Also referred to as a brand strategy, positioning strategy, or brand positioning statement, a positioning statement is a succinct description of the core target audience to whom a brand is directed, and a compelling picture of how the marketer wants them to view the brand.

A well-constructed positioning statement is an invaluable means of bringing focus and clarity to the development of a marketing strategy and tactics.

 There are four elements or components of a positioning statement:

1. Target Audience - the attitudinal and demographic description of the core prospect to whom the brand is intended to appeal 
2. Frame of Reference - the category in which the brand competes
3. Benefit/Point of Difference - the most compelling and motivating benefit that the brand can own in the hearts and minds of consumers relative to the competition
4. Reason to Believe - the proof that the brand delivers what it promises

Template for a Positioning Statement:

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

Criteria for Evaluating a Positioning Statement

• Does it motivate the core prospect?
• Does it differentiate the brand versus the competition?
• Is it ownable for the brand and sub brands?
• Is it credible and believable?
• Does it enable growth?
• Does it serve as a filter for brand decisionmaking?

See also:
brand – what is it?
point of difference
pain point
target audience
frame of reference
reason to believe
portfolio architecture
commoditization