Value Proposition. Positioning Statement. Are They Really Different? 2005 Qtr 2
Don’t look now but I think my value proposition is dancing with my positioning statement.
Value proposition. Positioning statement.
What do these often repeated phrases mean and are they really different?
The simple answer is yes, they are different. And to marketing professionals, they convey very different strategic concepts.
In its simplest form, a value proposition is the summation of the brand’s functional, emotional and self–expressive benefits that bring value to the customer.
A positioning statement is defining what the brand does, what benefits it offers and most importantly where the brand is in the customer’s mind. Another way of describing positioning is where your brand is on the marketing spectrum as it relates to the consumer/customer.
Value Proposition
First, let’s look a bit closer at value propositions. The most common form of a value proposition highlights the functional benefits of a brand. The benefits relate directly to the product/service. Take automobiles for example. Functional benefits of an SUV are all–wheel drive, wheel clearance and off–road capabilities. If you’re looking for examples of functional benefits in a service, how about guaranteed overnight delivery from Fedex, or a 30–minute oil change from Jiffy Lube? Functional benefits are terrific if you can dominate a category as the only brand offering them; however, they can also be quickly duplicated and are hard to differentiate.
Emotional benefits are those feelings that a purchaser gets when they select a brand. Take for instance the security or safety people feel with Volvo, or perhaps the mental boost of drinking Gatorade during a sporting event, or purchasing Pepperidge Farm cookies for a feel–good snack. Emotional benefits help bring depth to a product or service by letting the purchaser interact with the brand on more of a psychological level versus the functional level. Truly strong brands combine both functional and emotional benefits providing a more secure brand with a deeper relationship to the purchaser.
Self–expressive benefits are those that convey I am what I purchase. Burberry, Mercedes, Mont Blanc come to mind when thinking about brands that convey self–expressive benefits. Upscale brands may convey success, financial power or exclusivity. But not all self–expressive brands are upscale; think about the power of Carhartt, Craftsman and Red Wing, to name a few. Emotional benefits and self–expressive benefits can be very similar; however, most self–expressive benefits are centered around the self and aspirational feelings.
Positioning Statement
When defining a positioning statement it is all about focus. At Miller Brooks, we say the position must be unique, relevant, credible and communicable. A positioning statement stands for one unique element that will give your brand a competitive edge. Trout & Reis’ seminal book titled Positioning says: positioning is the battle for your mind. Al Reis’ admonition almost twenty years ago was “the best approach to take in an over–communicated society is the oversimplified message”.
Positioning is finding a space in the customer’s mind that you can own. It allows the customer to remember your brand and make connections based upon your unique position. When you craft a positioning statement, you are telling your customer what’s unique about your product or service and why it sets you apart from the competition. The positioning statement may contain messaging about a functional or emotional benefit; however, it must be unique to your brand and you must own that space in your customer’s mind.
Often positioning can be defined by the audience it targets. Miller Lite beer was originally positioned as a dieter’s brand. When they repositioned the beer to be the “less filling” beer, it began to appeal to a different and much larger audience. Most good positioning is focused in its communication and stands for just one thing. This is the hardest concept for most marketers to embrace.
So, set your brand up for success by doing both: owning a position and focusing your value proposition on truly differentiated benefits.
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