Brands that are well positioned occupy particular niches in consumers’ minds. They are similar to and different from competing brands in certain reliably identifiable ways.

The most successful brands in this regard keep up with competitors by creating points of parity in those areas where competitors are trying to find an advantage while at the same time creating points of difference to achieve advantages over competitors in some other areas.

The Mercedes-Benz and Sony brands, for example, hold clear advantages in product superiority and match competitors’ level of service.

Saturn and Nordstrom lead their respective packs in service and hold their own in quality. Calvin Klein and Harley-Davidson excel at providing compelling user and usage imagery while offering adequate or even strong performance.

Visa is a particularly good example of a brand whose managers understand the positioning game. In th1970s and 1980s, American Express maintained the high-profile brand in the credit card market through a series of highly effective marketing programs.

Trumpeting that “mem- bership has its privileges,” American Express came to signify status, prestige, and quality. In response, Visa introduced the Gold and the Platinum cards and launched an aggressive marketing campaign to build up the status of its cards to match the American Express cards. It also developed an extensive merchant delivery system to differentiate itself on the basis of superior convenience and accessibility.

Its ad campaigns showcased desirable locations such as famous restaurants, resorts, and events that did not accept American Express while proclaiming, “Visa. It’s everywhere you want to be.”

The aspirational message cleverly reinforced both accessibility and prestige and helped Visa stake out a formidable position for its brand. Visa became the consumer card of choice for family and personal shopping, for personal travel and entertainment, and even for international travel, a former American Express stronghold. Of course, branding isn’t static, and the game is even more difficult when a brand spans many product categories.

The mix of points of parity and point of difference that works for a brand in one category may not be quite right for the same brand in another. Positioning your company, product, or brand correctly can have exponential effects on your marketing performance.

Tags: brand marketing, niche marketing, positioning in market

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