What is positioning?

The position is the place that your offering occupies in

your prospects’ minds and hearts on attributes that are
important to them, relative to competing alternatives that
they may consider.

Positioning is defined from the customer frame of

reference, not the company’s. Positioning is defined
relative to competing alternatives, not in absolute terms.

The objective of positioning is to define a value

proposition - the promise you make to specific
audiences of prospects to win their minds and hearts.
 The positioning statement

“For __________________________”
(target customers or prospects)

______________________ provides ______________

(your product/service offering) (Key benefits)
(your product/service) (key benefits)
because
____________________________________________.
(points of differentiation/reasons to believe)
(points of difference)
 Examples of positioning
statements
AVIS
“For business people who rent cars, Avis is the company who will provide
the best service because the employees own the company.”

HOME DEPOT
“For do-it-yourselfers, Home Depot offers the best prices because we are
the largest building supply company.”

BODY SHOP
“For people seeking wellness, the Body Shop offers the most natural bath
and cosmetic products because we are the most environmentally friendly
cosmetics company.”

SOUTHWEST AIRLINES
“For short-route travelers, Southwest Airlines offers the best prices with
reasonable and dependable service because we operate point-to-point
service and don’t charge more for last minute bookings.”
 Covering your bases in
positioning:
The “positioning diamond”
What? For whom?
Definition of Target customers
offering or prospects
and benefits

Why? Against whom?

Points of Competing alternatives
differentiation
 Dimensions of value in
positioning • Key features and their benefits
Functional value • Intended end-uses
• Intended end-users
What the product • Deployment experience
does • Usage experience
• Maintenance experience
• Service experience
ACT
(BODY)

• TCO (Total Cost of Ownership)

• EVC (Economic Value to Customer)
• Time savings
• Value of ownership • Cost savings
• Value of affiliation • Quality improvements
• Value of relationship FEEL THINK • Flexibility enhancement
• Emotional significance (HEART) (MIND)
Emotional value Economic value
How it makes What that means in
you feel time and money
 Positioning statements versus
value propositions
• The positioning statement attempts to summarize the key
benefits and points of differentiation in a way that
addresses the shared values and priorities of multiple
audiences and target segments. The positioning statement
is like a “platform” or “umbrella” that should be general
enough to work for all relevant audiences.

• Value propositions are statements of key benefits offered

by the product to specific audiences and specific
segments. Value propositions are derived from the
positioning statement, but focus on the unique values and
priorities of each audience and target segment.
 Positioning statements versus
value propositions: An example
• Positioning Statement : The Windows .NET Server
operating system is the most productive infrastructure
platform for powering connected applications, networks,
and Web services from the workgroup to the data center.

• Value Proposition (tailored to the IT Implementer):

For IT Implementers, who want to be empowered to
control their network infrastructure, Windows .NET
Server provides reliable deployment, management, and
use of the network infrastructure that allows you to
respond faster than you can on any other platform.
 Messaging tag lines:
The articulation of positioning
• IBM - “the next utility”
• Nokia – “human technology”
• HP – “invent”
• Hertz – “exactly”
• Compaq – “inspiration technology”
• Accenture – “innovation delivered”
• Ernst & Young – “from thought to finish”
• Lexus – “the exhilarating pursuit of perfection”
• Boeing – “forever new frontiers”
 Six tests to evaluate your
positioning
• Relevance test: Do customers care? Does the positioning get at a
strong “pain point”?
• Clarity test: Will customers “get” it? Does the positioning express the
benefits in a clear and customer-friendly way? It is specific and
focused, or ambiguous and vague? Does the positioning lend itself to
clear translation into messaging and product strategy decisions?
• Credibility test: Will customers believe it? Can we offer solid support
points or evidence to substantiate our positioning?
• Uniqueness test: Is the position unique? Does is set us apart from
competition in a meaningful way? It the position already “owned” by a
competitor? Is it a “me-too” position?
• Attainability test: Can we get there? Are we making claims that are
achievable, or are we selling hopes, dreams and vaporware?
• Sustainability test: Can this position be maintained over time? To
what extent will it remain relevant in the future, even as technology and
products change?
 Summary: A positioning
framework
Product Name:
Target Audience:
Specific Audience Needs:
Functional Benefits:
Emotional Benefits:
Economic Benefits:

Positioning Statement (across audiences):

Value Proposition (tailored to this audience):
Key Positioning Pillars: (prioritized)
Pillar 1 Pillar 2 Etc.

Audience 1 Relevance to Customer:

Degree of Differentiation:
Believability by Customer:
Support Points:
Proof Points: (attached)

Audience 2 Relevance to Customer:

Degree of Differentiation:
Believability by Customer:
Support Points:
Proof Points: (attached)

Adapted from: Joan Giese Positioning Framework document