What is Brand Positioning?

Brand positioning is a fundamental concept in marketing that has shaped the way businesses communicate and differentiate themselves in the market. To understand its roots, we must go back to the early 1970s, when two marketing pioneers, Al Ries and Jack Trout, first introduced the idea of “positioning” in a series of articles published in Advertising Age. They later expanded their ideas into a groundbreaking book titled "Positioning: The Battle for Your Mind," published in 1981, which is now considered a classic in the field of marketing.

If you want to understand how to make your brand stand out, it’s essential to grasp this concept and the visual metaphor Ries and Trout used to explain it: the “ladder.”

What is Brand Positioning?

Brand positioning is the process of establishing a unique and distinct space for your brand in the mind of your target audience. It is not about what you do to the product but about what you do to the perception of your product in the minds of consumers. In a world overloaded with options, positioning helps ensure that your brand is not only noticed but also remembered and preferred.

Al Ries and Jack Trout emphasize that branding means establishing your position on the highest rung of the ladder. However, we know that this is not always possible. The top rungs are not easily conquered.

They acknowledge this challenge and offer a solution: if you can't stand on the highest rung of the ladder, create a new ladder.

In the years when their book was written, the authors cited 7-Up's branding efforts as an example. 7-Up found itself on a ladder where the first rung was occupied by Coca-Cola and the second by Pepsi. Clearly, 7-Up couldn't take the first or even the second position, so it needed to build its own ladder. They repeatedly emphasize that a part of positioning is to clearly tell your audience and customers who you are not and which ladder you are not on. Because if you don't clarify this, your audience might perceive you on a ladder that does not align with your desired position.

You must aim to be on the first rung of the ladder in the customer's mind.

If you aren't there yet, consider changing or narrowing your target audience. If that’s not possible, redefine your category or line of business in a different way. Or, perhaps, you can offer a different benefit to your audience. We have to keep in mind that it starts with defining your Target Audience. The starting point for defining brand positioning is understanding who we intend to satisfy. Whose minds and hearts are we aiming to occupy?

Here’s how you can leverage the ladder concept to establish a strong brand position:

  1. Identify the Right Ladder: Not all ladders are worth climbing. You must identify the specific category or market niche where your brand has the potential to stand out. For instance, if you’re launching a new coffee brand, you need to find out where it can fit in the minds of consumers—are you aiming for “the best taste,” “the most affordable,” or “the most sustainable”? Finding the right ladder is crucial to avoid getting lost among countless competitors.
  2. Understand the Existing Rungs: Once you’ve identified the right ladder, analyze who is already occupying the top positions. Are they dominating through price, quality, innovation, or something else? Knowing this will help you identify gaps or opportunities where your brand can differentiate itself. For example, when Tesla entered the car market, it didn’t try to compete directly with established brands on the existing "fuel efficiency" or "luxury" ladders. Instead, it created a new ladder: "electric vehicles with high performance," and quickly climbed to the top rung.
  3. Position by Relevance and Differentiation: To climb the ladder, your brand needs to offer a unique and relevant value proposition. Ries and Trout emphasized the importance of focusing on a single attribute or benefit that sets your brand apart. For example, Volvo successfully positioned itself on the “safety” rung in the automotive ladder, and that single-minded focus helped it claim a unique position that resonates with safety-conscious consumers.
  4. Reposition the Competition: Sometimes, positioning your brand isn’t just about climbing your own ladder—it’s about nudging your competitors off theirs. Ries and Trout called this “repositioning the competition.” This strategy involves changing the perception of your competitors in the minds of consumers. For example, when 7-Up positioned itself as the “Uncola,” it cleverly differentiated itself from the cola-dominated market, effectively positioning itself as a unique, refreshing alternative.
  5. Consistency and Clarity: Once you’ve found your ladder and your rung, it’s crucial to maintain a consistent message. Your brand’s positioning should be reflected in every aspect of your business—from product development and customer service to marketing and communications. Consistency reinforces your brand’s position and ensures that it remains at the top of the consumer’s mind. Think of Amazon, which has consistently positioned itself as “the Earth’s most customer-centric company,” focusing on convenience, selection, and customer service across every touchpoint.

Why Brand Positioning Matters?

We are all getting bombarded with choices and messages from countless brands every day. Effective brand positioning is more critical than ever to break through this noise and establish a meaningful connection with your target audience. As I mentioned, they emphasize that Positioning is not just about being different; it's about being perceived as different and relevant to the consumer’s needs. When done correctly, brand positioning can:

  • Enhance Brand Loyalty: A clear and compelling brand position helps build emotional connections with your audience, turning them into loyal advocates.
  • Simplify Decision-Making: By clearly communicating what makes your brand unique, you reduce the cognitive load on consumers, making their purchase decision easier and faster.
  • Increase Market Share: A strong brand position can help you capture a larger share of the market by appealing directly to the values and preferences of your target audience.

To make brand positioning work for you, ask yourself: Which ladder is my brand climbing, and where do I currently stand? Are you aiming to be the “most innovative,” the “most affordable,” or the “most luxurious”? Identify your ladder, understand your competition, and carve out a unique, memorable position.

By

Dorsa Sotudé

July 3, 2022