Your company's long term growth relies on brand positioning. In order for your products to reach their full potential, they must be relevant to as many people within your chosen market segments as possible. Positioning is an essential part of an effective brand strategy.

Every product competes with others in some way, or offers an alternative to something else. Consumers generally place products within the existing market structure, rather than create a new structure for your product. Therefore, you have to understand your market structure.

Brand Positioning Relies on Differentiation

What makes your product different from others like it is the benefit with which you want your consumers to most readily identify your product. The differentiation point is emotion-oriented and a consumer benefit. Usually, the best one to use is the benefit that solves your customers' largest problems.

When deciding on how to position your brand, make sure it follows these principles: brand positioning must be believable and consistent with your product's performance. It must also be directly linked to a frame of reference with which consumers can identify. Next, make sure it is targeted to deliver the most meaningful benefit to your target market demographics, or solving the biggest problem in their frame of reference. Brand positioning must also be consistent with your target market's values, behaviors, and knowledge. Finally, your brand must be different from your competition's brand.