What is brand positioning and can it impact market success?

By Jim Butz, Sales and Marketing expert with over 20 years of real world experience strategizing and executing sales and marketing plans for startups, small business and nonprofits.

Brand Positioning: A Key to Market Success

Brand positioning is crucial to achieving market success, and the strategy to build and maintain that positioning is equally important. When we refer to brand positioning, we’re talking about how your brand is perceived and valued in the marketplace. The brand positioning strategy, on the other hand, is the approach used to establish and sustain that position. These two elements—position and strategy—are interdependent; the strategy shapes the position, and the position, in turn, influences the strategy.

Positioning is important

A prime example of strong brand positioning is Apple, known for its innovation and user-friendly design. On a smaller scale, a restaurant might be recognized for its unique cuisine, or a nonprofit could gain a reputation for offering flexible services. For a restaurant, the strategy to maintain this brand position might include carefully planning the menu and sourcing distinctive ingredients. For a nonprofit, it could involve leveraging technology or choosing optimal service delivery locations. In all cases, brand positioning establishes the clear and recognizable value of the organization in the marketplace. This position is understood both internally, by the organization’s team, and externally, by competitors.

A strong brand position helps an organization stand out from competitors—a phenomenon often referred to as “cutting through the noise.” This is especially critical in established markets, where competition is intense. In concentrated markets, where three to five companies often control 60% or more of the market share, entering and achieving success can be challenging. A robust brand position is essential for maintaining or growing market share.

Brand Positioning vs. Value Proposition

It's important to distinguish between brand positioning and value proposition. Your value proposition defines how your products or services are perceived by your customers, while brand positioning focuses on how your organization is perceived within the broader marketplace. There is considerable overlap between the two, and in many cases, the value proposition is a component of the overall brand positioning strategy.

Take the restaurant example again: if a restaurant is perceived as offering a unique dining experience compared to other options in the local market, that will contribute to its brand position as a place with interesting cuisine. However, brand positioning is not directly tied to a Go-To-Market (GTM) strategy, although elements of the GTM strategy can influence brand positioning.

The Role of Market Maturity

Another factor to consider is the maturity of the market. In newer markets, brand positioning is important but may not be as critical while the market is still forming. This is because organizations have more flexibility to evolve or shift their brand positioning as the market develops. In more mature, established markets, however, having a clear and well-understood brand position is absolutely essential for success. With an increasingly more competitive and well informed market place, brand positioning is essential to establish and maintain. There are new tools to help understand your brand and establish a brand connection which can help influence how to position your brand. It is also important that brand positioning might take some time, but will pay off substantially if done well.