Brand Positioning is the essence of successful branding. This is a companion presentation to "Brand Equity: Building the Brand from the Ground Up," also by William Baker

1. Brand Positioning
Leveraging A Point of Difference
William Baker Consulting
Marketing Strategy
Communication Strategy
Branding
Advertising
Award Winning Author, Professor and Consultant
619-402-3990, wbaker@uakron.edu
Google Scholar Page: https://scholar.google.com/citations?
hl=en&user=If0w9hoAAAAJ

2. What Differentiation?
O Most people can tell you a lot of information about a product
category, but…..
O they can tell you very little about what’s different about each
brand in the category.
SUVs
Banks

3. The Goal of Positioning
When you create a position for a brand your objective is to create one key top of
mind association to the brand that refines its identity to make it stand out.
Position
Differentiation
Relative Advantage

4. Strong Positions Meaningfully
Differentiate the Brand which…
O Protects the firm from price competition
O Increases customers willingness to pay a premium price
O Increases customer brand commitment

5. Paths to Successful Positioning
Excel in One Area, Remain Competitive in Others
Superior Quality – Market Leader
(Premium Delivery of Core Benefits)
Low Cost
(Basic Benefits at Lowest Price)
Differentiation
(Offering unique value relative to competitors)

6. Positioning Strategy #1:
Superior Quality [Market Leader]
OIn any product category, the market leader is the standard for the
delivery of the core product category benefits.
OThe easiest way to become a leader is to create a new perceptual
category.
OOnce a leader is established in the mind of the consumer, it is difficult to
change that perception.

7. Ideal Way to Create a Market Leader
Ideally, you would like your brand to stand out so successfully it
creates a new category in which it is takes the market leader position.
O Nyquil
O Red Bull
O Nike Cross Trainers
O IPOD
Note: All of these brands
innovated categories to the
point of creating new sub-
categories….a new branch
within a general category.

8. Positioning Strategy #1:
Superior Quality [Market Leader]
The first brand that comes to mind
when people think of semi-conductors
The first brand that comes to mind
when people think of laundry
detergent
The first brand that comes to mind
when people think of fast food

9. Taking the leadership position from an
established leader is difficult IF…
O The leader maintains at least parity in innovativeness.
O The leader maintains at least parity in distribution channel
power.
O The leader remains price competitive.
O The leader does not stray from its core competency.

10. Positioning Strategy #2:
Low Price
To be successful, the price position requires the firm to have a lower cost structure
than its competition.
Objective: Be the first brand that comes
to mind when people think of a low price option in a product or service category.
Requirement: Core category benefits delivered, but no frills

11. Positioning Strategy #2:
Low Price
Southwest Airlines Lowest cost no frills air travel
Wal-Mart Lowest cost no frills shopping for
Every day needs
Motel Six Lowest cost no frills lodging

12. Positioning Strategies
1. Superior Quality [Market Leader]
2. Cost-Structure Based Low Price
3. Differentiation:
O Benefit position
O Usage situation position
O Aspirational position
Hard
Soft

13. Positioning Strategy #3A:
Benefit
Action: Explicitly link your brand to ONE key
performance benefit.
Objective: Be the first brand that comes to mind
whenever this benefit is
sought
Most Effective When: The brand has a performance
advantage on the benefit in
question

14. Positioning Strategy #3A:
Benefit
Company/Brand Position Execution
Build moxy and Be all that you can be 
character Army of One
Backyard flavor Grilled, not fried
Clothes Smell Great The Greatest Smell on
Earth

15. Positioning Strategy 3B:
Usage Situation
Action: Associate your brand to usage at a specific
time, place or circumstance.
Objective: Be the first brand that comes to mind when
customers are in the given situation
Most Effective When: A significant portion, but minority of all
product category usage is
during this situation.

16. Positioning Strategy 3B:
Usage Situation
Brand Position Execution
Nyquil Nighttime cold medicine The aching, sneezing
sniffling, need your rest
medicine
Hallmark Celebrate important When you care to send
moments the very best
Snickers Middle of the afternoon Hungry? Grab a
Snickers

17. Positioning Strategy 3C:
Aspirational
Action: Link brand to ‘tribal membership’ or
‘lifestyle aspiration’
Objective: Be the brand that is symbolic of an important
underlying motivation or aspiration of
the target market
Most Effective When: The product category fulfills an aspirational goal

18. Positioning Strategy 3C:
Aspirational
Company/Brand Position Execution
Marlboro Cigarettes Rugged Masculinity The Marlboro Man
Chevrolet Pride in America The Heartbeat of
America

19. Avoid Getting “Stuck in the Middle”
Consumers generally seek superior performance on one or more dimensions
or lower price.
Except in the case of expensive durable goods ‘Value’ brands are dangerous
because:
OIf consumers are seeking performance, being perceived as 90% as good as a
key competitor will generally lead to rejection.
OIf consumers are seeking low price, being 10% more expensive than a key
competitor will generally lead to rejection.

20. Successful Positions
The position is unique in its product category
The position contains one clear thought
The position defines what the brand does best, it is just a slogan
and it is not ‘disposable’