127 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:
- the target segment
- the brand name
- the product/service category or frame of reference in which you are establishing this market position
- the key points of differentiation
- 5the reasons customers should believe the positioning claims.
The brand consultancy EquiBrand recommends the following straightforward formula for writing positioning statements:
To [target audience], Product X is the only [category or frame of reference] that [points of differentiation/benefits delivered] because [reasons to believe].[1]
The parts of the formula supplied by you (the marketer) are as follows:
- The “target audience” is a brief description of the segment you’re targeting with this positioning strategy. For example: young urban males, managing partners in law firms, or small business owners in the Pacific Northwest.
- “Product X” is your product, service, or brand name.
- The “Category or frame of reference” is the category of products or services you’re competing in. For instance: spectator sporting events, virtual assistant services, or employer pension plan.
- The “points of differentiation/benefits delivered” explains both what problem you solve and how you solve it in a different and better way than competitors. It highlights the competitive advantage(s) underpinning your positioning strategy. Be sure to explain not just what is different about you, but why customers care about that difference.
- The “reasons to believe” are any proof points or evidence that show your customers how you live up to your claims about how you are different and better.
Let’s look at some examples of well-written positioning statements:
H & R Block continues to ask “Who is doing your taxes?” but has evolved their campaign positioning in 2019 to shift to who SHOULD be doing your taxes, under their umbrella theme of “Get what’s yours?”. [3]
Amazon (circa 2001, when it sold primarily books)
For World Wide Web users who enjoy books, Amazon is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon provides a combination of extraordinary convenience, low prices and comprehensive selection.[4]
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.
Amazon (circa 2019, largest logistics company in the world)
Amazon’s positioning statement
“Our vision is to be the earth’s most customer-centric