The Importance of Brand Positioning | By Design


Why Is Brand Positioning Important?

Brand positioning is important because it shapes how a brand is perceived by its target audience relative to competitors. It establishes a unique and differentiated identity for the brand in the market, influencing consumers' perceptions, preferences, and choices.

The idea of positioning has revolutionized the advertising industry. People tend to underestimate the importance of brand positioning due to its simplicity.

A consistent presentation of the brand results in an average 10–20% boost in income. Increased client loyalty, a better reputation, and a relatable personality that distinguishes you from competitors are all advantages of effective branding.

Effective brand positioning enables businesses to stand out, communicate their value proposition clearly, and build a strong connection with their target market.

It helps establish credibility, build trust, and create a competitive advantage, ultimately driving customer loyalty, market share, and long-term business success.

Brand positioning ensures that a brand's message resonates with the right audience and sets the foundation for consistent and effective marketing strategies.

What is Brand Positioning?

Effective brand positioning helps differentiate a brand, create a strong identity, and shape perceptions among consumers.

Brand positioning is the process of creating a unique and desirable brand image in consumers' minds. It is how a brand is perceived relative to its competitors in the market. A brand's positioning is determined by various factors, such as its unique features, benefits, and attributes, as well as its target audience, competitive environment, and overall marketing strategy.

What is The Importance of Brand Positioning?

Brand positioning is crucial as it provides your brand with a distinct identity that customers can relate to and benefit from. It communicates your values to your target audience and fosters a sense of loyalty. According to the Harvard Business Review, 64% of consumers remain loyal to a brand because they share similar values.

Here are the reasons why brand positioning is important:

  • Differentiation: Brand positioning helps set your brand apart from competitors. By establishing a unique image and value proposition, your brand can stand out in a crowded marketplace and capture consumers' attention.

  • Competitive Advantage: Well-positioned brands can gain a competitive edge by offering something distinctive and valuable that other brands lack.

  • Emotional Connection: Effective brand positioning allows for the development of a strong emotional bond with consumers, leading to brand loyalty and repeat purchases.

  • Premium Pricing: Well-positioned brands can command higher prices as consumers are often willing to pay a premium for a brand they perceive as offering higher quality or value.

  • Marketing Focus: Clear brand positioning helps direct marketing efforts and resources towards the most effective channels and tactics, resulting in greater efficiency and effectiveness in reaching the target audience.

  • Reputation and Connection: By leveraging its unique selling proposition (USP) and differentiating itself from competitors, a brand can build a strong reputation and establish a lasting connection with customers. Ultimately, this can lead to increased brand recognition, customer loyalty, and higher profits.

A brand can build a strong reputation and create a lasting connection with its customers by applying its unique selling proposition (USP) and differentiating itself from its competitors. This can ultimately increase brand recognition, customer loyalty, and higher profits. 

What Is the Brand Positioning Framework?

The brand positioning framework is a strategic approach that businesses use to position their brand in the minds of their target audience. This framework involves a set of guidelines and tactics that businesses can use to differentiate their brand from their competitors and establish a unique value proposition that resonates with their target audience.

The framework follows a top-down methodology, beginning with the main idea and concluding with examples of touchpoints that may be applied strategically.

  1. Big Idea
  2. Value Proposition
  3. Target Audience
  4. Mission Statement
  5. Tone of Voice
  6. Elevator Pitch
  7. Message Pillars
  8. Sample Touchpoints

How Do You Develop a Brand Positioning Strategy?

There are several steps to developing a brand positioning strategy. These steps may vary depending on the specific needs of a brand, but the following is a general framework for creating a brand positioning strategy:

  1. Define your target audience
  2. Research your competition
  3. Identify your unique value proposition
  4. Develop your brand personality
  5. Craft your brand messaging
  6. Create your brand positioning statement
  7. Test and refine your brand positioning strategy


Positioning is a strong weapon that supports the growth of your brand in a highly competitive environment. It not only produces quick benefits but also keeps them going.

Create a strong brand position to secure the future of your company. It promotes growth and creates a market participant capable of coping with changes in the marketplace.

When you position your brand, you do so in both the marketplace and your potential customers' subconscious minds.


1. Why is brand positioning important?

The importance of brand positioning lies in helping a brand differentiate itself from its competition and establishing a unique, compelling identity in the minds of its target audience.

In today's crowded and competitive marketplace, it's no longer enough for a brand to offer a product or service. Brands need to stand out and be memorable to capture and retain the attention and loyalty of their customers. Effective positioning can help a brand achieve this by communicating a clear and consistent message about what makes it unique and valuable.

2. What are the benefits of positioning?

Identifying and establishing brand positioning can provide several benefits to a business, including:

  1. Differentiation
  2. Increased customer loyalty
  3. Improved brand recognition
  4. Better marketing efficiency
  5. Higher perceived value

3. What is the important positioning strategy?

The most important positioning strategy depends on various factors, including the specific business, target audience, competitive landscape, and marketing objectives. However, one of the widely recognized and effective positioning strategies is Differentiation.
Differentiation involves highlighting unique attributes, features, or benefits of a brand that set it apart from competitors in the minds of consumers. By emphasizing what makes a brand distinct and superior, differentiation creates a compelling reason for customers to choose that brand over others. This can be achieved by:

  1. Identifying the target audience
  2. Analyzing the competition
  3. Defining the unique selling proposition
  4. Crafting a compelling brand story
  5. Consistently communicating the brand message
  6. Continuously monitoring and adjusting the positioning strategy

4. What are the 3 important elements of a positioning statement?

A positioning statement is a concise and compelling statement that summarizes a brand's unique value proposition and how it differentiates from its competitors. The three important elements of a positioning statement are:

  1. Target Audience
  2. Unique Selling Proposition (USP)
  3. Brand Promise