In a world where business as usual is no longer usual, you need to know how to drive growth despite the down economy.
Branding and positioning can help your business thrive in the midst of change.
“Your product or service fills a need,” says Bo Bothe, president and chief creative officer of BrandExtract. “A clear position defines the need for consumers.”
Smart Business asked Bothe how to assess, develop and strengthen your brand and position to capture a larger market share.
Why are branding and positioning essential to business growth?
Effective branding helps a company bond with its customers in a way that builds loyalty and differentiation. When a brand really ‘connects,’ it not only creates a barrier for competitor entry but also develops a premium situation where consumers perceive a higher product value, such as Apple. When a brand emanates from an organization’s mission, it reflects marketplace value and communicates and operates in a manner that supports that position. A position is the essence of what a brand stands for and, when clearly defined, it is easier for the consumer to make the correct decision.
What are some of the possible outcomes of an effective branding campaign?
Goals for any branding initiative should be defined at the onset. What equates to success will be different for every organization, but the following are examples of results good branding initiatives achieve:
- Clear differentiation and value proposition
- Customers purchasing your product faster and for a premium
- More focused and efficient operations
- The right customers and prospective employees knocking at your door
- Your entire organization knowing what you do and ‘selling’ for you
- Connecting immediately because people know what you stand for
- Improved insulation between down cycles and negative news
- Improved perception and increased firm value
How does positioning differ from branding?
Your position is where your company and product intersect with your target market. Positioning is capturing the story your organization has to tell and packaging it in a consistent and memorable way that connects with the audience and explains how you will fulfill their need. On the other hand, branding is the experience your consumers have with the product or service.
The more unique the position, the easier it is for the brand to stand alone. Companies that actually stand for something rather than everything tend to succeed in building tangible brand value. IBM, Coca-Cola, Google and Apple are examples of companies that people connect with. For these brands, success comes from more than the product they sell; it is the experience they provide that gives them an edge.
How can you evaluate the effectiveness of your current brand?
Listen frequently. Take action often. A brand should be a conversation. It is not about talking at your customers, it is about talking with your customers. By talking and listening to your key stakeholders, you can understand where they place you in your marketplace. Employee retention, premium pricing, increased traffic or leads, and reduced cost of sales are metrics you can examine to gauge the effectiveness of your brand.
What are the first steps in developing and implementing a brand strategy?
To begin, you need to understand that today you don’t own your brand — you manage it. True competition now comes from the clutter in the marketplace. Consumers have more confusion than confidence around the products and services they consider buying. Here is a basic outline of how to effectively build and manage a valuable brand:
Assess your position in the marketplace.
A brand assessment is critical in defining the right place to start, identifying gaps in expectations, and defining how you will measure the effectiveness of your marketing and sales groups. Do people know and identify us correctly? Are our products and services relevant? What is the current market opportunity?
Develop the tools you need.
Determine your position in the marketplace: What space do we want to own? How will we communicate this effectively to our target audience? Then, a marketing plan should outline the tactics needed to achieve these goals and objectives. Finally, you need a visual ‘tool kit’ to effectively and cohesively communicate your brand’s position and value proposition.
Track your results and know when to reassess.
You’ll have to decide who is accountable and how to measure effectiveness based on key indicators outlined in the assessment phase. You’ll also need to determine key times, survey tools and other opportunities to gather information about the perception of the brand in the marketplace. This continual process will guide you on whether you need to adjust or alter your position.
BO BOTHE is the president and chief creative officer of BrandExtract, an integrated branding and communications firm that guides growing companies by providing strategic branding solutions, marketing communications, advertising, print and interactive services. Reach him at [email protected] or (713) 942-7959 or go to the company’s Web site at www.brandextract.com.
