When you think of IBM, what comes to mind? A leading technology company with a long-standing reputation, and perhaps their iconic blue logo? Now, what about Oracle? Like IBM, it’s a big name in technology with a long history, but with its own distinct branding and set of associations. This simple example illustrates the impact of brand positioning.
Brand positioning is the art and science of differentiating your brand from your competitors’, and creating a specific place in customers’ minds.
It isn’t just about your logo design, brand colors, or tagline; it’s a holistic strategy that defines how your brand is perceived by your target audience.
A well-developed brand positioning strategy ensures that your brand messaging and communication are consistent, targeted, and effective—delivered with impactful, on-brand design—resulting in greater customer loyalty and longevity.
In this blog, we will discuss the basics of brand positioning, the benefits it can offer your business, the potential pitfalls to avoid, key tips for effective positioning, and how to measure your brand positioning effectiveness.
Table of Contents
3 basic steps of brand positioning
Effective brand positioning involves a three-step process: Analyzing the market, choosing the appropriate positioning statement, and reflecting the chosen positioning in all aspects of the brand. We break these steps down below:
Step 1: Analyzing the market
In order to create a unique and successful positioning for your brand, you need to analyze the following:
- Understand what your consumers want:
Consumer research is the first step in creating an effective brand positioning strategy. Knowing your consumers’ needs, preferences, and behaviors enables you to create brand associations that resonate with them. - Understand what your company’s and brand capabilities are:
Identify the key strengths and skills that will enable you to deliver on your brand’s positioning promises. This requires an honest assessment of your brand’s strengths and weaknesses and a clear understanding of how your brand delivers value. - Understand how each competitor is positioning their brand:
Conducting a competitive analysis is essential to create a unique positioning statement. The analysis should include how your competitors’ brands are currently positioned, their strengths, and the gaps and opportunities in the market.
Step 2: Choosing the appropriate positioning statement
Once you have a clear understanding of your customers, your competitors, and your brand’s strengths and weaknesses, it’s time to choose a positioning statement that aligns with your brand’s image and resonates with your target audience. Consider these factors:
- Resonant with your consumers:
The positioning statement should connect with your customers on an emotional level that resonates with them. - Deliverable by your company:
It’s essential to identify the internal capabilities required to deliver on your brand positioning effectively. If you are not able to fulfil your brand positioning statement, it can lead to a loss of customer trust. - Different from your competitors:
Your brand positioning should differentiate you from your competitors and highlight your unique selling points.
An easy way to define a brand positioning statement is to summarize it in three words. For example, “vegan, traditional & feminine” could be a positioning statement for a skincare brand. Avoid choosing generic words such as “quality products, unique, successful” as this is the aim of every brand.
Step 3: Reflecting the chosen positioning in all aspects of the brand
Brand positioning should reflect in everything, including brand personality, packaging design, product, service, visual identity design, and communications.
Effective reflection of brand positioning is essential for creating a distinctive brand identity, building customer loyalty, and driving revenue growth. Ensure your brand communication is consistent and targeted towards the intended audience.
Importance of brand positioning: 10 benefits
Here are ten benefits of having a well-defined brand positioning strategy:
- Clearly defining brand identity:
Brand positioning defines what your brand stands for, what it offers, and what it provides to customers. It differentiates your brand from others in the market and sets the tone and direction for all brand communication. - Fostering strong brand associations:
Brand positioning creates a clear image in customers’ minds, forming strong brand associations that lead to brand loyalty. This association represents how customers perceive the brand and what it represents to them. - Enhancing customer loyalty and trust:
Effective brand positioning creates a strong emotional connection between the brand and customers, strengthening brand loyalty and trust. Customers tend to choose brands with which they resonate and that have a unique and authentic identity.
Read: ‘Boost Brand Loyalty in 2024 with These 5 Brand Strategy Tips’
- Supporting premium pricing strategies:
Well-positioned brands can command premium pricing due to their unique value propositions. A well-defined brand identity demonstrates to customers that your brand is worth paying a premium price for. - Strengthening brand differentiation:
Brands with clear positioning are likely to have higher levels of brand differentiation, more market share, and a competitive advantage. - Guiding marketing and communication efforts:
Brand positioning sets the stage for all brand communication and messaging. It guides marketing and communication efforts and ensures effective messaging that is consistent and targeted. - Driving customer preference and purchase intent:
With a strong brand positioning, customers tend to choose and purchase from brands they perceive as being true to their values, purpose, and goals, driving customer preference and purchase intent. - Creating a consistent customer experience:
Brands that communicate a consistent image through all aspects of the brand, from visual identity design, product design, packaging, and service, create a customer experience that engenders trust and loyalty. - Resonating with specific target audiences:
Effective brand positioning creates a brand resonance with specific target audiences, leading to greater brand affinity, loyalty, and advocacy. - Improving long-term brand value and sustainability:
Clear brand positioning ensures that your brand remains relevant, sustainable, and profitable in the long term, from a brand perspective.
Issues with incorrect brand positioning
There are also many risks associated with not prioritizing brand positioning. If it is incorrect or inadequate, it can lead to several negative outcomes, including:
- Confusion in consumer perception:
Customers may associate the brand with something other than what it represents if the positioning is unclear, leading to confusion and an ineffective marketing strategy. - Lack of brand differentiation:
Without a clear brand positioning, your brand may appear generic and lack differentiation from competitors. - Reduced customer loyalty and trust:
Ineffective brand positioning may result in broken promises and failure to deliver on customer expectations, leading to reduced customer loyalty and trust. - Ineffective marketing and communication strategies:
Poorly positioned brands may result in marketing and communication strategies that are off-target or ineffective. - Diminished competitive advantage:
Without clear positioning, brands will struggle to gain market share, differentiate themselves, or compete effectively in the market.
5 tips for correct brand positioning for B2B brands
To avoid the issues mentioned above, try these tips:
- Conduct in-depth market and competitor analysis:
Conduct deep research of the market, customer demographics, and competitor positioning, including identifying gaps and opportunities in the market. - Define a unique value proposition:
Define your brand’s unique selling proposition, key strengths, and value proposition. This will enable you to differentiate your brand from the competition effectively. - Align positioning with customer needs and preferences:
Clearly align your brand positioning with the emotional needs and preferences of your target customer demographic. - Communicate brand positioning consistently across all touchpoints:
Through messaging and visuals, ensure that your brand positioning is reflected consistently across all assets right from your company website, including email communication, social media posts, sales enablement materials, packaging, and customer service, and more. - Continuously monitor and adjust brand positioning strategy based on market dynamics:
Monitor market trends, customer feedback, and competitor positioning to ensure that your brand positioning strategy remains relevant and competitive in an ever-changing market.
Measuring the effectiveness of brand positioning
Measuring the effectiveness of your brand positioning strategy is crucial to ensure that your strategy is working and delivering the intended results. By tracking key performance indicators (KPIs), brands can assess the impact of their communication and positioning efforts and optimize their branding strategy for better results.
Some KPIs to consider when measuring the effectiveness of your brand positioning include brand awareness, customer loyalty, customer acquisition, and market share. By regularly monitoring and tracking these metrics, brands can identify areas of improvement and optimize their positioning strategy for better results.
Additionally, gathering customer feedback and conducting surveys can provide valuable insights into how your brand is perceived in the market. This feedback can help brands identify areas of strength and weakness in their brand positioning and make necessary adjustments to enhance their effectiveness.
Conclusion
Brand positioning is an essential aspect of your brand’s identity and success. By differentiating your brand from competitors and creating a specific place in customer’s minds, you can build strong brand associations, drive customer loyalty and trust, and grow your business sustainably.
A well-crafted brand positioning strategy is critical to the success of your brand communication and long-term profitability. Remember to conduct in-depth research, define a unique value proposition, align your positioning with customer needs, communicate consistently across touchpoints, and measure the effectiveness of your brand positioning strategy regularly.
Ready to take your B2B marketing efforts to the next level? Let us help you elevate your brand with our expertise in on-brand design and content creation. Reach out to us to discuss how we can work together to create messaging that sets your brand apart and drives results.
