Understanding the Brand Positioning Process

Brand positioning is an important aspect of every successful business.

Why?

Because it’s the foundation upon which they build their reputation, differentiate themselves from competitors, and connect with their target audience. 

What is Brand Positioning?

Brand positioning refers to the strategic process of creating an identity and distinct image for a product or service in the minds of consumers. This well-defined space a brand occupies in the market sets it apart from competitors and communicates its unique value proposition to the target audience.

Explain it like I’m 10…

Imagine you have a lemonade stand in a street full of lemonade stands. How do you make sure that people come to buy your lemonade instead of someone else's? You make your lemonade stand special or different in some way that people remember and like. This could be by making the sweetest lemonade, having the coolest cups, or even telling funny jokes to your customers when they buy from you.

Brand positioning is like deciding what’s special about your lemonade stand. It's about figuring out how to make your stand (or brand) pop into people’s minds first when they’re thirsty for lemonade (or looking for a product like yours). You want them to think of your stand as the best one for a certain reason—maybe because it’s the most refreshing or because buying from you always makes them smile.

Developing Your Brand Positioning Model

A well-crafted brand positioning model is the foundation of a successful, differentiated market presence.

By following these steps and adopting a proactive, data-driven approach, you can create a unique and compelling brand identity that resonates with your target audience, fosters customer loyalty, and fuels sustainable growth.

Define Your Target Audience

Use market research, surveys, interviews, and existing customer data to identify your ideal customers. Develop detailed buyer personas that encompass demographics, psychographics, pain points, and motivations. Understanding your audience at a granular level will enable you to tailor your brand positioning accordingly.

Evaluate Your Brand

Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to pinpoint your brand's unique strengths and areas for improvement. Additionally, assess your competitors' brand positioning strategies using tools such as perceptual maps and competitive analysis frameworks. This will help you identify untapped opportunities and whitespace areas where your brand can stand out.

Craft a Unique Value Proposition

Combine your brand's strengths and competitive advantages into a clear, compelling value proposition that addresses your target audience's key needs and pain points. Focus on how your brand uniquely delivers value, solves problems, and satisfies customer aspirations.

Create a Brand Positioning Statement

Develop a concise, impactful statement related to your target audience, brand promise, and key differentiators. This statement should resonate with your target audience, set you apart from competitors, and communicate your unique value proposition in a way that is meaningful to your customers.

Implement Your Brand Positioning Strategy

Integrate your brand positioning across all touchpoints, from marketing and sales to product development and customer service. Ensure consistent communication of your brand promise and value proposition, both internally within your organization and externally to your customers. Deliver on your brand promise to build trust and reinforce your positioning.

To ensure your brand positioning model remains relevant and effective, adopt an iterative approach that involves ongoing research, monitoring, and refinement:

Monitor Market Trends

Stay informed about industry developments, evolving customer needs, and competitor activities. Use this insight to adjust your brand positioning strategy as needed to maintain its relevance and resonance with your target audience.

Collect and Analyze Customer Feedback

Regularly gather feedback from your customers through surveys, social media listening, online reviews, and other sources. Analyze this data to gauge your brand's perceived strengths, weaknesses, and areas for improvement. Use these insights to refine your brand positioning and enhance customer satisfaction.

Embrace Iterative Refinement

As your business evolves, the market changes, and customer preferences shift, be prepared to adapt your brand positioning accordingly. Conduct regular audits of your positioning strategy and update it as necessary to stay competitive and maintain a strong connection with your target audience.

Measuring the Impact of Your Brand Positioning

By tracking metrics and KPIs, you can gain a comprehensive understanding of the impact of your brand positioning strategy on your target audience, market performance, and overall business growth.

Brand Awareness

• Track brand awareness levels using surveys, search volume data, and social listening tools to measure your brand's visibility and resonance with your target audience. 
• Assess brand recall and recognition by conducting surveys or using online tools to measure how easily your target audience remembers your brand.
• Analyze website traffic, including unique visitors, page views, and time spent on site, to gauge the level of interest in your brand.

Brand Perception

• Conduct surveys or focus groups to gauge brand sentiment and understand how your target audience perceives your brand in relation to competitors.
• Analyze online reviews, social media conversations, and customer feedback to identify areas of strength and opportunities for improvement.
• Track changes in brand sentiment over time to measure the impact of your brand positioning efforts on customer perception.

Purchase Intent

• Use survey questions or intent-based metrics, such as click-through rates or conversion rates, to measure the persuasiveness of your brand positioning.
• Monitor changes in customer behavior, such as website visits, cart abandonment rates, and average order value, to assess the effectiveness of your brand positioning strategy.
• Conduct A/B testing on marketing campaigns and landing pages to determine which messages and visuals resonate most strongly with your target audience.

Customer Loyalty

• Measure customer satisfaction and loyalty through metrics like net promoter score, customer retention rates, and repeat purchase rates.
• Analyze customer lifetime value to understand the long-term value of your customers and the impact of your brand positioning on customer loyalty.
• Monitor customer engagement metrics, such as email open rates, social media engagement, and customer support interactions, to assess the overall health of your customer relationships.

Market Share

• Analyze your brand's market share and its growth over time to assess the effectiveness of your brand positioning strategy in attracting new customers and gaining a competitive edge.
• Compare your market share to industry benchmarks and competitors to identify areas for improvement and potential opportunities for growth.
• Conduct market research to stay informed about emerging trends and shifts in consumer preferences that may impact your market share.

Return on Investment (ROI)

• Calculate the financial impact of your brand positioning strategy by measuring the return on investment from marketing efforts, customer acquisition, and sales. 
• Use attribution modeling to understand the impact of individual marketing channels and campaigns on your overall ROI.
• Monitor customer acquisition costs and customer lifetime value to assess the efficiency and effectiveness of your marketing investments in driving customer growth and profitability.

Summing Up the Brand Positioning Process

Because consumers are bombarded with countless options, having a strong brand positioning strategy is more important than ever. Effective brand positioning can help you stand out from the crowd, build credibility, and foster long-term relationships with your customers so that your business is set up for success in the long run.