Brand positioning – what is it?

In the dynamic world of marketing, brand positioning is the cornerstone of a successful strategy. It determines how customers perceive the product and how it differentiates from the competition.

From this article you will learn:

• What is brand positioning?
• What are the elements of brand positioning?
• What factors influence brand positioning?
• What are the relationships between brand positioning and commoditisation?
• What are the relationships between brand positioning and brand image?
• What are the methods of brand positioning?
• What should a brand positioning strategy look like?
• What are some examples of positioning of well-known brands?
• What mistakes can be avoided in brand positioning?
• What can be gained from brand positioning?

Brand positioning – definition

Brand positioning is a marketing strategy aimed at creating a unique identity for a brand, product or service in the minds of consumers and in the marketplace. It involves creating a distinct and differentiated brand image from the competition, which is achieved by defining the brand’s unique values and developing a consistent and reflective message that will appeal to the chosen target audience.

Brand positioning is the process of shaping the perception of a product or company in the mind of the consumer in relation to the competition.

Definition of brand positioning.

Positioning requires understanding consumer needs and expectations and creating a brand promise that addresses them. It is also important to ensure consistency across all aspects of the business, from marketing to customer service – consistency in maintaining the image developed is important in maintaining a strong and recognisable brand in the marketplace.

Elements of brand positioning

The elements of brand positioning are the foundation on which a brand differentiation strategy is built in the marketplace. They form the basis for marketing activities to build a strong and lasting brand position in the minds of consumers. They are:

• Identifying who is offering the product or service, i.e. defining the company, organisation or person behind the brand.
• Precisely defining the target audience. This includes its demographics, psychographics and behavioural characteristics of potential customers.
• Understanding and defining the needs, desires or problems that the brand aims to satisfy.
• Clearly specifying the benefits and values provided by the brand.
• Brand personality, i.e. attributing to the brand a set of human characteristics that help audiences identify with it on an emotional level.
• Differentiation, i.e. explaining how the brand differs from the competition and what makes it unique.
• Defining a Unique Selling Proposition (USP) that highlights the one-of-a-kind nature of the offering.
• Brand promise, which is a declaration of the value or experience that customers can expect every time they interact with the brand.
• A vision and mission statement, which provides a definition of the overall purpose and direction of the brand that guides the company’s activities and strategic decisions.
• Visual identity and marketing communications, so all elements of the visual identity and brand communication language – including the logo, corporate colours, typography and graphic style.
• Brand experience, which means designing customer interactions at every stage of contact with the brand to ensure a consistent and positive experience.
• Consistency, which means sticking to delineated positioning elements to reinforce the brand identity in the eyes of consumers.
• Flexibility, the ability to adapt and evolve the positioning in response to changes in the market, consumer behaviour and competitive dynamics.

Factors influencing brand positioning

The factors influencing brand positioning cover a broad spectrum of elements that together define how a brand is perceived in the marketplace. The positioning process is influenced by both internal and external aspects of the business environment.

Internal factors include the company’s mission, vision and values, its organisational culture, and the resources and competencies that can be used to create a unique offering for consumers. Also influential are the products and services offered by the brand, their quality, features, design and the way they are presented and delivered to customers.

External factors include competition in the market and the ways in which other brands are positioned, which influences consumer expectations and perceptions. Also, changes in consumer trends, technology and regulation may require adjustments to strategy. Customer interactions, experiences and opinions, which can be disseminated through various marketing channels, especially social media, also play a very important role, which also shapes brand perceptions.

Also, factors such as global economic, social and even political events can force adaptation to new conditions. Another aspect is innovation and technological developments, which not only enable new ways of communicating and interacting with a brand, but can also revolutionise entire industries.

Brand positioning and commoditisation

Brand positioning and commoditisation are concepts that stand at opposite poles in the context of marketing. Brand positioning seeks to give a product or service unique characteristics that differentiate it from its competitors and in the mind of the consumer, whereas commoditisation refers to the process by which products become indistinguishable from one another and are perceived by consumers solely through the lens of price.

When products or services become the same in the eyes of the consumer, the consumer is not loyal to the brand and makes price the main, and sometimes the only, factor in the purchase decision. Brand positioning seeks to counteract this by creating a strong, distinct identity that evokes specific emotional or value associations in consumers, making the product more resistant to price pressure.

Good positioning can prevent commoditisation by highlighting unique benefits, brand history, added value or innovation. In this way, customers may be willing to pay more for a premium brand that, in their perception, offers more than just basic functionality or product features. Otherwise, it is easier for the product to be relegated to the role of ordinary goods, where differentiation depends mainly on price and availability.

Brand positioning versus brand image

Brand positioning and brand image are two closely related but not identical concepts in marketing. Brand positioning is a company-controlled process and encompasses all the conscious actions a company takes to shape brand perceptions, including marketing communications, product characteristics, customer relations and even price. The brand image is the result of these activities, but is also shaped by consumers’ experiences and interactions with the brand, making it less controlled by the company. It can also be shaped by external factors such as public opinion, reviews, social media and many others.

There is therefore a dynamic relationship between positioning and brand image. Successful positioning can lead to a positive image, while unsuccessful positioning can produce a brand image that is inconsistent with the company’s intentions. At the same time, if there is a discrepancy between how the brand is positioned and how it is perceived, the company can take steps to adjust its strategy.

Brand positioning methods

Brand positioning methods refer to a variety of strategies and techniques that companies use to define their brand’s place in the minds of consumers and in the marketplace. Each can be used alone or in combination with others, depending on the company’s objectives, product characteristics, market dynamics and consumer needs and expectations. Here are some basic methods:

• Feature-based positioning focuses on the unique characteristics or attributes of a product or service. The aim is to associate the brand with a specific attribute, such as reliability, performance, or innovation, that differentiates the product from the competition.
• Benefit-based positioning emphasises the specific benefits a consumer will gain by choosing a product. These could be, for example, health, convenience, time savings. It aims to convince consumers that a particular brand will meet their needs better than others.
• Positioning by comparison means that the brand is directly compared to the competition, highlighting why it is better.
• Positioning based on use or application means that your company can position a product by associating it with a specific use or situation of use, making the consumer think about the product when it might be needed or wanted.
• User-based positioning focuses on identification with specific users or target groups. For example, a product may be positioned as ideal for professionals, young mothers, athletes, etc.
• Positioning based on product class is used when a brand wants to be seen as a leader in its product category, perhaps positioning itself as the most prestigious, most advanced or best-selling in its class.
• Quality/price-based positioning involves positioning a brand on an axis from best value to premium brand, depending on the quality/price ratio. This can mean positioning as the cheapest option or as a luxury good.
• Emotional positioning seeks to elicit an emotional response from consumers, building a connection on a personal level. This could be a sense of belonging, adventure, security or happiness.
• Cultural positioning focuses on building a brand identity that resonates with certain cultural or social values that are important to the target audience.

Brand positioning strategy

A brand positioning strategy starts with a deep understanding of three key elements: the market, the consumer and the brand itself. The first stage is to analyse the competition, market trends, and opportunities and threats – in the course of this you need to understand where the brand currently stands in the market in relation to its competitors and what its strengths and weaknesses are. You can then move on to researching customers, their needs, preferences, consumer behaviour and decision-making. It is important to identify the factors that are important to them when choosing a product or service.

Once you understand the market and the consumer, you should formulate a Unique Value Proposition (UVP) that clearly demonstrates why your product or service is unique and why customers should choose it. The UVP should be simple, clear and easy to understand, but this is not the end of the work involved – it then needs to be transformed into compelling and consistent messages that need to be communicated to consumers through a variety of communication channels. At this stage, it is important that all brand elements – from the logo to the advertising slogans to the tone of communication – are consistent and reinforce the positioning message.

A marketing strategy should then be implemented, which should use both traditional marketing and digital marketing to reach the target audience. This may include advertising, promotions, public relations, content marketing or social media marketing. At the same time, it is a good idea to monitor the effectiveness of activities and collect consumer feedback in order to adjust the strategy based on this to better meet the needs of the market. It should also not be forgotten that maintaining a brand’s position is an ongoing process, and as the market changes, the positioning must also evolve.

Examples of brand positioning

In the marketing world, a brand positioning strategy defines how a product or company is perceived by the consumer. Brands use a variety of communication channels to position themselves in the minds of consumers. Here is how some of the most recognisable global brands do it:

• Apple has long positioned itself as an innovative brand that delivers products with high design and ease of use. An example is the iPhone, which is positioned as premium, stylish and a standard-setter in the smartphone industry.
• Volvo has traditionally positioned itself as a safety leader in the automotive industry. The company emphasises the design of its vehicles and innovative technologies to protect passengers.
• Nike positions itself as a sports brand inspired by athletes, promoting performance and innovation. With the slogan ‘Just Do It’, Nike communicates an inspirational and motivational message to resonate with anyone with sporting aspirations or who simply wants to be active.
• Coca-Cola has often positioned itself as a symbol of moments of joy and fun. For decades, it has been consistently associated with positive emotions, shared moments and celebrations.
• Under the slogan ‘Pleasure of Driving’, BMW positions its vehicles as synonymous with driving pleasure and luxury. The brand focuses on high-quality performance and driving dynamics to attract car lovers who value excellent performance.
• Louis Vuitton is positioned as a luxury fashion brand, emphasising exclusivity, craftsmanship and history. The brand’s products are presented as status and desirable in the fashion world.
• Google positions itself as synonymous with internet search and innovation in technology. It is known for creating intuitive, usable products and services to help and simplify everyday life.
• IKEA positions itself as an accessible, designer furniture brand. By offering products with simple Scandinavian design at reasonable prices, IKEA appeals to a wide range of consumers looking for functional and attractive solutions for the home.
• Tesla is positioning itself at the forefront of the automotive movement towards electromobility. The company emphasises innovation, sustainability and advanced technology to bring about a revolution in transport.

Problems and mistakes associated with brand positioning

Brand positioning problems and mistakes can significantly damage a company’s consumer perception and its long-term success. The most common of these are:

• When the brand communication strategy is inconsistent across channels, this can mislead customers about what to expect from the product or service.
• The lack of a clear message as to what differentiates a brand from its competitors can make it unrecognisable and lost in the crowd.
• If a brand tries to appeal to everyone, it may not appeal to anyone. Neglecting to define a clear target audience can dilute the effectiveness of the message.
• The world and markets are dynamic, and brands that fail to adjust their positioning in response to changes in consumer trends and preferences may be left behind.
• When a brand promises more than it can offer and its product or service fails to meet expectations, this leads to customer dissatisfaction and reputational damage.
• Failure to include competitors’ activities and offerings in the positioning strategy can result in loss of market share.
• Positioning that does not emphasise the uniqueness of the brand can reduce the product to the level of a mere commodity, increasing the risk of customers choosing on the basis of price rather than value.
• Presenting false information as part of positioning can lead to legal problems and crises of confidence.
• Creating too many versions of a product or messages for too many niche markets can dilute brand identity and make communication unclear.
• Companies that ignore their history in the pursuit of innovation may lose loyal customers who identify with the traditional brand image.
• International brands can run into difficulties if their positioning does not take into account cultural and social differences between markets.

Benefits of brand positioning

Brand positioning allows brands to stand out clearly in an overcrowded market. It makes it easier for customers to identify the brand and what it offers, resulting in increased brand engagement and loyalty. It also supports marketing communication, which also helps to build a consistent brand image and leads to better brand recognition.

Not only does trust translate into a greater chance of success for the products marketed, but also the ability to set higher prices that customers are willing to pay for a proven brand. Strong positioning can protect a brand in times of crisis, as customers tend to stick with what they know and trust. Ultimately, well-executed brand positioning contributes to the value of the company and its overall market positioning.