Brand Positioning Strategy Tips for Small Businesses

For small businesses, establishing a strong brand identity and position in the market can be a key factor in achieving long-term success. However, with limited resources and a crowded marketplace, it can be challenging to differentiate oneself from the competition. That's where brand positioning strategy comes in - it provides a roadmap for creating a unique and compelling brand identity that resonates with customers and stands out in a crowded market. In this article, we will explore what brand positioning strategy is, why it matters for small businesses, and provide practical tips for developing a successful brand positioning strategy.

What is a Brand Positioning Strategy?

Brand positioning strategy refers to the process of creating a unique image and identity for a brand in the mind of the consumer, relative to its competitors. It involves defining the brand's unique value proposition, target market, and key messages that differentiate it from other brands in the same category.

The brand positioning strategy guides the development of all marketing efforts and communications, including advertising, packaging, and promotion, to ensure consistency and alignment with the brand's desired image and positioning.

A successful brand positioning strategy can help a company to differentiate itself from competitors, build brand loyalty, and ultimately increase sales and revenue. It requires a deep understanding of the target audience and the competitive landscape, as well as a clear understanding of the brand's core values and mission.

The marketing goals of a brand positioning strategy are to: 

• Differentiate the Brand from Competitors - By creating a unique image and identity for the brand, it can stand out in a crowded marketplace and be easily distinguished from competitors.
• Establish a Clear Value Proposition - A brand positioning strategy should communicate the brand's unique value proposition - the benefits and values it offers to customers that competitors do not.
• Build Brand Recognition and Awareness - The goal of a brand positioning strategy is to create a strong and recognizable brand identity that customers will remember and associate with the brand.
• Build Brand Loyalty and Trust - A well-executed brand positioning strategy can help establish a strong emotional connection between the brand and its customers, leading to increased brand loyalty and trust.
• Increase Sales and Revenue - Ultimately, the goal of a brand positioning strategy is to increase sales and revenue by attracting and retaining customers who are willing to pay a premium for the brand's unique value proposition.

Types of Brand Positioning

Choosing your brand positioning strategy depends on what type of business you have and the kinds of goods and services you sell to the market. There are different types of brand positioning that businesses can use to differentiate themselves in the market.

To position your brand effectively, focus on the people who matter most to your business. Understanding your target market can promote loyalty and customer retention, making your brand more valuable. An identifiable and meaningful brand picture can set you apart in a crowded market. A smart brand positioning strategy can guide your marketing decisions and make your brand more competitive, adaptable, and recognizable. Some common types of brand positioning include:

• Product Attribute Positioning - Based on a specific product attribute, such as quality, price, or performance.
• Benefit Positioning - Based on the benefits it offers to customers, such as convenience, reliability, or ease of use.
• User Positioning - Based on the target audience, such as age, gender, or lifestyle.
• Competitor-Based Positioning - In relation to its competitors, such as being the low-cost alternative or offering better quality than competitors.
• Cultural Positioning - Based on cultural values, such as sustainability, social responsibility, or diversity and inclusivity.
• Celebrity or Influencer Positioning - Based on its association with a celebrity or influencer, who may embody the values or image of the brand.

It's important to note that these types of brand positioning are not mutually exclusive, and businesses may use a combination of these strategies to create a unique and compelling brand identity.

Impact of Brand Positioning on Your Business

A successful brand positioning makes companies more attractive and recognizable in the market. According to Oberlo statistics, consistent presentation of a brand has been attributed to increases in revenue by as much as 33%. While the market is always changing and new competitors emerging, a company with a strong brand positioning strategy has the best chance of considered by prospective customers. 

A strong brand positioning can have several positive impacts on a business, including:

• Increased Brand Recognition and Awareness - By creating a unique and memorable brand identity, businesses can increase brand recognition and awareness, which can lead to increased customer loyalty and repeat business.
• Differentiation From Competitors - Strong brand positioning can help a business differentiate itself from its competitors, leading to increased market share and profitability.
• Higher Perceived Value - A well-positioned brand can be perceived as offering higher value to customers, which can lead to increased willingness to pay a premium price for products or services.
• Improved Customer Loyalty - A strong brand positioning can create an emotional connection with customers, leading to increased loyalty and repeat business.
• Increased Market Share - By differentiating itself from competitors and creating a strong brand identity, a business can increase its market share and grow its customer base.
• Easier Product Launches - A strong brand positioning can make it easier to launch new products or services, as customers will already have a positive perception of the brand and be more likely to try new offerings.

Overall, strong brand positioning can positively impact a business by increasing brand recognition and awareness, differentiation from competitors, higher perceived value, improved customer loyalty, increased market share, and easier product launches.

How to Successfully Position Your Brand

Creating a brand positioning strategy may seem simple, but executing a marketing plan requires focus and determination. To successfully position your brand, you must build customer loyalty and reinforce your product or service's values. The objective of your brand positioning strategy is to influence how your target market perceives your brand in comparison to competitors.

Steps to Position Your Brand

While there are many stages involved to correctly position your brand, Here is a simple step-by-step guide on how to create a brand positioning strategy: 

1. Lay the Foundation - To ensure long-term success, establish a strong foundation for your brand. Remember, your positioning statement is not enough. Your brand strategy must incorporate your brand's proposition, attributes, communication, and product/service.
2. Get Feedback - Effective brand positioning is crucial for success, as miscommunication can harm organizational structure and development plans. Prior to launching a product or service, it is wise to seek unbiased feedback from individuals or groups outside of your business. Honest criticism provides valuable insight for improvement and consistency.
3. Analyze  Findings - To ensure unbiased documentation of market expectations and client needs, it's crucial to have an unaffiliated team interpret and finalize your data. Opt for a third-party review of the results for an objective perspective.
4. Adapt to the Market -Pay attention to numbers and figures. Companies often make the mistake of ignoring data and sticking to old, inefficient ways. Be willing to change when necessary. Adapt your market approach and advertisement strategy to current trends. It's okay to make adjustments, but don't compromise your company's values or forget why you started your business.
5. Focus - Brand positioning is about exclusion, not inclusion. Don't claim too many attributes that you can't maintain consistently. Focus on your business's most vital aspect and use it as your sales pitch. Take Volvo, for example, which positioned itself as the leader in car safety. Customers buy Volvos because they believe they are the safest cars on the road. Your brand position should differentiate you from competitors and give your target market something to believe in.
6. Commit, Coordinate, and Nurture - Having a clear brand position can give you an edge over your competitors. All your touchpoints should reflect this position. Your marketing efforts should revolve around your brand position. It is the foundation of your competitive strategy. It's critical that your brand positioning strategy has the desired impact on your target audience.

Fractional CMOs and Brand Positioning Strategy

A fractional CMO can help a business build and implement a brand positioning strategy by providing expertise, guidance, and a fresh perspective. They can bring in years of experience in marketing and branding to help the business identify its unique value proposition and target audience. The CMO can also develop a comprehensive marketing plan that aligns with the brand positioning strategy, including messaging, content creation, and advertising campaigns. Additionally, a fractional CMO can monitor and measure the success of the brand positioning strategy, adjusting it as necessary to ensure continued growth and success. Overall, a fractional CMO can provide a cost-effective solution for businesses that need expert marketing guidance but may not have the resources or budget to hire a full-time CMO.

There are several marketing tactics a fractional CMO can execute to help businesses improve their brand positioning, including:

• Developing a Clear Brand Identity - This involves developing a unique and memorable brand identity that resonates with customers. This can include a brand name, logo, color scheme, and tagline that are consistent across all marketing materials.
• Conducting Market Research - To understand how customers perceive the brand and its competitors, businesses should conduct market research to gather insights and identify areas for improvement.
• Defining a Unique Value Proposition - A strong value proposition should communicate the unique benefits and values that the brand offers to customers that competitors do not.
• Creating Consistent Messaging - Consistent messaging across all marketing channels, including advertising, social media, and email marketing, can help reinforce the brand's identity and value proposition.
• Building a Strong Online Presence - A well-designed and optimized website, active social media presence, and online reviews can help improve the brand's visibility and credibility online.
• Collaborating with Influencers - Partnering with influencers who align with the brand's values and image can help increase brand awareness and credibility.
• Organizing Events and Sponsorships - Participating in industry events and sponsoring relevant causes or organizations can help improve brand recognition and credibility.

By using these tactics, businesses can develop a strong brand positioning strategy that differentiates them from competitors and resonates with their target audience.

Conclusion

In conclusion, implementing a strong brand position strategy can be a game-changer for small businesses. By defining your unique value proposition, identifying your target audience, and creating a consistent brand message, you can stand out in a crowded market and attract loyal customers. Remember, your brand is the foundation of your business, so invest the time and effort to get it right. Your success depends on it!