6.6 Brand positioning and management
11 min read•august 20, 2024
is crucial for small and medium-sized enterprises (SMEs) in international markets. It involves creating a distinct image and that sets a brand apart from competitors. Effective positioning helps SMEs focus limited resources on impactful marketing efforts.
Key elements of brand positioning include defining the , , personality, and values. Strategies like vs. difference and functional vs. help SMEs carve out a unique market niche. Ongoing management and measurement ensure positioning stays relevant and effective over time.
Brand positioning fundamentals
- Brand positioning is the process of creating a distinct image and value proposition for a brand in the minds of target customers
- Effective brand positioning helps differentiate a brand from competitors and establishes a clear, unique, and desirable place in the market
- For SMEs, a well-defined brand positioning can help focus limited resources on the most impactful marketing and business development efforts
Defining brand positioning
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- Brand positioning refers to the specific, intended, and differentiated place a brand occupies in the minds of target customers
- Involves identifying and communicating the key attributes, benefits, values, and personality traits that define the brand and set it apart from competitors
- Effective brand positioning is based on a deep understanding of target customers, competitive landscape, and the brand's unique strengths and capabilities
Elements of brand positioning
- Target audience: the specific group of customers the brand aims to attract and serve
- Brand promise: the core benefit or value the brand pledges to deliver to customers consistently
- : the human-like traits, emotions, and characteristics associated with the brand (sincerity, excitement, sophistication)
- : the fundamental beliefs and principles that guide the brand's actions and decisions (innovation, sustainability, customer-centricity)
Brand positioning statement
- A concise, compelling, and memorable description of the brand's intended position in the market and the minds of target customers
- Typically includes the target audience, brand promise, key differentiators, and supporting evidence or reasons to believe
- Example: "For busy professionals who value convenience and quality, Brand X is the premium food delivery service that offers a wide variety of healthy, chef-prepared meals delivered to your doorstep, thanks to its extensive network of top-rated local restaurants and reliable logistics partners."
Positioning maps
- Visual tools used to display and compare the relative positions of brands within a market based on key attributes or dimensions
- Common dimensions include price vs. quality, performance vs. convenience, or traditional vs. innovative
- help identify gaps, opportunities, and potential repositioning strategies for a brand
- Example: in the automotive industry, a positioning map might show luxury brands (Mercedes-Benz, BMW) in the high price/high quality quadrant, while economy brands (Hyundai, Kia) occupy the low price/moderate quality space
Brand positioning strategies
- Choosing the most effective approach to position a brand based on market conditions, target audience preferences, and competitive landscape
- Different positioning strategies emphasize various aspects of the brand, such as functional benefits, emotional appeals, or market scope
- SMEs should carefully consider which positioning strategy aligns best with their unique strengths, resources, and growth objectives
Points of parity vs points of difference
- Points of parity (POPs) are attributes or benefits that a brand shares with its competitors, establishing its legitimacy and credibility within the category
- (PODs) are attributes or benefits that differentiate a brand from its competitors, providing a unique and compelling reason for customers to choose the brand
- Successful brand positioning often requires a balance of POPs (to be considered a viable option) and PODs (to stand out and be preferred)
Perceptual vs objective positioning
- focuses on shaping customers' subjective perceptions, associations, and beliefs about a brand, even if not based on objective reality
- emphasizes measurable, tangible, and verifiable attributes or benefits of a brand, such as specific product features, performance metrics, or awards
- Both approaches can be effective, depending on the nature of the brand, category, and target audience
Functional vs emotional positioning
- highlights the practical, utilitarian benefits a brand offers, such as superior performance, efficiency, or convenience
- Emotional positioning taps into the psychological and social needs of customers, such as status, belonging, or self-expression
- Many successful brands combine functional and emotional appeals to create a more comprehensive and compelling positioning
Broad vs specific positioning
- targets a wide range of customers and competitive situations, emphasizing versatility, adaptability, and universal relevance
- focuses on a narrowly defined target audience, use case, or competitive frame of reference, allowing for a more tailored and differentiated brand message
- SMEs often benefit from specific positioning to carve out a profitable niche and avoid direct competition with larger, more established brands
Brand positioning process
- A systematic approach to developing, implementing, and managing a brand's position in the market over time
- Involves research, analysis, strategy formulation, execution, and ongoing monitoring and adjustment
- A well-structured positioning process helps ensure consistency, coherence, and effectiveness of brand-building efforts
Identifying target market segments
- Dividing the overall market into distinct subgroups of customers with shared characteristics, needs, or preferences
- Evaluating the attractiveness and feasibility of serving each segment based on factors such as size, growth, profitability, and alignment with brand strengths
- Selecting one or more target segments to focus brand positioning and marketing efforts
Analyzing competitors' positioning
- Researching and mapping the positions of key competitors in the market based on relevant attributes, benefits, and perceptions
- Identifying the main dimensions of competition and the "white spaces" or gaps in the competitive landscape
- Assessing the strengths, weaknesses, and vulnerabilities of competitors' positions to inform the brand's own positioning strategy
Developing positioning options
- Generating and evaluating multiple potential positioning platforms for the brand based on target audience insights, , and brand assets
- Considering various combinations of target segments, brand promises, differentiators, and supporting evidence
- Prioritizing and refining positioning options based on criteria such as relevance, distinctiveness, credibility, and sustainability
Testing and refining positioning
- Conducting qualitative and quantitative research with target customers to gauge the appeal, comprehension, and persuasiveness of positioning options
- Soliciting feedback from internal stakeholders, partners, and industry experts to validate and improve positioning concepts
- Iterating and optimizing the chosen positioning platform based on research insights and strategic priorities
Implementing positioning strategy
- Aligning all aspects of the brand's marketing mix (product, price, place, promotion) with the chosen positioning platform
- Developing and executing integrated marketing communications campaigns that reinforce and amplify the brand's position across touchpoints
- Engaging and training employees, partners, and stakeholders to consistently deliver on the brand promise and positioning
Managing brand positioning over time
- Ensuring the ongoing relevance, differentiation, and effectiveness of a brand's position in a dynamic market environment
- Proactively identifying and responding to shifts in customer needs, competitive moves, and industry trends that may impact the brand's position
- Balancing the need for consistency and continuity with the need for flexibility and adaptation in brand positioning
Monitoring brand perceptions
- Regularly tracking and analyzing customer perceptions, associations, and preferences related to the brand and its positioning
- Using a variety of research methods, such as surveys, interviews, focus groups, and social media listening, to gather insights on brand performance and equity
- Identifying gaps, misalignments, or opportunities for improvement in the brand's positioning based on market feedback and data
Adapting to market changes
- Staying attuned to evolving customer needs, emerging market segments, and new competitive threats that may require adjustments to brand positioning
- Proactively exploring and testing new positioning options or variations that capitalize on market changes while maintaining the core brand identity and values
- Implementing positioning updates or refreshes in a phased, strategic manner to minimize confusion and disruption for customers and stakeholders
Repositioning considerations
- Evaluating the potential benefits and risks of significantly changing a brand's position in the market, such as expanding to new target segments or shifting the competitive frame of reference
- Assessing the feasibility and cost of repositioning based on factors such as , market conditions, and organizational capabilities
- Planning and executing a repositioning strategy that effectively communicates and delivers on the new brand promise and value proposition
Brand extension impact on positioning
- Analyzing the potential impact of launching new products, services, or sub-brands on the parent brand's overall positioning and equity
- Ensuring that brand extensions are consistent with and reinforce the core brand positioning, while also offering relevant and differentiated value to target customers
- Managing the portfolio of brand extensions to optimize market coverage, minimize cannibalization, and maintain a clear and cohesive brand architecture
Measuring brand positioning effectiveness
- Establishing and tracking key performance indicators (KPIs) that reflect the success and impact of a brand's positioning strategy
- Using a combination of quantitative and qualitative metrics to assess brand health, market performance, and customer perceptions
- Regularly reviewing and reporting on positioning effectiveness to inform ongoing brand management and optimization efforts
Brand awareness metrics
- Top-of-mind awareness: the percentage of customers who mention the brand first when asked about a product category or need
- Aided awareness: the percentage of customers who recognize the brand from a list of options
- Spontaneous awareness: the percentage of customers who recall the brand without prompting or aiding
Brand association metrics
- Brand attributes: the specific qualities, features, or benefits customers associate with the brand (innovative, reliable, premium)
- Brand personality: the human-like traits and characteristics customers perceive in the brand (friendly, sophisticated, rugged)
- Brand values: the core beliefs and principles customers believe the brand stands for (sustainability, diversity, customer-centricity)
Brand loyalty metrics
- : the percentage of customers who continue to purchase the brand over a given time period
- : the percentage of customers who buy the brand again after their initial purchase
- (NPS): a measure of customers' likelihood to recommend the brand to others, based on a single survey question
Brand equity valuation
- Financial-based methods: estimating the monetary value of a brand based on factors such as future cash flows, price premium, or market capitalization
- Customer-based methods: assessing the value of a brand based on customer perceptions, preferences, and behaviors, such as willingness to pay or customer lifetime value
- Comparative methods: evaluating a brand's equity relative to competitors or industry benchmarks, using metrics such as market share or brand strength indices
Brand positioning for SMEs
- Adapting brand positioning strategies and tactics to the unique challenges and opportunities faced by small and medium-sized enterprises
- Leveraging the agility, flexibility, and customer intimacy of SMEs to develop and communicate a compelling brand position
- Focusing brand positioning efforts on the most promising and profitable target segments and market niches
Resource constraints and positioning
- Developing a focused and efficient brand positioning strategy that maximizes the impact of limited financial, human, and time resources
- Prioritizing investments in the most critical and effective brand-building activities, such as customer research, product development, and targeted marketing campaigns
- Leveraging low-cost or no-cost positioning tactics, such as word-of-mouth marketing, social media engagement, and customer referral programs
Niche positioning opportunities
- Identifying and targeting specific market niches or micro-segments that are underserved or overlooked by larger competitors
- Developing a highly tailored and differentiated positioning strategy that addresses the unique needs, preferences, and pain points of niche customers
- Becoming the go-to brand for a particular product category, customer group, or use case within a niche market
Leveraging founder/owner reputation
- Incorporating the personal brand, expertise, and reputation of the SME founder or owner into the overall brand positioning strategy
- Positioning the founder or owner as a thought leader, innovator, or customer champion within the industry or target market
- Humanizing the brand and building customer trust and loyalty through the authentic, relatable, and engaging personality of the founder or owner
Co-branding and partnerships
- Partnering with complementary brands, organizations, or influencers to enhance and extend the SME's brand positioning
- Leveraging the brand equity, customer base, and marketing resources of partners to reach new audiences and communicate a more compelling value proposition
- Developing co-branded products, services, or campaigns that align with and reinforce the SME's core brand positioning and values
International brand positioning
- Adapting and optimizing brand positioning strategies for different countries, regions, and cultures
- Balancing the need for global consistency and local relevance in brand messaging, value proposition, and customer experience
- Navigating the complex and dynamic landscape of international markets, competitors, and customer preferences
Cultural considerations in positioning
- Understanding and respecting the cultural norms, values, beliefs, and communication styles of target international markets
- Adapting brand positioning elements, such as brand name, logo, slogan, and imagery, to avoid cultural misinterpretation or offense
- Leveraging cultural insights and local market knowledge to develop resonant and effective brand positioning strategies
Global vs local positioning
- Deciding whether to adopt a standardized global positioning strategy or a localized approach tailored to each international market
- Evaluating factors such as market similarity, brand equity, competitive landscape, and organizational capabilities in determining the balance between global and local positioning
- Developing a clear and consistent brand architecture that aligns global and local positioning elements and maximizes brand synergies
Standardization vs adaptation
- Determining which aspects of the brand positioning should be standardized across international markets and which should be adapted to local market conditions
- Standardizing core brand elements, such as brand purpose, values, and visual identity, to maintain global brand coherence and efficiency
- Adapting tactical brand elements, such as product features, pricing, and marketing communications, to meet local market needs and preferences
Country of origin effect on positioning
- Assessing the impact of a brand's country of origin on customer perceptions, preferences, and purchase behaviors in international markets
- Leveraging positive country of origin associations, such as quality, innovation, or prestige, to enhance brand positioning and differentiation
- Mitigating negative country of origin stereotypes or biases through targeted positioning strategies and marketing communications
Digital brand positioning
- Optimizing brand positioning strategies and tactics for the digital landscape, including websites, social media, e-commerce platforms, and mobile apps
- Leveraging the unique capabilities and challenges of digital channels to create and communicate a compelling brand position
- Integrating digital and offline brand positioning efforts to deliver a consistent and seamless customer experience across touchpoints
Positioning in online marketplaces
- Developing a strong and differentiated brand presence on major online marketplaces, such as Amazon, eBay, or Alibaba
- Optimizing product listings, descriptions, images, and reviews to communicate the brand's unique value proposition and positioning
- Leveraging marketplace advertising, promotion, and sponsorship opportunities to increase brand visibility and preference among target customers
Social media and brand positioning
- Using social media platforms, such as Facebook, Instagram, or LinkedIn, to create and distribute brand content that reinforces the desired positioning
- Engaging with customers and influencers on social media to build brand relationships, gather market insights, and monitor brand sentiment
- Developing a consistent and authentic brand voice, personality, and visual style across social media touchpoints
Search engine optimization and positioning
- Optimizing the brand's website, content, and online presence to improve search engine rankings and visibility for relevant keywords and topics
- Aligning the brand's search engine optimization (SEO) strategy with its overall positioning and target audience preferences
- Using paid search advertising (PPC) to drive targeted traffic and reinforce brand positioning messages
Online reputation management
- Monitoring and managing the brand's online reputation across various channels, such as review sites, social media, and news outlets
- Proactively addressing negative customer feedback, reviews, or mentions to maintain a positive brand image and positioning
- Encouraging and amplifying positive customer experiences and testimonials to strengthen the brand's online reputation and credibility
Key Terms to Review (30)
Brand association metrics: Brand association metrics are measurements used to evaluate the connections and perceptions that consumers have regarding a brand. These metrics provide insights into how consumers relate to a brand through specific attributes, benefits, or overall brand image, which are crucial for effective brand positioning and management. By analyzing these associations, businesses can better understand consumer behavior and make informed marketing decisions.
Brand awareness: Brand awareness refers to the extent to which consumers recognize and are familiar with a brand and its products or services. It's crucial for a brand's positioning and management strategies, as higher awareness can lead to greater consumer trust, preference, and ultimately, sales. Brands with strong awareness are more likely to be considered during the decision-making process, making it an essential element of effective marketing.
Brand equity: Brand equity refers to the value a brand adds to a product or service, which is determined by consumer perception, recognition, and loyalty. This value can manifest as a competitive advantage, enabling companies to charge premium prices, foster customer loyalty, and enhance marketing effectiveness. Strong brand equity plays a critical role in decision-making around product adaptation and standardization as well as brand positioning and management strategies.
Brand loyalty: Brand loyalty refers to a consumer's commitment to repurchase or continue using a brand's products or services, often resulting from positive experiences and perceived value. It reflects the emotional connection and trust that consumers develop towards a brand, influencing their purchasing decisions and creating a preference over competitors. Brand loyalty is essential for businesses as it not only drives repeat sales but also enhances customer lifetime value and brand advocacy.
Brand personality: Brand personality refers to the set of human characteristics and traits attributed to a brand, influencing how consumers perceive and relate to it. This concept plays a crucial role in shaping brand positioning and management, as it helps create a distinct identity that resonates with target audiences, fosters emotional connections, and differentiates the brand from its competitors.
Brand positioning: Brand positioning refers to the strategy of establishing a brand's unique identity and value proposition in the minds of consumers relative to competitors. It involves differentiating the brand from others by highlighting its distinct features, benefits, and overall image, which ultimately influences consumer perception and decision-making. Effective brand positioning is crucial for building brand loyalty and fostering a strong market presence.
Brand promise: A brand promise is a commitment made by a company to its customers about what they can expect from its products or services. This promise is a crucial element in brand positioning and management, as it defines the unique value proposition and shapes customer perceptions and expectations, ultimately influencing loyalty and trust.
Brand storytelling: Brand storytelling is the art of using narrative to convey a brand's identity, values, and mission in a way that resonates with consumers on an emotional level. By weaving together relatable stories, brands can create a deeper connection with their audience, ultimately influencing their perception and loyalty. This narrative approach is essential for effective brand positioning and management, as it helps differentiate a brand in a crowded market and fosters a sense of community around shared values.
Brand values: Brand values refer to the core principles and beliefs that guide a brand's identity and shape its relationship with consumers. These values help define what the brand stands for, influencing not only marketing strategies but also customer perceptions and loyalty. When effectively communicated, brand values can differentiate a company from competitors, fostering emotional connections with customers and driving long-term success.
Broad positioning: Broad positioning refers to a strategy that allows a brand to appeal to a wide audience by emphasizing general benefits or attributes rather than targeting a specific niche. This approach is designed to create a strong market presence and ensure the brand resonates with a diverse customer base, often leveraging universal themes such as quality, reliability, or value for money.
Buyer persona: A buyer persona is a semi-fictional representation of an ideal customer based on market research and real data about existing customers. It helps businesses understand their customers' motivations, behaviors, and preferences, which can guide marketing strategies, product development, and customer engagement efforts. Crafting detailed buyer personas ensures that companies tailor their messaging and offerings to meet the specific needs of different customer segments.
Competitive analysis: Competitive analysis is the process of evaluating and comparing a company's competitors in order to understand their strengths, weaknesses, and strategies. This evaluation helps businesses identify opportunities for differentiation, assess market positioning, and inform brand management decisions. Understanding competitive dynamics allows a company to position its brand effectively in relation to others in the marketplace.
David Aaker: David Aaker is a renowned marketing scholar and brand expert known for his contributions to brand strategy and management. He developed several influential models, including the Brand Equity Model, which emphasizes the importance of brand loyalty, awareness, perceived quality, and brand associations. His work has significantly impacted how businesses approach branding and joint ventures, especially in creating strategic partnerships that enhance brand value.
Emotional Positioning: Emotional positioning refers to the strategy of creating a brand image that resonates with consumers' feelings and emotions, establishing a connection that goes beyond functional benefits. It taps into the psychological aspects of consumer behavior, influencing their perceptions and fostering brand loyalty through emotional engagement. This approach is critical for brand management as it helps differentiate a brand in a crowded marketplace by appealing to customers on a deeper, more personal level.
Functional positioning: Functional positioning refers to the strategic approach a brand takes to define its unique value proposition based on the functional benefits it provides to consumers. This positioning emphasizes the practical and utilitarian aspects of a product or service, focusing on how it meets specific needs or solves problems for the target audience.
Integrated marketing communication: Integrated marketing communication (IMC) is a strategic approach that combines various marketing channels and tools to deliver a consistent message about a brand to its target audience. This approach ensures that all marketing efforts, including advertising, public relations, promotions, and digital marketing, work together harmoniously to enhance brand positioning and management. By coordinating these efforts, IMC creates a unified customer experience and reinforces the brand's identity in the marketplace.
Market segmentation: Market segmentation is the process of dividing a broad consumer or business market into smaller groups of consumers with common needs or characteristics. This approach helps companies tailor their products, services, and marketing strategies to meet the specific desires of different segments. By understanding these distinct groups, businesses can enhance product adaptation, improve promotional effectiveness, and strategically position their brand in a competitive landscape.
Net Promoter Score: Net Promoter Score (NPS) is a metric used to gauge customer loyalty and satisfaction by asking customers how likely they are to recommend a company’s product or service to others on a scale from 0 to 10. It helps businesses understand their customer relationships and identify areas for improvement, making it a vital tool for brand management, assessing reputational risk, and leveraging data analytics for customer insights.
Objective positioning: Objective positioning refers to the strategic process of defining how a brand wants to be perceived in the marketplace relative to competitors. It involves clearly articulating the unique attributes and value propositions of the brand to effectively communicate its identity and differentiate it from others in the eyes of consumers. This concept is crucial for successful brand management, as it shapes consumer perceptions and informs marketing strategies.
Perceptual Positioning: Perceptual positioning is the process of defining how a brand is perceived by consumers in relation to competing brands. It involves identifying and communicating unique attributes that distinguish a brand from its competitors, ultimately influencing consumer preferences and decisions. This strategy is crucial for effective brand management, as it helps to establish a clear and favorable image in the minds of target audiences.
Philip Kotler: Philip Kotler is a renowned marketing expert known for his contributions to the field of marketing management and brand strategy. His work emphasizes the importance of understanding consumer behavior and market dynamics, which are crucial for effective brand positioning and management. Kotler's theories provide a framework for businesses to create strong, recognizable brands that resonate with their target audiences.
Points of difference: Points of difference are the unique attributes or features of a brand that set it apart from its competitors. These distinctions can influence consumer perception and choice, as they highlight what makes a product or service special in a crowded marketplace. Understanding and effectively communicating these points is essential for successful brand positioning and management.
Points of Parity: Points of parity are the characteristics or features that a brand shares with its competitors, establishing a minimum threshold of performance or quality that is expected in a particular market. These points help consumers see that a brand is comparable to others, ensuring they meet basic expectations while allowing for differentiation through points of difference.
Positioning Maps: Positioning maps are visual tools that help businesses identify and analyze their brand's position relative to competitors in the market based on key attributes. These maps visually represent how consumers perceive different brands across various dimensions, such as quality, price, or features, allowing businesses to pinpoint gaps in the market and strategize effectively. By utilizing positioning maps, companies can better manage their brand's identity and make informed decisions on marketing and product development.
Repurchase Rate: Repurchase rate refers to the percentage of customers who make repeat purchases of a brand's products or services over a specific period. A higher repurchase rate indicates strong customer loyalty and satisfaction, while a lower rate may signal issues with brand perception or competition. This metric is crucial for assessing brand positioning and management strategies, as it helps businesses understand how well they are retaining customers and building long-term relationships.
Retention Rate: Retention rate refers to the percentage of customers or clients that a business retains over a specific period of time. It is a critical measure of customer loyalty and satisfaction, often reflecting how well a brand is positioned in the market and how effectively it manages its relationships with consumers.
Specific positioning: Specific positioning refers to the deliberate strategy used by a brand to create a distinct and unique image in the minds of consumers, differentiating it from competitors. This strategy is crucial for companies aiming to establish a strong identity that resonates with their target market, highlighting the unique value proposition and benefits that the brand offers over others.
SWOT Analysis: SWOT Analysis is a strategic planning tool that helps organizations identify their internal Strengths and Weaknesses, as well as external Opportunities and Threats. This method provides a framework for evaluating the current position of a business and devising strategies for growth, which can be crucial in making informed decisions about investments, market entry, and competitive positioning.
Target audience: A target audience refers to a specific group of consumers that a business aims to reach with its products, services, or marketing efforts. Identifying a target audience helps companies tailor their messaging, promotional strategies, and product offerings to effectively meet the needs and preferences of that particular group. Understanding the target audience is crucial for brand positioning and management, as it ensures that the brand resonates with the right consumers.
Value proposition: A value proposition is a statement that clearly outlines the benefits and unique value a product or service offers to customers, explaining why they should choose it over competitors. It is crucial for businesses as it helps to define their market position and target audience, ensuring that offerings meet customer needs effectively. This concept connects deeply with how products are adapted or standardized for different markets, how promotions and advertising are crafted, how brands are positioned in the marketplace, and the strategies of digital business models.