What IS the difference between a value proposition and a positioning statement?

What IS the difference between a value proposition and a positioning statement? Until recently I wasn’t sure. Some product management and marketing professionals use them interchangeably.

Here’s an explanation that clearly states the difference between a value proposition and a positioning statement from Michael Goodman on marketing profs.com

“Technically they ARE different. The value proposition is the core benefit you would expect to get when you use/buy the product or service. The positioning statement is the way you want the brand to be perceived by the target audience. Since the positioning statement should be benefit oriented, it’s pretty hard to have a positioning statement that doesn’t capture your value proposition!”

This explanation makes sense as evidenced by the key differences and similarities in the basic format for each:

Value Proposition Template (from April Dunford via Crossing the Chasm)
For: (bulls-eye customer)
Who: (key purchase motivation insight)
Our product is a: (customer language)
That: (key benefit)
Unlike: (key competitors)
Ours: (key differentiators)
At a price: (less than, equal to, or higher than competitors).

Positioning Statement Template (from brandeo.com)
For (target audience),
(brand name) is the
(frame of reference) that delivers
(benefit/point of difference) because only
(brand name) is
(reason to believe).

Similarties

Both, the value proposition and the positioning statement:

• Are directed to a specific market segment (bulls-eye customer or target audience).
• Are customer-centric in their approach (customer language or frame of reference)
• Identify what is unique about your offering (key differentiators or benefit/point of difference)
• Are benefit oriented (key benefit or benefit/point of difference)

Both imply that certain activities should occur before you can effectively create either one. To identify those activities, look no further than the Pragmatic Marketing Framework:

• Market Definition to identify your specific market segment
• Buyer Personas to get that customer-centric approach
• Distinctive Competence to identify what is unique about your offering
• Competitive Landscape to validate what is truly unique
• Positioning to understand the key benefits of your product

Differences

• The positioning statement provides focus and clarity for marketing strategy and tactics.
• The value proposition provides focus and clarity for product strategy and tactics.

So there you have it. The value proposition and the positioning statement are similar in the nature of the information conveyed but different in their ultimate purpose.

Have I answered the question: What IS the difference between a value proposition and a positioning statement? Let me know what you think.

Definitions of Pragmatic Marketing Framework Activities in this post.

Blogging Out Loud – Tom Grant

Out loud from Tom Grant – “I will speak in terms you humans can understand.”

How do you avoid outsmarting yourself?
Be brilliant, be visionary read it all here: Don’t outsmart yourself

Positioning 1-2-3: Selling Your Innovation

Tweeted by @Jim_Holland: “Dan Heath, co-author of Made to Stick on “Selling Your Innovation” [Link - see below] – great video on positioning #prodmgmt”.

Check it out:
Made to Stick: Selling Your Innovation

What’s the takeaway on how to position an innovative new product? Positioning in three steps:
1. Anchor to create understanding
2. A twist to showcase what’s different
3. TIVO: A VCR that enables you to record and pause Live TV

Of course, that doesn’t guarantee buyers will appreciate the twist. Maybe they would prefer a foxtrot or a polka?