Positioning Your Brand in the Market
Introduction to Brand Positioning
Brand positioning is the process of creating a distinct image and identity for your brand in the minds of your target customers. It determines how customers perceive your brand compared to competitors. Effective positioning answers the question: "Why should customers choose your brand over others?"
Positioning is the third and final step in the STP framework (Segmentation, Targeting, Positioning). After dividing the market into segments and selecting target segments, you must position your brand to appeal specifically to those chosen customers.
What Is Brand Positioning?
Brand positioning refers to the unique place a brand occupies in the customer's mind relative to competing brands. It is not what you do to the product, but what you do to the mind of the prospect.
Key Characteristics of Positioning
- Perception-based: Positioning exists in the customer's mind, not in physical product features alone
- Relative: Your position is always defined in relation to competitors
- Differentiated: Effective positioning highlights what makes you unique
- Consistent: Positioning must be maintained across all marketing communications
- Relevant: The position must matter to your target customers
The Positioning Statement
A positioning statement is an internal document that clearly defines how you want your target market to perceive your brand. It serves as a guide for all marketing decisions and communications.
Components of a Positioning Statement
A complete positioning statement typically includes four elements:
- Target market: Who are your intended customers?
- Frame of reference: What category or market does your brand compete in?
- Point of difference: What unique benefit or advantage does your brand offer?
- Reason to believe: Why should customers believe your claim?
Positioning Statement Template
A common format follows this structure:
"For [target market], [brand name] is the [frame of reference] that [point of difference] because [reason to believe]."
Example: "For busy professionals who need quick, healthy meals, FreshBowl is the meal delivery service that provides chef-prepared, nutritionally balanced meals in under 400 calories because our dishes are designed by registered dietitians and prepared daily with organic ingredients."
Types of Positioning Strategies
Brands can position themselves using various approaches depending on their strengths and market conditions:
Product Attribute Positioning
Position based on a specific product feature or characteristic.
Example: Volvo positions itself on safety features in automobiles.
Benefit Positioning
Emphasize the benefit or problem solution the product provides to customers.
Example: Sensodyne toothpaste positions itself as the solution for sensitive teeth.
Use or Application Positioning
Position based on how and when the product is used.
Example: Gatorade positions itself as a drink for athletes during and after intense physical activity.
User Positioning
Target a specific type of user or customer group.
Example: LinkedIn positions itself as the professional network for business professionals and job seekers.
Competitor Positioning
Define your brand in relation to a competitor, either directly or indirectly.
Example: Avis rental cars famously positioned with "We're number two, so we try harder."
Quality or Price Positioning
Position based on offering the best quality or the best value for money.
Example: Rolex positions itself as a luxury, premium-quality watch brand.
Product Category Positioning
Position as the leader or innovator in a product category, or create a new category.
Developing an Effective Positioning Strategy
Step 1: Identify Your Competitors
Understand who you are competing against. Competitors may be:
- Direct competitors: Brands offering similar products to the same customers
- Indirect competitors: Brands offering different products that satisfy the same customer need
Step 2: Determine How Competitors Are Positioned
Research and analyze:
- What benefits do competitors claim to offer?
- What are their key messages?
- How do customers perceive these brands?
- What market space is crowded versus unoccupied?
Step 3: Identify Your Points of Difference
Points of difference (PODs) are attributes or benefits that consumers strongly associate with your brand, evaluate positively, and believe they cannot find to the same extent with competitors.
Effective PODs must be:
- Desirable: Customers must value the difference
- Deliverable: Your organization must be able to actually deliver it
- Differentiating: Competitors cannot easily copy or claim the same benefit
Step 4: Identify Your Points of Parity
Points of parity (POPs) are attributes or benefits that are not unique to your brand; they are shared with other brands. These are necessary to compete but not sufficient to differentiate.
Two types exist:
- Category points of parity: Essential attributes for any brand in the category (e.g., all smartphones must have internet connectivity)
- Competitive points of parity: Designed to negate competitors' points of difference
Step 5: Create Your Positioning Statement
Using the insights gathered, craft a clear positioning statement that articulates your unique position in the market.
Step 6: Communicate Your Position
Translate your positioning into all customer touchpoints:
- Advertising and promotional messages
- Product packaging and design
- Pricing strategy
- Distribution channels
- Customer service approach
- Website and digital presence
Perceptual Mapping
A perceptual map (also called a positioning map) is a visual tool that shows how brands are perceived by customers on key attributes.
How Perceptual Maps Work
- Two dimensions (attributes) are chosen as axes
- Brands are plotted based on customer perceptions
- The map reveals competitive positions and potential gaps in the market
Common Dimensions Used
- Price (low to high)
- Quality (low to high)
- Traditional vs. modern
- Functional vs. emotional
- Luxury vs. economy
Benefits of Perceptual Mapping
- Identifies market gaps and opportunities
- Clarifies competitive landscape
- Helps avoid overcrowded positions
- Guides repositioning efforts
- Visualizes brand strengths and weaknesses
Positioning Challenges and Pitfalls
Common Positioning Errors
Marketers should avoid these positioning mistakes:
- Underpositioning: Customers have only a vague idea of what the brand stands for; the brand is seen as just another option
- Overpositioning: Customers have too narrow an understanding of the brand; they may think the brand is not for them
- Confused positioning: Customers have a confused image of the brand due to too many claims or frequent changes
- Doubtful positioning: Customers don't believe the brand's claims given the product features, price, or manufacturer
Repositioning
Repositioning involves changing the market's perceptions of a brand or product. This may be necessary when:
- Market conditions change
- Competitors alter the landscape
- Target customer preferences shift
- The current position is no longer profitable
- The brand needs to reach new market segments
Repositioning is risky and can confuse existing customers, so it should be undertaken carefully with clear strategic reasoning.
Differentiation Strategies
Differentiation is the process of distinguishing your offering from competitors. It is closely tied to positioning, as your differentiation forms the basis of your position.
Ways to Differentiate
Product Differentiation
- Features and performance
- Durability and reliability
- Design and style
- Customization options
Service Differentiation
- Ease of ordering
- Delivery speed and reliability
- Installation services
- Customer training
- Customer support and maintenance
Personnel Differentiation
- Competence of employees
- Courtesy and friendliness
- Credibility and trustworthiness
- Responsiveness
Channel Differentiation
- Unique distribution channels
- Coverage and reach
- Expertise of channel partners
Image Differentiation
- Brand identity and symbols
- Brand personality
- Brand values and associations
- Emotional connections
Value Proposition
The value proposition is the full mix of benefits upon which a brand is positioned. It answers the fundamental question: "Why should I buy your brand?"
Components of a Strong Value Proposition
- Relevance: Explains how your product solves customers' problems or improves their situation
- Quantified value: Delivers specific benefits
- Differentiation: Tells the customer why they should buy from you instead of competitors
Types of Value Propositions
- More for more: Premium quality at a premium price
- More for the same: Better quality at the same price as competitors
- More for less: Better quality at lower prices (difficult to sustain)
- Same for less: Similar quality at lower prices
- Less for much less: Basic products at very low prices
Implementing and Maintaining Your Position
Consistency Is Critical
Once established, your position must be reinforced consistently across:
- All marketing communications (advertising, PR, social media)
- Product design and packaging
- Pricing decisions
- Distribution choices
- Customer experience at all touchpoints
Monitoring Your Position
Regularly assess whether your intended position matches customer perceptions through:
- Customer surveys and feedback
- Brand awareness and perception studies
- Social media monitoring
- Competitive analysis
- Sales and market share data
Long-term Position Management
Successful brands maintain their position over time while adapting to:
- Evolving customer needs and preferences
- New competitive threats
- Technological changes
- Cultural and social shifts
The key is to evolve without abandoning core positioning elements that customers value.
Summary
Positioning your brand in the market is about occupying a clear, distinctive, and desirable place in the minds of target customers. Effective positioning requires understanding your competitors, identifying meaningful points of difference, and communicating your unique value consistently across all marketing activities.
The positioning process involves:
- Analyzing competitors and their positions
- Identifying your points of difference and parity
- Crafting a clear positioning statement
- Developing a differentiation strategy
- Creating a compelling value proposition
- Implementing your position consistently
- Monitoring and adapting as needed
Remember that positioning is not what you say about yourself, but what customers believe about you relative to alternatives. Strong positioning creates competitive advantage, guides marketing decisions, and builds long-term brand equity.
