A Simple Primer on Product Positioning
Gabriel Steinhardt
Founder, Author, Public Speaker. Developer of the Blackblot Product Manager's Toolkit? (PMTK) Methodology
Product positioning is a known and established tool in product marketing to differentiate and convey a value proposition
Introduction
Product positioning is a psychological location on a mental map in the customer’s mind, about the relative qualities a product may have compared to its competitors.
In other words, product positioning is the customer’s imaginary perception, on a mental map, of a specific product or service as compared to its competition.
A Product Positioning Map is a mental map where competing products are compared.
The product positioning map could be a one-dimensional vector with only one criterion.
The product positioning map could also be a two-dimensional graph, with any two criteria placed on the axis. Normally,?the?axis?is?used to compare costs vs. benefits.
Product positioning is a natural and intuitive process.
For example, without establishing any criteria and with minimal effort, many people could create in their minds and place the Tata Nano, Toyota Corolla, and the BMW 7-series passenger vehicles on a one-dimensional or two-dimensional product positioning map.
Information in a product positioning statement that was communicated to a person could influence that person’s view of actual competing products.
Product Positioning Statement
Product positioning statements are aggregate units of information.
A product’s positioning statement is used to develop clear and focused marketing messages that communicate the product’s unique psychological placement and value proposition to multiple audiences.
As usual, many variations and formats are advocated when preparing a product positioning statement.
Regardless of the format, the product positioning statement is grounded in six components:
Any product positioning statement format should ideally embody all six components.
The Blackblot PMTK? Methodology? and the PMTK? toolkit employ a somewhat modified two-sentence positioning statement synchronized with the PMTK? value and messaging models used in PMTK’s product marketing templates and activities.
The product positioning statement structure used in PMTK? is:
“For the <target customer> who <statement of need or opportunity>, the <product name or category> provides <statement of key benefit>. Unlike <primary competitive alternative>, the <product> <statement of primary differentiation>.”
The practical application of a product positioning statement is outlined with the following examples.
Tesla Product Positioning Example
Tesla Motors describes itself as the designer and manufacturer of “Premium Electric Vehicles”.
It is difficult to determine Tesla Motors’ raw product positioning statements because they have not been officially published.
Based on Tesla’s corporate communications and tagline, the core of Tesla’s product positioning statement would likely center on two factors: premium (luxury, comfort) and electric (sustainability, renewable energy).
Tesla also strongly mentions vehicle safety on its website as a primary factor.
Based on the aforementioned information and using the Blackblot PMTK? model, a possible product positioning statement for a Tesla car would be:
“For the discriminating individual who is environmentally conscious and quality minded, the Tesla range of premium electric vehicles provides enjoyable, sustainable transport. Unlike gasoline combustion vehicles, the Tesla electric battery-powered car is safer in an accident than any other vehicle whatsoever.”
iPhone Product Positioning Example
It is possible to learn from good examples, but also from bad ones.
The following iPhone vs. BlackBerry product positioning statement is intentionally flawed.
“For the <mobile user> who <needs a single multipurpose handheld device>, the <iPhone> provides <a phone with Internet access and a widescreen audio/video player>. Unlike <a BlackBerry>, the <iPhone is years ahead with an ever-growing collection of applications for every purpose>.”
This example is flawed because nobody really “needs a single multipurpose handheld device”.
People have a deep need, for which the “single multipurpose handheld device” is the solution.
A major differentiator that should be included in the product positioning statement is the iPhone’s ultra-friendly and intuitive user interface.
Remembering that all marketing content is subjective and endlessly debatable, the proper iPhone vs. BlackBerry product positioning statement could be as follows:
“For the <individual> who <needs to be entertained, communicate, do business, and manage their information while being mobile>, the <iPhone, a single multipurpose handheld device with Internet access and a widescreen audio/video player> provides <a collection of applications for every purpose>. Unlike <BlackBerry>, the <iPhone> <possesses an unmatched ultra-friendly and intuitive user interface>”.
One or Multiple Product Positioning Statements
A product positioning statement is always formulated per each target market, not per each competitor.
Only one product positioning statement is required for one specific target market, regardless of the competitive landscape and the number of competitors in that target market.
Addressing the nature of the competition in the target market is reflected in how the product positioning statement is crafted.
Product positioning statements can refer to a competing category of products or a single specific competing product.
It is possible, but not compulsory, to identify several core product positioning statements for different target markets relative to the product itself and the unique competitors in each target market.
Depending on the situation, separate product positioning statements may be needed for each target market, or one uniform statement will suffice for all the target markets.
For example, two distinct product positioning statements, one for iPhone vs. Android and the other for the iPhone vs. BlackBerry, would be created only if the iPhone competes against each of these competing products in two distinctly separate target markets.
However, only one properly crafted product positioning statement is required if the iPhone competes in the same target market against BlackBerry and Android phones.
Product Positioning Clarifications
The following are key PMTK? guidelines to product positioning:
Summary
Crafting a proper product positioning statement is not trivial, but delivering effective results with a correct understanding is possible.
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