Brand positioning is a cornerstone of marketing strategy and a critical element in the success of any brand. However, while it is widely used, the
concept is often misunderstood. The confusion partly stems from mistaking the general term ‘position’ for the marketing concept of ‘positioning’. This article aims to clarify this marketing concept by explaining its elements, illustrating how they interlink, showcasing examples, and highlighting
contemporary perspectives.

As stated above, one of the root causes of the confusion around brand positioning is the tendency to equate technical marketing terms with their
everyday meanings. This isn’t a dilemma exclusive to positioning. Technical terms, when resembling common words, are often misunderstood – much like the inability of most business leaders to differentiate between what a vision is and what a mission is or confusing the statistical term ‘Regression’ with the general notion of reverting back to a previous state.

So what indeed is the marketing concept “Positioning”? When people hear ‘positioning’, they vaguely associate it with how a brand is placed in the
consumer’s mind. While not entirely incorrect, this notion lacks depth and direction for effective brand building.

To dispel the fog around brand positioning, let’s dissect it into its three primary components, as represented in the diagram below.

1. Frame of Reference (FOR)
   The FOR is the foundation upon which brand positioning is built. It establishes the context in which the consumer can appreciate the goals of using the brand. It contextualizes the brand by answering, “What fundamental need does this brand fulfil?” or “What category does it belong to?”. While foundational to a brand’s position, this is the element most people leave out when considering positioning their brand.
2. Point of Difference (POD)
   Once the Frame of Reference is established, the next step is to define how the brand excels in fulfilling the consumer’s goals. The POD can be functional, like innovative features or higher quality, or emotional, such as status or a sense of belonging. Unfortunately, many brand owners jump directly to this step without establishing a solid Frame of Reference.
3. Reason to Believe (RTB)
   The final ingredient offers a persuasive reason for consumers to believe the brand’s claims. This can be factual evidence, awards, testimonials, or any proof that reinforces the brand’s credibility.

Traditionally, these elements are woven into a positioning statement that is structured as follows: “For <TARGET CONSUMER>, brand X is <FOR> that <POD> because <RTB>.”

Here are three examples of the positioning statement:

• VOLVO – For FAMILIES, Volvo is the FAMILY CAR that OFFERS THE PERFECT BALANCE BETWEEN SAFETY AND DURABILITY because of VOLVO’S HISTORY OF INTELLIGENT DESIGN.
• DANGOTE CEMENT – For CONSTRUCTION COMPANIES SEEKING RELIABLE QUALITY, Dangote Cement is the TRUSTED CEMENT BRAND that GUARANTEES STRENGTH AND DURABILITY because IT’S CRAFTED WITH TOP-GRADE MATERIALS AND A COMMITMENT TO EXCELLENCE
• DHL – For BUSINESS MANAGERS AND PROFESSIONALS ENGAGED IN MAKING TIME SENSITIVE DECISIONS ABOUT INTERNATIONAL BUSINESS, DHL is THE MOST PUNCTUAL SERVICE among PROFESSIONAL COURIER COMPANIES because ITS PICKUP, TRANSPORTATION, AND DELIVERY SYSTEM IS WHOLLY OWNED AND MANAGED BY DHL PERSONNEL

This formula aids in ensuring clarity in a brand’s positioning, which, according to Rosenfeld, Sirowitz & Lawson (1971), is “the most important step in effective selling.” In this classical view, it is imperative for consumers to first understand what a product is and the function it serves (FOR) before they can gauge how it is better than other brands (POD).

Traditionally, brand positioning was viewed as a static declaration. However, the contemporary perspective considers it more dynamically, as the mental availability across various Category Entry Points (CEPs)¹. In the contemporary view, positioning is an ongoing dialogue with the consumer, requiring adaptability and a keen sense of market trends. A brand with strong positioning in this sense is mentally available across an extensive range of CEPs.

An example illustrating the importance of understanding the elements of positioning and systematically building them is GCB Bank’s G-Money product. In the mobile money category, there is MTN Momo, whose FOR is Mobile money for MTN customers, Vodafone Cash Mobile money for Vodafone customers and Airteltigo Money for Airteltigo customers. These brands were clear about their FOR, focusing on the primary goal of providing mobile financial services to customers of their respective mobile networks. And that is how the marketing understood mobile money.

In contrast, G-Money aimed to be an inclusive mobile money service, catering to everyone regardless of their mobile network. However, the initial communication did not clearly establish this Frame of Reference. Instead, the marketing message jumped straight to a vague point of difference with the tagline “Papa n’aba, twa tum”.This meant that many consumers mistakenly believed G-Money was exclusively for GCB Bank customers, similar to how MTN Momo was for MTN customers and Vodafone Cash for Vodafone users.

This lack of clarity in establishing a distinct Frame of Reference meant that many consumers didn’t even realize that G-Money was meant for them. The brand missed an opportunity to connect with a broader audience right from the start. G-Money could have started by building a strong Frame of Reference. For example, the initial communication could have been centred around “Mobile Money for Everyone”, clearly signifying that G-Money is not limited to GCB Bank customers. Once this foundation was established, subsequent communication could focus on the unique features and benefits that set G-Money apart from competitors.

This example underscores the point that positioning is a strategic process, requiring a well-thought-out approach of first setting a clear Frame of Reference before highlighting points of difference. Without an adequately established FOR, the audience may not fully grasp a brand’s basic purpose, which can hinder brand growth and adoption.

Positioning is essential in brand building. Understanding and implementing it requires more than a cursory glance at its dictionary definition. By establishing a clear Frame of Reference, articulating a distinct Point of Difference, and providing a compelling Reason to Believe, brand owners can lay the groundwork for a potent brand position. By blending classical methods with contemporary insights, brand owners can navigate the ever- evolving marketplace with clarity and purpose.

Abdul-Nasser Alidu
CEO, The Little Cow Consulting Limited
a.alidu@thelittlecow.net

¹A Category Entry Point refers to the various situations, occasions, or needs that prompt consumers to think about a product category and consider making a purchase. In other words, it’s the specific set of circumstances that trigger a consumer’s mind to enter a product category. For example, a hot summer day is a category entry point for cold drinks in the beverage industry, as consumers are likely to purchase a refreshing beverage to cool down.

Influencer marketing is a relatively new trend in digital marketing and advertising; but not a new marketing communication strategy when it comes to outdoor marketing and advertising in Ghana. Influencer marketing is one of the effective marketing communication tools by which companies and even political parties use celebrities and respected public figures to advertise and promote their brands or political parties.  In Ghana, the use of influencer marketing via outdoor publicity as old as three decades or even more. But with the advent of digital technology and social media, this trend of adverting has become huge across the world, and it is speedily growing in Ghana too.

Statistics show that the amount of funds pumped into influencer marketing has more than doubled since 2019, and stood at an estimated amount of 21.1 billion US dollars in 2023. According to statistics on influencer marketing conducted by HubSpot, 25% of marketers and advertisers work with influencers to promote their goods, services and brands. The study found that 69% of consumers stated that they trust a brand or product when an influencer recommends it. This trend is making influencer marketing morph into one of the most effective and powerful marketing communication channels to watch, going into the near future.

Influencer advertising has surely become an effective channel to give product brands and services a strong exposure to both existing and potential consumers or customers. Partnering with the different levels of influencers – be it nano influencers (those with 1k to 10k followers), micro influencers (with 10k to 100k followers), macro influencers (with 100k to 1 million followers) or mega influencers (with 1 million+ followers), has been proved, by statistics, to be increasingly efficient, especially on digital platforms. The following are some of the reasons why influencers have become effective marketing channels themselves:

• They Create Good Content and Visual Appeals

Influencers come from diverse backgrounds: movies, music, socialites, media personalities, politicians, etc. Since they have come to understand the power of the number of followers they have, they engage professional photographers, cinematographers and publicists to enrich the images and comments they post online. The powerful images and controversial issues they post on make them attract their followers. Advertisers and marketing Communication experts hire them to make posts about their brands, products or services or produce attractive images in relation to the brand they are hired to promote.

• They Give Advertisers Access to their Followers

Hiring an influencer is equal to gaining unrestricted access to their followers, audience and viewers. This also means that the attributes of the product, service or brand being promoted must align with the kind of influencer the advertiser engages. The endorsements, posts, and messaging are directly targeted at the influencer’s followers online. But that influence even transcends their online followers to the general public if the advertiser uses other channels such as outdoor, radio, TV or print media.

These benefits of influencer marketing, not withstanding, there are potentially damning consequences that advertising practitioners should be aware of. 

• Effects of Damning Scandals Involving the Influencer

Influencers are real-life or digital media socialites who have private lives and human weaknesses. They surely will give your brand access to the target audience or eye balls you desire for your brand; but their personal lives, values and beliefs cannot easily be controlled by the organizations that hire them or their services. If your target audience love the influencer; but are not aware of their personal weaknesses, the danger is that when a scandal breaks out about them those same people they influence could turn against them and anything they are associated with, including the brands, product or services they have endorsed. There are times when the personal and private values of the influencer can spark up problems for the brand they represent. A recent example is the case of Bud light, a top beer brand in the United States. The sales of the product and its mother company plummeted badly when American conservatives boycotted the product beginning from April 2023. The boycott was in response to an advertising campaign in which the company used an actress and TikTok personality, Dylan Mulvaney, who is also a publicly-known transgender activist.

• Influencer Posts that Conflict with the Brand and Product Values

Every brand or product has some intended values that are attached to it. Those values are the bright sides of the product that attract customers within the intended category. If the influencer makes a post or says things that conflict with the values of the brand and those it appeals to, there will certainly be a problem.  For instance, if an influencer of a product that attracts the Gen Zs posts or says things that attack the values and belief system of the Gen Zs, then you are sure to see a massive boycott from that target group.

• Managing The Ego of an Influencer

Most influencers have big egos, just like most super stars. They are aware of their influence and the impact they wield on their followers and the general public. That kind of ego is difficult to manage. Such influencers will not want to be dictated to by brand owners, advertising practitioners or marketing managers. They may have signed a contract with the advertising organization, but they frown on their personal lives being micro-managed, especially when they know the kind of value they bring to the brand that hires them.

Concluding Thoughts

I will recommend influencer marketing any day, especially in today’s digital and social media environment that has become a busy marketplace that touches every aspect of life. Even for traditional media like TV, radio, print and outdoor, influencer advertising is a huge thing. Perhaps advertising agencies and the organizations that own the brands or products will have to weigh the commercial value and impact of using a particular influencer they choose so they can opt for providing special publicists, personal brand managers or PR experts to manage them. This is so because there is a critical mass of consumers and clients that are swayed positively, more personally, and more effectively through influencer marketing communication than any other means.

Isaac Cudjoe
Executive Director, AAG

Originally published on GhanaWeb.com