Why is Branding important? and, What is the difference between branding and positioning?

The Buzzword for the past couple of years has been "branding", however, the term "positioning" has been in the marketing dictionary for a long time. It is similar yet very different, let's get right into it.

Difference between Branding and Positioning.

For example, let's say you need to buy groceries for the week, what is the first brand that comes to your mind?

Why was that the first brand? Out of habit? Why did you start going there in the first place?

Let's say, Amazon is my go-to to buy almost anything, Amazon has branded itself to be a company, a source to get nearly everything with just a click- that is their branding, if I need to purchase say, a desk lamp, or a shoe rack, my mind instantly goes to Amazon, they have almost all the categories that I can think of, and that's their positioning.

Let's go over this one more time- Branding is the logo, message, what they stand for, and who they say they are. Another example that comes to mind is Starbucks: "They provide a high-class experience and quality" Their branding is also their logo, "the siren", which apparently lures you in to get a cup of coffee and experience the high-class quality. Branding is shaping the perception customers have towards your brand.

Positioning is how they stand out from others, and why they should be your choice over the rest in the market. Starbucks is known for its quality, and its beverages are on the expensive end for a reason, they provide you with a great and tasty experience all the while making you feel special and affluent. That is how they capture a space in their customer's mind.

Branding and positioning go hand-in-hand.

Now, why is Branding important?

Who are you? What do you do? Why should I choose you? What do you stand for? Do we have similar values? Why should I support your business and not your competitor? What do I get from you?

These are questions that Branding addresses, the name tag and the value that comes with it is what Branding is all about. When you tell people, "I have a Starbucks coffee every day" they could immediately think you are an affluent person with an expensive taste. That immediately becomes your branding!

Branding helps your customers to understand your company, your values, and your uniqueness in both cognitive and non-cognitive ways. What does that mean? Brand logos, messaging, the advertisements are all perceived cognitively, that is understanding through thought and knowledge, whereas the non-cognitive way is emotional, the way it makes you feel, the experience.

That's it! I hope I cleared something up for you, if not e-mail me at feedback@tmw.anushakannan.com with your questions/suggestions!

Have a wonderful day!

-Anusha