Understanding Positioning and Value Propositions
Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.
The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the brand’s essence, identifying the goals it helps consumers achieve, and showing how it does so in a unique way.
One result of positioning is the successful creation of a customer-focused value proposition, a cogent reason why the target market should buy a product or service. Table 7.1 shows how three companies have defined their value proposition through the years with their target customers.
Deciding on a positioning requires:
- choosing a frame of reference by identifying the target market and relevant competition,
- identifying the optimal points-of-parity and points-of-difference brand associations given that frame of reference, including emotional branding, and
- creating a brand mantra summarizing the brand’s positioning and essence.
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