…In order to avoid more uncomfortable and painful positioning

It often happens that we talk to people who are planning to open a business. The scenario tends to be almost always the same: they already have a job and would like to increase their income; they don't have a job and want to start doing something; they have a budget set aside and they want to invest it. Now stop for a moment and pay attention to what I tell you, because maybe maybe I can still save your skin and avoid falling into the trap of "post-bankruptcy depression".

The latest statistics are not so nice. It would seem that most businesses close within 5 years and in Italy 2 businesses close every hour. [source Sole24 ore]

For heaven's sake, I realize that Italy is neither a fiscal nor an entrepreneurial paradise, it is essentially a very, very complex country to do business and whoever decides to be an entrepreneur in Italy today demonstrates a great act of courage .

But we can't do much about this, it's a fact and there are already many people in parliament who are much more competent than us who deal with it (…), we can analyze the subject from another angle, that of business . It is for this reason that in this article we will address one of the most important, but unfortunately still very neglected topics, which is the "brand positioning" or brand positioning.

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What is brand positioning?

When we talk about brand positioning we mean the mental model to describe how we make our choices when evaluating a brand. Not being able to intervene physically and surgically in people's heads, the only thing we can act on is people's mental perception of our product, our service, our brand.

Citing the same metaphor used by Ries and Trout in the book "Marketing Warfare" according to a real military model, each product category is represented by a mountain and manned by brands, where each of these brands fights to reach the top. On the top of each mountain a flag flies: it is the flag of the brand that dominates the mental position in that sector. Considering very strong brands (i.e. with considerable capital) we can already imagine who can be at the helm of each category. For example we can have Barilla for the Italians' favorite pasta, the iPhone for the coolest smartphone, Illy for high quality coffee, Coca Cola as a brand of excellence for soft drinks.

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Why do brand positioning?
And why is it mainly used by small and medium-sized enterprises?

What is the difference between a small and a large company? Simple, the money to have and be able to invest. Consequently, if large companies can afford to do a lot of advertising, investing a lot of capital, at the same time they can also afford not to work mainly on positioning, but will most likely work on quantity, on large-scale distribution and perhaps on the fact that they arrived "before" and hold the concept of industry leader.

Small and medium-sized businesses don't. By small and medium-sized enterprises I also mean very small ones, artisans, professionals, or all those who necessarily have to pay attention to every penny they invest, to have a measured economic return, without the slightest waste of money, otherwise they risk and even big. For these categories there is only one solution: differentiation.

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Why talk about a differentiating element?

The smartest solution that a small business owner has to do is to differentiate himself from his own product category. This is because, by intercepting a small market niche, you automatically go to reduce the competition and by reducing your competitors you will necessarily have more chances of success. But does this notion always hold true? There are some fundamental aspects to which you must comply, answering these questions:

  • Are there any customers potentially interested in what I offer?
  • Are these customers reachable with communication tools (advertising) and marketing strategies?
  • Do these customers have a need that you can solve?
  • can you satisfy their request?
  • do these customers have the means to buy?

Answering yes to these questions means that you are most likely on the right track, otherwise give up immediately and keep looking. This is because if you enter a market where there is practically no demand, you won't be able to offer anything. The same problem arises when the market niche is so small that you have no room for maneuver and you will earn very little, if at all. An example could be a communication agency specialized in the architects' sector in the province of Gorla Minore, where there are two architects in Gorla Minore.

Therefore, before talking about a differentiating element, it is necessary to determine the operating context.

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Define the operational context

The first phase when you want to start a business is to understand where you want to go and analyze the competition. You need to understand what competitors are doing and how they communicate it, what perception customers have for that category, how competitors are perceived in that category, what perception they might have of you. Once you have done this analysis, you will be able to understand if:

  • there are strong brands with which to compete and why they are so strong;
  • there are no strong brands with which to compete, therefore we are talking about a probably virgin market (in this case it is necessary to understand the reasons);
  • you have identified the characteristics on which some difference can be created.

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Finding the differentiating idea: that is, get away from the concept of the vacuum cleaner immediately

At this point it is necessary to determine the most important thing, that is the element that makes people understand that we are a point of reference in our sector, specialists. Honestly, people like to deal with specialists because the more specific a professional is, therefore a specialist in a certain thing, the greater the chances of success with a given problem.

Since you're specific, you can't be a know-it-all, so if you decide to be specific about one thing, you can't do another, or rather, you don't have to communicate it. In summary, if you are a specialist in the garden design sector, you will not be able to go and cut all the tufts of grass and all the lawns that are offered to you. I understand that potentially and economically it could tempt you, but you have to choose: either you do one, or you do the other. You can't take everything, you have to make choices and in this selection there is also the renunciation of some proposed jobs. Attention, it's not because one wants to be refined, but simply, going back to the topic of brand positioning, there is very little space in people's minds and people tend to get very confused. So the more specific you are, the better for everyone.

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How to find the differentiating idea

In a very practical way to determine the differentiating element it is necessary to do two tests, the opposite test and the limits test. Testing the opposite leads you to determine a characteristic that other competitors must not have, if they have it is no good. A trivial example could be a gym open 24 hours a day which, unlike other gyms that have fixed hours from morning to evening, allow all their customers a totally flexible schedule, even at night.

Then there is the limit test, that is, once the differentiating element has been determined, it is necessary to understand which service you owe and can deprive yourself of compared to the other competitors, in order not to fall into generalization. Remember: if you are a specialist, you cannot be generic and the more generic you are, the more confusing you create in people's heads.

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How does brand positioning facilitate communication and marketing activity?

Once you have structured your entire business model and determined all the points of your business and your positioning, your communication will also benefit. Because only in this way will it be possible to exploit all the emotional levers so that people can cross-check the data in their minds and understand that you and only you are the solution to their problem. Usually the scheme to use in communicating your brand positioning is this:

“[Brand name] is [explain the product category] that [differentiating element].

Unlike competitors who [explain what competitors do]

we [explain what is done differently]

bringing to customers [explain the advantages of the proposal]”.

Example:

"Innovando is a web agency specialized in digital marketing and strongly committed to spreading and giving value to the digital transformation processes of companies.

Unlike our competitors who only make websites, we follow the customer step by step in the working phases through a process of change of paradigms and processes, internal and external to the company, which until now have regulated marketing communication with its digital evolutions. The aim is always to generate a progressive increase in the company's income and balance sheet accounts as a result of an increase in added value and brand recognition also at an international level."

If, on the other hand, Innovando had been a sort of "huge generalist bandwagon" it would never have managed to get into people's heads in a precise and clean, but ambiguous way, creating only so much confusion.

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A brand, a service, a specialization

Precisely because you are "the specialist" you only have to do that thing. Associate your brand only and exclusively with a service, because you and your company are the specialists of that service and only of that. I understand you may want to dedicate yourself to something else and I understand that limiting your service to only one thing can make you anxious about not taking the other slice of the market that makes you covetous and it annoys you to leave it to your competitors. Don't worry, problem solved: create another brand.

By creating another specific brand for another of your services, you will not create confusion in people's heads and with the assumptions mentioned above you will define all the facets of your brand, creating your brand positioning.

Remember: a brand, a service, a specialization. Jack of all trades, no good!

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I know, it's not easy...

I realize that often and willingly it is not so simple and immediate to create a positioning and it is precisely for this reason that most people do not adopt it, relying on chance and luck. But I'm sorry to disappoint you, it doesn't work like that. It is precisely for this reason that many businesses find themselves in that nightmare that I described to you at the beginning of this article, then considering the responsibility that you certainly have towards your family members but also your partners or collaborators. Believe me, it's not pleasant at all. And I also realize that it's not even always easy to create a "brand repositioning", that is, a ten- or twenty-year-old business that has always proposed itself in a certain way, offering certain services, reshuffling the cards and completely revising its model business and its market position.

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A few examples to determine the differentiating element so that a brand positioning can be created

Necessary premise: this article explains brand positioning in a very, very concise way. It is a simple subject but in the same way quite complex. Several books have been written by experts in the field and at the end of this article I will list the ones that I think are the most relevant.

It remains obvious that, if you intend to open a business, I strongly recommend that you purchase a consultancy to avoid messing around or simply create a brand and a business that is so trivial that it would be useless except to make you lose money and hope. Believe me, investing in a consultancy would get you out of trouble and it remains an investment and not a cost, which you will find yourself benefiting from later. Doing things alone doesn't get you very far and the risks would be too high. Really: it's no longer time to do things "a cazzum", but with intelligence, with strategy and following a well-defined action plan. Doing business today is no longer like yesterday. Today doing business is feasible but much, much more complex than years ago and will be increasingly difficult. You need to sensitize yourself entrepreneurially and move from a normal mind to an entrepreneurial mind.

At this point, having analyzed the most salient phases to determine your positioning, I want to give you some simple examples that perhaps, taking a cue, could help you define some steps that are not clear to you in order to embark on your new business.

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Example 1: real estate agency

Most real estate agencies all work the same way. I don't know if you've ever had experience with this, but every time I realize that the practice is always the same: you have a house to sell, you've probably entered it in some online circuit for the sale of houses to give it visibility, they call and tell you that they have "interested people in that area". Beyond that the smell of bullshit can be felt a mile away, but it doesn't matter, you want to trust him and you are promptly disappointed. The only thing that interests him is getting you to sign the assignment where he binds you to an exclusive contract for months and you also have to pay attention to the "renewal" section, since most of the time it is by tacit consent. Now, you understand that it's really distressing and there are no great prerequisites for creating a trust relationship.

I am having this experience. I've been trying to sell a house for about ten years and I still haven't found an agency that can help me out. The amount of the agency's brokerage service is approximately €3

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Potential differentiator for a real estate agency

"Mission Impossible" Real Estate Agency: this real estate agency specializing in the sale of lofts or villas guarantees to sell you the property within a maximum of 6 months. Should this fail, the assignment will be totally free, for another 6 months, with no exclusive relationship of any kind. All accompanied by effective testimonials that make the agency's focus reliable. You understand that everything looks completely different. The value of the service, the perception of the agency's brand is completely opposite from what all the others offer you. Paying it even double, why not…

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Example 2: Computer repair shop

Most of the time we have to have a computer repaired, the practice is always the same: we have a broken PC, we have to disassemble it from its location, we have to take it to the nearest center, but above all the most harmful thing is waiting. Days and days of waiting. Once for the piece that doesn't arrive, once for the holidays in between, who knows for what other reason and you're there waiting for your computer to be fixed. Thumbs down!

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Potential differentiator for a repair center

"Ripara Veloce" repair centre: the service is proposed, and therefore communicated in this way: do you have a PC to fix? We come to pick it up and at the latest in 3 days you will have your computer fully functional at your home (or in your company). If we fail, assistance and delivery will be completely free.

Tell me the truth, if you had these two needs, who would you go to? Change the value, change the perception, change everything. The main factor is what you can give people, as an emotion, as a TANGIBLE guarantee formula, not bullshit. Bullshit is used by those who have not yet figured out how to do business and are the most dangerous. Want some examples?

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1 useless example: the obvious

“In my restaurant you eat really well, my products are of high quality.” But why what do they feed in other restaurants? Who is that restaurant that doesn't offer quality products? What are those restaurants where you eat badly? Come on, you can count them, in fact they close quickly because nobody goes there.

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2 useless example: the customer at the center of everything

“In my company the customer is at the center of everything.” Or “Customer focus is our focus.” No friend, you didn't understand, it's you who has to focus because you don't understand anything about how brand positioning and differentiation from competitors works. Who is that company that doesn't listen to the customer's needs?

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3 useless example: the price

Come to my shop because the prices are lower than my competitors. Absolutely not good. The price can never be a differentiating element because first of all you associate a low price with a low quality of your products or services. Plus you go to reduce your profit margin and the fate for this type of business is practically sealed.

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Conclusion

Analyze your industry. Analyze your market. Analyze your competitors and see how they perform. Bring out their strengths, improve them. Bring out their weaknesses, transform them. Think you've found your differentiator? Think again by analyzing all the points described in this article. Once found (or found, there may be several differentiating elements) ask for advice from those who can help you. If you are not sure, just wait, but only once you have your focus can you start developing your brand and your brand positioning.

Now tell me the truth: is it better to spend your time thinking carefully and studying your positioning on the market or do you prefer to do things superficially and then not sleep at night, full of debts you can't pay off, with the bank calling you every day worse than a loan shark and the only lifeline is to bend over at 90° because you don't know which way to turn because you can't even make ends meet?

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Books

As promised, I would like to point out what I think are the most interesting books in the field of brand positioning:

  • The positioning. The Battle for Your Minds (Al Ries and Jack Trout)
  • Differentiate or Die: Survival in Our Era of Killer Competition (Jack Trout)
  • marketing warfare (Jack Trout)
  • The purple cow. Get noticed (and make a fortune) in an all brown world (Seth Godin)
  • Blue Ocean Strategy. Winning without competing (W. Chan Kim)
  • Zero competitors. How to use brand positioning to differentiate yourself and make customers search for you (M. De Veglia)