The Two Sub-Steps of Positioning Explained

The Final Stage of STP

We’ve covered segmentation and targeting, the first two pillars of the STP model. Now it’s time to explore the final, and arguably most critical, stage: positioning (my past two articles cover Segmentation and Targeting). This is where your marketing strategy transforms from theoretical to actionable, where your brand occupies a unique space in the mind of your target audience.

As with the earlier stages, positioning is widely agreed to have two substages, making it a structured and logical process for marketers to follow. Let’s break these down and hopefully add a dash of inspiration for your marketing journey.

The Marketing Made Clear Podcast

This article features content from the Marketing Made Clear podcast. You can listen along to this episode on Spotify:

1. Identifying the Positioning Concept with Each Target Segment

Positioning begins with identifying what your brand or product represents to each of your chosen segments. The goal is simple yet profound: find a clear, unique, and desirable concept that resonates deeply with your audience.

Questions to Ask Yourself

To identify the right positioning concept, consider:

  • What does my target segment truly value? (e.g., speed, luxury, affordability, sustainability)
  • What pain points can my product solve for them?
  • How does my offering differ from competitors?

Tangent: The IKEA Effect

A fascinating example of positioning is IKEA. For years, they’ve positioned themselves as the go-to brand for affordable, stylish, self-assembled furniture. By embracing the “DIY” aspect, which many companies might view as a negative, IKEA turned it into a key selling point that appeals to cost-conscious yet design-savvy consumers.

They understood their target segments’ values (affordability and style) and positioned themselves accordingly.

“Positioning is not what you do to a product. It’s what you do to the mind of the prospect.” – Al Ries and Jack Trout

2. Selecting and Developing the Appropriate Positioning Concept for Each Segment

Once you’ve identified potential positioning concepts, the next step is to refine and develop them into a clear, actionable strategy. This is where you craft your value proposition and tailor your messaging to hit home with your audience.

The Elements of a Strong Positioning Concept

  • Clarity: The message must be simple and easy to understand.
  • Relevance: It should address the segment’s needs and aspirations.
  • Differentiation: Your concept must stand out from competitors.
  • Credibility: Can you deliver on the promises you’re making?

Tangent: Why “Different” Beats “Better”

A common trap marketers fall into is trying to position their product as “better” than the competition.

The problem? What’s better to one person might not be better to another. Instead, focus on being different.

Take Apple as an example. When the iPod launched, they didn’t position it as “better” than existing MP3 players. Instead, they focused on simplicity and elegance, with their iconic tagline: “1,000 songs in your pocket.” They weren’t competing on features—they were redefining the category.

Real-World Examples of Positioning in Action

  1. Tesla: Tesla has positioned itself as the leader in luxury, eco-friendly electric vehicles. For environmentally conscious consumers who refuse to compromise on performance or aesthetics, Tesla hits all the right notes.
  2. Innocent Drinks: Innocent’s positioning revolves around being fun, ethical, and health-conscious. They use playful branding and a clear commitment to sustainability to resonate with their segments.
  3. Paleo Ridge (my personal experience!): As a premium raw dog food brand, we positioned ourselves as a leader in natural, ethical nutrition for dogs. Our value proposition centred on health, sustainability, and uncompromising quality, which allowed us to stand out in a crowded market.

Why Positioning Matters

If segmentation and targeting help you find the right customers, positioning ensures those customers know why they should choose you. It’s about creating a space in the market that is uniquely yours, a space where your brand, product, or service is the obvious answer to your audience’s needs.

“If you don’t position your brand, your competitors will do it for you.” – Will Green, 2024.

Final Thought: Positioning is the Crown Jewel of Marketing

Positioning isn’t just the final stage of STP; it’s the culmination of everything you’ve done in segmentation and targeting. It’s where the real magic happens, where your brand’s identity aligns perfectly with your audience’s desires.

As I often say on the Marketing Made Clear podcast: Positioning is the art of creating relevance in the hearts and minds of your audience. Get it right, and the rest of your strategy will fall into place.