Importance of Brand Positioning: What’s Holding Your Business Back and How to Fix It
In today’s competitive landscape, your business needs to stand out more than ever. Whether you’re a new brand trying to break through or an established business aiming to keep your market position, brand positioning is a key tool in your marketing toolkit.
However, what exactly is brand positioning and why is it important for your business? Let’s simplify it down.
What is Brand Positioning?
At its core, brand positioning defines how a brand is perceived in the eyes of target audiences. It’s about the unique space a brand holds in the market compared to its competitors. The concept is simple: when the ideal customer thinks of a particular field, the goal is for that brand to come to mind first. Consider Nike and how it is linked to sports and motivation, or Tesla and its association with innovation and eco-friendliness.
Brand positioning goes beyond logos and taglines—it’s about how people view the brand, what it stands for, and how it resonates with customers.
Why is Brand Positioning Important?
Now that the concept of brand positioning is clear, let’s explore its significance.
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It Makes A Business Stand Out From the Competition
In today’s crowded marketplace, businesses no longer compete solely on price or quality but on why their brand deserves attention. Brand positioning provides an opportunity to communicate what makes a business unique and why customers should choose it over others.
For example, in the crowded organic skincare market, many brands offer similar products. Strong positioning can help a brand stand out as either “the most natural” by emphasizing pure, unprocessed ingredients or “the most sustainable” by highlighting eco-friendly practices. This clear differentiation makes it easier for customers to understand what the brand represents and quickly decide if it aligns with their values, helping the business stand out from the competition.
Check out some of the best examples of brand positioning here.
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It Fosters Trust and Loyalty
Consistency in messaging, tone, and promises helps build trust and, over time, brand loyalty. Customers return because they know what to expect.When a brand is positioned effectively, customers clearly understand what is being offered and why it matters to them.
Consider Apple as an example. People are willing to pay more for Apple products because they trust the brand. Apple has established itself as innovative and user-friendly, and customers know they can rely on it for high-quality products. This demonstrates how effective brand positioning can transform a company.
Discover Apple’s brand positioning strategy, including its segmentation and targeting approach.
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It Justifies Pricing
A brand’s market position can significantly influence its pricing. For example, a luxury brand can charge premium prices because customers associate it with high quality..
Take Rolex, for instance. The brand charges more not only because of the quality of its watches but also because it represents status and exclusivity. Without clear positioning, it’s challenging to justify pricing, potentially leading to confusion among buyers and missed sales opportunities.
Check out this article to dive deeper into the psychology behind premium pricing for Rolex.
On the other hand, a value-driven brand can attract budget-conscious customers who seek quality at lower prices
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It Shapes Marketing Strategies
A well-defined brand position acts as a guide for all marketing activities. Every message, campaign, and advertisement should align with the brand’s positioning. Consistency is key to building a strong, recognizable brand.
For instance, a brand focused on sustainability should emphasise eco-friendly practices in its marketing. This could include showcasing sustainable packaging, highlighting green initiatives, and crafting messages that appeal to environmentally-conscious consumers.
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It Builds a Lasting Edge Over Rivals
A brand with strong positioning adds long-term value to a company. It’s much harder for competitors to replicate the emotional connection a brand has established with its audience. When customers feel a strong connection to a brand, they tend to remain loyal, regardless of price or competition.
Take Nike’s “Just Do It” campaign, for example. It goes beyond being a catchy phrase—it’s a way of life that resonates deeply with its customers, making it difficult for competitors to duplicate Nike’s success, even if they offer similar products.
Source: creativereview.co.uk
How to Build Solid Brand Positioning: The Plan
To position a brand effectively, a clear strategy is essential. Here’s a brand positioning plan that outlines the key steps:
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Understand the Target Audience
To start building brand positioning, it’s important to understand the audience. Who is the brand trying to reach? What are the customer problems, desires, and values? This information is critical because the brand’s position should align with what the audience cares about most.
For instance, if the target audience consists of tech-savvy young people, the brand’s messaging, style, and appearance should reflect innovation, ease of use, and cutting-edge features.
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Know The Market
This step involves identifying where the brand fits within its industry. Is it a high-end brand, a budget-friendly option, or perhaps an environmentally-conscious choice? Defining the market helps clarify what the business offers and how it compares to competitors.
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Make a Standout Offer
The brand promise, or the unique value it delivers, is central to positioning. What can this brand provide that others can’t? Why should it be considered the top choice in its market?
Making bold promises is one thing, but delivering on those promises builds trust. Businesses can demonstrate credibility through customer reviews, case studies, certifications, or a track record of success.
FedEx, for instance, centres its positioning around speed and reliability, famously promising that packages will arrive “when it absolutely, positively has to be there overnight.”
Source: designyourway.net
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Craft the Brand’s Personality
The brand’s personality is the collection of human-like traits that people instinctively connect with it. Whether the brand is perceived as playful, reliable, professional, or innovative, these characteristics influence how the brand is viewed and remembered by its audience. The personality serves as the brand’s identity, guiding its communication style, from the language used in ads to the visual elements in campaigns. A playful brand might use humor and vibrant designs, while a professional brand would opt for a more formal and polished approach. Ultimately, the brand’s character defines the emotional connection it builds with its customers and determines the tone and voice used in all marketing efforts, ensuring consistency and fostering trust.
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Pick a Brand Archetype
Many successful brands use archetypes such as “The Hero” or “The Explorer” to define their image. Each archetype comes with its own voice, values, and storytelling approach that resonates with specific audience segments.
Types of Brand Positioning
Brand positioning tactics can differ based on what a business wants to achieve and who it’s trying to reach. Here are some common types:
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Value-Based Positioning
- Focus: Offers the best value for money, balancing quality and affordability.
- Example: IKEA well-known for stylish, practical, and budget-friendly furniture..
- Why It Works: Draws in cost-conscious shoppers looking for quality at lower prices.
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Quality-Based Positioning
- Focus: Emphasises superior craftsmanship and performance.
- Example: BMW and Rolex set high prices for their well-made products.
Why It Works: Attracts buyers ready to spend more for quality and status.
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Niche Positioning
- Focus: Aims at a particular, often smaller market group.
- Example: Tesla first made luxury electric cars for eco conscious buyers.
- Why It Works: Creates strong customer loyalty by meeting specific needs.
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Benefit-Based Positioning
- Focus: Highlights unique advantages or solutions offered.
- Example: FedEx emphasises fast, reliable shipping with its “overnight” promise.
- Why It Works: Clear benefits make it easier for customers to pick the brand.
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Customer-Centric Positioning
- Focus: Prioritises customer convenience and satisfaction.
- Example: Amazon aims to deliver fast and offer user-friendly services.
- Why It Works: Builds loyal customers by consistently meeting their needs .
Perceptual Mapping: Visualizing Brand Positioning
Source: appinio.com
Perceptual mapping helps businesses visualise their brand positioning. It creates a graphical representation of where a brand sits compared to its rivals looking at key factors like cost, quality, or sustainability.
For example, in the crowded organic skincare market, a perceptual map could plot brands based on how “natural” or “sustainable” they are. This helps companies spot gaps and ways to make themselves stand out.
By using perceptual maps, companies can better understand how customers perceive their brand and how they can adjust their strategies to stand out more effectively
Check out this article to learn more about Perceptual Product Positioning Map
Final Thoughts
Brand positioning is vital as it informs all subsequent branding and marketing efforts. Whether a company opts for value-based, quality-based, or any other form of positioning, the goal should always be to build a strong connection with the audience. Effective brand positioning not only helps businesses differentiate themselves from competitors but also fosters trust and loyalty, leading to long-term success.
At GRX10, brand positioning is not just about crafting a catchy tagline—it’s about owning real estate in the minds of potential customers. Whether the goal is to redefine positioning or refine an existing strategy, GRX10 is ready to assist.
Let GRX10 create a positioning strategy that sets the business apart and drives success. Contact us today to start building the future of your brand!
