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The difference between branding and positioning
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What is branding? There are many expert opinions. Here are two: Steve Johnson, Pragmatic Marketing:
"Branding is the activity of promoting your company identity; your brand is the identity that exists
in the minds of the buyer. Nowadays, branding is often what you do when you cannot differentiate. So
much of current marketing communications is shouting but with nothing special to say."
Kristin Zhivago, columnist, author and founder of Zhivago Marketing Partners, Inc.,
"Branding is the promise you make; your brand comes from the promises you keep."
These are just a few of the many definitions. See more branding definitions.
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How do you build a brand?
At Messages that Matter, we believe a strong brand is the result of a product or service experience that
people want to repeat. Strong brands don't happen overnight. It usually takes time - years and years -
to establish a strong brand, especially in the B2B software and service markets. It takes consistency
(read patience) when everything is changing around you. It takes money - lots of it. And it takes magic,
that creative leap of imagination that resonates in the heart and soul of your customers. |
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Ideally, a strong brand gives your B2B company, software product or service a personality, a
character and, if we're not going too far, a soul that transcends the operative benefits. In fact,
the brand becomes one of the benefits, because it embodies trust, an anticipation of predictable quality
and performance, and most of all, a feeling that this is an identity you want to be associated with as
a customer.
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A key part of establishing a brand is to have solid positioning of your products or services.
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We're often asked "what is the difference between positioning and branding."
At Messages that Matter, we define positioning as a mental space that you can "own" with an idea that
has compelling meaning to the recipient. It's in that mental space where the product's benefits and
the customer's most important needs meet, and hopefully stick. Branding is the complete set of
associations you have when one hear a company name or a product.
Thus positioning is not branding. Instead, positioning sets up a brand in the same way a
strong concrete foundation makes it possible to build a house.
It is common for B2B software types to use the term "branding" when they actually mean "positioning."
It's easier to establish a position than a brand, and effective positioning is big step on the way to
establishing a brand. But remember branding takes time, consistency and money. Successful positioning
can be achieved quickly, if you know what you are doing.
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Why spend time on positioning? Why not just go directly to branding?
The goal in positioning is to help the target market associate a benefit with your product or company.
With some effort, time and money, you can claim a position by consistently communicating an idea
that has meaning to the target audience in all your marketing communications. |
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Effective positioning can shape the product experience in a positive way; remember branding
in a nutshell is an experience you want to repeat. But unless you have established a business
process for developing your company and product positioning, there's a good chance you'll fail
to discover the truth about your B2B software or service. Eventually, your customers and prospects
will discover the gap between reality and wishful thinking, resulting in a drag on your business performance.
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Examples, please
Siebel Systems is a classic example of fast time to brand recognition, and just as fast deterioration.
Initially Tom Siebel's name and reputation gave Siebel Systems instant credibility, and the CRM
company quickly became the market leader with strong name recognition. Then Siebel became an "e-Business"
company, whatever that is, and refused to be called or referred to as a CRM company. Eventually, Siebel
went back to its CRM roots, but the damage had been done. Instead of building upon its strong position
and brand recognition, it had the arrogance to trash it. Confusion led to losing in the market.
Now Siebel is part of Oracle, and in dollar terms its brand was devalued by almost 90%. |
How we help with branding:
- You'll know the difference between branding and positioning
- Take a step closer to establishing a brand
- Set realistic expectations for branding
- Understand why positioning affects branding
- Realize the importance of consistency and repetition in positioning strategy execution,
and the eventual impact on branding.
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Let's Get Started
Contact Lawson Abinanti if you want to improve your positioning, and take a step closer to establishing a brand.
Lawson can be reached at (425) 688-0104 or Email.
Also, we offer workshops on-site or at training facilities
throughout the West. Sign up today for our free newsletter.
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