What is brand positioning?
Kotler has defined brand positioning as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”.
A brand positioning strategy, therefore, involves creating brand associations in customers’ minds to make them perceive the brand in a specific way and different imageries vs competitors.
So a successful brand and business must:
– Be relevant to customer
– Be unique vs competitors
– Be credible & attainable
Benefits of brand positioning
Brand positioning offers a multitude of benefits to businesses, helping them establish a unique and favourable position in the minds of their target audience. Some of the key advantages include:
- Differentiation: Brand positioning helps a business stand out in a crowded marketplace. By defining a unique position and value proposition, a brand can distinguish itself from competitors and avoid being perceived as a commodity.
- Market Relevance: Effective brand positioning ensures that a brand’s offerings are aligned with the needs and preferences of its target market. This relevancy leads to increased customer interest and engagement.
- Customer Loyalty: When a brand consistently delivers on its positioning and promises, it builds trust and loyalty among customers. This leads to repeat business and long-term customer relationships.
- Price Premium: A well-positioned brand can often command higher prices for its products or services. Customers are often willing to pay more for brands they perceive as offering unique value or quality.
- Improved Marketing Efforts: Brand positioning provides a clear foundation for marketing and communication strategies. It guides the development of marketing messages, creative content, and advertising campaigns, making them more effective and resonant with the target audience.
- Customer Acquisition: A strong brand position can attract new customers who are seeking specific qualities or solutions that align with the brand’s positioning. This can result in increased market share.
- Effective Decision-Making: Having a well-defined brand position helps businesses make informed decisions about product development, pricing strategies, and market expansion. It acts as a strategic guide for the company.
- Brand Consistency: Brand positioning encourages consistency in all brand-related activities, from marketing campaigns to customer interactions. This consistency enhances brand recognition and trust.
- Partnerships and Alliances: Other businesses may be more inclined to collaborate or form partnerships with a brand that has a well-defined and compatible positioning. This can open doors to new opportunities and synergies.
- Reduced Marketing Costs: Clear brand positioning reduces the need for excessive marketing spending to convince customers of a brand’s value. When a brand is well-positioned, customers understand its unique advantages more readily.
- Easier Decision-Making for Customers: Brand positioning simplifies the decision-making process for customers. They can quickly assess whether a brand’s offerings align with their needs and preferences, leading to faster purchasing decisions.
- Brand Resilience: In the face of market challenges or competitive pressures, a strong brand position provides a buffer. Customers who are loyal to a brand’s unique value are less likely to switch to competitors.
- Employee Alignment: Brand positioning also guides employees by defining the brand’s values and mission. When employees align with the brand’s positioning, it can enhance job satisfaction and motivate them to deliver on the brand’s promises.
In summary, effective brand positioning helps a business create a clear and favourable identity in the marketplace. It leads to differentiation, customer loyalty, and higher market relevance, while also influencing pricing power, marketing efficiency, and partnerships. Ultimately, brand positioning is a valuable tool for businesses to gain a competitive edge and foster long-term success.
More info about the role of brand positioning, brand positioning methodologies and the process of how GKOF helps to support strong brand positioning for customers here
