In today’s market, the customer has a very wide choice of products. When it comes to brands, he chooses brands but he tends to compare the products of different brands. Products increase customer’s choice whereas brands simplify decision making. To influence the customer’s buying decision and to get hold of the competitor’s market share, brand identity and positioning are essential.
Brand management works with these two fundamental tools, brand identity and brand positioning. Let us understand these terms −
It specifies that a brand has a goal that is different from the goals of other parallel brands in the same market segment and it has resistance to change. It is defined clearly and does not change over time.
Brand identity is fixed in nature being tied to the fixed parameters such as brand’s vision, objective, field of competence, and overall brand charter.
Brand positioning is emphasizing on the distinguishing characteristics of the brand, those that make the brand appealing to the consumers and stand out among its competitors. It specifies how the products of a brand penetrate the market to grow their market share while dealing with the competitor brands. Brand positioning is competition oriented and hence dynamic over a period of time.