How to Create a Powerful Positioning Statement

In the fast-paced world of B2B marketing, mixed messages can be a death knell for an emerging business, new product launch, or even an established business.  Imagine attending a trade show where your CEO and a sales rep offer completely different explanations of what your company does.  Ouch.

Confusion often stems from a lack of a clear positioning statement. As a go-to-market strategist, you know the value of a focused strategy.  A positioning statement acts as the cornerstone of that strategy, ensuring everyone – from product development to sales – is aligned. Let's start with the basic definition.

What is a Positioning Statement?

Think of it as a concise, market-tested statement that defines how you want your offering to be perceived within your target market. It answers these critical questions:

1. Who do we want to reach (target market)?
2. What business are we in (category)?
3. How do we do it better than the competition (differentiator)?
4. What's the tangible benefit they receive if they choose our product (payoff)?

A strong B2B positioning statement becomes the north star for your go-to-market strategy, ensuring all your messaging resonates with your target audience decision-makers.

Crafting Your B2B Positioning Statement

Before you begin crafting your positioning statement some groundwork is necessary:

• Know your ideal customer profile (ICP) - Drill down beyond demographics. Understand specific challenges and buying criteria.
• Identify your unique selling proposition (USP) - What makes your solution stand out in a crowded marketplace?  Don't just say "better;" explain the specific advantage.

The 4 Pillars of a B2B Positioning Statement

1. Target Market: Choose the specific segment you're targeting. Keep in mind what terms define a 'market'. This nuance is critically important for your marketing team to be efficient and effective with their messaging and go-to-market tactics. According to Geoffrey Moore, a market must meet the following criteria:
   • a set of actual or potential customers
   • for a given set of products or services
   • who have a common set of needs, wants, problems
   • who reference each other when making purchase decisions
   • who assemble physically or virtually in a place where messaging or advertising can reach them efficiently as one group
2. Category aka Sandbox: Prospective customers (all of us) need a frame of reference when we evaluate a product or service.  We want to know the context in which we evaluate. Your customers want the same thing. Frame your offering within a relevant industry category. This can be achieved by stating a common category where you play; for example marketing automation, lithium battery manufacturing, family sedans, electric vehicles, etc.  If your prospective customers can't place your company or your offering in a context, they will not spend any time evaluating the offer.
3. Differentiation: The strategic process of distinguishing your company's products or services from those of its competitors. This can be achieved through various means such as superior quality, unique features, advanced technology, exceptional customer service, innovative design, or customization options. The goal of differentiation is to create a competitive advantage that makes the company's offerings more attractive to potential business customers, thereby increasing market share and profitability. Statements such as global leader, number 1 company, or largest are weak differentiators and should not be used.
4. Payoff or benefit: Explain how your product or service solves their specific pain points or helps them achieve business goals. The payoff ties the differentiation with the needs or goals of the target market.  You need to tell the target audience how your differentiator will help them achieve what they want to achieve.

Do you find yourself unsure about what your target market truly desires? Crafting a meaningful Positioning Statement necessitates a deep understanding of your audience. This comprehension should stem from thorough market research rather than mere speculation.

Sample positioning statement

"For B2B marketers (target market), [Your Company Name] is a next-generation marketing attribution platform (category) that leverages AI to deliver real-time campaign insights and optimize marketing spend (differentiator) because B2B marketers need to demonstrate ROI and maximize marketing effectiveness (payoff)."

"To [target market], [brand] is a [category] that [differentiator] because [target market] needs [the payoff]."

The Benefits of a Clear Positioning Statement

Clarity: Everyone sales, marketing, product, and executives understand how the company wants to be perceived in the target market so messaging is aligned across the organization.

Focus: You are able to develop a targeted go-to-market strategy that is relevant, efficient, and effective.

Differentiation: Everyone in your organization is able to articulate clearly and effectively why your company and your offering are unique and better than the competition.

Alignment: Sales, marketing, and product development all have the same message to the target market.

Summary

Crafting a strong positioning statement is not just a task, it's a strategic investment that shapes the very core of your business. From defining product features to choosing the right marketing channels, the clarity and relevance of your statement will set the tone for a successful go-to-market strategy. With a well-crafted positioning statement, your business will resonate with the target market, grow, and beat the competition.