Creating Value for Target Customers

Choose a differentiation and positioning strategy

The splitting and positioning task consists of three steps:

Identify a specific set of competitive advantages to build a position, select the right competitive advantages, and choose an overall positioning strategy. The company must then communicate effectively and market the chosen position.

Identify possible value differences and competitive advantages

To find a point of differentiation, marketers must consider the customer's overall experience with a company's product or service. An observant company can find ways to excel at every customer encounter. How can a company or its market offering set itself apart? This can vary by product, service, channel, person or line image.

To build profitable relationships with target customers, marketers must understand their needs and provide more customer value than their competitors. If a company can successfully differentiate itself and position itself as a superior provider that benefits its customers, it will gain a competitive advantage.

Choose the right competitive advantage

Choosing a competitive advantage to position your product or service can be difficult, but making such a choice is critical to your success. Choosing the right differentiator can help your brand stand out from the competition.

Develop a position statement

Company and brand positioning should be summarized in a statement. The declaration should be of the form: For us (target and demand segment) is (brand) (concept) (differentiator).