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Brand Positioning And Start-ups

Marketing world is huge and includes many technical words and terms.

One of these terms that we hear many times is ‘Positioning’. We believe, everybody knows in an established business what positioning means and the great value of it.

Primarily, positioning is about “the place a brand occupies in the mind of its target audience” and how it is better from the competitors’ products. In order to position products, services or brands, companies highlight the individual features of their brand (what is it about, why is useful for and how, etc.) or they try to create an appropriate image (premium or inexpensive, luxurious or practical, high-end or entry-level, etc.) using marketing mix steps. Once a brand has reached a very strong position, it can become very difficult for a competitor to reposition it.

Why Brand Positioning is Important

Positioning is one of the most powerful marketing concepts and includes building a product’s good reputation and great ranking among competitor’s products.

For example. if a company wants to launch a new product in the market, it has to start few series of steps of segmenting and targeting followed by positioning. However, when a new company comes into existence, positioning becomes even more important.

Positioning is nothing but an art of communicating to the customers the attributes of a product, service, a business or even a person, based on the needs of the customer and fans and through the right channels and carefully created messages.

Positioning of a product or service decides how the customer perception is formed about this.

Once the market has been segmented based on one of the demographic, psychographic, geographic factors etc. depending on the company’s choice and once the target market has been decided to penetrate, the next task is to let the target market know how the product or service suits their needs. This is what positioning is all about- projecting one’s product or service fitting to the needs of the target segment.

In situation of an already established company, one of the greater factors that is fundamental supports the positioning of the company is its brand and in most of the cases acts as a base platform and support system for the positioning of a new launched product. However, a new company can not enjoy the benefits of its brand support.

When a new company enters a market has two choices. Either entering to a market that already exists and the market needs are already known to the customers (me too) or entering a bright new unexplored market. Of course, both these markets need positioning Marketing.

Let’s discuss about a new company entering an existing market. In an existing market a large number of competitors is waiting to make the company positioning difficult and each one of them has a unique position in the minds of their customers.

It is all about perception!!!

If a new player wants to survive in this difficult race, what option does he have? Can he try to take away a part of the market share of the existing players by coming in and offering exactly the same product or service to the same customers?

The answer is definitely a huge ‘No’!!!

This is because, the existing players in this market have a defined target market created by their brand name and successful positioning. They also enjoy the loyalty of their customers.

This is where and why positioning becomes very important for a new company.

The other type of market penetration is when a new company wants to enter a new market that has not been explored before.

What is the need for positioning in a market that does not have competitors at all? The idea behind positioning is letting the customers know why they need a product or service and that is why new companies entering a new market needs positioning Marketing as much as those entering an existing market.

What makes positioning a critical factor for them or a part of their business strategy? First of all, they have to make their new Brand well known in the new Market and grow their reputation. Second, if for them is “one horse race” today, it doesn’t mean that this situation going to stay like this forever. In the long run, when competitors begin to enter the market with a “me too” strategy, the company would require a definite great positioning to ensure that its customers know why they should stick to them and not choose the new companies.

The basics of positioning Marketing remain the same regardless of whether a company is well established or new. However, with such a large number of companies getting set up every day, carving out a niche for new entries becomes very important. Because in the end it is all about how the customer observes and take a company and its products and services seriously.

Our company cube2success Global (online2win Global), with our high experienced Startup Managers, Consultants and Marketers, helps you with your Startup, Business and Marketing Plans and to achieve your goals and have the best results too. We also organize for you courses and workshops for all about Startups, Brands, Positioning and for all what you need to have great success and high profits.


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