The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and

ur Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 9

n Not just a car, but the ultimate driving machine. (sensory

Positioning Strategy Worksheet impact, unconscious associations)
n Not just an investment service, but your road to financial
Target Market: independence. (unconscious associations, conscious-mind
conclusions)
n Not only a restaurant, but your best value in good taste.
Part 1 – Developing the Components of Your Positioning Strategy (functionality, price/value)
The first step in writing your Positioning Strategy is to select the six general components by checking n More than an insurance company, we’re round-the-clock
the appropriate boxes in each category below. Then translate those general components into the
security. (access/convenience)
specific elements of your Positioning Strategy by writing down how each applies to your business in
your target market. As you think about ways to redefine your product, keep in mind:
1) the product and company attributes that are most important to
your customers; and 2) the attributes that make you stand out from
your competition. You’ll find it helpful to keep in mind the
n Product acceptance
General classification How it applies in this market segment…
Central Psychographic Model – the type of buyer in your market

n Commodity selection
segment – while also staying aware of what sets your business and

n Brand preference
its products/services apart from the competition.
All these product attributes need to be considered in the context of
why people buy and how they get their emotional gratification.
Building a Positioning Strategy founded on these essential

n Prestige identification
Relative standing How it applies in this market segment… elements will give you the best competitive advantage.

n Preemptive persuasion
Developing Your Positioning Strategy

n Brand/product imagery
You should have a written Positioning Strategy for each of your
target markets. A good Positioning Strategy contains all six
components we’ve just covered in the first half of this booklet, in
addition to an opening sentence. The six components are:
n General classification
n Interpersonal
Gratification mode How it applies in this market segment…
n Relative standing

n Objective
n Gratification mode

n Introverted
n Purchase preference
n Key psychographic characteristics
n Key product attributes
It’s best to write your Positioning Strategy in two steps, which

n Experimental
Purchase preference How it applies in this market segment… the worksheet at the end of this booklet shows you how to do.
First, identify the generic components of your Positioning
n Performance
Strategy, then translate them into the specific language and

n Value
wording that apply to your target markets.
You’ll find it works best, especially the first time you do it, if
you keep this booklet handy so you can refer to the section that

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 8

mistrust the people they will be dealing with. That presents you
with the opportunity to position your business as friendly and
Positioning Strategy Worksheet (cont’d)
filled with employees who enjoy helping customers. Or you
might notice in target market “B” that honor and integrity are

n Functionality
prized personal values and the dominant purchase preference is Key product attributes How they apply in this market segment…

n Sensory impact
“performance” (they focus on reliability, dependability, and
quality). This could lead you to position your business as one that

n Unconscious associations
“goes the extra mile to make it work right for you.” Once you

n Conscious-mind conclusions
learn to apply this approach, the possibilities are unlimited!

n Price/value
Redefining Your Products

n Access/convenience
With so many similar and competing products and services out
there, redefining yours so that it stands out from all the rest is an
important part of your Positioning Strategy.
This component requires that you describe your product in terms of
its key attributes as perceived by the customer. For purposes of
positioning, you don’t have to create a detailed product description
– just a few words to identify the kind of product, plus a few
phrases describing the one, two, or three attributes that make it
stand out from all others. (Later, in Your Marketing Strategy,
process MK-0060, you’ll create a detailed product description.)
Functionality. What the product does, especially what it does
Key Product Attributes: for the customer.
The Customer’s View Key psychographic How they apply in this market segment…
Sensory impact. The sensory experience of the product. What
characteristics
does it look like? Sound, feel, taste, and smell like?
Derived from careful study of your
Functionality Unconscious associations. What common unconscious Central Psychographic Worksheet
associations is the product likely to trigger, and what emotional for this market segment…
Sensory Impact
responses are likely to be stimulated by those associations?
Unconscious Associations Conscious-mind conclusions. What are the logical, rational
judgments and conclusions the conscious mind is likely to reach
Conscious-Mind regarding this product?
Conclusions
Price/value. Is the price of the product perceived as high,
Price/Value
moderate, or low, and is the product worth its price?
Access/Convenience Access/convenience. Do customers have access to the product?
How easily can they get it? Is it convenient – nearby, no hassles,
minimal effort?
Consider these examples of products that have been “redefined.”
(We’ve noted the key product attributes used for the redefinition.)
How do you respond to them?

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 7

Positioning Strategy Worksheet (cont’d) IF THE DOMINANT GRATIFICATION MODE IS: USE LANGUAGE THAT EMPHASIZES:
Interpersonal People and social situations

Part 2 – Writing Your Positioning Strategy Objective Information, systems, tangible items
Introverted How you will handle the details and make it easy
Using your notes from Part 1 of this worksheet, write a brief narrative describing your Positioning
for them, so they can be free from unwanted
Strategy for your business in this market segment. Be sure to include all six components in your involvement to pursue their ideas
strategy. Suggested beginning sentence:
“[Company name] provides [generic product or service name] to the [name of target market Remember, you want your marketing and sales activities to
segment]…” connect with whatever is the dominant source of emotional
Then create your Unique Selling Proposition and your Positioning Statement. gratification for your most probable customer.
It works similarly for the purchase preference component of your
Central Psychographic Model.
Positioning Strategy: USE LANGUAGE THAT EMPHASIZES:
IF THE DOMINANT PURCHASE PREFERENCE IS:
Experimental Newness, innovation, cutting edge quality, being first
Performance Reliability, dependability, quality
Value Best price, sense of value

Key Psychographics of Your Market

Here’s where you get to be a detective. Every market segment
Unique Selling Proposition: has its own unique set of psychographic characteristics. The idea
is to review the worksheets you’ve completed and look for the
unique, high-impact characteristics that are most likely to be
Positioning Statement: responsive to the attributes of your business and its
products/services. You’re looking for a “mental marriage.”
Anything that builds a bridge of positive perceptions from your
business and its products into the minds of your prospective
customers. It’s hard to say what that might be. You already have
the necessary tools: worksheets from prior booklets in this
module, your own factual and instinctive knowledge of your
business, plus your common-sense understanding of your market
and human nature, and an openness to seeing the possibilities.
How might you go about the thought process? That depends
completely on you. You might, for instance, notice that in target
market “A” people tend to be suspicious of the motives of
business people. You might then couple that with an observation
that they tend to be a low-self-esteem group and that their
dominant gratification mode is interpersonal. That paints a
picture of a group of people who look for personal interactions
with businesses, but who don’t have much self-confidence and

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 6

When it works well, the brand name becomes the name for the
product type in the minds of customers. Think of FedEx, Jell-O,
Kleenex, and Xerox.
Certain words often signal the beginning of preemptive
persuasion statements: “Because,” “When,” “The” (with
emphasis), “If,” “For,” “To,” and the like. They seem to suggest
a certain exclusivity and imply that something special is about to
happen, which the customer wouldn’t want to miss.
Brand or product imagery – sensory stimulation and emotional
associations. Images loaded with sensory stimulation and the
potential for emotional associations are the key to brand/product
Example:
imagery positioning. Little or nothing is ever said about the product
and no explicit statement of uniqueness is made. The sensory Positioning Strategy Worksheet
package communicates practically nothing more than a stimulating
sensation that is never explained. Examples include “The Pepsi
Generation,” “Coke Is It,” “The Marlboro Man,” and almost any soft
drink, automobile, or beer commercial you’ve ever seen.
Brand/product imagery is always communicated through exciting The Outer Edge Company
graphics and sounds – sensory impact is the key.
Convention has it that, to be effective, any strategy for
brand/product imagery must rely on high-end design, advertising Manufactures and distributes canvas products for outdoor leisure activities
and other communications/images that require production and such as camping, hunting, fishing, and nature sports. Main products are
media costs small businesses usually can’t afford. But if you’ve knapsacks, tents, and weather-resistant outerwear.
got some design and production expertise at your disposal, you
might try a smaller-scale brand/product imagery approach.
Remember that the key is to create some sensory image – usually
sight and/or sound – that when seen or heard will be immediately
associated with your business or product.

Gratification Mode and Purchase Preference:

How They Affect Your Positioning
Take a moment to look back at the Customer Perceptions and
Behavior booklet, process MK-0030, and refresh your memory
about Gratification Mode and Purchase Preference.
In terms of positioning, it’s important and pretty simple. The
particular gratification mode and purchase preference you
identified as being associated with your Central Demographic
Model will guide the choice of language you’ll use to position
your product, service, and business in the minds of your
potential customers. It works like this:

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
 The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 5

In summary, you have three positioning strategies related to your

Positioning Strategy Worksheet product’s general classification. The best strategy when your
product is either unique or has little competition, is product
acceptance. Once your product has reached the commodity stage in
Target Market: Upscale families with children your customers’ perceptions, the best strategy is brand preference.
And if branding is not viable, then the remaining option is
commodity selection – most likely via low price and/or convenience.
Part 1 – Developing the Components of Your Positioning Strategy
Your Relative Standing in the Market
The first step in writing your Positioning Strategy is to select the six general components by checking
the appropriate boxes in each category below. Then translate those general components into the Unless you are the only business of your type in your target
specific elements of your Positioning Strategy by writing down how each applies to your business in markets, you have to be concerned with competition. The good
your target market. news about your competitive standing is that while everyone
would like to be “number one,” you don’t have to be number one
to be successful. There are effective positioning strategies

n Product acceptance
General classification How it applies in this market segment… available for every level of competitor.
All products are perceived as similar in function and appearance,

n Commodity selection
Three general positioning strategies you can use to strengthen or
but colors, materials, packaging, pricing, and quality each offer
shift your relative standing in the market are:

n
opportunities for establishing brand preference.
4 Brand preference
n Prestige identification
n Preemptive persuasion
n Brand or product imagery

n Prestige identification
Relative standing How it applies in this market segment… Prestige identification – leadership position. If your products
are the best, if you are the sales leader, if you are the most

n
Two other brands have the dominant position in our market, so a
4 Preemptive persuasion
respected, if you are the only one with some distinctive product
prestige positioning is not realistic. However, the target market has a

n Brand/product imagery
desire to be seen as adventurous and capable in the outdoors. Our attribute, if you can promise some special status – if, in the
products can be identified with those perceptions. customer’s mind, you can make a legitimate claim to being
number one in some important respect (or if no one else has) –
you can make “prestige identification” part of your positioning.
Preemptive persuasion – instant association. If you can
establish a link in the customer’s mind between your product and
n Interpersonal
Gratification mode How it applies in this market segment…
The target market is oriented to the outdoor experience, and especially the emotional gratification the customer is seeking, then when

n
4 Objective
interested in the ability to live the outdoor life with skill and the need or desire surfaces, the customer automatically thinks of

n Introverted
competence. They are especially interested in the “feel” of their gear, your product and you have “preempted” the competition.
the way it Remember the commercials for Rolaids, the upset stomach
performs for them, and what they can do with it.
remedy? “How do you spell relief? R-O-L-A-I-D-S.” Relief is
the emotional gratification and Rolaids is relief.
How about “American Airlines, The Businessman’s Airline?”

n Experimental
Purchase preference How it applies in this market segment…
Businessmen (nowadays business people) are the experts on

n
More than anything else, this market is interested in the way their traveling, so American Airlines must be the airline to use. The
4 Performance purchases perform - dependability, low maintenance, durability, consumer can read any emotional gratification they want into the
n Value
high quality, and appearance are all more important than price.
message – speed, economy, comfort, status, safety – anything. In
They prefer proven goods over innovations.
both cases there are no leadership claims, but there is a direct
link with the emotional gratification sought by the customer.

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 4

getting prospective customers to prefer your product over others in

the market. If you are unable to differentiate the product, it Positioning Strategy Worksheet (cont’d)
continues to be perceived as a commodity, and the strategy is to

n
compete on the basis of price or convenience. Key product attributes How they apply in this market segment…
Think of the banking industry. Banks want to differentiate 4 Functionality
n
These customers are extremely “picky” about their outdoor gear.
themselves, and they pour huge amounts of money into 4 Sensory impact It has to look good (they are image conscious). All fasteners,

n
4 Unconscious associations
advertising to do so, but they haven’t been able to break out of the straps, and attachments have to work perfectly and be precisely

n Conscious-mind conclusions
commodity category. Customers still perceive banks and banking attached to the item – nothing out of alignment. In addition to
services as essentially the same everywhere. Banks compete functionality, they are very aware of the “feel” of their possessions,

n Price/value
and will often consider texture and shape more important than
successfully on price (high interest rates for savings accounts, color or decoration. They see themselves as adventurous and

n Access/convenience
low interest rates for loans) and convenience (a branch on every capable of dealing with the outdoor environment. In another age,
corner, teller machines available 24 hours a day, and telephone they like to feel they would have been explorers or pioneers.
information whenever you want it). Nevertheless, customer
perceptions rule, and customer perceptions say “commodity.”
Brand. As the market matures, it becomes more and more difficult
for new competitors to enter the field. The growth potential for the
product line as a whole begins to level off. The remaining players in
the market must differentiate themselves, make their product stand
out in the minds of their customers, in order to thrive.
When you’re able to differentiate the product by altering its
product attributes in the minds of consumers, it becomes a brand..
This is also the point where you begin to attract “Value” buyers.
The advantage of “branding” is that branded products enjoy
higher profit margins and greater customer loyalty than Key psychographic How they apply in this market segment…
commodity products of the same type. If your products have characteristics
reached the commodity stage, the best strategy is brand Derived from careful study of your These customers are often bored and somewhat dissatisfied with
preference. If you are unable to “brand” your products, then the Central Psychographic Worksheet their day-to-day lives, and yearn for adventure. They think of
for this market segment… themselves as courageous, or having the potential to be
commodity strategy is yours.
courageous if they had the opportunity. Outdoor activities are their
Take as another example the automobile industry: Objectively, Adventurous self-image opportunity to be who they “really” are. They are upscale,
based on their features and functions, you would expect automobiles successful people who, nevertheless, experience a degree of
Frustrated and bored frustration about routine and “being in a rut” or “having too few
to be perceived as commodities. They all operate the same, look
challenges in their lives.” Positioning for them should focus on
very much the same, and for the same class of car, cost about the adventure that is a bit out of the ordinary – the weekend camping
same. But the automobile industry has been extremely successful trip with the kids, the backpacking day trip, or the afternoon
at branding their products. They have, in the minds of their bicycle trip in the country all may be too tame, too routine.
customers, created huge perceived differences.
There are very few products that cannot be branded in some way.
Even products that seem inherently commodity-like, such as fresh
vegetables, gasoline, and hardware, can be branded with the right
packaging and advertising that shifts branding to the business
itself. Thus Safeway grocery stores, Chevron gasoline, and Ace
hardware extend the benefits of store brand to the commodity
types of products they sell.

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 3

Write your Positioning Strategy. This will be a brief

Positioning Strategy Worksheet (cont’d) 6 paragraph for each target market segment that provides an
overview of your positioning by “pulling together” all of the key
positioning elements.
Part 2 – Writing Your Positioning Strategy
Develop your Unique Selling Proposition (USP). This is
Using your notes from Part 1 of this worksheet, write a brief narrative describing your Positioning
Strategy for your business in this market segment. Be sure to include all six components in your
7 your slogan, your tag line, an expression that will become
closely linked with your business. It should be catchy and easy to
strategy. Suggested beginning sentence: remember. It should also contain a basic message about your
“[Company name] provides [generic product or service name] to the [name of target market company that elicits in your prospective customers the emotional
segment]…” gratification they can expect from your business and its products
Then create your Unique Selling Proposition and your Positioning Statement. and services.
Develop your Positioning Statement. This is a more
Positioning Strategy:
8 explicit, expanded version of your USP that explains and
gives the rational justification for it by identifying what your
The Outer Edge Company manufactures and distributes canvas products for outdoor activities (such
as camping, hunting, fishing, and nature sports) to the target market of upscale families with business does, the result customers can expect, and how you’re
children. Our Positioning Strategy is to compete on the basis of brand preference and appeal to going to achieve that result.
“the adventurer within you” by providing products you can count on to see you through, each and
every time. The general message is that our products are of the highest quality – they look good, Your General Classification: Product, Commodity, or Brand?
they feel good, and they outperform the others. If Daniel Boone were alive today, he’d be using
Outer Edge products. The Purchase Decision Chain shows us that before a sale can take
place, customers must first accept the basic product, then accept
your version of that product – your brand. First the product, then
the brand. But there’s a little more to it than that.
A product is what your business sells. It’s a generic term that
Unique Selling Proposition: Performance for Adventure! includes services for sale. But products fall into three categories
that are important because your strategy should be different for each
category. The categories are true product, commodity product, and
Positioning Statement: branded product; or simply, product, commodity, and brand.
Product. When a new product is introduced into a market, or when
We’re the outdoor adventure specialists, and we’ve found that many outdoor experiences are there is a one-of-a-kind product with little or no competition, it is
spoiled by poor equipment. So we’ve developed a line of equipment that looks good, feels good,
and always works when you need it.
considered a “true product”. The marketing issue is product
acceptance, and the strategy is to focus marketing on the functional
and emotional product attributes important to prospective customers.
True products usually, but not always, appeal to buyers whose
purchase preference is “Experimental.” (See “Gratification Mode”
in Process MK-0030, “Customer Perceptions and Behavior.”) Most
of the time, products don’t stay true products for long. Competition
moves in quickly, and competition changes the picture.
Commodity. As more and more competing products enter the
market, and as customer acceptance of the basic product increases,
customers begin to see the product as a commodity. “They’re all
the same” is the common comment. The product now begins to
appeal to buyers whose purchase preference falls under
“Performance.” Now the marketing issue is differentiation –

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 2

from you. It requires that you know your target markets

thoroughly. And it takes time, but with a proper understanding of Guidelines for Developing
your target markets you have a foundation in place for building a
Positioning Strategy that will draw your target customers to you. Your Unique Selling Proposition
The Positioning Development Process There are seven important rules for creating your USP:
To begin the process, you will need all the worksheets you used in 1. Make it short – a phrase, not necessarily a sentence.
previous booklets of this module, including your Central
Demographic Model worksheets, your Central Psychographic 2. Keep it vague enough to leave room for the imagination.
Model worksheets, and your trading area materials. You’ll need
them for your primary target market and for your flanker markets. 3. Convey a positive feeling.
You will be developing a Positioning Strategy for each primary and 4. Give it impact, punch, and emotion.
flanker market. Here’s an outline of the positioning process.
5. Avoid defining product/service as a commodity.
Process for Creating
Your Positioning 1 Determine the general classification of your products and
services. Any product or service can be classified in one of
three ways: as a true product, a commodity, or a brand (there are
6. Focus on the promise of emotional gratification, the result or benefit, not the technical work or feature(s) you
offer.
Determine General special meanings for those words, which we’ll define a little
Classification of Your later). Think about what you sell, which category it falls into, and 7. Make it consistent with the relative standing, gratification mode, and purchase preference components of
Product/Service
how that affects the way you’re positioned in the minds of your your Positioning (and differentiating) Strategy – they are most closely linked with market perceptions and
Determine Your prospects and customers. expectations of emotional gratification.
Relative Standing
Determine your relative standing in the market. Your
Determine Gratification
2 relative standing is how the market sees you compared to your
competitors. This will affect how you develop your marketing Relative Standing: Gratification Mode: Purchase Preference:
Mode and Purchase
Preference communications as you either reinforce your current relative Prestige Identification Interpersonal Experimental
standing or, perhaps, try to change it. Preemptive Persuasion Objective Performance
Develop Other
Psychographic
Characteristics 3 Determine the dominant gratification mode and purchase
preference of your target market. You actually determined
these psychographic characteristics in your previous work with
Brand/Product Imagery Introverted Value

Redefine Your Product

Customer Perceptions and Behavior, process MK-0030. The From your Positioning Strategy, identify the appropriate classifications above to note which relative standing,
Write Positioning gratification modes were: interpersonal, objective, and
gratification mode, and purchase preference categories apply for the market segment under consideration. Next,
Strategy introverted; the purchase preferences were: experimental,
performance, and value. Now you’ll apply them to the way you find the corresponding combination below for a sampling of some appropriate USP wordings. Remember to
Develop Unique Selling create your positioning. keep asking yourself, “What emotion am I selling?” And don’t feel these examples are the best or only ones you
Proposition
should consider – be persistent and you’ll find the “magic words” for your target market!
Develop Positioning
Statement
4 Develop other key psychographic characteristics of your
target market. Study your CPM worksheets, looking for
clues to customer perceptions that will help shape your
Positioning Strategy.
Redefine your product. Begin setting yourself apart and
5 creating a unique place in your customers’ minds by defining
your product/service in terms of the features and emotional
factors that are important to them.

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business The E-Myth Mastery Program
Module 2: E-Myth Marketing Fundamentals Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040 Business Development Process: MK-0040
Page 1

Positioning and Differentiating

Relative standing: Prestige Identification Bringing magic to your life
Your Business
Gratification mode: Interpersonal Put excitement in your life Setting your business apart from the rest
Purchase preference: Experimental Join the revolution
“It’s the first company to build the mental position that has the upper hand.”
Relative standing: Prestige Identification Where the smart people shop
– Al Ries, Chairman, Trout & Ries, Inc., advertising agency
Gratification mode: Interpersonal Service the way it used to be
Purchase preference: Performance Where the right people go
What is “Positioning” and Why Is It Important?
Relative standing: Prestige Identification Join the value revolution
Gratification mode: Interpersonal Delivering value
Positioning is the customer’s general perception of your business
and its products/services. Positioning takes place in the mind. If
Purchase preference: Value Where smart people come for value
your positioning takes full advantage of customer perceptions
Relative standing: Prestige Identification Proven number one and you communicate it effectively, it will set you apart from
Gratification mode: Objective Rely on the best your competition and establish a solid first link in the Purchase
Decision Chain – the awareness link. Remember, the awareness
Purchase preference: Any Proven excellence
link shapes the whole relationship, and often the real purchase is
Relative standing: Prestige Identification You can have it all made by the unconscious mind on the basis of awareness long
Gratification mode: Introverted No more compromises before the actual sales transaction is completed. Good
Purchase preference: Any You deserve the best
positioning makes for favorable awareness, and that sets you up
for success right from the start.
Relative standing: Prestige Identification When you want the best
Positioning can be tricky: It’s under your control, yet it’s not. To
Gratification mode: Any Nothing less than the best
the extent that customers already have perceptions about your
Purchase preference: Any Number one products, business, and industry, those perceptions already are your
Relative standing: Preemptive Persuasion Make someone happy positioning. You need to learn about them because you can change
your positioning – and thus change customer perceptions – with
Gratification mode: Interpersonal Because you care
effective communications, an appropriate sensory package, and
Purchase preference: Experimental When you want something special behavior that’s consistent with the image you’re trying to project.
Relative standing: Preemptive Persuasion The best way to make someone happy Positioning has to be genuine. It has to be consistent with the
Gratification mode: Interpersonal Where you always get the right answer reality of your business, and it has to be consistent with the
Purchase preference: Performance Always get the help you need perceptions of your target markets or it won’t be believed.
Positioning based on false claims or a misunderstanding of your
Relative standing: Preemptive Persuasion Because you care about value
target markets is a liability. It turns away prospective customers
Gratification mode: Interpersonal Where value is number one and weakens relationships with existing customers.
Purchase preference: Value Join the move to value

Relative standing: Preemptive Persuasion You can count on us

Differentiation Is More than Simply Being Different
Gratification mode: Objective Proven results Mahatma Gandhi, Mother Theresa, and Martin Luther King, Jr.
Purchase preference: Any When It has to be right differentiated themselves from the rest of the population. So did
If you want it on time
Al Capone and Attila the Hun. It’s not enough to be
differentiated, you need to be preferentially differentiated. And
For predictable results
that’s the purpose of positioning.
Systems for____________
There is a systematic process for developing an effective
positioning for your business. It’s a step-by-step process, but it
isn’t automatic. It requires careful thinking and a lot of insight

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide. mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.
The E-Myth Mastery Program Positioning and Differentiating Your Business
Module 2: E-Myth Marketing Fundamentals
Business Development Process: MK-0040

Relative standing: Preemptive Persuasion Get it the way you want it

Gratification mode: Introverted For control without effort
Purchase preference: Any Stay on top
When no one else understands
Relative Standing: Preemptive Persuasion For people who want
Gratification mode: Any When you want it right now
Purchase preference: Any For something special
When you want it right and right away

Relative Standing: Brand/Product Imagery

(Note: Use other combinations above
Gratification mode: Any for guidance. Brand/product imagery
Purchase preference: Any is highly unique to the product, market,
and competitive environment.)

Copyright © 1986, 1988, 1994, 1996 by E-Myth Worldwide. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from E-Myth Worldwide.