What sets you apart from the competition? Coca-Cola and Band-Aid share one feature: they both have strong brand awareness. In fact, their brand names have become generic terms for all similar products in their niche. If you cut yourself, do you ask for a bandage or a Band-Aid?
The evidence is in the numbers that a strong brand should be a priority for all businesses seeking success. Brands that are consistently presenting a revenue increase of 33%.
B2B companies with strong brands have a higher EBIT margin than others. If that isn’t enough, successful branding results in increased customer loyalty, a better image, and a more relatable identity.
Brand positioning is the only sure way to build a strong brand. In 2020, here’s how to successfully position a brand in your market. In this article, we’ll go over how to successfully position a brand in your market by going over the following topics:
- What exactly is brand positioning?
- What is the significance of brand positioning?
- What is the process of developing a brand positioning strategy?
- The map of brand positioning
- Examples of brand positioning
Brand positioning strategy refers to the method of positioning your brand in the minds of your customers. Brand positioning is the strategy used to differentiate your company from the competition. It is more than just a catchy slogan or a flashy logo.
Effective brand positioning is the degree to which a brand is perceived as favorable, different, and credible in the minds of consumers.
What is the importance of brand positioning?
Whether you cultivate it or not, you have a reputation, so you might as well develop a brand positioning strategy to help you take control of your reputation and brand image.
More than a century ago, a soda company chose to offer a never-before-seen product: the first-ever cola drink. The result is the ability to successfully position itself as the original. Coca-Cola is now a household staple with millions of sales worldwide; it is regarded as the gold standard of soda in our minds.
A company’s brand positioning allows it to distinguish itself from competitors. This differentiation helps raise brand awareness, communicate value, and justify pricing, impacting the bottom line.
However, not all brand positioning strategies are the same or have the same goal. Your positioning and verbiage will differ depending on your product, service, and industry. We’ll go over a few common positioning strategies to get you started.
Brand Positioning Strategies: What Are They and How Do You Use Them?
- Customer Service Strategy
- Usefulness Positioning Strategy
- Price Positioning Strategy
- Positioning Strategy Based on Quality
- Strategy to Differentiation
You have plenty of options, especially when deciding how to position your brand in the marketplace. Your success depends on what your competitors have to offer, but in every case, you’ll tailor your strategy to highlight your product’s competitive advantage while also pointing out your competitors’ flaws, either indirectly or directly.
Here are a few popular positioning strategies that you can use to set your brand apart from the competition.
Strategy for Customer Service Positioning
We’ve all chosen a retailer, restaurant, or other service provider based on the quality of their customer service.
Companies highlight their prompt, friendly customer service to differentiate themselves in industries known for inattentive customer service. Other businesses emphasize their strong support system if their product has a challenging implementation phase.
The most noted advantage of this strategy is that excellent customer service can justify a higher price point. Apple’s products, for example, are expensive, but their support staff is pleasant and quick to respond. These service interactions are also an essential part of the flywheel; if customers have a positive service experience, they may become promoters.
Use this strategy with caution: If you advertise excellent customer service but don’t deliver, you’ll get bad reviews, angry phone calls, emails, social media shout-outs, and even Better Business Bureau complaints. To keep your promise, make sure your team has good customer service software.
Positioning Strategy for Usefulness
A convenience-based positioning strategy emphasizes why a company’s product or service is more user-friendly than the competition’s. This convenience can be based on location, ease of use, broad accessibility, support for multiple platforms, and other factors.
The product’s design may also contribute to convenience. Swiffer®, for example, promotes its WetJetTM product as a convenient alternative to a traditional mop due to its disposable mopping pads.
Positioning your products or services as the most convenient, you will automatically attract time-crunched customers. It will also serve as justification for a higher price point. A Swiffer WetJet, for example, costs $26, whereas an O-Cedar mop costs $10.
On the other hand, providing convenience can be expensive. If you’re providing service across multiple platforms or in numerous cities, you’ll need solid logistics and software development teams to keep your promises. For this positioning strategy to work, developers must always be available to resolve bugs and other issues.
The final point to referring to whether your product is truly convenient. Customers may find the WetJet mop inconvenient because they must constantly return to the store to purchase refills. If you sell a comparable product, you should consider offering automatic refill programs or subscriptions.
Strategy for Price Based Positioning
Companies employ a price-based positioning strategy to position their products and services as the most cost-effective option. When you position your product as the cheapest on the market, you will undoubtedly attract a large customer base because no one wants to spend more money than necessary. Offering the lowest price is a simple way to persuade prospects to buy.
The one limitation is that a lower price may imply a lower production quality, even if this is not the case. It can also spark a price war, though this will only be applicable in specific industries, such as air travel.
Positioning Strategy Based on Quality
Companies use this marketing strategy to highlight the high quality of their product. Often, this level of quality comes at a premium price.
A product’s quality can be demonstrated by exceptional craftsmanship, small-batch production, high-quality materials, and even sustainable practices that increase the cost of production. Evidence of outstanding end results, high ROI, and glowing customer testimonials can all be used to demonstrate service quality.
Budget-conscious customers may avoid your brand in favor of a less expensive alternative. However, this is where buyer personas come into play. Your target customers’ income and shopping habits will determine whether emphasizing quality (at a higher premium) is the best approach for your brand.
Strategy for Distinction
A differentiation positioning Brand strategy is based on the uniqueness or innovative qualities compared to the traditional competition. Tesla is a great example; before the Tesla vehicles, there was no attractive, fully electric vehicle (EV) for purchase.
Consumers who value innovation will be drawn to your brand and product if you implement this strategy. The public may be discouraged by the lack of a history of use, which is one potential limitation. If your product is brand-new, consider including the research and testing that went into its development. Consumers who are interested in innovation frequently want to know how the latest technology or product works.
Other Positioning Techniques
These are not the only options available. Your brand can be positioned as the market leader, the first of its kind (the original), or the most popular. You can also position your products as a solution to a widespread issue.
Another strategy is to directly compare your brand to that of your competitors. In this strategy, you would directly address your competitors in your advertising campaigns and highlight your product’s advantages over theirs.
When developing your position, keep your target audience and their behaviors in mind. How you position, your brand will depend on whether they prefer to save money, spend money on quality, or have the latest and greatest gadget.
Now that you have a sense of the various approaches available to you, it’s time to develop a positioning strategy that establishes your brand as the friendliest, most convenient, cheapest, or simply the best choice compared to other brands.