What term describes something that a company does particularly well relative to its competitors?
Show If you’re a marketer or an entrepreneur, you’ve probably heard about the concept of brand positioning. But if you feel like this concept remains too abstract and unclear, then this article is for you! Today I’m going to define the concept with simple words and show you how to use it to create a powerful brand. Brand positioning has been defined by Kotler as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”. In other words, brand positioning describes how a brand is different from its competitors and where, or how, it sits in customers’ minds. A brand positioning strategy, therefore, involves creating brand associations in customers’ minds to make them perceive the brand in a specific way. Why is brand positioning important?By shaping consumer preferences, brand positioning strategies are directly linked to consumer loyalty, consumer-based brand equity, and the willingness to purchase the brand. Effective brand positioning can be referred as the extent to which a brand is perceived as favorable, different and credible in consumers’ minds. How to find a powerful brand positioning (3 simple steps)?Step 1: In order to create a unique and successful positioning for your brand, you need to analyze the following:
Step 2: Once you’ve done that, you will need to choose a positioning statement that:
An easy way to define a brand positioning statement is to summarize it in three words. For example, “vegan, traditional & feminine”. Try not to choose generic words such as “quality-products, unique, successful” because this is the aim of every brand. Step 3: The remaining challenge is to then reflect this brand positioning in everything that you do (brand personality, packaging design, product, service, visual identity design, communications, etc). ExampleA great example of a powerful brand positioning is the one of Australian Yellow Tail Wines. Their objective was to enter the US market and to be perceived very differently from the vast majority of wine brands, which all sell complicated products with sophisticated and hard-to-understand wine terminology. Yellow Tail focused their positioning strategy on being perceived as
This is how they achieved this brand positioning:
Did this article help you understand the meaning of brand positioning? Do you know other brands that excelled at finding a great brand positioning? References (academic sources): What term describes what a firm does well relative to its competitors?Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins. A differential advantage is when a company's products are seen as both unique and of higher quality, relative to those of a competitor.
What does it mean when a company has a competitive advantage?A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more customers and grow its market share.
What are the 4 competitive advantages?The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.
What is a strategic advantage?strategic advantage. noun [ C or U ] if a company or country has a strategic advantage, it has a particular characteristic or way of doing things that makes it more successful than others: create/gain a strategic advantage Gazprom has gained a strategic advantage by securing export routes and carving up markets.
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