Simple Steps for Starting Your Business. Market Positioning Statement

Transcription

1 Simple Steps for Starting Your Business Market Positioning Statement

2 Agenda Why you need a Positioning Statement Positioning Statement Components Promise Support Tone & Manner Marketing strategies to reach customers

3 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

4 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)

5 Positioning Statement Part 1: Promise To, (target market) (name of your business) provides (product/service provided including competitive advantage) to. (emotional end benefit)

6 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 wellgroomed."

7 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

8 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

9 Positioning Statement Part 1: Promise To, (target market) (name of your business) provides (product/service provided including USP) to. (emotional end benefit)

10 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

11 Target Market Research 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 Channel Position B to C Retailfarmer s mkts, crafts fairs B to C Internet B to B Wholesaler B to B Wholesaler Key Demos $100K +, live in tri state $100K +, 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 m/contact-us/newvendorrequirements 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

12 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

13 Target Market Comparison Worksheet Example Target Market 1 Affluent women, local sales Target Market 2 Affluent women, internet Target Market 3 Local gourmet food retailers Target Market 4 National gourmet food retailers Need Profit Sales Promotion Competition Fits me

14 Positioning Statement Part 1: Promise To, (target market) (name of your business) provides (product/service provided including USP) to. (emotional end benefit)

15 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/abili ty of supplier Selection available Pricing

16 Product & Service Description Worksheet Example Areas for Potential Differentiation Unique Features & Benefits that meet needs or target customer Service/Quality/Guarant ees Functionality N. A. Guarantee more fruit in jam than anyone else; absolutely no preservatives; organic Delivery Mechanism Knowledge/Experience/ Ability Selection Available Pricing Allow for trial with free small samples Old world recipe handed down from generations; made by same family 7 varieties High end

17 Group Exercise: Worksheet 4- Competitive Comparison Chart Compare the competition to your product/service offering in the same attributes you evaluated in Worksheet 3.

18 Competitive Comparison Worksheet Example My Jam Stonewall Crofter s INNA Service/ Quality/Guarantees Functionality N. A Delivery Knowledge/Experien ce/ability Selection Available Pricing

19 Marketing Positioning Outline Example: The Promise Business Name Target Market Product/Service Offered Unique Feature Customer Benefit Kata s Jams Affluent women who shop in gourmet food stores in the tri state Authentic all natural jam made with an old family recipe Has the most organic fruit in every jar 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.

20 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

21 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

22 Marketing Communication Methods & Tools Advertising: radio, TV, newspaper, magazine, direct mail, yellow pages Public Relations: print, radio, TV Collateral: business cards, trifolds, stationery, flyers Websites, , social networks, blogs, newsletters Product samples, special offers Customer surveys Presentation material, signage Word of mouth

23 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.