Customer Loyalty Series: Part 2
Marketers are always looking for ways to influence how consumers perceive their brands to build more than simply transactional relationships. They know that effective brand positioning helps separate them from the competition and not just capture but keep a larger share of both consumers’ minds and wallets, driving long-term customer loyalty.
Here are six of the most common brand positioning strategies that companies use. Depending on the product category, some will be more effective than others and all come with some potential drawbacks.
Price Positioning
As discussed in the earlier blog, a high-end pricing strategy relies on the customer’s belief that the more expensive a product is, the better it is. The idea is “It must be good… it costs a lot.” Conversely, a low-price strategy conveys to the customer that the product or service is accessible and affordable. Both can be effective but have some risks. A high-price approach may suggest that the product is too costly for consideration. At the same time, the low-price strategy is relatively easy to undercut by competitors willing to offer even lower prices.
Examples: Rolex (high price), Timex (low price)
Quality Positioning
Quality is typically a part of every brand story, but if you’re thinking about quality-based positioning, be prepared for a crowded and competitive marketplace. A quality-based position is most effective when used in a narrow category where there is a clear and definable difference between your brand and the competition. It can be the materials used to make the product, durability or performance… all allow you to effectively differentiate your brand by quality positioning.
Examples: Mercedes-Benz, Patagonia
Value Positioning
Value positioning includes elements of both the Price and Quality positions. Essentially, it tells consumers that your brand offers an optimum combination of high quality at the lowest price. Unfortunately, the “V’ word has become relatively common across most categories and is not always a clear differentiator. Value brands do best when the product or service has already been established in the marketplace.
Examples: Target, Dollar Shave Club
Solution Positioning
Specific industries like finance, insurance, and, more recently, legal services often use Solution Positioning. The thinking behind solution positioning is that the product or service is presented as the quickest or most effortless way to take care of the customer’s problem. Bad credit? Rejected for insurance due to age or health? Need a lawyer for that divorce? No problem! Solution positioning can effectively attract customers but is less effective for promoting long-term brand loyalty.
Examples: Staples, Policygenius
Benefit Positioning
This popular strategy highlights the benefits of a product or service that are unique to the brand. In today’s competitive marketing environment, benefit claims are tough to own. Competitors regularly make new, improved, and “better than” claims that can shorten and undercut the effectiveness of this positioning.
Examples: Neutrogena, Shout
Celebrity Positioning
Connecting a celebrity with a brand is one of the oldest positioning strategies. It’s an effective way to gain awareness and credibility for a brand quickly, but it’s not without some risks. It can be expensive, and in today’s “no secrets” world, a celebrity’s popularity and reputation can change overnight. Marketers should weigh the risks and choose their spokesperson carefully.
Examples: Beyonce (Pepsi), Matthew McConaughey (Lincoln Motors)
J. Schmid would love to talk to you if you’re wondering about your positioning strategy. As a brand agency operating for over 40 years, we can help position you for success with strategic customer insights and powerful creativity that builds awareness, demand, and customer loyalty.
Photo by Megan Bucknall on Unsplash
Tags: brand marketing, brand positioning, brand strategy, branding, Branding Agency, Branding Consultant, brandingSpecialist