Brand Positioning

The distinctive position adopted by a firm’s brand in relation to competing brands.

Effective brand positioning enables a firm’s brand to be readily distinguishable from competing brands in the marketplace. Distinguishing the brand from other brands can be in terms of associated brand attributes, benefits to users, and/or market segment emphasis, among other factors. Effective brand positioning further emphasizes elements of superiority along one or more distinguishing dimensions which are valued by consumers.

By adopting multiple brands, firms also have an opportunity to strategically position brands with respect to each other and those of other competitors, such as when a firm chooses to introduce a fighter brand to protect one or more of its higher-priced brands. A fighter brand-a brand that is priced close to that of a competitor’s lower-priced offering-can take pressure off the firm to lower the price of its higher-priced brand to compete with the competitor’s brand in a market characterized by high price sensitivity.

Marketers concerned with effective brand position for their firm’s brands should seek to understand carefully the relevant dimensions along which their brands are able to be distinguishable and distinctive as a result of consumer evaluations of brands in the marketplace. Effective brand positioning is an important aim in a firm’s marketing strategy development and associated marketing mix management.