6.1 Brand positioning and values
10 min read•august 20, 2024
Brand positioning is crucial for creating a distinct perception in customers' minds. It involves identifying unique attributes and benefits that set a brand apart from competitors. Effective positioning helps establish a clear that resonates with the .
Brand values are core principles guiding a brand's behavior and decision-making. They shape the brand's identity and purpose, helping create emotional connections with customers. Aligning values with positioning creates a coherent brand narrative that differentiates the brand in the market.
Brand positioning fundamentals
- Brand positioning is a strategic process that aims to create a distinct and favorable perception of a brand in the minds of target customers
- Effective brand positioning helps differentiate a brand from competitors and establishes a unique value proposition that resonates with the target audience
Defining brand positioning
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- Brand positioning refers to the specific, intended, and differentiated place that a brand occupies in the minds of target customers relative to competing brands
- Involves identifying and leveraging the unique attributes, benefits, and values that set a brand apart from others in the market
- Aims to create a clear, compelling, and consistent brand image that aligns with the needs, preferences, and aspirations of the target audience
Elements of brand positioning
- Target audience: Identifying and understanding the specific group of customers that the brand aims to attract and serve
- : Defining the key benefits or attributes that differentiate the brand from competitors and provide value to customers
- : Articulating the core commitment or pledge that the brand makes to its customers, often tied to the USP
- : Developing a distinctive set of human characteristics associated with the brand that shape its tone, style, and behavior
Brand positioning statement
- A concise, strategic statement that summarizes the brand's intended position in the market and the key elements that define its identity and value proposition
- Typically includes the target audience, USP, brand promise, and key benefits or attributes
- Serves as a guiding framework for all brand communication, marketing, and product development efforts
Positioning strategies
- : Focusing on specific product features, ingredients, or performance characteristics that set the brand apart (Volvo: safety)
- : Emphasizing the unique advantages or outcomes that customers can expect from using the brand (Dove: nourishing and moisturizing skin)
- : Associating the brand with a particular type of user or user occasion (Red Bull: adventurous, high-energy individuals)
- : Defining the brand in relation to key competitors, either by directly comparing attributes or by occupying a distinct market space (Pepsi vs. Coca-Cola)
- : Aligning the brand with customers' aspirations, values, or ideals (Nike: inspiring athletic excellence and personal achievement)
Differentiation in positioning
- is the process of distinguishing a brand from competitors by emphasizing its unique qualities, benefits, or value proposition
- Effective differentiation creates a clear and compelling reason for customers to choose a particular brand over alternatives
- Differentiation can be based on various factors, such as product features, quality, price, customer service, brand personality, or social impact
- Successful differentiation requires a deep understanding of the target audience, market trends, and competitive landscape
- Brands must continually assess and adapt their positioning to maintain differentiation as market conditions evolve
Establishing brand values
- Brand values are the core principles, beliefs, and ideals that guide a brand's behavior, decision-making, and interactions with stakeholders
- Establishing clear and authentic brand values helps create a strong emotional connection with customers and differentiate the brand in the market
Defining brand values
- Brand values are the fundamental beliefs that shape a brand's identity, purpose, and behavior
- Values serve as a compass for decision-making, ensuring that the brand acts in a consistent and authentic manner across all touchpoints
- Common brand values include integrity, , , customer-centricity, diversity, and social responsibility
Types of brand values
- : Relate to the practical benefits and performance of the brand's products or services (reliability, efficiency, convenience)
- : Evoke positive feelings and associations in customers, such as trust, joy, confidence, or belonging
- : Allow customers to express their own identities, values, or aspirations through their association with the brand
- : Reflect the brand's commitment to making a positive impact on society or the environment, such as promoting equality, supporting local communities, or reducing carbon footprint
Aligning values with positioning
- Brand values should be closely aligned with and support the brand's positioning strategy
- Values help bring the brand's positioning to life by infusing it with meaning, emotion, and purpose
- Aligning values with positioning creates a coherent and compelling brand narrative that resonates with the target audience
- Misalignment between values and positioning can lead to confusion, skepticism, or rejection among customers
Communicating brand values
- Brand values should be consistently and authentically communicated across all touchpoints, including advertising, packaging, website, , and customer interactions
- Communication should focus on demonstrating how the brand lives its values through its actions, initiatives, and customer experiences
- Storytelling is a powerful tool for bringing brand values to life and creating emotional connections with customers
- Employee behavior and customer service play a critical role in reinforcing brand values and creating a positive brand experience
Authenticity in brand values
- Authenticity is crucial for establishing trust and credibility with customers, who are increasingly skeptical of corporate messaging
- Brands must genuinely embody their stated values through their actions, policies, and practices, rather than simply paying lip service to them
- Inauthentic or inconsistent behavior can quickly erode customer trust and damage the brand's reputation
- Brands should be transparent about their values, acknowledge their limitations or challenges, and be open to feedback and dialogue with stakeholders
Positioning and values in practice
- Successful brand positioning and values require a strategic, holistic, and consistent approach across all aspects of the business
- Case studies and examples provide valuable insights into how brands have effectively leveraged positioning and values to build strong, differentiated, and resilient brands
Positioning case studies
- Apple: Positioned as a premium, innovative, and design-focused brand that empowers creativity and self-expression (Think Different campaign)
- Tesla: Positioned as a sustainable, high-performance, and technologically advanced alternative to traditional automotive brands
- Airbnb: Positioned as a community-driven, authentic, and adventurous way to travel and experience new places like a local
Values-driven brands
- Patagonia: Committed to environmental sustainability, ethical sourcing, and supporting grassroots activism
- Ben & Jerry's: Dedicated to social justice, progressive values, and using business as a force for good
- The Body Shop: Focused on cruelty-free, natural, and ethically sourced beauty products that promote self-esteem and social change
Repositioning strategies
- Repositioning involves shifting a brand's position in the market to adapt to changing customer needs, competitive pressures, or market trends
- Brands may reposition by targeting new customer segments, emphasizing different product attributes or benefits, or updating their brand identity and messaging
- Successful repositioning requires a clear vision, a compelling new value proposition, and consistent execution across all touchpoints
- Examples of successful repositioning include Old Spice (from old-fashioned to humorous and irreverent) and Target (from discount retailer to affordable chic)
Measuring positioning effectiveness
- Brands must regularly assess the effectiveness of their positioning strategy through various metrics and research methods
- Brand tracking studies measure key indicators such as brand awareness, perceptions, preferences, and loyalty over time
- Customer feedback, social media sentiment, and sales data provide valuable insights into how well the brand's positioning resonates with the target audience
- Competitive benchmarking helps brands understand their relative position and differentiation in the market
Adapting to market changes
- Markets are constantly evolving, driven by changing customer needs, technological advancements, social trends, and competitive dynamics
- Brands must be agile and proactive in adapting their positioning and values to remain relevant and competitive in the face of change
- Regularly monitoring market trends, customer insights, and competitive activity helps brands identify opportunities and threats to their positioning
- Adapting to change may involve updating product offerings, adjusting messaging, or even repositioning the brand to better align with new market realities
Challenges in positioning and values
- Developing and maintaining a strong brand positioning and values is a complex and ongoing process that requires strategic thinking, organizational alignment, and consistent execution
- Brands may face various challenges and obstacles along the way, from market disruption to internal resistance to reputational risks
Common positioning mistakes
- Lack of differentiation: Failing to establish a clear and compelling point of difference from competitors
- Inconsistency: Sending mixed or contradictory messages across different touchpoints or over time
- Irrelevance: Positioning the brand in a way that does not resonate with the target audience or address their needs and preferences
- Overpromising: Making claims or promises that the brand cannot deliver on, leading to customer disappointment and erosion of trust
- Complexity: Creating a positioning that is too complex, abstract, or difficult for customers to understand and remember
Overcoming positioning obstacles
- Conduct thorough market research to gain deep insights into customer needs, preferences, and perceptions
- Engage in a collaborative and inclusive positioning process that involves key stakeholders from across the organization
- Develop a clear, simple, and compelling positioning statement that can be easily communicated and understood
- Ensure consistent execution of the positioning across all touchpoints, from product design to customer service to marketing communications
- Regularly assess and adapt the positioning as needed to stay relevant and differentiated in the face of market changes
Conflicting values
- Sometimes, a brand's values may come into conflict with each other or with the realities of the business environment
- For example, a brand that values sustainability may struggle to balance this with the need for cost efficiency or profitability
- Brands must carefully navigate these conflicts and make difficult trade-offs while staying true to their core values
- Transparency and open communication with stakeholders can help build understanding and trust in the face of value conflicts
Controversy and brand values
- Taking a stand on social or political issues that align with the brand's values can be a powerful way to build emotional connections with customers and differentiate from competitors
- However, taking a controversial stance can also alienate some customers or stakeholders who disagree with the brand's position
- Brands must carefully weigh the risks and rewards of engaging in controversial issues and ensure that their actions are authentic and consistent with their values
- Preparing for potential backlash and having a clear communication plan can help mitigate the risks of controversy
Rebranding considerations
- Rebranding involves a significant overhaul of a brand's positioning, identity, and values, often in response to major market shifts or company changes (mergers, acquisitions, scandals)
- Rebranding is a complex and high-stakes endeavor that requires careful planning, execution, and communication to avoid confusion, alienation, or rejection among customers and stakeholders
- Successful rebranding cases include Burberry (from stodgy to luxury fashion) and McDonald's (from fast food to healthier options and sustainability)
- Failed rebranding attempts, such as Gap's short-lived logo change in 2010, highlight the risks and challenges of rebranding
Positioning and values for stakeholders
- Brand positioning and values are not just important for attracting and retaining customers, but also for engaging and aligning various stakeholders who have a vested interest in the brand's success
- Stakeholders may include employees, investors, suppliers, partners, regulators, and the wider society in which the brand operates
Internal positioning alignment
- Employees are critical ambassadors and enablers of a brand's positioning and values
- Internal branding efforts should focus on educating, engaging, and empowering employees to understand, embrace, and deliver on the brand's positioning and values
- Aligned and engaged employees are more likely to provide consistent and authentic customer experiences that reinforce the brand's positioning
- Internal misalignment or disengagement can undermine the credibility and effectiveness of the brand's external positioning efforts
Investor relations and positioning
- A strong and differentiated brand positioning can be a valuable asset for attracting and retaining investors
- Clearly communicating the brand's positioning, values, and strategic vision helps investors understand and buy into the long-term potential of the business
- Consistently delivering on the brand's positioning and financial promises helps build investor confidence and support
- Mismanaging investor expectations or deviating from the stated positioning can lead to investor uncertainty or dissatisfaction
Positioning in recruitment
- A compelling brand positioning and values can be a powerful tool for attracting and retaining top talent, particularly among younger generations who seek meaning and purpose in their work
- Highlighting the brand's unique culture, mission, and opportunities for growth and impact can help differentiate the brand in the competitive talent market
- Authentic and consistent positioning helps ensure that new hires are a good fit with the brand's culture and values, reducing turnover and increasing engagement
- Misaligned or inauthentic positioning can lead to a mismatch between employee expectations and reality, hurting retention and productivity
Customer perceptions of values
- Customers are increasingly attuned to and influenced by a brand's values and social impact when making purchase decisions
- Authentic and consistent demonstration of brand values can build customer trust, loyalty, and advocacy, particularly among socially conscious consumers
- Brands that are perceived as hypocritical or inauthentic in their values face backlash and boycotts from customers who feel betrayed or misled
- Regularly monitoring and addressing customer perceptions and feedback on brand values is essential for maintaining and relationships
Societal impact of brand values
- Brands have a growing responsibility and opportunity to use their positioning and values to drive positive social and environmental change
- Aligning brand values with pressing societal issues, such as diversity and inclusion, climate change, or public health, can build goodwill and relevance with stakeholders
- Partnering with non-profit organizations, supporting social causes, and investing in community development initiatives can help bring brand values to life and make a tangible impact
- Failing to live up to societal expectations or contributing to negative societal outcomes can damage brand reputation and license to operate
- Balancing social impact with business objectives requires a long-term, stakeholder-driven approach to brand strategy and value creation
Key Terms to Review (29)
Aaker’s Brand Equity Ten: Aaker’s Brand Equity Ten is a framework developed by David Aaker that outlines ten key dimensions of brand equity, which are crucial for understanding how brands create value and foster customer loyalty. This model emphasizes aspects such as brand awareness, perceived quality, brand associations, and brand loyalty, all of which are essential in determining how a brand positions itself in the market and the values it represents to consumers.
Aspirational Positioning: Aspirational positioning is a marketing strategy that involves creating a brand identity that consumers aspire to associate themselves with, elevating the brand's status to one of desirability and prestige. This approach focuses on appealing to the emotions, desires, and aspirations of target audiences, often leveraging lifestyle imagery, high-quality products, and exclusive experiences to foster a connection that goes beyond mere functionality. By tapping into the values and goals of consumers, aspirational positioning helps brands differentiate themselves in competitive markets.
Attribute Positioning: Attribute positioning refers to the strategic process of establishing a brand's identity in the minds of consumers by emphasizing specific features or characteristics that differentiate it from competitors. This approach focuses on highlighting the unique benefits or attributes of a product or service, effectively creating a clear and favorable perception in the target market. By clearly defining what makes a brand stand out, attribute positioning helps to align brand values with consumer needs and preferences.
Benefit Positioning: Benefit positioning is a marketing strategy that focuses on highlighting the specific advantages or benefits that a product or brand offers to consumers, distinguishing it from competitors. This approach emphasizes the unique value proposition that resonates with the target audience, ultimately shaping how the brand is perceived in the marketplace. By aligning the brand's messaging with consumer needs and desires, benefit positioning plays a crucial role in establishing strong brand loyalty and enhancing overall brand value.
Brand Equity: Brand equity refers to the value that a brand adds to a product or service, stemming from consumer perception, experiences, and loyalty. This concept plays a vital role in shaping how a brand engages with stakeholders, positions itself in the market, expresses its identity visually, attracts talent, and measures its reputation. Strong brand equity can lead to greater customer trust, pricing power, and competitive advantages.
Brand loyalty: Brand loyalty refers to the tendency of consumers to consistently choose a specific brand over others, driven by positive experiences and emotional connections. This loyalty can lead to repeat purchases and a strong attachment to the brand, often resulting in customers resisting competitor offerings. Understanding brand loyalty is essential for creating effective positioning strategies, fostering emotional connections with consumers, measuring storytelling effectiveness, and tracking reputation through metrics.
Brand Personality: Brand personality refers to the set of human characteristics associated with a brand, which helps consumers relate to it on an emotional level. This concept allows brands to create an identity that resonates with their audience, enhancing brand positioning, engagement on social media, and building emotional connections with consumers. By embodying certain traits, such as sincerity, excitement, or sophistication, brands can attract and retain customers who identify with these qualities.
Brand Promise: A brand promise is a statement that communicates the unique value and benefits that a brand commits to delivering to its customers. It reflects what customers can expect from a brand's products, services, and overall experience, serving as a guiding principle for all brand activities. This promise is closely tied to brand positioning and values, as it shapes the identity of the brand and influences customer perceptions.
Brand reputation: Brand reputation refers to the perception and overall evaluation of a brand based on past experiences, opinions, and associations. It's shaped by factors such as customer interactions, marketing communications, and public relations efforts. A positive brand reputation can lead to customer loyalty, while a negative one can damage trust and decrease market share.
Competitor Positioning: Competitor positioning refers to the strategic process of identifying and establishing how a brand or company compares to its rivals in the marketplace. This involves analyzing competitors’ strengths, weaknesses, and unique selling propositions, which helps a business carve out its own niche and articulate its brand values effectively. Understanding competitor positioning allows companies to differentiate themselves and communicate their unique benefits to consumers.
Cost Leadership: Cost leadership is a competitive strategy aimed at becoming the lowest-cost producer in an industry, allowing a company to offer products or services at a lower price than its competitors. This approach can enhance brand positioning by appealing to cost-conscious consumers and establishing a value proposition that emphasizes affordability. Cost leadership can also lead to increased market share, as lower prices often attract a larger customer base.
Customer satisfaction: Customer satisfaction is the measure of how products or services provided by a company meet or exceed customer expectations. It reflects the overall feelings and perceptions customers have about their experiences, which can influence their loyalty and future purchasing decisions. High customer satisfaction can enhance brand loyalty and positively affect a company's reputation and bottom line.
Differentiation: Differentiation refers to the process of distinguishing a brand or product from its competitors in order to create a unique position in the minds of consumers. This is achieved by highlighting distinct features, benefits, or values that resonate with the target audience, which ultimately helps in brand positioning. Effective differentiation allows a brand to build loyalty, foster emotional connections with customers, and communicate its values clearly.
Emotional Values: Emotional values refer to the feelings and emotional connections that consumers associate with a brand, influencing their purchasing decisions and loyalty. These values often shape a brand's identity, resonate with target audiences, and play a crucial role in brand positioning strategies that differentiate a brand from its competitors.
Functional Values: Functional values refer to the practical benefits and functional attributes that a brand offers to consumers, influencing their purchasing decisions and overall satisfaction. These values highlight how well a product or service meets the needs of customers, including features like quality, reliability, performance, and usability. Understanding functional values is crucial in establishing effective brand positioning and differentiating from competitors.
Innovation: Innovation refers to the process of developing new ideas, products, or methods that improve upon existing solutions or create entirely new markets. It encompasses creativity and practical implementation, driving progress and competitiveness in various fields. The role of innovation is crucial in shaping brand identities and values, as well as influencing corporate cultures across global markets.
Keller's Brand Equity Model: Keller's Brand Equity Model is a framework that helps understand how consumers perceive a brand, focusing on building strong brand equity through customer relationships. The model emphasizes that brand equity is built through two main components: brand knowledge, which includes brand awareness and brand image, and the resulting consumer responses to the brand. By strategically managing these elements, companies can create a favorable brand position in the minds of consumers, which directly impacts loyalty and purchase behavior.
Mission statement: A mission statement is a concise declaration that defines a company's core purpose, values, and direction. It serves as a guide for decision-making and helps align the organization’s actions with its goals. A strong mission statement reflects the brand's identity and communicates its commitment to stakeholders, influencing brand positioning and customer perceptions.
Net Promoter Score: Net Promoter Score (NPS) is a metric used to gauge customer loyalty and satisfaction by measuring the likelihood of customers recommending a company or its products to others. This score helps businesses understand their relationship with customers, allowing them to enhance stakeholder engagement, align brand values, create positive brand experiences, and effectively manage online reputation.
Public Relations: Public relations is the strategic communication process that builds mutually beneficial relationships between organizations and their publics. It involves managing information flow and shaping perceptions, which is essential for effective brand positioning and aligning values with target audiences. Public relations not only addresses communication needs but also fosters trust and engagement, influencing how brands are perceived in the marketplace.
Self-expressive values: Self-expressive values refer to the personal beliefs and principles that guide individuals in expressing their identity, creativity, and individuality. These values often drive consumers' choices, particularly in how they connect with brands that resonate with their self-image and aspirations. In the context of brand positioning, companies can leverage self-expressive values to align their messaging and offerings with the desires of consumers seeking authenticity and a sense of belonging.
Social Media: Social media refers to digital platforms that allow users to create, share, and interact with content and each other. This interactive nature makes social media a powerful tool for engaging stakeholders, building brand values, and managing communication during crises. Its ability to facilitate real-time conversations and feedback offers companies a direct line to their audience, which is essential for modern corporate communication strategies.
Social Values: Social values are the deeply held beliefs and principles that guide the behavior and decision-making of individuals within a society. These values shape cultural norms, influence social interactions, and inform the branding strategies that companies adopt to resonate with their target audiences. Understanding social values is essential for businesses aiming to position themselves effectively in a market that increasingly prioritizes ethical and sustainable practices.
Sustainability: Sustainability refers to the ability to meet present needs without compromising the ability of future generations to meet their own needs. It encompasses environmental, social, and economic dimensions, aiming to balance these aspects for long-term viability. This concept is crucial in fostering responsible stakeholder engagement in corporate social responsibility initiatives and plays a key role in shaping brand positioning and values that resonate with consumers who prioritize ethical practices.
Tagline: A tagline is a memorable phrase or slogan used in marketing and advertising that captures the essence of a brand's message or promise. It serves to communicate the brand's values, personality, and positioning in a concise way, often helping to differentiate it from competitors. A strong tagline not only resonates with the target audience but also reinforces the overall branding strategy.
Target audience: A target audience refers to a specific group of people that a communication effort, such as marketing or messaging, is aimed at reaching. Understanding the target audience helps in tailoring messages to resonate with their interests, preferences, and demographics, ensuring that the communication is relevant and effective across various platforms and strategies.
Unique Selling Proposition (USP): A unique selling proposition (USP) refers to the distinct feature or benefit that makes a product or service stand out from its competitors. It's about identifying what sets a brand apart, whether it's quality, price, innovation, or customer service, and effectively communicating that difference to consumers. A strong USP helps in creating brand positioning and values by clearly defining what makes the brand unique and valuable in the eyes of customers.
User Positioning: User positioning refers to the strategic approach of defining how a brand or product is perceived by its target audience in relation to competitors. This concept is crucial for creating a clear identity that resonates with users, ensuring that their needs and preferences are prioritized in brand messaging and marketing strategies. Effective user positioning helps establish brand values, communicates unique selling propositions, and fosters emotional connections between users and the brand.
Value Proposition: A value proposition is a clear statement that explains how a product or service solves a problem, delivers specific benefits, or fulfills a need for a customer. It highlights the unique value that a brand offers compared to its competitors, which is essential for effective brand positioning and aligning with core values. This concept helps businesses differentiate themselves in the marketplace and communicate effectively with their target audience.