Brand positioning has been defined by Kotler as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”. 

Brand positioning describes how a brand is different from its competitors and where, or how, it sits in your customers’ minds.

A brand positioning strategy therefore involves creating brand associations in customers’ minds to make them perceive the brand in a specific way.

Why is brand positioning important?

By shaping consumer preferences, brand positioning strategies are directly linked to loyalty, brand equity and the willingness to purchase the brand. Effective brand positioning can be referred as the extent to which a brand is perceived as favorable, different and credible in the target audiences minds.

It is important to define your brand positioning as this will inform the bias of a new name. The more specific you can be about your positioning, the more effective the name could be.