Brand Positioning : Importance and Benefits

Strategic Importance of Brand Positioning

An internal positioning summary called a brand positioning statement is what businesses use to explain and promote the value their brand offers to target markets and customers. It is employed as a method of clearly stating the value proposition of a brand. Brand positioning statements should strike a balance between aspiration and reality because they are typically a part of a brand’s bigger marketing plan.

Proper communication of the value provided by a company’s brand is essential for every organization. This is why brand positioning plays a vital role. It involves the development of a concise internal statement that defines the brand’s position and the implementation of different marketing strategies to enhance this positioning. Additionally, internal brand positioning statements contribute to achieving effective communication and conveying the brand’s value to clients. To remain relevant and practical, brands should discuss who their target audience is and their value proposition in their brand positioning statement. Some of the strategic importance of brand positioning are given as follows.

Strategic Importance
  • Brand position helps businesses to differentiate itself from the other competitors in the market. Brand position creates a distinct identity of the business in terms of value proposition.
  • Brand positioning builds brand equity. Brand is an intangible asset to a company and positive brand equity reflects customer loyalty, trust, and goodwill.
  • We generally associate such positioning with the outer image of the company. But brand positioning strongly influences the internal alignment of any organization. Brand position is a common goal. Hence, it provides a shared understanding of the brand’s identity, purpose and value for the brand consistency. This leads to the proper internal alignment of all the stakeholders.
  • It allows businesses to take advantage of the pricing factors. Not all businesses go for brand building as it involves time and investment. Once, customers perceive a business or product as a brand or a superior product, customers are willing to pay a premium price for it. A brand is established when one offers better than what is available. This positively impact the profitability of the business.

Benefits of Brand Positioning

The advantages of having a good positioning in marketing are listed below.

  • It is simple for people to recall the advantages of purchasing from a brand when firms explicitly convey to a specific target audience what they want them to know about themselves. Their clients quickly begin to connect the brand with respect to its positioning. When its customers think about the different options available to them, brand recall and clarity will be helpful.
  • Companies will benefit from creating a devoted consumer base if they have a strong brand positioning. Advocates for the company’s brand will be those who value its differentiators.
  • Every company would list the identical product features on all marketing materials if there were no differentiation. The target market would find it extremely challenging to differentiate between the options and make a decision. Brands need to express their value in order to sell their products. A company’s brand should set it apart from its rivals. 
  • Although one of the positioning techniques employed by businesses is competitive pricing, it may not always be the greatest choice. It’s crucial to compete on criteria besides pricing. It’s crucial to keep in mind that a brand may yet locate the identical goods for less somewhere else. However, brands become difficult to replace when they put more emphasis on other aspects like quality, service, and customer care.
  • Effective positioning elicits an emotional response from the target audience. In a world driven by statistics, we continue to depend on emotions to determine our purchasing decisions.
  • Effective positioning generates a strong consumer-focused value proposition. Brands let their customers know what value they provide. They need to be explicit about the advantages clients will experience by buying their goods. They can do this by informing their clients of the advantages and qualities of your goods.
  • The brand aspects and brand message must be on point to complement the brand’s positioning in order for it to have a clear positioning. It is simpler to control their position in the market due to consistency.
  • The marketing group in a company may use the positioning statement as a reference while developing the marketing plan.


  1. I mean marketing

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