A competitive brand helps a customer to see your company, like it, and be loyal to it. It can also guide business leaders on what to prioritise and what to deprioritise as they innovate their offerings and scale their businesses. Great brands garner enormous benefits to a business. However, not many business owners can unpack the idea of how to create a compelling brand strategy that can drive business performance. This article will shed light on what branding is, how it works, and how you can create an activation brand positioning strategy effortlessly.
The Definition of Brand Positioning
A logo or a tagline alone does not make a firm brand position. Brand positioning is the process of publishing your brand and establishing it as something worth noticing. A strong brand, whether for a B2B or B2C business, is a brand that can come to customers’ minds quickly and help them make fast and easy decisions in a buying situation.
Advanced branding means thinking about what distinguishes your company from the rest and incorporating it into every single touchpoint of the business (Linkedin).
The Importance of Brand Positioning Strategy
Needless to say, every business owns a brand. Is it intentional or just an afterthought? Is it by default, or by design? You are likely to put a serious effort into positioning your brand because it really matters.
It Differentiates Your Brand from the Rest
A well-designed brand has its own personality. That said, knowing what makes your business distinctive is essential to driving the attention of audiences and encouraging them to take action. Brand positioning clarifies your company’s products, services, vision, and mission to your target audience. It also explains why they should choose your company and what makes your goods and services unique. A creative and innovative strategy supported by strong execution will attract people coming back to you for more.
It Justifies Your Pricing Strategy
People tend to make buying decisions based on the brands they have an established connection with. Our brains store enduring brands as reliable sources in our memories, which facilitates decision-making. You will be forced to advertise your product only based on competitive pricing without strong brand equity, which is a difficult battle to win. In other words, when a brand positions itself to emphasise quality and exclusivity, which drives up the price of its products, the cost immediately becomes acceptable in the eyes of the consumers. This also holds for more reasonably priced goods.
Common Types of Brand Positioning Strategy
Quality-Based Positioning Strategy
This tactic is used by businesses to highlight the high quality of their goods, which often come at a premium price. A product’s quality can be demonstrated by its great craftsmanship, small-batch manufacturing, premium materials, and even environmentally friendly production methods that raise the production cost.
Consumers on a tight budget can choose to avoid your brand in favour of a less expensive substitute. Hence, whether a quality-focused strategy is the best approach for your brand will depend on the income and purchasing preferences of your target clients. This is where creating buyer personas might be useful for your business.
Price-Based Positioning Strategy
Upon using a price-based positioning approach, a business addresses its products or service as the most affordable choices. No one likes to spend more money than they have to, so if you position your product as the least expensive on the market, you can attract a sizable consumer base. It is simple to convert prospects by providing the lowest price.
The risk of this method is that it gives customers the perception that the production quality is poor. Additionally, you can experience financial difficulties that could eventually harm the positioning of your brand, much like Subway’s $5 footlong that couldn’t keep up with inflation. Price-based positioning can also start a price war, however, this often happens in specific markets like the airline industry.
Convenience-Based Positioning Strategy
If you are in the IT industry, for example, the two foregoing strategies might not be applicable. Rest assured, you can refer to this last approach. A convenience-based positioning strategy explains why a company’s product or service is easier to use than the competitors’. This convenience may depend on elements like ease of use, accessibility, support for different platforms, and customization service.
For instance, Synergix Technologies has soon positioned itself as a convenience-based brand. Developed based on industries, the Synergix ERP system offers a comprehensive range of modules and features to meet the requirement of each industry: building & construction, wholesale distribution, manufacturing, F&B, etc. Moreover, with a strong technical team inhouse, Synergix can handle any customizations as compared to other off-the-shelf software.
Steps to Create a Brand Positioning Strategy
You can develop your own brand positioning strategy by examining your brand in great detail and identifying its competitive advantages. These steps can assist your creation:
- Determine your current brand positioning
- Identify your competitors
- Identify your unique value proposition
- Create your positioning statement
- Establish an emotional connection with prospects and customers
- Reinforce your brand’s unique selling point (differentiating qualities) during the operation of your business
- Start creating value
Successfully positioning a brand for growth is no easy task. It is not just about having a good product or service. It is about winning customers, partners, and even communities. Positioning is more of a daily commitment than a one-time event. Companies, whether big or small, might invest money, time, and serious efforts to enter a market with a strong brand. But in spite of all the challenges, the work is well-compensated.
Successfully positioning a brand for growth demands consistent effort. As you navigate this journey, consider the unmatched support of Synergix Technologies ERP system. Boost your business with a robust solution that aligns seamlessly with your brand goals. Get a free demo today!