Why Brands Need to Take Bigger Risks in 2020

Positioning 101

Market positioning refers to a brand’s ability to influence consumer perception, especially relating to competitors.

Think of the Coke vs. Pepsi ‘feud’. Though they both generate a lot of revenue and nobody can complain about that, you’ll find a lot of consumers defending one over the other. That’s because, for that person, one of the brands has a stronger positioning that connects with them.

The objective in brand and market positioning is to have such a clear identity of a brand or product, that the average consumer identifies you with it, and not your competitors, even if you are both offering virtually the same thing.

Why You Need to Take Risks

It’s really difficult to reinvent the wheel in 2020 when it seems like everything has been done. Still, even if the strategy itself is nothing new, it’s important for brands to think outside the box when trying to improve their market positioning.

For instance, let’s assume you want to sell handbags, and go on the idea that said handbag is a statement of luxury. You have two other brands, your competitors, doing the same thing. What’s worse, you most likely have very similar audiences, and your ads and campaigns reach the same users.

If this is the case, then put yourself in the shoes of a buyer: with three brands selling the same thing, in the exact same way, how could they know which one to choose? What separates the three of them? Sure, if they go on a little research journey they could find said differences, but that’s already a step too far because you have no guarantee they will actually do that.

Without taking risks, your brand could potentially stay buried in the crowd, and while there are ways to get out of it at one point, it could be difficult and time-consuming.

How Can You Set Yourself Apart?

There are several types of positioning strategies:

• Product benefits and attributes;

• Product price;

• Product quality;

• Competitors, or making audience members think you are better than them.

 To know which strategy works best, you have to keep in mind two essential things:

• What are your strengths?

• What are your competitors’ weaknesses?

For example, if you’re selling similar handbags as two of your competitors, you need to find the thing that sets you apart, and the things your competitors lack. Perhaps in terms of quality and benefits, you are on the same plan. But, your prices may be a lot better, making your handbags more affordable. Then, you can leverage the idea that luxury and style can be achievable for everyone, in spite of what your competitors are doing. It could be a risk because people associate high prices with luxury, but this angle could potentially be strong enough to get people to notice your brand.

Over to You: Create the Strategy Now

Market positioning is a complex process that requires a lot of time and effort, but given the high levels of competition businesses often face, it’s not something you want to skip.

WHAT'S MORE IMPORTANT, A GREAT BRAND OR A GREAT PRODUCT?

They say that perception is reality, and when it comes to having a great brand versus a great product, this adage becomes even more profound.

In marketing, both offline and online, there are two competing schools of thought. In University 1, marketers believe that the product is more critical to a company's success. Students and professors of University 2 diverge, thinking that brand is more important than the product. Here, we're proponents of the University 2 school of thought - that having a great brand is more important than selling superior products.
 
Why do more people believe that having a great product is the key to a company's success?
Logically, it makes sense that a great product comes before a great brand. The thinking goes that the product comes first, then a great marketing strategy is built around the product to influence perception. If a company has a superior product, then the goal of the marketing department is to communicate the product's unique features and benefits effectively.
 
It's simple, logical, and intuitive that a company would first develop a superior product and then work on developing a marketing or branding strategy to move the product. But while this may seem accurate on its face, this line of thinking completely ignores a key component of human nature; that perception is reality.
 
Why is the brand more important than the product?
It's counterintuitive, but having a great brand is more important than having a great product. Why? Because of perception. In reality, there are no "facts," when it comes to which product is better. There are only perceptions that your target customers hold that drive their purchasing decisions. Think about the ongoing feud between Apple and Microsoft supporters or the iPhone versus the Android. It's impossible to pin down which product is factually superior, as opposed to which product the customers perceive as being better.
 
Also, which is easier? Creating a "better" energy drink than the most famous of all energy drinks, Red Bull, or changing people's perception of Red Bull? Perception is not only the key to creating a "superior" product and building a great brand; perception is also difficult to change. Once someone's perception of a brand is established, it's hard to change it. Unless a great brand does something idiotic, it's nearly impossible to damage a customer's positive perception of a brand.
 
What do businesses need to create perception and build a great brand?

• Differentiation - It's better for brands to be different than to have a superior product.

• Believability - Become a market leader to influence positive perception.

For businesses, establishing positive perception in their target audience's minds is the way to build a great brand. And a great brand is superior to having a great product. But this isn't binary. Product is also essential to a company's ultimate success; it's just not as important as great branding.

What do you think is more important?