Which of the following is true of an effective brand positioning statement?
Way back in 1969, a very perceptive marketer named Jack Trout introduced the concept of brand positioning to the world. He was the first to put a word to a very powerful marketing effect. A few years later, he and Al Ries wrote the seminal book, Positioning: The Battle for Your Mind, and the rest is history. Show
Now, more than half a century later, the concept of positioning is just as relevant to businesses — and probably more so. If anything, today’s professional services marketplace is much larger and more crowded. Buyers have a bewildering array of firms to choose from, and with the rise of the Internet, local firms are contending with companies across the nation, if not the world. Download the Rebranding Guide for Professional Services What’s a firm to do? How do you compete when there’s barely room to breathe? That’s where brand positioning comes in. It elegantly explains how people see the marketplace and prescribes a way firms can carve out a place in the minds of their buyers. Brand Positioning DefinedAt its simplest, brand positioning is the process of setting your business apart from your competitors in a way that builds preference for you among your target audience. Its goal is to associate your firm with an idea or category in the minds of people who might buy your services. Let’s consider a couple of examples. What do you think of when you read the words, “soft drink” or “pop”? Did Coke or Pepsi come to mind? These two products are positioned to dominate the soft drink category. Now let’s try a service. What company does “overnight shipping” make you think of? Even though other companies offer overnight delivery, FedEx owns that category — it has built its entire identity and operations around doing it better than anyone else. In theory, any professional services firm can build a strong association between their brand and an idea. But to be successful, your positioning must be 1) different (it’s tough to take over a leadership position already held by another business — remember, Avis has been #2 since 1953.); and 2) visible (if nobody has heard of your firm, your positioning can’t take root). Typically, your brand positioning is articulated in your brand positioning statement. But I’ll have a lot more to say about that a bit later. Why Brand Positioning Is ImportantWhen you have a well-defined brand position, your firm has many advantages. Positioning can provide a conceptual template for your brand, your marketing messages, the services you offer and even the way you structure your pricing. Here are a few of the key benefits of brand positioning:
5 Types of Brand Positioning StrategyPositioning strategies can take many forms, but not all are appropriate for professional services firms. Below are five strategies that are most relevant to positioning a firm like yours:
See also: EH&E Case Story Download the Rebranding Guide for Professional Services Brand Positioning ExamplesWhat does a well-positioned firm look like? Below we include a few examples of how some of our own clients have positioned themselves in the marketplace. These examples represent the purest distillation of their brand positioning—simple ideas that anyone in the marketplace can understand but which are difficult for competitors to copy. Vault Consulting“The nation’s leading accounting and research firm for nonprofits and associations.” Why it works: Vault’s unusual combination of accounting and research services, in conjunction with their industry focus, allows them to claim leadership status. Sellers Dorsey“The nation’s leading Medicaid consultancy to health care providers, payors and state governments.” Why it works: They do just one thing: Medicaid consulting. And they have built a market leadership position around that specialization. 20-20 Services“We focus on just one thing: equipping today’s accounting professionals with all the skills, knowledge and leadership training they need to thrive and grow.” Why it works: They focus on a powerful need in the CPA industry: keeping accounting professionals fully trained and equipped to build their business. What Is a Brand Positioning Statement?A brand positioning statement is a succinct, easy-to-understand paragraph that describes your firm’s positioning in the marketplace. It should address three questions: 1) What do you do? 2) Who do you serve? 3) How are you different from similar firms in the marketplace? It may also include other key reasons clients prefer your firm over others. A brand positioning statement is primarily an internal document that a firm’s marketing and business development teams can use to craft differentiated marketing language—though some of its language may be used verbatim in public-facing messaging. In Step 4 below, we explain how to write your own positioning statement. The Brand Positioning ProcessReady to develop a brand positioning strategy for your own firm? The steps below will give you a solid roadmap to get there. I’ve also included links to other resources that will help fill in some of the details. Let’s get started! Step 1. Start with your overall business imperatives. What are you trying to accomplish as a firm? Your positioning is a fundamental pillar of business strategy, and it affects how you drive growth and attract the talent you need to sustain your expansion. If you don’t have your business goals written down already, sit down with your management team and make sure everyone has a clear set of priorities. That way, when you begin formulating your positioning statement you will a clear destination in mind. Step 2. Research your target clients and competitors. According to a study of professional services marketing, firms that have a strong understanding of their audiences and competition are more than twice as likely to be high-growth businesses (those that grow at least 20% year over year). This type of investigation is often called brand research, and it is typically conducted by an independent entity to ensure its confidentiality and encourage more honest feedback from participants. It usually involves interviews with current clients, prospects, and referral sources. It also includes an analysis of your competitors — what they are saying about themselves and how your audience perceives them. See also: The Importance of Research in Business Growth Brand research can also identify strengths and weaknesses you weren’t able to see before. In addition, you’ll learn what factors potential clients value most during the selection process. And brand research is critical to the success of the next step. Step 3. Identify your differentiators. This is where your business goals and brand research turn into marketing gold. Drawing on the insights of your team, external perceptions of your firm and a new understanding of your competitors’ positioning, you will pick out characteristics that both set you apart from your competition and are valuable to prospective clients at the time they select a firm. Strong differentiators must also meet three other criteria: they must be 1) true, 2) provable and 3) relevant to your target audience. If a differentiator isn’t true, clients will often sense it and approach your firm with skepticism. That’s why you should be able to support each differentiator with evidence. Often you will uncover proof in your brand research (for example, a finding that “9 out 10 clients refer us to others” is a nice statistic to reinforce a variety of differentiators). Some differentiators may be characteristics that you discover in your research (“clients find us to be highly flexible”), while others may be a specialization that you have already cultivated (“we provide network security services exclusively to accounting firms”). If you find your existing differentiators lacking, you may decide to pursue a new area of focus or concentrate on a particular area of strength. While this approach will be aspirational at first, it can work so long as you truly commit your firm to it and can prove you are doing it going forward. If you are struggling to think of possible differentiators, consult this list of 21 professional service differentiators for ideas. Or, take a look at this list of the 12 worst differentiators for professional services firms to make sure your existing differentiators aren’t included. To learn more about uncovering your differentiators, check out our free Differentiation Guide for Professional Services Firms. Also, I suggest you read this blog post on competitive differentiation. Step 4. Craft your brand positioning statement. Now it’s time to translate your differentiators into a story that clearly communicates your competitive advantage. A positioning statement distills your key buying propositions into a short paragraph. It’s an internal document — because it is compact it’s not intended to be used verbatim on your website or in your marketing materials. Instead, think of it as a source you can return to again and again when you need the inspiration to describe your firm or persuade people to buy from you. A brand positioning statement can take two different forms: a crafted paragraph or a prompted statement. Developing a crafted paragraph takes more skill and time, but some firms find that it translates more easily into marketing messages. A prompted statement is quicker and simpler to assemble — your team fills in the blanks with the appropriate information. Here’s an example of a positioning statement in paragraph form: Newco is the nation’s leading IT consultancy that specializes in law firms and legal departments. Our team of attorneys, engineers, CIOs, executive directors, and project managers is uniquely positioned to make your practice more productive and profitable. We’re familiar with the hundreds of software applications used by the legal community, and we’ve developed a suite of tools that makes migrating and configuring systems faster and more efficient. We also have a reputation for doing a job once and doing it right — that’s why 4 out of 5 clients put us on a long-term contract. When you need the best legal IT advice and support, Newco is the easy choice. And here’s what a prompted statement template, ready to be filled out, looks like: If Newco had used the prompted statement, this is how it might read: Whichever format you choose, your brand positioning statement should include the following elements:
Okay, let’s break down the Newco example and make sure we’re covered. What’s their name? Newco. (Check!) What services do they provide? IT consulting services. Who is their target audience? Law firms and legal departments. Why do clients choose them over other firms? They work exclusively with legal practices, so they are industry specialists. This gives them an advantage when pursuing business with law firms and legal departments over generalist IT firms that serve multiple industries. They also claim to be the leaders in their niche. What else supports their positioning? They have developed a proprietary suite of tools that allows them to do their job better than their competition. And because their team includes professionals who have been in their clients’ shoes (attorneys, CIOs, executive directors) they are well attuned to their needs. They also have a great reputation, which they can demonstrate by citing the high percentage of clients that put them on long-term contracts. So how do you use your brand positioning statement? The first thing many firms do is develop their elevator pitch — that short description of your firm that answers the question, “What does your firm do?” Keep your elevator pitch short — a sentence or two will usually do the trick — and write it in natural, conversational language. If people were to memorize it, it should sound like something a person would actually say. You can also use your positioning statement as the foundation of your messaging architecture. Your messaging architecture is a document that spells out key messages for each of your audiences and addresses specific objections they may have. For example, “Why would I choose your firm over a better-known competitor?” Finally, you will use your positioning statement as inspiration for headlines and persuasive language on your website and in marketing collateral. Step 5. Implement your new positioning. No strategy, no matter how well-conceived, will survive poor implementation. You have to have the right communications tools in place — pieces that will support the new message you are delivering. And that may require revisiting everything you use to market your services. At the very least, you will want to reflect your new positioning in your marketing materials and website. Download the Rebranding Guide for Professional Services For some firms, however, implementation involves rethinking their overall identity or initiating a rebranding process. This process can involve a soup-to-nuts overhaul — a new name, tagline, logo, website, marketing materials, and more. Typically, this happens when a firm either undergoes a change in strategy or realizes that its brand is out of date and no longer reflects the caliber of the firm they have become. As you develop your new positioning, think about how you will convey that message to the world. What needs to change, what can stay the same, and what new components need to be introduced? See also: Branding services for professional services firms Overcoming Positioning ChallengesRepositioning your firm isn’t necessarily easy. It depends on the raw materials you have to work with and the mindset you bring to the process. Some firms discover that they just don’t have strong differentiators. In this all-too-common situation, a firm has four options:
Brand Positioning Strategy ExamplesProfessional services firms often struggle to differentiate and position themselves. So I’d like to end this piece by examining a handful of real-world examples of brand positioning strategy — specifically, how firms in different industries have used positioning strategy to become more competitive, grow faster and be more profitable. Accounting Lester + Company is a Dallas-based accounting firm. At first, they were a typical general accounting firm with a diverse range of business clients. Their fortunes turned for the better when they decided to pivot and specialize in serving one of their strongest client segments: restaurants. Over time, they decided to narrow their focus, even more, to concentrate on chain restaurants. Today, they are thriving and growing in their highly specialized area of expertise. “It’s taken us to a whole new level of success,” says CEO, Andrew Lester. Brand positioning: The accounting firm for multi-location restaurants. Case Story Lester + Company: How a rebrand is feeding this CPA firm’s bottom line Explore the WorkExecutive Search Melissa Henderson was a Managing Director at a large, international search firm when she had a crazy idea. What if C-level executives could hire their own personal representative, much like an elite sports agent? It would turn the executive search industry on its head. (Conventional executive search firms are paid by companies who are looking for talent, not by the job seekers.) So Melissa left her job and founded Summit Executive Resources, a firm that helps top executives find the leadership and board positions they have always wanted — with the high-touch personal service they deserve. Brand positioning: The personal search firm for C-level executives. Healthcare Consulting Ascendient is a top-50 consulting firm that serves hospital systems around the nation. Led by a team of practitioners and academics, they have a unique perspective on the future of healthcare. In fact, they believe most healthcare systems are not prepared for the massive changes that are about to transform the marketplace. To make their perspective more visible and differentiate their firm from consultants that focus primarily on today’s problems, Ascendient decided to reposition its firm around its future vision. Brand positioning: We’re rethinking the future of healthcare. Legal Walsh Colucci Lubeley and Walsh is a law firm outside Washington, DC. For decades, they were a general law firm with a strong practice in zoning and land use. But when the top firm in that space dissolved, their leadership recognized an opportunity and quickly rebranded their firm as The Land Lawyers. While they continue to offer a few general legal services, Walsh Colucci focuses their brand message squarely on its area of strength. Today, they have become the region’s dominant player in commercial real estate law. Brand positioning: Northern Virginia’s premier commercial real estate law firm. ConclusionMost professional services firms are poorly positioned in the marketplace. They believe that they can get more clients by opening their arms wide to everyone — the broader their reach, the more business will float into their embrace. But that’s not what really happens. When buyers look around and see awkwardly splayed arms everywhere, they have nowhere to gravitate. That’s why having a brand positioning strategy is so important. It gives your prospects something to get interested in — and will ultimately convince them to buy from you. Your target audience will find you many times more fascinating than a generalist firm because you have the specialized expertise they need. And as a specialist, you can often charge more, to boot. If your firm isn’t positioned to consistently attract premium clients, take heart. You’re not alone. Any firm can sharpen its positioning and build an enviable competitive advantage. All it takes is a little courage to take the first step. Free Resource The Rebranding Guide for Professional Services Firms Learn MoreShare Lee Frederiksen, Ph.D. Who wears the boots in our office? That would be Lee, our managing partner, who suits up in a pair of cowboy boots every day and drives strategy and research for our clients. With a Ph.D. in behavioral psychology, Lee is a former researcher and tenured professor at Virginia Tech, where he became a national authority on organizational behavior management and marketing. He left academia to start up and run three high-growth companies, including an $80 million runaway success story.How Hinge Can HelpIdentify competitive differentiators that will help your firm stand out from the competition and build a brand that drives sustained growth with Hinge’s Branding Program. Which of the following statements are true about a positioning statement?Answers: It is a focused attempt to highlight a relevant and unique benefit for any single customer segment.
Which of the following is true of an effective brand positioning statement quizlet?To write an effective brand positioning statement, which of the following statement is true? It should be written so that it appeals to a broader target audience.
What is brand positioning statement?A brand positioning statement outlines exactly what your company does, for whom, and what makes you different. The idea behind it is to create a unique niche for your brand in the minds of consumers within your category.
What are 4 elements of a positioning statement?The Positioning Statement definition is comprised of 4 parts; the target, the category, the differentiator, and the payoff.
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