ՀՀ-ում միջազգային որակի կրթության ապահովման իր առաքելությունը
BSMI-ը իրականացնում է իր ամենակարևոր ռեսուրսի՝ դասախոսների շնորհիվ։
Մենք մշտապես ոգևորված ենք՝ մեր թիմը համալրելու ոլորտի առաջատար մոտիվացված մասնագետներով։
Եթե ցանկանում եք դառնալ BSMI Team-ի անդամ, ստորև լրացրե՛ք հայտը, և մենք կապ կհաստատենք Ձեզ հետ։
Թո՛ղ տվյալներդ, և մենք կապ կհաստատենք քեզ հետ:
Brand Positioning in the Market
In this article, we will explore the essence of brand positioning and its role in increasing sales and taking a business to the next level.
What is Positioning?
Positioning is the design and creation of the most suitable position for your brand in the minds of customers, in comparison to the positions occupied by current competitors.
The goal of positioning is differentiation in a competitive environment to engage consumers.
It is important to note that this is not about the physical placement of products (for example, in stores), but about shaping the brand's position in the customer's mind (perception is more important than reality).
Let’s explain the term with an example:
Suppose Company "X" produces dishwashing liquid. There is a wide range of such products in stores, and consumers are left wondering, How do I differentiate between them? Meanwhile, manufacturers are considering what to emphasize in production and what position to create for consumers. The key to understanding and creating this position is guided by the principles outlined below.
1. Choose an Aspect Not Occupied by Competitors
At this stage, an analysis of competitors and their product range is conducted to understand the positions they occupy and the differences between them.
Positioning is the design and creation of the most suitable position for your brand in the minds of customers, in comparison to the positions occupied by current competitors.
The goal of positioning is differentiation in a competitive environment to engage consumers.
It is important to note that this is not about the physical placement of products (for example, in stores), but about shaping the brand's position in the customer's mind (perception is more important than reality).
Let’s explain the term with an example:
Suppose Company "X" produces dishwashing liquid. There is a wide range of such products in stores, and consumers are left wondering, How do I differentiate between them? Meanwhile, manufacturers are considering what to emphasize in production and what position to create for consumers. The key to understanding and creating this position is guided by the principles outlined below.
1. Choose an Aspect Not Occupied by Competitors
At this stage, an analysis of competitors and their product range is conducted to understand the positions they occupy and the differences between them.
For example, it turned out that one competitor's product stands out due to a pleasant scent, another one for its ability to remove stains, and a third one's positioning is based on the concept of Japanese eco-friendly chemistry, etc. However, there is no product in the market that is anti-allergenic or designed for washing children's dishes.
Thus, we've identified several available positions, and the more of these positions there are, the better. Now, the question arises: which one should be chosen from the identified open positions?
2. Choose the feature that is important for the audience
In his book Marketing: The Speed of Thought, Adrian Slywotzky mentions that in modern economics, there has been a reversal in the value chain. And if it used to look like this—
Thus, we've identified several available positions, and the more of these positions there are, the better. Now, the question arises: which one should be chosen from the identified open positions?
2. Choose the feature that is important for the audience
In his book Marketing: The Speed of Thought, Adrian Slywotzky mentions that in modern economics, there has been a reversal in the value chain. And if it used to look like this—
This means that previously, we used to ask the following questions in this order:
- What assets does the company have?
- What products can be made with these assets?
- What needs can be met with these products?
- Who is our consumer?
- Who is our consumer,
- what needs do they have,
- what products can satisfy these needs,
- what resources are required for this?
Yes, indeed, that's the case. Today, supply exceeds demand, and it is necessary to consider the audience's desires, needs, and requirements in order to target the right segment.
Positioning is created based on the audience's needs and demands, taking into account the organization's advantages over competitors and directing them to make the product the most suitable in its category.
Consumers may not be interested in hypoallergenic products, as most people use gloves when washing dishes, but it could be important for them that one drop of soap removes grease from the dishes, and that the cleaning liquid can be used for a long time. Depending on the audience's needs (which can be determined through various research methods, focus groups, surveys, and others), the company selects a specific feature that will differentiate its product from competitors.
Choosing the wrong target audience from the outset will lead to a chain reaction, resulting in incorrect positioning, which will have negative consequences for the organization.
3.How to choose competitive advantages and create positioning
Brand positioning is built on a combination of points of parity (POPs) and points of difference (PODs).
How to create positioning
The formula for positioning appears quite simple on the surface. However, selecting the right words that express the full meaning of the concept requires extensive analytical work.
The classic formula is as follows:
"Product X offers the consumer benefit Y / advantage Z, which determines what the brand represents from the product's perspective and what (what benefit) it provides."
Or
"(Brand name) is for (brief description of the target audience, 3-5 words) in the (brand category), offering (main brand advantage), as (evidence)."
For example: "ACUVUE lenses are offered for women with visual impairments, which contain a large amount of oxygen. The guarantee of reliability is their unique manufacturing technology, which allows the lenses to breathe and remain moist for up to 12 hours."
This description should align with the brand's main marketing concept, be a part of internal documents, and the message should be communicated to the public through communication channels (which doesn't repeat the words and formulas but stays true to the positioning from a marketing perspective).
4.How Incorrect Positioning Affects Sales: The Story of SONY Walkman
In 1979, Sony created the Walkman portable audio players, thinking that such a low-margin, innovative product would appeal to teenagers. However, it turned out that the selected audience still preferred larger cassette players, and consumers were not interested in the portable players, which continued to remain on store shelves. The engineers and marketing experts were disappointed by this reality.
However, soon, young businesspeople discovered the Walkman. Their days were so busy that they couldn't listen to Bach on their way to work or Vivaldi while jogging. The Sony Walkman turned out to be a perfect solution—it fit into their bags and pockets, making it easy to enjoy music anywhere. This is how the Walkman became an inseparable companion for "white-collar" workers worldwide.
This example highlights the importance of correctly identifying the target audience and positioning the product accordingly to drive sales growth.
5.Positioning Levels
The level of positioning is often dependent on the company's UVP (Unique Value Proposition).
Choosing the wrong target audience from the outset will lead to a chain reaction, resulting in incorrect positioning, which will have negative consequences for the organization.
3.How to choose competitive advantages and create positioning
Brand positioning is built on a combination of points of parity (POPs) and points of difference (PODs).
- Points of Parity (POPs) – Features and benefits that are important to consumers and are already offered by competitors. These must be included in every product within the given category. For example, a new phone model cannot be different by lacking the "calling" function, or a microwave oven by not heating food. These are mandatory characteristics for a product not to lag behind competitors.
- Points of Difference (PODs) – Features and benefits that the consumer immediately associates with the brand, which makes them have a positive opinion of the brand and believe that it stands out from others in the market (consumers are confident they won’t find those features in other products). In other words, these are the characteristics that differentiate the company from others (and might even make it superior to them).
How to create positioning
The formula for positioning appears quite simple on the surface. However, selecting the right words that express the full meaning of the concept requires extensive analytical work.
The classic formula is as follows:
"Product X offers the consumer benefit Y / advantage Z, which determines what the brand represents from the product's perspective and what (what benefit) it provides."
Or
"(Brand name) is for (brief description of the target audience, 3-5 words) in the (brand category), offering (main brand advantage), as (evidence)."
For example: "ACUVUE lenses are offered for women with visual impairments, which contain a large amount of oxygen. The guarantee of reliability is their unique manufacturing technology, which allows the lenses to breathe and remain moist for up to 12 hours."
This description should align with the brand's main marketing concept, be a part of internal documents, and the message should be communicated to the public through communication channels (which doesn't repeat the words and formulas but stays true to the positioning from a marketing perspective).
4.How Incorrect Positioning Affects Sales: The Story of SONY Walkman
In 1979, Sony created the Walkman portable audio players, thinking that such a low-margin, innovative product would appeal to teenagers. However, it turned out that the selected audience still preferred larger cassette players, and consumers were not interested in the portable players, which continued to remain on store shelves. The engineers and marketing experts were disappointed by this reality.
However, soon, young businesspeople discovered the Walkman. Their days were so busy that they couldn't listen to Bach on their way to work or Vivaldi while jogging. The Sony Walkman turned out to be a perfect solution—it fit into their bags and pockets, making it easy to enjoy music anywhere. This is how the Walkman became an inseparable companion for "white-collar" workers worldwide.
This example highlights the importance of correctly identifying the target audience and positioning the product accordingly to drive sales growth.
5.Positioning Levels
The level of positioning is often dependent on the company's UVP (Unique Value Proposition).
The concept of USP (Unique Selling Proposition) is considered outdated and is unlikely to be used now. "There's nothing truly unique anymore."
© M. Lindstrom
© M. Lindstrom
The term UVP (Unique Value Proposition) suggests that a company's offering should be 1) interesting to the buyer, 2) unique, and 3) commercially justified. If a company has a truly unique product/service/technology, the positioning is built on this level (the uniqueness of the product/service/technology is announced to the market).
The term ESP (Emotional Selling Proposition) has replaced UVP, where the distinguishing feature of brands is primarily the emotional connection consumers feel with the company. Here, positioning creates emotions in the customer that link them to the brand's consumption.
The next level is OSP (Organizational Selling Proposition). In this case, positioning is built on the mission and values of the organization, which separate it from others in its category.
The fourth level is BSP (Brand Selling Proposition), where the brand becomes a more decisive factor for the consumer when choosing a product than the product's descriptive features. At this stage, the relationship between the product mark, commercial offer, and positioning is displayed in the brand name, transmitting the company's overall ideology to the consumer.
6.Positioning is not difficult, what is more important (and difficult) is to correctly deliver it to the market:
Today, the informational chaos in marketing is growing, and while in the past, a single slogan could provide sufficient progress for a company for a long time, now the slogan, after content creation, passes into the hands of users and undergoes various changes and modifications, which is difficult to manage afterward. However, it is possible to predict which type of content will change in which direction and create a communication chain accordingly.
The most important thing in communication is maintaining consistency. It is crucial that communication starts from positioning and the overall marketing ideas of the company, and these should not contradict each other.
The term ESP (Emotional Selling Proposition) has replaced UVP, where the distinguishing feature of brands is primarily the emotional connection consumers feel with the company. Here, positioning creates emotions in the customer that link them to the brand's consumption.
The next level is OSP (Organizational Selling Proposition). In this case, positioning is built on the mission and values of the organization, which separate it from others in its category.
The fourth level is BSP (Brand Selling Proposition), where the brand becomes a more decisive factor for the consumer when choosing a product than the product's descriptive features. At this stage, the relationship between the product mark, commercial offer, and positioning is displayed in the brand name, transmitting the company's overall ideology to the consumer.
6.Positioning is not difficult, what is more important (and difficult) is to correctly deliver it to the market:
Today, the informational chaos in marketing is growing, and while in the past, a single slogan could provide sufficient progress for a company for a long time, now the slogan, after content creation, passes into the hands of users and undergoes various changes and modifications, which is difficult to manage afterward. However, it is possible to predict which type of content will change in which direction and create a communication chain accordingly.
The most important thing in communication is maintaining consistency. It is crucial that communication starts from positioning and the overall marketing ideas of the company, and these should not contradict each other.
