Positioning StatementAlso referred to as a brand strategy, positioning strategy, or brand positioning statement, a

positioning statement is a succinct description of the core target audience to whom a brand is

directed, and a compelling picture of how the marketer wants them to view the brand.

A well-constructed positioning statement is an invaluable means of bringing focus and clarity

to the development of a marketing strategy and tactics. How? Because every decision that is

made regarding the brand is judged by how well it supports the positioning statement---from the

brand name, the product itself, and packaging, to advertising, promotions, etc.

There are four elements or components of a positioning statement:

1. Target Audience  - the attitudinal and demographic description of the core

prospect to whom the brand is intended to appeal; the group of customers

that most closely represents the brand’s most fervent users.

2. Frame of Reference  - the category in which the brand competes; the

context that gives the brand relevance to the customer.

Criteria for evaluating the frame of reference: 

Does it define the competitive frame to the brand’s advantage?

Does it reflect the relevant options or alternatives that the consumer sees for

your brand? 

3. Benefit/Point of Difference  - the most compelling and motivating benefit

that the brand can own in the hearts and minds of its target

audience relative to the competition.

ex:foreign currency or usb (unique selling propositioning)

4. Reason to Believe  - the most convincing proof that the brand delivers what

it promises.

Celebrity endorsement can also be reason to believe.examples:wasim akram

sugar free add

,dove have one-forth moistoring soap.example no.3 ,no.1 brand

recommended by dermatologists

Template for a positioning statement:

For ( target audience) , (brand name) is the (frame of reference) that

delivers (benefit/point of difference) because only (brand name) is reason to

believe).

Criteria for Evaluating a Positioning Statement 

1.  Is it memorable, motivating and focused to the core prospect?

2. Does it provide a clear, distinctive and meaningful picture of the brand that

differentiates it from the competition?

3. Can the brand own it?

4. Is it credible and believable?

5. Does it enable growth?

6. Does it serve as a filter for brand decisionmaking?

Or

positioning statementWritten description of the objectives of a positioning strategy . It states (1) how

the firm defines its business  or how a brand distinguishes itself, (2) how

the customers will benefit from its features, and (3) how these benefits or aspects

will be communicated to the intended audience.

Segmenting

Segmenting is the process of dividing the market into segments based on customer characteristics and

needs.

The main activity segmenting consists of four sub activities. These are:

1. determining who the actual and potential customers are

2. identifying segments

3. analyzing the intensity of competitors in the market

4. selecting the attractive customer segments.

The first, second and fourth steps are described as market segmentation. The third step of analyzing the

intensity of the competitors is added to the process of segmenting in this process description. When

different segments are identified, it is not necessary that these segments are attractive to target. A

company is almost never alone in a market -- competitors have a great influence on the attractiveness of

entering a certain market. When there is a high intensity of competitors, it is hard to obtain a profitable

market share and a company may decide not to enter a certain market. The third step of segmenting is

the first part of the topic of competitor analysis.

The need for segmenting a market is based on the fact that no market is homogeneous. For one product

the market can be divided in different customer groups. The variables used for this segmenting in these

groups are usually geographical, psychographical, behavioral and demographic variables. This results in

segments which are homogeneous within and heterogeneous between each other. When these segments

are known, it is important to decide on which market to target. Not every market is an attractive market to

enter. A little filtering has been done in this activity, but there are more factors to take in account before

targeting a certain market segment. This process is called targeting.

Targeting

After the most attractive segments are selected, a company should not directly start targeting all these

segments -- other important factors come into play in defining a target market. Four sub activities form the

basis for deciding on which segments will actually be targeted.

The four sub activities within targeting are:

1. defining the abilities of the company and resources needed to enter a market

2. analyzing competitors on their resources and skills

3. considering the company’s abilities compared to the competitors' abilities

4. deciding on the actual target markets.

The first three sub activities are described as the topic competitor analysis. The last sub activity of

deciding on the actual target market is an analysis of the company's abilities to those of its competitors.

The results of this analysis leads to a list of segments which are most attractive to target and have a good

chance of leading to a profitable market share.

Obviously, targeting can only be done when segments have been defined, as these segments allow firms

to analyze the competitors in this market. When the process of targeting is ended, the markets to target

are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual

marketing strategy, knowledge of the differential advantages of each segment is needed.

]Positioning

When the list of target markets is made, a company might want to start on deciding on a good marketing

mix directly. But an important step before developing the marketing mix is deciding on how to create an

identity or image of the product in the mind of the customer. Every segment is different from the others, so

different customers with different ideas of what they expect from the product. In the process of positioning

the company:

1. identifies the differential advantages in each segment

2. decides on a different positioning concept for each of these segments. This process is described at the

topic positioning, here different concepts of positioning are given.

The process-data model shows the concepts resulting from the different activities before and within

positioning. The model shows how the predefined concepts are the basis for the positioning statement.

The analyses done of the market, competitors and abilities of the company are necessary to create a

good positioning statement.

When the positioning statement is created, one can start on creating the marke