At a glance, a positioning statement and a value proposition might seem to be synonymous. In fact, these terms are defined in a wide variety of ways depending upon who you ask, but both have a critical role in marketing your brand. They may often be confused with a mission statement, slogan, or tagline, but they are none of those. The differences between a positioning statement and a value proposition may be hard to distinguish, but they each serve a distinct purpose.
What is a Positioning Statement?
A positioning statement is used in marketing plans define your specific demographic – you carve out your target audience and what your product, business or service can do for them. The positioning statement should be used as an internal guideline to keep your brand’s messaging consistent. It shares a product’s name, target audience or buyer persona, category, benefit, and competitive differentiation (how it fills the market’s needs better than its competitors).
What is a Value Proposition?
A value proposition explains what “value” you are offering a customer. It lets customers know what your brand’s promise is to them and what benefits they will receive. Your value proposition should specifically communicate a solution you provide and why your customer needs to choose you.
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Key Differences Between a Positioning Statement vs.Value Proposition
Now that we have defined what a positioning statement and a value proposition are, the question is, how do we differentiate the two?
1. A positioning statement is developed from the value proposition.
You should focus on how to create a value proposition before attempting to write a positioning statement or statements. (Depending on the various buyer personas you are targeting and the types of benefits offered, you may need several positioning statements). A value proposition is developed as part of your strategy and may encompass several positioning statements. Before writing the value proposition, Hubspot recommends creating a value proposition canvas, a visual tool used to help you identify the value you are providing to your target customers. Then, using your value proposition, you can move on to creating a positioning statement.
2. The positioning statement is laser-focused, while a value proposition is overarching.
When deciding how to write a positioning statement, one of the most helpful tools is a positioning statement template. These templates break down the following points:
- What is the product name?
- Who are the target buyer personas?
- What problem does your service, product or business solve for them??
- Who are the nearest competitive alternatives?
Using this breakdown, you can identify the primary benefit of the product or service that you are describing, and you can keep your messaging focused.
3. Your positioning statement is an internal tool, while your value proposition is clearly visible on your website.
Using the positioning statement as a guideline means that it isn’t shared with your customer base. It is a tool that your marketing team develops to keep brand messaging consistent and to ensure that you are effectively targeting your chosen demographic. The value proposition should be one of the first things visitors to your website see. It is a simple attention-grabbing statement that tells the world how your brand does it better than the rest.
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Get Help Sharing Your Value
If you are searching for the best way to make your brand stand out in today’s competitive market, let the expert team at Ironmark work with you to reach your customers. We have the knowledge, resources, and skillset to help you build your brand and market it in a way that makes sense for your business.
