What is Brand Positioning and Why is it Important?
Brand positioning is a crucial aspect of any successful marketing strategy. According to the Amazon Advertising Guide, a brand positioning statement is an internal summary that companies use to promote the value their brand brings to a target market and their customers. It is a concise and clear statement that communicates a brand’s value proposition in a way that differentiates it from its competitors. The statement should balance both aspiration and reality, and answer questions about the target market or customer, product or service category, and the greatest benefit and impact of the product or service.
Ethos Marketing explains that the purpose of a brand positioning statement is to create a unique niche for a brand in the minds of consumers within its category. The statement outlines exactly what the company does, for whom, and what makes it different. It shapes the foundation of a company’s work, informs product development and advertising campaigns, and even how employees answer the phone in the office. A brand positioning statement should ideally help customers recognize the one core differentiating benefit that the other benefits serve to support.
Wix emphasizes that brand positioning is the process of shaping the status of a brand in customers’ minds. The goal is to ensure that they associate it with the benefits that make it unique, such as the purpose of a product, the price, or exclusivity. Brand positioning goes beyond establishing an authentic brand identity, with the aim of having the audience associate the brand with certain traits, which can be anything from “tasty” to “affordable and reliable” or even “luxurious.”
Improving a brand’s position involves differentiating it from direct competitors, creating a desirable alternative in the minds of the audience. Many brands have a brand positioning statement that outlines what their company does and why they stand out. The statement creates a space for the brand in the minds of consumers and is a critical element in creating a successful marketing strategy.
Importance of Brand Positioning
Brand positioning is crucial for companies to effectively communicate their unique value proposition to their target market. A brand positioning statement serves as the foundation for all marketing strategies and allows businesses to differentiate themselves from competitors while staying relevant to their audience.
Again, according to the Amazon Advertising Guide, “brands should address who their customer is and their value proposition within their brand positioning statement to maintain relevancy while being realistic.” This means that companies need to understand their target audience and tailor their messaging accordingly to resonate with them. A clear and concise brand positioning statement can help companies do just that.
Wix emphasizes the importance of controlling the narrative surrounding a brand by establishing a solid strategy for brand positioning. Businesses may stand out from competitors and truly engage their target audience by understanding the position of their brand. This may then lead to higher client loyalty and referrals.
A stronger brand position will boost your chances of reaching customers when you have a message you want to spread or reinforce. This emphasizes how crucial it is to have a carefully prepared brand positioning statement that is in line with organizational objectives and appealing to the target market. A statement like that can boost engagement and conversion rates, which will benefit the company over the long term.
The Case of Safaricom in Brand Positioning
Safaricom, a Kenyan mobile network operator that delivers voice, data, mobile money, e-commerce, and digital content, is one of the most successful African companies. Safaricom uses various approaches to lead in innovation, customer service, and social impact. Some are:
- Safaricom emphasizes quality, convenience, and customer satisfaction. M-Pesa, its mobile money service, lets users transfer and receive money, pay bills, get loans and savings, and more. M-Pesa is a trusted financial inclusion and empowerment platform in Kenya and other Safaricom nations. Safaricom’s slogan, “Simple. Transparent. Honest,” conveys reliability and honesty.
- Product class. Safaricom segments its market and offers different services to distinct consumer groups. Businesses who want to accept M-Pesa payments can use Lipa na M-Pesa. This service improves cash flow, transaction costs, and client loyalty. Safaricom also offers Blaze for youngsters, Masoko for online shopping, and Baze for digital content users.
- Safaricom employs application method to demonstrate its goods and services’ versatility. Kenyan artists and producers create local movies, music, performances, and more on its Baze platform. Safaricom offers Baze as a way for people to enjoy quality entertainment that reflects their culture and preferences while supporting local talent and creativity.
- Safaricom has used various factors to establish its brand in Africa. Safaricom has gained consumer happiness, loyalty, and a beneficial societal impact by doing so.
Once you’ve decided that it’s time to define your own brand positioning, it’s time to start planing how to do it. Check out this short guide on how to create a strong brand positioning for your business.
[…] you come to term with how important it is to have a solid brand positioning for your business, you might want to begin the process of creating one right away. However, it can […]