Deirdre Breakenridge helps you to pinpoint the value of your offering. She shares ways you can write a position statement, including the need for a clear and concise statement.
- You're at a critical point in your go to market plan. Time to work on your marketing strategy for your new product. Here's where you really need to step back and think about your product's overall value to the market. Have you thought about your value proposition, its broad market appeal, or your positioning statement which includes more of the specific reasons why someone would purchase your product? Let's start with the value proposition. Think about your product's overall value to the market. This is the big why question.
Why would a customer purchase your product or service over another company's? Your value proposition makes you stand apart from similar offerings. Here is a good example of a value proposition from Evernote. Evernote is a note taking software. I personally use it to keep me organized. Evernote's value proposition is that you can remember everything because it helps you to capture ideas when you're on the go and able to access the product from any number of places. Of course, not every value proposition is communicated the right way.
Here are the elements of a poorly constructed value proposition to watch out for. Number one, the statement lacks clarity. Number two, it's too specific to your product. Number three, no immediate benefits for the customer are communicated. Number four, it's filled with jargon and hype you can't demonstrate. And number five, it's difficult to understand in five seconds or less. Now, moving on to your positioning statement, you've already done a lot of work to help you build the pieces of your product positioning statement.
You can go back to your market research on the customers and your competitors, which will definitely help. Your statement needs to address the following questions. Who is your target audience? If you've already broken out your target markets through segmentation then you know the different buyers. You want to be very specific about who your audience is and what they need. What is the unique value or the benefits that your product can deliver? Remember, you want to point out what only you can deliver and no one else can provide.
How can you show your audience you're different and why should they believe you? This is your opportunity to list how. What can you do that your competitors can't? Your positioning statement can also reveal your competitive edge over other companies based on how they deliver products to your potential customers. To make it easier, here is a template that you can use to create your positioning statement. With our product, insert product name, we help, add in target audience, who need, now add in what they require, want, and need, which can help them to, add in the solution, by doing the following, now add in the benefits.
Standing out from the competition, our product is, add in what's unique that no one else can offer. Here is a good, short example of a product positioning statement. Southwest Airlines states, the short haul, no frills, and low priced airline. That's really short and sweet. They are making it very clear that their travel customers want no frills, are cost conscious, and Southwest can beat its competitors with these benefits. Think about your overall value proposition and develop one that's clear and easy to understand.
Then take the time to detail your product benefits and share your competitive advantage in your positioning statement. Now that you know the importance of a value proposition and positioning statement, you can create your own as a part of your go to market plan.
- Building your go-to-market (GTM) plan foundation
- Assessing whether you need a marketing or GTM plan
- Entering new markets with a competitive advantage
- Developing your product vision and message
- Setting your product price at launch
- Setting up your channel strategy
- Driving better channel performance
- Evaluating KPIs and metrics
- Storytelling and the customer journey