Brand Equity and Positioning

To build the correct brand identity, we must define our desired or ideal brand knowledge structures and establish areas of parity and distinction.

Unique and significant points of differentiation (PODs) provide a competitive edge as well as an incentive for consumers to purchase the brand.

Some brand associations, on the other hand, can be about as favorable as those of competing brands, serving as points of parity (POPs) in customers' minds—and negating potential points of differentiation for competitors.

Let's go over how to define and establish brand positioning, as well as how to build brand equity.

When customers report differing opinions about branded and unbranded versions of identical products, which almost always occurs, it must be because knowledge about the brand, created through whatever means (past experiences, marketing activity for the brand, or word of mouth), has changed customers' product perceptions.

This conclusion has occurred with practically every type of product, demonstrating conclusively that consumers' judgments of product performance are heavily dependent on their impressions of the brand associated with it.

Thus, consumer knowledge drives the disparities that present themselves in terms of brand equity, according to the customer-based brand equity idea.

This insight has serious managerial ramifications. For starters, brand equity serves as a critical strategic link between marketers' past and future. Brand positioning is crucial to marketing strategy. A good brand positioning helps lead marketing strategy by articulating what a brand is all about, how it differs from competitors, and why customers should buy and use it.

Determining a frame of reference (by identifying the target market and the type of competition) and the appropriate points-of-parity and points-of-difference brand connections are required when deciding on the positioning.

In other words, marketers need to know:?

(1) who the target consumer is,

(2) who the main competitors are,?

(3) how the brand is similar to these competitors, and?

(4) how the brand is different from them.

"Good positioning has a foot in the present and a foot in the future. It needs to be somewhat aspirational so that the brand has room to grow and improve."?

Positioning on the basis of the current state of the market is not forward-looking enough; but, at the same time, the positioning cannot be so removed from the current reality that it is essentially unobtainable.?The real trick in positioning is to strike just the right balance between what the brand is and what it could be. Too often marketers overlook or ignore crucial areas where the brand is potentially disadvantaged to concentrate on areas of strength.?

To conclude, good positioning should reflect a consumer point of view in terms of the benefits that consumers derive from the brand.

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