Segmentation of the market
Identification of Target segments
Emergence Growth Maturity Decline
Market Life Cycle
Positioning varies with market phase
“It's not enough to invent or discover
something. You must be first to get into
the prospect's mind”
Al Ries and Jack Trout
New Product Category
Start with who you are not!
Existing Product Category
Who is your target audience?
What is the one most important problem of your
What is the one most important benefit of your
Why is your product better than your competitors'
For (target customer)
who (statement of the need or opportunity),
the (product/service name) is a (product/service category)
that (statement of benefit).
Unlike (primary competitive alternative),
our product (statement of primary differentiation).
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Cleartrip for Business
Problems faced by our target audience
− No transparency in travel costs
− Less control
Positioning: Comprehensive travel management solution
− Ability to define travel booking policies
− Get a snapshot of travel booking trends
− Link travel expenses to departments, cost centers
A few pointers
Keep it short and specific
Stick to one target customer's problem you will
solve and one significant benefit your product
offers in relation to competition
Share your positioning statement with all Internal
stakeholders (customer service, sales, technical
support, design, engineering, marketing)
Basic Principles remain the same!
Focus on channel strength (delivery model)
− Reseller capabilities
− Support systems
Does your positioning strategy
− Match with your target customers' needs?
− Compare your product/service with
respect to competition?