Simple Steps for Starting Your Business

Market Positioning Statement

Agenda

• Why you need a Positioning

Statement

• Positioning Statement

Components

– Promise

– Support

– Tone & Manner

• Marketing strategies to reach

customers

The Positioning Statement

Rationale

• The process: – Requires you to perform a rigorous

evaluation of your target market’s needs and how well your product/service fulfills those needs

– Clearly identifies unique/key features

• The result: – Message of “why buy from me”

consistently communicated in all marketing material and media to the right target

– Guides future decisions

• website design/promotional materials

• customer service, employees hired

• packaging/storefront

• product extensions

Positioning Statement: 3 sections

• Promise (What are you promising to deliver

and to whom?)

– Target Audience

– What your business is offering, including

competitive advantage/unique selling proposition

– Emotional end benefit

• Support (Tell them why they should believe

you can deliver on your promise)

• Tone and Manner (Define how you will

present yourself to your target audience)

Positioning Statement Part 1:

Promise

To ________________, ____________

(target market) (name of your business)

provides___________________________ (product/service provided including competitive advantage)

to___________________ .

(emotional end benefit)

Positioning Statement Part 1:

Promise

Two hair salons that are right next door to each other and yet do not compete with each other at all: Example 1: "To twenty-somethings in Westchester County, Young ‘n Hip Salon provides au courante, high fashion haircuts for modest prices to help you maintain your reputation for being on top of the newest trends.” Example 2: "To mature women in Westchester County, Bellisima Salon provides consistent, stylish haircuts you can count on to help you look and feel well-groomed."

Positioning Statement Part 1:

Support Young ‘n Hip: "To twenty-somethings in Westchester County, Young ‘n

Hip Salon provides au courante, high fashion haircuts for modest

prices to help you maintain your reputation for being on top of the

newest trends.”

Support:

• Young, hip staff trained by stylists to actors and models; staff may change

frequently

• Color services include blue/purple/orange

• Clientele is male and female

• High fashion décor in shop; décor changes frequently

• Low/modest prices vis a vis market

• Head shots of young actresses/models and wannabees, photos from

latest magazines

• Music is latest and loud

Positioning Statement Part 1:

Support Bellisima Salon: "To mature women in Westchester County,

Bellisima Salon provides consistent, stylish haircuts you can count

on to help you look and feel well-groomed.”

Support:

• Stylists with 15+ years of experience

• Low/no turnover in staff

• Color services are primarily to cover gray

• Prices on higher end of market

• Shop décor is low key and in good taste; remains consistent; any

redecorating is done gradually

• Photos in shop are of women in their 40’s, 50’s and 60’s

• Magazines include Architectural Digest, Martha Stewart Living,

Cooking Light, Bon Appetit

• Classical music; easy listening

Positioning Statement Part 1:

Promise

To ________________, ___________________ (target market) (name of your business) provides_________________________________ (product/service provided including USP) to___________________ . (emotional end benefit)

Group Exercise: Worksheet 1- Target

Market Research

Who will you sell to?

• Channel position

• Key demographics

• Buying habits and behavior

• Market sales size and realistic

assessment of potential share

Target Market

1

Target Market

2

Target

Market 3

Target Market 4

Affluent women,

local sales

Affluent women,

internet

Local gourmet

food retailers

National gourmet food

retailers

Channel

Position

B to C Retail-

farmer’s mkts,

crafts fairs

B to C Internet B to B

Wholesaler

B to B Wholesaler

Key Demos $100K +, 30-55

live in tri state

$100K +, 30-55

national

family Local/regional/publi

c co (WF)

mgr/national

level/private (TJ)

Buying

habits

Impulse, not so

price sensitive

Impulse, not so

price sensitive

Owner/mgr www.traderjoes.co

m/contact-us/new-

vendor-

requirements

Market

Size/Share

3%; 150,000HH

=4.5K HH

0.1%

26MM HH= 26K

HH

10% 519

shops tri state

= 52 shops

1-2 retailers (Whole

Foods: 344 stores)

TJ:415

Target Market Research Worksheet Example

Group Exercise: Worksheet 2-Target Market

Comparison

• Assess target customer needs

vs. your products/ services

• Which target is more profitable

(consider cost and price)

• Where will you see more sales

• Which target customer is

easiest for you to reach for

advertising

• Favorable competitive

environment

• Fits my vision and skills

Target Market Comparison Worksheet

Example

Target

Market 1

Target

Market 2

Target

Market 3

Target

Market 4

Affluent women,

local sales

Affluent women,

internet

Local gourmet

food retailers

National gourmet

food retailers

Need

++ ++ + 0

Profit + 0 + -

Sales + ++ + ++

Promotion + - + -

Competition + + 0 -

Fits me + - + -

Positioning Statement Part 1:

Promise

To ________________, ___________________ (target market) (name of your business) provides_________________________________ (product/service provided including USP) to___________________ . (emotional end benefit)

Group Exercise: Worksheet 3:

Products and Services Description

Descriptions should include:

• Special benefits/unique features

– Service/quality/guarantees

– Functionality

– Delivery mechanism: speed/convenience/cost

– Knowledge/experience/training/ability of supplier

– Selection available

– Pricing

Product & Service Description Worksheet Example

Areas for Potential

Differentiation

Unique Features & Benefits that meet

needs or target customer

Service/Quality/Guarant

ees

Guarantee more fruit in jam than anyone

else; absolutely no preservatives; organic

Functionality N. A.

Delivery Mechanism Allow for trial with free small samples

Knowledge/Experience/

Ability

Old world recipe handed down from

generations; made by same family

Selection Available 7 varieties

Pricing High end

Group Exercise: Worksheet 4-

Competitive Comparison Chart

Compare the competition to your

product/service offering in the

same attributes you evaluated in

Worksheet 3.

Competitive Comparison Worksheet Example

My Jam Stonewall Crofter’s INNA

Service/

Quality/Guarantees

+ - 0 +

Functionality N. A.

Delivery - + 0 0

Knowledge/Experien

ce/Ability

+ - - +

Selection Available - + + +

Pricing 0 0 + -

Marketing Positioning Outline Example: The Promise

Business Name Kata’s Jams

Target Market Affluent women who shop in

gourmet food stores in the tri state

Product/Service

Offered

Authentic all natural jam made with

an old family recipe

Unique Feature Has the most organic fruit in every

jar

Customer Benefit You’re smart and caring to be taking

care of your and your family’s health

Promise: To affluent women in the tri state area, Kata’s Jams

offer delicious, all natural jam made from an old family

recipe with the most organic fruit in every jar so you can rest

assured that you’re really taking care of yourself and your

family.

Positioning Statement Part 2:

Support

• This part provides the support for the promise

you are making your target market. It should

spell out clearly how you are able to deliver on

the promise and could be based on factors such

as these

– your experience, training, knowledge

– a patent or intellectual property

– special access

– quality

– customer service

– delivery process

Positioning Statement Part 3: Tone

& Manner

• This part specifies the tone you want to convey

in all your communications. To give the best

direction to whoever is creating your

communications, it is a good idea to include:

– Adjectives describing the mood you want to convey.

Picture the difference between ads for the two hair

salons, for example.

– Examples of websites you feel are consistent with

what you are looking for in terms of colors,

emotions, layouts (these don’t need to be in your

category of business)

– Examples of articles/ads/art from magazines

Marketing Communication Methods &

Tools

• Advertising: radio, TV,

newspaper, magazine, direct mail, yellow pages

• Public Relations: print, radio, TV

• Collateral: business cards, tri-folds, stationery, flyers

• Websites, e-mail, social networks, blogs, newsletters

• Product samples, special offers

• Customer surveys

• Presentation material, signage

• Word of mouth

Keeping Your Customers

• Your customers are your best advertisement (or

your worst nightmare)

– Never take them for granted

– LISTEN/ Stay in touch

– Ask them if they are happy—if not, FIX IT NOW

– Ensure that the person(s) in your business who is most

qualified is working with the customer to make the sale.

– Let them know their value to you and remind them how

your product/service meets their needs.