Brand Strategy, Brand Positioning, Business Strategy, Brand Purpose, and Business Purpose – What Are They All About?
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“Often, we use identical terms to describe different ideas and concepts. At other times, we use different words to describe identical ideas and concepts. One of the most glaring examples of this is the confusion that often exists between ‘brand positioning’ and ‘brand strategy’.” – Nick Liddell , brand strategist @ Baron Sauvage
And this is just one example of how confusing some of the terms we use in our industry can be. Many of our peers have trouble differentiating concepts such as brand purpose vs. business purpose or business strategy vs. brand strategy. In an attempt to bring more clarity and understanding to each of these concepts, here are four insightful articles from our contributors confronting these confusing terms.?
“. . . he [Byron Sharp] echoed Mark Ritson’s description of brand purpose as ‘moronic’ and questioned the ethicality of spending shareholders’ money on ‘your favorite cause’.”
So why do marketers insist on combining Byron’s evidence-based laws with the ‘moronic’ concept of brand purpose?
Nick Liddell uses a theoretical case study to question Sharp’s brand growth methods and laws through Hotelling's law – an observation in economics that in many markets it is rational for producers to make their products as similar as possible.
“Brands that follow Byron Sharp’s advice place such a strong emphasis on maximising penetration and reach, they inevitably end up in the middle of the market. Rather than creating an ‘astonishing amount of choice’, Byron Sharp’s laws of growth demand a single-minded pursuit of penetration, at the cost of any form of meaningful differentiation.?
The inevitable consequence of this prioritisation of ‘distinctiveness’ over ‘differentiation’ is that brands will become increasingly disconnected from the diversity of needs, aspirations, and cultural nuances that exist in most societies. The problem is particularly acute the further away from the ‘middle’ or ‘mass’ you happen to be; the smaller your niche, the more ‘exotic’ your minority, the further you sit from the middle of the road, the more likely it is that you will lose out. This isn’t a new problem; it’s been around for centuries and is called the ‘tyranny of the majority’.”
“A desire to introduce more scientific methods into marketing shouldn’t make us blind to the growing expectation that businesses and brands should create value for society as well as for their shareholders.”
When faced with a stark choice between purpose and reach, should marketers and entrepreneurs blindly follow Byron Sharp’s laws or not? Real-world examples of this marketer’s dilemma exist all around us.
MaryLee Sachs says:
“On the surface, it may not be expressly clear why it’s so important that we differentiate the conversation between brand and business purpose. But making this differentiation clear could be a crucial step in helping businesses identify and act on their values, rather than focusing on the story they tell about their values.
The problem with ‘brand purpose’ is that it’s often reverse-engineered onto a company as part of a consumer-facing marketing strategy. It’s reactive: It responds to constantly shifting goalposts in the social zeitgeist, so it can never really offer businesses and leadership the clarity and vision they need to generate success – not just when it comes to profitability, but to longevity, too.
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Business purpose, on the other hand, is foundational: It’s more than a message that informs your communications, it’s the reason your communications exist in the first place.
Put simply, it’s time for businesses to stop using ‘brand purpose’ as a means to conveniently suit certain criteria, or align with social trends. Purpose needs to be built into your company, from the ground up.”
Jenn Szekely says:
“While business strategy remains firmly fixed on making money, brand strategy starts with building the brand to then help grow the business. By focusing on business strategy over brand strategy, Sears missed an opportunity to use its brand strength to grow. Once a marketing and communications vehicle, in recent years brand strategy has expanded to become a driver for growth. More legacy brands are focusing on brand strategy as they look to adjust, survive, and thrive in this tough market. And for many organizations, brand strategy is ascendent over business strategy, which should have been the case for Sears, who would have benefited from having a strong north star to guide the way instead of settling to follow.
The historical debate over which of the two takes precedence has been rumbling for some time, but often brand strategy is underestimated for its impact on growth and longevity for businesses. Think of Nike and its ‘Just Do It’ tagline. Developed as part of a campaign, it is now a core component of its brand and brand strategy. The line has played a role in inspiring the brand to innovate into sectors beyond sports apparel including high-fashion collections with Jacquemus and to launch inspirational lifestyle campaigns like (Move) Like a Mother. The brand likely would not have considered these directions nearly 60 years ago.
In the constant striving for growth, there is only so much market share that a business can take from its competitors – so businesses are diversifying their products and offerings across broader markets to maximize their potential. Nike is pushing the boundaries to be seen as much more than sneakers and rather a vehicle for a healthier, more accessible, and more prosperous lifestyle.”
Nick Liddell says:
“In contrast to brand strategy, positioning a brand is a creative act. It’s based on imagination, not insight; inspiration, not analysis. This is the part of my job where I spend time listening to people: What motivates them? What makes them proud? What inspires them? What are their hopes for the future? What does sustainability mean to them? How do they define success in its broadest possible sense? This part of the job is about understanding the future people want to create and the role they would like their brand to play in creating that future.
Brand positioning and brand strategy play complementary roles. Without a brand strategy to back it up, brand positioning risks being a hollow statement of ambition. Without a brand positioning to make it sing, brand strategy can descend into dull, lifeless drudgery. I’ve seen examples of both. There are organizations that love the fun part of coming up with a beautiful, bold promise, but shy away from the dirty, difficult task of working out how exactly that’s going to be delivered, to whom, and how. There are also organizations that create intricate brand onions, wheels, bridges, or platforms, but are utterly bereft of a creative expression that people can actually care about and believe in.
Trying to pin precise definitions on vague marketing concepts is generally a fool’s errand, but I’ve found the distinction between brand strategy and positioning is a helpful way to make sure when I’m speaking to a client that I’m fixing the right problem. Sometimes the issue is a lack of creativity. Sometimes it’s a lack of rigor. Often, it’s both. I’ve also found the distinction is a helpful way to critique my own work: Is the positioning ‘idea’ compelling enough? Is the strategy sharp? Is there an appropriate balance of rigor and creativity?”
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