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It can be hard to express yourself. You know everything about your business and what makes you great, but putting it down on paper? That’s a different story.
Still, every business needs a great product positioning statement. It’s the elevator pitch that describes your company and what value you offer to customers in a nutshell. It’s short, to the point, and packed with meaning.
Coming up with a positioning strategy requires a lot of soul-searching, and ultimately a lot of work. But the principles of marketing dictate that it’s work that must be done, so let’s get down to it.
A brand positioning statement -- which can also be called a mission statement, or vision statement -- is how a business describes its particular product or service, and exactly what customer need that product or service meets in a way competitors don't.
Positioning is vital to any business, because without it, a company can easily get lost in the shuffle as customers end up gravitating to companies that are able to specifically address their needs.
Your business must come up with a specific positioning statement in order to differentiate yourself from everyone else and create a customer profile that will allow you to come up with a targeted marketing and sales campaign. It's important whether you're in restaurant marketing, law firm marketing, or website marketing. Basically, it’s marketing 101.
One of the best digital marketing tips for all businesses is the suggestions that they put together a good positioning statement, which has the following five key elements:
The first thing to keep in mind is that a positioning statement should be short and sweet. You don't want pages and pages describing what your company is all about; save that for the business plan.
The purpose of a positioning statement is to quickly and succinctly describe your company and what makes you different. There should be no wasted words in this statement, so here's how you should approach each of the five elements.
Your brand and your product are really two things that go hand in hand. The first is your brand, and it is essentially the image people have of your company. The second is the actual product (or service) you create that results in the image your brand has. You can use one to enhance the other in your positioning statement.
For example, your brand can be that you provide exceptional IT security for small to mid-sized online retailers, and your product is software for online retailers with small budgets that protects sensitive customer data from identity thieves and hackers.
Defining your brand and product seems simple, but it’s not. You may find yourself describing one aspect of your product, when really you should be focused on an entirely different aspect. Here’s how to come up with the right definition.
If you haven’t taken the time to sit down and write out a customer profile, now’s a good time to do that. Chances are, you have a good idea of what the typical customer looks like, or you can look at data from past customers to come up with one.
Find a way to boil this down to one sentence, such as, “Our customers are middle-aged small to mid-sized online retailer owners who are worried about being hacked and having their customers’ data released online, resulting in lost sales, angry customers, and even lawsuits.”
You need more information about your customer than, say, “needs IT services.” How big is their business in terms of revenue? Do they have an IT team, or is the owner basically doing all of that work alone? What kind of IT services do they need?
Your industry category may be obvious to you, but it might not be to others. For example, if you produce software that provides targeted information to help contractors find new clients, are you a media company? Are you a consultant? Or are you something else entirely?
There are a couple of ways to do this. One way is to look at your competitors and see how they classify themselves. Another is to examine the customer and how they classify themselves. Doing this will give you clues as to your own industry.
The best way to figure out what industry you fit into is to look around you.
Now you need to describe what your product or service actually does. You should go back to the description of your product and the target market and meld those two things together.
For example, if your product is IT security, and your target market is small to mid-sized online retailers, the benefit you offer is that you provide affordable IT security to help small to mid-sized online retailers sell without fear of hackers and identity theft.
Describing the benefits is tricky, but the most important thing to remember is to put yourself in your client’s shoes. What are they hoping to hear from you?
This might be the most critical step of all: How are you different from the competition? What value proposition makes you stand out? What makes the customer say, “I want to do business with them rather than these other guys”?
If you’re a small law firm that specializes in protecting people from debt collectors, you could be the friendly neighborhood lawyer who puts your clients’ minds at ease so they can live their lives without fear. You invite worried people to just have a cup of coffee and talk about things. Really, you’re selling peace of mind, not legal services. Marketing tactics like these really help you get results.
Offering a value statement that separates you from the competition is where a lot of businesses fall down, but there are a couple of sure-fire ways to do it.
Once you've defined all of the above elements, it's time to actually write the positioning statement. There are a number of ways to do that. Here are a few formats to consider:
Or, you can come up with your own wording. But if you do, follow the examples above in terms of not adding a bunch of extraneous words. It's OK to add another couple of sentences talking about other differentiators and benefits, but keep it simple.
Once you have a positioning statement, it’s time to get it out there. Recite it at sales pitches. Use it to guide you when you discuss marketing or advertising campaigns. Use it to develop your small business marketing plan and marketing collateral. Put it on your website. Blast it out with email marketing software. Use whatever marketing channels you have at your disposal to spread it.
Get your entire company rallying around it, and you’ll forge a clear path forward for your company.
Our Small Business Expert
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