Brand positioning is about creating a mental real estate in the mind of the target market. If successful, brand positioning allows a business to gain a competitive advantage. And it also works as a switching cost in favor of the brand. Consumers recognizing a brand might be less prone to switch to another brand.
Aspect
Explanation
Brand Positioning
– Brand Positioning is the strategic process of creating a unique and distinctive image for a brand in the minds of its target audience. It’s about how a brand wants to be perceived compared to competitors in the market.
Differentiation
– Brand positioning aims to differentiate a brand from others in the same industry or market. It highlights what sets the brand apart, such as unique features, values, benefits, or a specific target audience.
Target Audience
– Understanding the target audience is crucial in brand positioning. Brands must identify and define their ideal customers, their needs, preferences, and pain points. Positioning messages should resonate with this audience and address their specific desires.
Value Proposition
– The value proposition is the unique promise a brand makes to its customers. It answers the question, “Why should customers choose this brand?” A strong value proposition clarifies the brand’s benefits and the value it delivers to customers.
Brand Personality
– Brands often develop a personality that reflects their values and connects with consumers on an emotional level. This personality can be friendly, sophisticated, adventurous, etc., depending on the brand’s identity and the emotions it aims to evoke.
Market Research
– Effective brand positioning requires in-depth market research to understand customer perceptions, market trends, and competitor positioning. Brands must gather data and insights to inform their positioning strategy effectively.
Competitive Analysis
– Brands analyze their competitors to identify gaps in the market and opportunities for differentiation. Understanding how competitors position themselves helps brands find a unique space where they can thrive.
Consistency
– Maintaining consistency in branding across all touchpoints is critical. This includes logo, messaging, design, and customer experience. Consistency builds trust and reinforces the brand’s positioning in the minds of consumers.
Repositioning
– Brands may need to adjust their positioning over time to adapt to changing market dynamics or customer preferences. This is known as repositioning and involves a deliberate shift in how the brand wants to be perceived. It can be a complex strategic decision.
Communication
– Effective communication is key to successful brand positioning. Brands use various channels, including advertising, social media, content marketing, and more, to convey their unique value and personality to the target audience consistently.
Long-Term Strategy
– Brand positioning is a long-term strategic endeavor. It’s not about short-term gains but building a lasting brand identity. Consistent, sustained effort in maintaining and reinforcing the brand’s position is essential for success.
Table of Contents
Understanding brand positioning
Brand positioning allows consumers to view brands in unique ways. For example, a consumer may associate emotions, traits, feelings, and sentiment toward a brand. Ideally, these factors give the brand a competitive advantage because positioning encourages consumers to make the decision to buy from one brand over another.
Band-Aid is an example of a brand that is well-positioned in the minds of its customers. Whenever someone is injured, Band-Aid is the product that first comes to mind despite there being many similar products on the market. In fact, Band-Aid is so entrenched in the minds of consumers that the brand has become a noun and entered everyday usage. Such is the level of integration that even non-injury related problems are sometimes referred to as needing a “band-aid solution”.
The importance of brand positioning
Effective brand positioning shapes consumer preferences by increasing consumer loyalty and brand equity. High brand equity is particularly important since companies can charge more for their products and increase profit margins.
The perceived brand equity in one product can also extend to products that contain the brand name in their description. For example, Virgin had humble beginnings as a record store in 1970.
But Richard Branson has since extended the Virgin brand to many other products in airlines, trains, financial services, and cell phones.
With each successful foray into new markets, Virgin increases their credibility and brand position among consumers. This allows the Virgin brand to become competitive relatively quickly through market differentiation.
Different types of brand positioning
Choosing the most effective brand positioning strategy will depend on how a company chooses to differentiate their product from others in the market.
Here are a few of the most common positioning strategies:
Value-based positioning
Value-based positioning places the brand based on its value proposition – or the tangible benefits a customer will experience from purchasing or experiencing an offer.
Value often means different things to different people, but it is usually related to completing a task, solving a problem, and increasing convenience and/or status.
Features-based positioning
Features-based positioning is important in competitive, saturated markets where there is little differentiation between products.
Common in the cell phone industry, this form of positioning focuses on product-level features such as price and quality and service features such as warranties and money-back guarantees.
Lifestyle positioning
In lifestyle positioning, the brand attempts to sell an image or identity, instead of the product itself. Here, the main focus is on convincing a consumer that the product is associated with a lifestyle worth aspiring to.
Alcoholic beverage brands most commonly use lifestyle positioning, but it can also be seen in the marketing of gambling services, luxury cars, and certain clothing products.
Case Studies
Coca-Cola
Positioning Strategy: Classic and Timeless
Key Elements:
Emphasis on heritage and nostalgia.
Association with happiness and sharing.
Consistent branding with the “Real Thing” tagline.
Apple
Positioning Strategy: Innovation and Design
Key Elements:
Focus on cutting-edge technology.
User-friendly, minimalist design.
Appeal to creative and forward-thinking individuals.
Nike
Positioning Strategy: Athletic Achievement and Inspiration
Key Elements:
“Just Do It” slogan encourages action.
Strong emphasis on sports and excellence.
Celebrity athlete endorsements.
Volvo
Positioning Strategy: Safety
Key Elements:
Reputation for producing safe vehicles.
Appeal to families and safety-conscious consumers.
“For Life” tagline reinforces safety message.
Harley-Davidson
Positioning Strategy: Freedom and Rebellion
Key Elements:
Symbol of the open road and adventure.
Brand loyalty among bikers.
Association with freedom and non-conformity.
Dove
Positioning Strategy: Real Beauty and Self-Confidence
Key Elements:
Promotes body positivity and inclusivity.
Focus on natural beauty.
Encourages self-confidence.
McDonald’s
Positioning Strategy: Affordability and Convenience
Key Elements:
Fast service and quick meals.
Value menu options.
Global presence and consistency.
Tesla
Positioning Strategy: Innovation and Sustainability
Key Elements:
Leading in electric vehicle technology.
Commitment to environmental sustainability.
Attracting eco-conscious consumers.
Starbucks
Positioning Strategy: Premium Coffee Experience
Key Elements:
Focus on high-quality coffee and customization.
Comfortable and inviting store ambiance.
Loyalty program and rewards.
Red Bull
Positioning Strategy: Energy and Adventure
Key Elements:
Emphasis on energy boost and excitement.
Sponsorship of extreme sports and events.
Targeting a young, adventurous demographic.
Disney
Positioning Strategy: Magic and Family Entertainment
Key Elements:
Iconic brand associated with beloved characters.
Appeals to both parents and children.
Theme parks and media franchises.
Lululemon
Positioning Strategy: Quality and Active Lifestyle
Key Elements:
Focus on high-quality athleisure wear.
Branding associated with fitness and wellness.
Community engagement through events.
Amazon
Positioning Strategy: Convenience and Customer-Centricity
Key Elements:
Fast and reliable delivery options.
Vast product selection and user-friendly interface.
Customer reviews and personalized recommendations.
BMW
Positioning Strategy: Luxury and Performance
Key Elements:
“Ultimate Driving Machine” tagline.
Emphasis on precision engineering.
High-end features and customization.
Chanel
Positioning Strategy: Timeless Elegance and Luxury
Key Elements:
Iconic fashion and accessories.
Reputation for sophistication and exclusivity.
Minimalist and classic design.
Google
Positioning Strategy: Innovation and Information Accessibility
Key Elements:
Constantly introducing new technologies and services.
Commitment to making information universally accessible.
Simple and user-friendly design.
Adidas
Positioning Strategy: Sporty Lifestyle and Endorsements
Key Elements:
Strong presence in sports apparel and footwear.
Collaborations with athletes and celebrities.
“Impossible is Nothing” tagline promotes ambition.
Pepsi
Positioning Strategy: Youthful and Refreshing Alternative to Coke
Key Elements:
Focus on the younger demographic.
Frequent product innovations and marketing campaigns.
Competes with Coca-Cola as a fun and spirited choice.
Positioning Strategy: All-American Tradition and Refreshment
Key Elements:
Emphasis on patriotism and Americana.
Iconic Clydesdale horse commercials.
“The King of Beers” tagline.
GoPro
Positioning Strategy: Adventure and Action
Key Elements:
Known for durable action cameras.
User-generated content from extreme sports enthusiasts.
Empowers users to capture and share adventures.
Sephora
Positioning Strategy: Beauty Empowerment and Premium Selection
Key Elements:
Offers a wide range of beauty brands and products.
In-store experiences and makeup tutorials.
Encourages self-expression through makeup.
IKEA
Positioning Strategy: Affordable and Stylish Home Furnishings
Key Elements:
DIY assembly and flat-packaging to reduce costs.
Modern and minimalist Scandinavian design.
Wide product range for various lifestyles.
Lowe’s
Positioning Strategy: Home Improvement and Project Support
Key Elements:
Focus on helping customers with DIY projects.
Offers expert advice and how-to resources.
“Never Stop Improving” tagline.
GoDaddy
Positioning Strategy: Empowering Entrepreneurs and Web Presence
Key Elements:
Provides domain registration and website hosting services.
Memorable and provocative advertising.
Encourages individuals to establish their online presence.
Gucci
Positioning Strategy: Luxury and Italian Craftsmanship
Key Elements:
Known for high-end fashion, accessories, and fragrances.
Iconic GG logo and bold designs.
Appeals to those seeking exclusivity and opulence.
Subway
Positioning Strategy: Healthy and Customizable Fast Food
Key Elements:
Fresh ingredients and made-to-order sandwiches.
Promotes healthier options and customization.
“Eat Fresh” slogan.
Netflix
Positioning Strategy: Streaming Entertainment and Original Content
Key Elements:
Extensive library of movies and TV shows.
Produces critically acclaimed original content.
Personalized recommendations and binge-watching culture.
Tiffany & Co.
Positioning Strategy: Luxury and Timeless Jewelry
Key Elements:
Iconic blue box packaging and prestigious image.
Engagement rings and high-quality diamonds.
Symbolizes romantic and memorable moments.
PlayStation
Positioning Strategy: Gaming Innovation and Immersion
Key Elements:
Cutting-edge gaming technology and exclusive titles.
Building a loyal community of gamers.
Immersive gaming experiences with virtual reality.
Key takeaways:
Brand positioning is the unique space a brand occupies in the minds of consumers.
Brand positioning facilities an emotional connection between brand and consumer, increasing brand equity in the process.
Brand positioning strategies differ according to the product market and the features of the product that need to be emphasized.
Key Highlights:
Brand Positioning Defined: Brand positioning involves creating a distinct and memorable presence for a brand in the minds of the target market. Successful brand positioning can provide a competitive advantage and act as a deterrent for consumers to switch to other brands.
Consumer Perceptions: Brand positioning allows consumers to associate emotions, traits, feelings, and sentiments with a brand. These associations encourage consumers to choose one brand over another, making it a vital aspect of brand strategy.
Real-World Example: Band-Aid is a prime example of effective brand positioning. It is so deeply ingrained in consumers’ minds that it has become synonymous with adhesive bandages, showcasing the power of successful brand positioning.
Importance of Brand Positioning: Effective brand positioning enhances consumer loyalty and brand equity. Higher brand equity enables companies to charge premium prices for their products and boost profit margins. It also allows brand extensions into new product categories.
Virgin’s Success Story: Virgin’s success across diverse industries, from music to airlines and financial services, demonstrates how effective brand positioning can lead to quick credibility and competitiveness through market differentiation.
Types of Brand Positioning Strategies:
Value-Based Positioning: Focuses on the value proposition and tangible benefits a customer gains from the product.
Features-Based Positioning: Emphasizes product-level features, particularly in competitive markets with little product differentiation.
Lifestyle Positioning: Sells an image or identity associated with the product, often seen in industries like alcoholic beverages, luxury cars, and clothing.
Emotional Connection: Brand positioning is instrumental in establishing an emotional connection between the brand and consumers, ultimately increasing brand equity. The choice of positioning strategy depends on the product market and its unique features that need to be highlighted.
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Ad Ops – also known as Digital Ad Operations – refers to systems and processes that support digital advertisements’ delivery and management. The concept describes any process that helps a marketing team manage, run, or optimize ad campaigns, making them an integrating part of the business operations.
Venture capitalist, Dave McClure, coined the acronym AARRR which is a simplified model that enables to understand what metrics and channels to look at, at each stage for the users’ path toward becoming customers and referrers of a brand.
Affinity marketing involves a partnership between two or more businesses to sell more products. Note that this is a mutually beneficial arrangement where one brand can extend its reach and enhance its credibility in association with the other.
As the name suggests, ambush marketing raises awareness for brands at events in a covert and unexpected fashion. Ambush marketing takes many forms, one common element, the brand advertising their products or services has not paid for the right to do so. Thus, the business doing the ambushing attempts to capitalize on the efforts made by the business sponsoring the event.
Affiliate marketing describes the process whereby an affiliate earns a commission for selling the products of another person or company. Here, the affiliate is simply an individual who is motivated to promote a particular product through incentivization. The business whose product is being promoted will gain in terms of sales and marketing from affiliates.
The bullseye framework is a simple method that enables you to prioritize the marketing channels that will make your company gain traction. The main logic of the bullseye framework is to find the marketing channels that work and prioritize them.
Brand building is the set of activities that help companies to build an identity that can be recognized by its audience. Thus, it works as a mechanism of identification through core values that signal trust and that help build long-term relationships between the brand and its key stakeholders.
According to inbound marketing platform HubSpot, brand dilution occurs “when a company’s brand equity diminishes due to an unsuccessful brand extension, which is a new product the company develops in an industry that they don’t have any market share in.” Brand dilution, therefore, occurs when a brand decreases in value after the company releases a product that does not align with its vision, mission, or skillset.
The brand essence wheel is a templated approach businesses can use to better understand their brand. The brand essence wheel has obvious implications for external brand strategy. However, it is equally important in simplifying brand strategy for employees without a strong marketing background. Although many variations of the brand essence wheel exist, a comprehensive wheel incorporates information from five categories: attributes, benefits, values, personality, brand essence.
The brand equity is the premium that a customer is willing to pay for a product that has all the objective characteristics of existing alternatives, thus, making it different in terms of perception. The premium on seemingly equal products and quality is attributable to its brand equity.
Brand positioning is about creating a mental real estate in the mind of the target market. If successful, brand positioning allows a business to gain a competitive advantage. And it also works as a switching cost in favor of the brand. Consumers recognizing a brand might be less prone to switch to another brand.
Business storytelling is a critical part of developing a business model. Indeed, the way you frame the story of your organization will influence its brand in the long-term. That’s because your brand story is tied to your brand identity, and it enables people to identify with a company.
Content marketing is one of the most powerful commercial activities which focuses on leveraging content production (text, audio, video, or other formats) to attract a targeted audience. Content marketing focuses on building a strong brand, but also to convert part of that targeted audience into potential customers.
One of the first mentions of customer lifetime value was in the 1988 book Database Marketing: Strategy and Implementation written by Robert Shaw and Merlin Stone. Customer lifetime value (CLV) represents the value of a customer to a company over a period of time. It represents a critical business metric, especially for SaaS or recurring revenue-based businesses.
Customer segmentation is a marketing method that divides the customers in sub-groups, that share similar characteristics. Thus, product, marketing and engineering teams can center the strategy from go-to-market to product development and communication around each sub-group. Customer segments can be broken down is several ways, such as demographics, geography, psychographics and more.
Developer marketing encompasses tactics designed to grow awareness and adopt software tools, solutions, and SaaS platforms. Developer marketing has become the standard among software companies with a platform component, where developers can build applications on top of the core software or open software. Therefore, engaging developer communities has become a key element of marketing for many digital businesses.
A digital channel is a marketing channel, part of a distribution strategy, helping an organization to reach its potential customers via electronic means. There are several digital marketing channels, usually divided into organic and paid channels. Some organic channels are SEO, SMO, email marketing. And some paid channels comprise SEM, SMM, and display advertising.
Field marketing is a general term that encompasses face-to-face marketing activities carried out in the field. These activities may include street promotions, conferences, sales, and various forms of experiential marketing. Field marketing, therefore, refers to any marketing activity that is performed in the field.
interaction with a brand until they become a paid customer and beyond.
Funnel marketing is modeled after the marketing funnel, a concept that tells the company how it should market to consumers based on their position in the funnel itself. The notion of a customer embarking on a journey when interacting with a brand was first proposed by Elias St. Elmo Lewis in 1898.
Funnel marketing typically considers three stages of a non-linear marketing funnel. These are top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU). Particular marketing strategies at each stage are adapted to the level of familiarity the consumer has with a brand.
A go-to-market strategy represents how companies market their new products to reach target customers in a scalable and repeatable way. It starts with how new products/services get developed to how these organizations target potential customers (via sales and marketing models) to enable their value proposition to be delivered to create a competitive advantage.
The term “greenwashing” was first coined by environmentalist Jay Westerveld in 1986 at a time when most consumers received their news from television, radio, and print media. Some companies took advantage of limited public access to information by portraying themselves as environmental stewards – even when their actions proved otherwise. Greenwashing is a deceptive marketing practice where a company makes unsubstantiated claims about an environmentally-friendly product or service.
Grassroots marketing involves a brand creating highly targeted content for a particular niche or audience. When an organization engages in grassroots marketing, it focuses on a small group of people with the hope that its marketing message is shared with a progressively larger audience.
Growth marketing is a process of rapid experimentation, which in a way has to be “scientific” by keeping in mind that it is used by startups to grow, quickly. Thus, the “scientific” here is not meant in the academic sense. Growth marketing is expected to unlock growth, quickly and with an often limited budget.
Guerrilla marketing is an advertising strategy that seeks to utilize low-cost and sometimes unconventional tactics that are high impact. First coined by Jay Conrad Levinson in his 1984 book of the same title, guerrilla marketing works best on existing customers who are familiar with a brand or product and its particular characteristics.
Hunger marketing is a marketing strategy focused on manipulating consumer emotions. By bringing products to market with an attractive price point and restricted supply, consumers have a stronger desire to make a purchase.
Integrated marketing communication (IMC) is an approach used by businesses to coordinate and brand their communication strategies. Integrated marketing communication takes separate marketing functions and combines them into one, interconnected approach with a core brand message that is consistent across various channels. These encompass owned, earned, and paid media. Integrated marketing communication has been used to great effect by companies such as Snapchat, Snickers, and Domino’s.
Inbound marketing is a marketing strategy designed to attract customers to a brand with content and experiences that they derive value from. Inbound marketing utilizes blogs, events, SEO, and social media to create brand awareness and attract targeted consumers. By attracting or “drawing in” a targeted audience, inbound marketing differs from outbound marketing which actively pushes a brand onto consumers who may have no interest in what is being offered.
Integrated marketing describes the process of delivering consistent and relevant content to a target audience across all marketing channels. It is a cohesive, unified, and immersive marketing strategy that is cost-effective and relies on brand identity and storytelling to amplify the brand to a wider and wider audience.
The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing: price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people, process, and even politics.
Marketing myopia is the nearsighted focus on selling goods and services at the expense of consumer needs. Marketing myopia was coined by Harvard Business School professor Theodore Levitt in 1960. Originally, Levitt described the concept in the context of organizations in high-growth industries that become complacent in their belief that such industries never fail.
Marketing personas give businesses a general overview of key segments of their target audience and how these segments interact with their brand. Marketing personas are based on the data of an ideal, fictional customer whose characteristics, needs, and motivations are representative of a broader market segment.
Meme marketing is any marketing strategy that uses memes to promote a brand. The term “meme” itself was popularized by author Richard Dawkins over 50 years later in his 1976 book The Selfish Gene. In the book, Dawkins described how ideas evolved and were shared across different cultures. The internet has enabled this exchange to occur at an exponential rate, with the first modern memes emerging in the late 1990s and early 2000s.
Microtargeting is a marketing strategy that utilizes consumer demographic data to identify the interests of a very specific group of individuals. Like most marketing strategies, the goal of microtargeting is to positively influence consumer behavior.
Multichannel marketing executes a marketing strategy across multiple platforms to reach as many consumers as possible. Here, a platform may refer to product packaging, word-of-mouth advertising, mobile apps, email, websites, or promotional events, and all the other channels that can help amplify the brand to reach as many consumers as possible.
Multi-level marketing (MLM), otherwise known as network or referral marketing, is a strategy in which businesses sell their products through person-to-person sales. When consumers join MLM programs, they act as distributors. Distributors make money by selling the product directly to other consumers. They earn a small percentage of sales from those that they recruit to do the same – often referred to as their “downline”.
The Net Promoter Score (NPS) is a measure of the ability of a product or service to attract word-of-mouth advertising. NPS is a crucial part of any marketing strategy since attracting and then retaining customers means they are more likely to recommend a business to others.
Neuromarketing information is collected by measuring brain activity related to specific brain functions using sophisticated and expensive technology such as MRI machines. Some businesses also choose to make inferences of neurological responses by analyzing biometric and heart-rate data.
Neuromarketing is the domain of large companies with similarly large budgets or subsidies. These include Frito-Lay, Google, and The Weather Channel.
Newsjacking as a marketing strategy was popularised by David Meerman Scott in his book Newsjacking: How to Inject Your Ideas into a Breaking News Story and Generate Tons of Media Coverage. Newsjacking describes the practice of aligning a brand with a current event to generate media attention and increase brand exposure.
A microniche is a subset of potential customers within a niche. In the era of dominating digital super-platforms, identifying a microniche can kick off the strategy of digital businesses to prevent competition against large platforms. As the microniche becomes a niche, then a market, scale becomes an option.
We can define pull and push marketing from the perspective of the target audience or customers. In push marketing, as the name suggests, you’re promoting a product so that consumers can see it. In a pull strategy, consumers might look for your product or service drawn by its brand.
Real-time marketing is as exactly as it sounds. It involves in-the-moment marketing to customers across any channel based on how that customer is interacting with the brand.
Relationship marketing involves businesses and their brands forming long-term relationships with customers. The focus of relationship marketing is to increase customer loyalty and engagement through high-quality products and services. It differs from short-term processes focused solely on customer acquisition and individual sales.
Reverse marketing describes any marketing strategy that encourages consumers to seek out a product or company on their own. This approach differs from a traditional marketing strategy where marketers seek out the consumer.
Remarketing involves the creation of personalized and targeted ads for consumers who have already visited a company’s website. The process works in this way: as users visit a brand’s website, they are tagged with cookies that follow the users, and as they land on advertising platforms where retargeting is an option (like social media platforms) they get served ads based on their navigation.
Sensory marketing describes any marketing campaign designed to appeal to the five human senses of touch, taste, smell, sight, and sound. Technologies such as artificial intelligence, virtual reality, and the Internet of Things (IoT) are enabling marketers to design fun, interactive, and immersive sensory marketing brand experiences. Long term, businesses must develop sensory marketing campaigns that are relevant and effective in eCommerce.
Services marketing originated as a separate field of study during the 1980s. Researchers realized that the unique characteristics of services required different marketing strategies to those used in the promotion of physical goods. Services marketing is a specialized branch of marketing that promotes the intangible benefits delivered by a company to create customer value.
Sustainable marketing describes how a business will invest in social and environmental initiatives as part of its marketing strategy. Also known as green marketing, it is often used to counteract public criticism around wastage, misleading advertising, and poor quality or unsafe products.
Word-of-mouth marketing is a marketing strategy skewed toward offering a great experience to existing customers and incentivizing them to share it with other potential customers. That is one of the most effective forms of marketing as it enables a company to gain traction based on existing customers’ referrals. When repeat customers become a key enabler for the brand this is one of the best organic and sustainable growth marketing strategies.
360 marketing is a marketing campaign that utilizes all available mediums, channels, and consumer touchpoints. 360 marketing requires the business to maintain a consistent presence across multiple online and offline channels. This ensures it does not miss potentially lucrative customer segments. By its very nature, 360 marketing describes any number of different marketing strategies. However, a broad and holistic marketing strategy should incorporate a website, SEO, PPC, email marketing, social media, public relations, in-store relations, and traditional forms of advertising such as television.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
