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Brand and marketing expert Stefan Maritz joined me on Episode 677 of “The Business Storytelling Show” to discuss why creating the brand differentiation strategy is so important.
Having a great product or service isn’t enough anymore. Companies need to stand out from the crowd to succeed. This is where brand differentiation strategy comes in. But what is that and why does it matter for businesses of all sizes?
Understanding brand differentration
Brand differentiation sets a brand apart from competitors in a meaningful way. It creates a unique identity and value proposition that clicks with the target audience. In simple terms, it answers the question: “Why should customers pick one brand over all others?”
Many businesses, especially startups, focus only on their product or service. They often forget about the power of a strong brand. This oversight can limit their potential for growth and success.
“A brand is not a logo and a name,” said Stefan. “This is the common misconception, it’s just pretty designs, the typeface, colors, what you put out there in the world.”
Certainly, we need a visual design, but what else?
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The foundations of brand strategy
A good brand strategy includes the company’s:
- purpose, values
- personality
- promise
- position in the market.
It also defines the target audience and what makes the brand different from competitors.
“How are you going to beat the category leader? How are you going to beat your competition? Why would people want to buy you?” challenged Stefan.
Why startups should prioritize brand strategy
Many startups treat branding as an afterthought. They focus on product development and initial sales instead. This approach can be short-sighted. Setting up a strong brand from day one can help in many ways. It gives clarity of purpose and builds customer trust. It sets the company apart from competitors and attracts top talent. A strong brand also appeals to investors. A well-defined brand strategy guides business decisions and keeps everyone on the same page.
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The brand-first, content-second approach
Stefan suggests a “brand-first, content-second” approach. This doesn’t mean ignoring content. It means ensuring all content stems from a strong brand strategy. This approach ensures consistency and effectiveness in marketing efforts. It leads to consistent messaging across all platforms and results in more focused and effective content creation. Over time, it builds better brand recognition and makes marketing efforts more efficient.
“You can only communicate your brand into the world and shape perceptions if you’re doing a very good job with your content nowadays,” said Stefan. “Then you start winning.”
Developing a brand differentiation strategy
First, clearly state what makes the brand unique. This could be innovative features or top-notch quality. It might be great customer service or a unique business model. Strong brand values can also set a company apart.
Next, understand the competition. This understanding is crucial for effective differentiation.
“You have to kind of look at your competitor set, and especially the industry leader, and ask yourself the question: how am I going to be different than what they’re doing?” said Stefan.
Studying competitors’ brand positioning and marketing messages is essential. Looking at their visual identity and how customers perceive them can provide valuable insights. Identifying their strengths and weaknesses helps find gaps in the market that a brand can fill.
Then, create a distinct brand personality. This personality should resonate with the target audience and stand out from competitors. The brand personality should come through in all aspects of the business. It should be evident in communication style and visual identity. It should shape customer interactions, product design, and marketing campaigns.
Finally, choose standout visual elements. While visuals aren’t everything, they play a big role in brand differentiation.
“Use an a color that has never been seen in the industry,” said Stefan. “Come with a personality that is absolutely unheard of.”
The role of founders in brand building
For startups and small businesses, founders often significantly shape the brand. This influence can be both a strength and a challenge, so it’s important to find the right balance.
“The first and foremost thing is that your founder is not the brand,” said Stefan. “I think we live in a time when it becomes more and more important to to give a little bit of attention to the people brands, especially at the company. Obviously, because people buy from people at the end of the day, and people help solidify into perception. They help shape the brand. But it’s always a bit of a trouble situation. When the founders personality becomes the personality of the brand.”
Founders should embody the brand values and share the brand story authentically. Building relationships with key stakeholders is also crucial. At the same time, founders should develop a strong leadership team to represent the brand. The goal is to ensure the brand can stand on its own, independent of any individual.
Measuring brand ROI
Brand building might seem hard to measure, but tracking its impact on the business is important and possible with the right technology. Measuring this impact can help justify brand-building efforts and guide future strategies.
But keep in mind:
“The more famous a brand is, the less resources they need to spend on getting someone to want or buy their product,” said Stefan.
Brand awareness can be measured by checking how well people recognize and remember the brand. This recognition is a key indicator of the brand’s strength in the market. Brand equity, which is the value customers place on the brand, is another important metric.
Final thoughts
Brand differentiation is essential for survival and growth in competitive business environments. Developing a comprehensive brand strategy can set a business apart from the competition. Creating a unique brand personality and consistently communicating the value proposition are key steps in this process.
Effective brand differentiation is an ongoing process. It needs constant attention and adaptation as the business grows and the market changes. Refining the strategy over time to stay relevant and distinctive is often necessary. But with a strong brand foundation and a clear differentiation strategy, a company is well-equipped to stand out even in highly competitive industries.
As the brand differentiation journey begins, Stefan’s advice is worth remembering:
“The big question that you have to answer right at the beginning is, why me and how do people differentiate me from the rest?” said Stefan.
Need help with your brand strategy? Let’s talk.