Positioning is a crucial aspect of marketing strategy, as well as overall business strategy. It is all about showcasing how your business is unique and different from others in the market. Positioning helps in highlighting what your business offers to customers that sets it apart from the competition.
The positioning statement template is a classic tool that has proven to be very effective in developing business plans. The template follows a simple structure: “For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].” This template helps businesses clearly define their target market, their specific needs, and how the business meets those needs uniquely compared to competitors.
For example, a social media consulting service might use the positioning statement template as follows: “For small business owners who want social media marketing but don’t have time to do it themselves, our social media services do it for them without taking their time and effort. Unlike most social media consulting, we don’t just advise; we do the work.” This statement clearly differentiates the service from competitors by emphasizing the hands-on approach.
Similarly, a healthy fast-food restaurant could use the template as follows: “For busy people who want healthy foods but need fast meals, we offer organic healthy fast foods. Unlike most fast-food offerings, we offer fresh local ingredients, organic, grilled not fried, with a lot of vegetables and vegetarian options, and free-range meats.” This statement highlights the unique qualities of the restaurant’s offerings compared to traditional fast food options.
Positioning can also be visually represented through diagrams, such as the one from Philip Kotler’s “Marketing Management” textbook that illustrates positioning related to breakfast. The diagram shows how different breakfast options can be categorized based on their speed and cost, highlighting the unique positioning of each type of breakfast item.
Creating your own positioning diagram can help in strategic thinking and market analysis. By dividing your market based on variables that make strategic sense, you can identify key competitors and opportunities for differentiation. This can then be used to develop a formal positioning statement that sets your business apart in the market.
Overall, positioning is a powerful tool that can guide marketing strategy, messaging, and overall business direction. By clearly defining your target market, their needs, and how your business meets those needs uniquely, you can create a strong position in the market that resonates with customers and sets you apart from competitors. The concept of the competitive matrix that we often see in business plans and pitches has its roots in the positioning diagram popularized by Philip Kotler in the 1970s and 1980s. This tool is not just for showcasing how your product is better than competitors; it is also a valuable internal tool for strategy development and product design.
When using the positioning diagram or competitive matrix, the focus should not solely be on demonstrating superiority over competitors. Instead, these tools can help identify gaps in the market and unmet needs, guiding product development towards solutions that offer better business opportunities.
In a business plan intended for angel investors, it’s crucial to include a pitch deck with either a positioning diagram or a competitive matrix as a single slide. Including both may overwhelm investors. The choice between the two depends on the specific goal of the plan and the nature of the business.
For a more traditional approach, the positioning statement can be incorporated into the marketing strategy section of the plan. This concise statement effectively communicates the business’s strategic positioning. In a lean business plan, the positioning statement and diagram can aid in strategy development, serving as a guide for concrete actions and milestones.
Whether using a competitive matrix or positioning diagram, the key is to place it strategically within the plan to achieve the intended goal. These tools are not just for show; they are essential for refining strategy, identifying market opportunities, and guiding product development. By leveraging these tools effectively, businesses can gain a competitive edge and attract potential investors.
Author: Tim Berry is the founder and chairman of Palo Alto Software, with extensive experience in business planning and strategy. With an MBA from Stanford and a background in entrepreneurship, Tim is dedicated to helping businesses succeed through effective planning and positioning strategies.