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Glossary Stand out from your competitors 2 min read

What is brand positioning?

Lewis Dowling Managing Director and Consultant

Short answer

Brand positioning is how customers see your business compared with your competitors. It's your answer to "why you?" Good positioning makes it clear who you're for and why they should pick you.

Also known as: Value proposition, Unique selling point (USP), Differentiation, Ideal customer profile (ICP), Messaging framework

Contents

Why it matters

Once you know your positioning, lots of everyday decisions get easier. It tells your sales team who to chase, your website what to say first, your designer what to draw, and your mum how to explain what you do at Christmas.

Without it, most businesses drift into saying yes to everyone. The marketing gets vaguer as it tries to keep every possible customer happy. Eventually, people can't see what's different about you, so they compare you on price instead.

Positioning means choosing who you're for and letting some customers walk past. That feels backwards when you're trying to grow. But it's often what gets things moving again, because the right customers finally see themselves in what you say.

Common mistakes

  • Thinking it's a slogan.

    A tagline might sum up your positioning, but you need the positioning first. Otherwise the tagline's just a nice line.

  • Trying to appeal to everyone.

    "Businesses of all sizes, in every sector" tells nobody it's for them.

  • Claiming what everyone claims.

    Great service is the bare minimum. Your competitors are saying it too, so it won't set you apart.

  • Writing it down and forgetting it.

    Positioning only works if it actually changes things, like what's on your homepage, how you price, and who you hire.

How to get started

  • Look at your best customers. Think about the ones you'd happily clone. What do they have in common?
  • Ask them why they chose you. Write down their exact words. They're often more useful than anything you'd come up with yourself.
  • Read what your closest competitors say. Their homepages are a good start. Make a note of what they all claim.
  • Find the gap. Look for something your best customers care about that nobody else is owning.
  • Write it in one sentence. Try: "For [who], [your business] is the [what] that [why you], because [proof]."
  • Test it out loud. Pop it on your homepage, or try it next time someone at an event asks what you do. If you get a blank look, keep going.

FAQs

What's the difference between brand positioning and a value proposition?

Positioning is where you sit in the market compared with your competitors. A value proposition is the specific promise you make to a customer. You'll want to sort your positioning first, because your value proposition should grow out of it.

Do small businesses need brand positioning?

Yes. If anything, they need it more than big firms do. Smaller businesses usually can't outspend their competitors, so being clearly different is one of the few advantages they can build without a big budget.

How long does it take to work out your positioning?

You can get a first draft out of a focused day with the right people in the room. Getting it right usually takes a few months of trying it on real customers and tweaking what you say.

Can you change your brand positioning?

Yes. It's called repositioning. Businesses tend to do it when their market shifts or they've outgrown their old story. Just don't do it too often, as customers need time to catch up.

Related terms