Value Propositions vs. Positioning Statements: What's the difference?

Confused about the difference between positioning statements and value propositions? You're not alone. These terms are often used interchangeably, but they mean very different things.

Value propositions refer to the "big picture." Value propositions are broad in nature and are a direct output of a company's business strategy. They reflect your brand promise along with a basket of benefits offered to multiple market segments and the price the customer pays for those benefits. A company's value proposition is often found in the business plan and or in a market requirements document (MRD). Business units, strategic marketers, and/or product marketers are usually responsible for developing the value proposition.

Positioning statements, on the other hand, reflect a subset of the value proposition. Positioning statements are used in marketing communications (marcom) programs and activities. The positioning statement includes the target audience (persona), product name, category, benefit, and competitive differentiation. Most importantly, positioning statements represent a plea for single-mindedness when it comes to communicating specific marketing messages aimed at very specific audiences. While the value proposition reflects the wider range of primary benefits offered, the positioning statement points a laser beam at only the most relevant benefit and points of competitive differentiation that are meaningful to a carefully targeted persona. Positioning statements are usually developed by product marketers with input from corporate marketers. Positioning statements are a necessary ingredient of any integrated marketing communications plan or creative brief.

Also read: Do we really need a positioning statement?

A single value proposition may overlap or be comprised of multiple positioning statements. They are both tools used by marketing teams to focus their campaigns, programs, and activities. However, neither provide the exact wording that should be used in any customer messaging. For that, you need the message box.

For more examples and in depth analysis of positioning statements (along with personas and customer-ready messaging), please check out the B2B marketing guidebook, The Marketing High Ground.

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* Online course -- Product Management & Marketing: Personas

* Online course -- Product Management & Marketing: Positioning Statements

* Online course -- Messaging: How to Create a Killer Elevator Pitch

Mike Gospe is a co-founder of KickStart Alliance, a sales and marketing leadership consulting team. Mike leads executive workshops with CEOs and executive staffs to focus and clarify vision and mission statements, corporate strategies, product roadmaps, and go-to-market plans. He is also a professional facilitator with a focus on Customer Advisory Boards. Mike's passion to is help B2B leaders build a stronger connection with their best customers. Contact Mike to learn more about his best practices and services.

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NEW FOR 2018: Based on the popularity of this blog post, several marketers have asked me if I coach or mentor marketing directors/VPs on this and a wide-range of other marketing topics. The answer is yes. If you'd like to learn more, please contact me at mikeg@kickstartall.com.