  market  niche  in  relation  to  its  
competitors.      
 
A  brand’s  positioning  and  connection  with  the  consumer  is  defined  by:    
1. Target  Market  
2. Competitive  Landscape  
3. Key  Insight  
4. Key  Benefit  
5. Reason  to  Believe  
 
Target  Market  
The  ideal  audience  or  most  likely  buyers  for  a  product.    It’s  a  well-­‐defined  group  of  
customers  based  on  factors  such  as  demographics  (age  and  gender)  and  
psychographics  (attitudes  and  interests).      
 
The  ‘target  market’  concept  exists  for  2  reasons:  one  –  a  company  usually  can’t  
afford  to  target  everyone  with  its  advertising  efforts;  and  two  –  a  product  can’t  
satisfy  all  customers  at  the  same  time.      
 
Example:    
Women  over  50,  with  active  lifestyles,  who  work  out  more  than  2  times  a  week  
 
 
Defining  the  Target  Market  
• Split  the  population  into  buckets  based  on  different  combinations  of  a  set  of  
characteristics,  list  their  core  values,  and  figure  out  how  to  best  serve  them.      
• Understand  what  drives  a  customer  segment  in  terms  of  attitudes,  beliefs,  
and  –  most  importantly  –  what  are  the  "unmet  needs"  given  their  current  
options  today  in  the  category.  
 
Competitive  Landscape  
A  comparison  of  a  company’s  products  against  those  of  its  competitors.    It  often  
boils  down  to  a  two-­‐by-­‐two  matrix,  where  the  axes  reflect  key  product  attributes.    
Each  product  is  represented  by  a  circle  according  to  where  it  falls  against  these  
attributes,  and  the  size  of  the  circle  indicates  the  product’s  relative  size  in  dollar-­‐
sales  or  market  share.  
 
Example:  
Swallow-­‐able,  chewable,  powdered,  or  drinkable  vitamins  found  in  stores  or  online.  
 
 

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Key  Insight  
The  central  belief  or  ‘core  value’  that  determines  consumer  behavior.    A  key  insight  
emerges  when  a  marketer  has  an  a-­‐ha!  moment  and  understands  consumer  
behavior  at  a  deeper  level.    In  the  CPG  world,  marketers  spend  countless  hours  
watching  and  listening  to  consumers  in  order  to  determine  key  insights.    Because  
when  true  insights  are  discovered,  they  can  unlock  profound  product  ideas  and  
communication  strategies.      
 
Example:      
Sheila  is  approaching  50…she  knows  she  is  losing  her  youth,  but  more  importantly,  she  
feels  like  her  identity  is  slowly  escaping  and  that  her  best  years  might  be  over.    For  
Sheila,  it  is  much  more  than  simply  looking  older  and  not  having  energy  anymore…it  is  
about  finding  the  emotional  and  physical  confidence  to  get  up  in  the  morning  and  face  
this  new,  scary  world.      
 
Key  Benefit  
The  value  a  consumer  derives  from  your  product.    There’s  actually  a  big  difference  
between  benefits  and  features.    And  many  marketers  commit  the  sin  of  selling  their  
products’  features  instead  of  its  benefits.    The  Key  Benefit  should  address  or  provide  
a  “solve”  for  the  Key  Insight.  
 
Example:  
Provides  increased  levels  of  vitality  and  energy  
 
Reason  To  Believe,  or  “RTB”  
Evidence  that  supports  the  product’s  key  benefit.    What  are  the  facts  that  will  
convince  consumers  that  you  can  deliver?    As  a  marketer,  when  you  communicate  
your  product’s  Key  Benefit,  you’re  making  a  promise.    Why  should  the  consumer  
believe  you?  
 
Example:  
Specially  formulated  by  dieticians  to  provide  the  complete  range  of  energy-­‐enhancing  
b-­‐vitamins  
 
 
The  Big  Picture  
The  big  picture  of  positioning  is  that  the  Target  Market,  Competitive  Landscape,  Key  
Insight,  Key  Benefit,  and  Reason  to  Believe  are  all  linked.    Define  your  target  market  
and  competitive  landscape,  discover  a  key  insight  that  drives  consumption  within  
that  target  market,  identify  your  product’s  key  benefit  that  addresses  the  key  insight  
or  driving  force,  and  finally  give  consumers  evidence  that  you  can  deliver  the  benefit  
–  give  them  a  reason  to  believe.    All  together,  these  components  create  a  cohesive  
positioning  for  a  winning  product  strategy.  
 

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