Question

Topic: Branding

What Is The Difference Between A Brand Strategy, A Usp, A Value Proposition And Positioning?

Posted by Anonymous on 3/26/2004 at 5:49 PM ET 250 Points
after doing a ton of research on the web and in reference books about these concepts, i'm having a hard time understanding the difference between them and how they are inter-related. i'm hoping you guys can shed some light on this, and help me clear the fog in my noggin.

- brand strategy
- USP
- value proposition
- positioning

i'm planning the launch of a company in the next few months, and would like to start off on the right foot.
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RESPONSES

  • Posted by BobetteKyle on 3/26/2004 at 6:24 PM Member
    In practice, I think the important thing is that you get an understanding of your industry, then apply that understanding to strategically and profitably build/grow your business.

    If you understand the process - and you should after all of the research you've done - specific definitions are not really important. I think the biggest difference between these terms is the *focus* of each. Here’s how I see the focus of each:

    - Brand Strategy: Focus on how brand fits into the overall company strategy, brand goals, success criteria/measurement.

    - Unique Selling Proposition: Focus on the product relative to competition, explains what makes the product different (better).

    - Value Proposition: Focus on customer benefit, explains how product adds value for the customer.

    - Positioning: Focus on customer perception, how customer sees the product relative to competition.

    Best of luck with your new business!

    Bobette Kyle
  • Posted by Chris Blackman on 3/26/2004 at 6:48 PM Member
    There's a great dictionary available at
    https://www.buseco.monash.edu.au/depts/mkt/dictionary/index.html which contains definitions for most marketing terms.

    I should put in a plug for the Aussies who made this, but that might be conceived as outright nationalistic chauvinism, and hey, we're all citizens of the world here, aren't we?

    Here's what is says about the questions you posed:

    - Brand strategy - decision-making for the effective handling of brands; three general branding strategies are available - a single brand for all of the organisation's products, family branding, or the use of individual brand names for all products.

    - USP - Unique Selling Proposition - the particular quality, feature or benefit of a product which a competitor's product, although similar, cannot or does not offer; commonly referred to as the USP.


    - Value proposition - a clear statement of who the target market for a particular product is, of what key benefits the product will deliver, and of the price that will be charged.

    {I would add that this must be in the customer's own language or terminology, i.e. unlike a USP which might be framed in the marketer's language, the VP MUST be in words the customer would use to decribe what is their perception of the Value Proposition}

    - Positioning - the dictionary is less helpful on this term, sending you around a range of cross-references. Here's my take on it:

    Positioning: The "space" or distinctive position a product or brand occupies in the market and in the minds of target consumers.

    Hope this helps. Good Luck.
  • Posted on 3/27/2004 at 4:10 AM Accepted
    RubyRiser,

    Now that you have read all these responses, I am curious to know how you would answer your own question. Here is my contribution:

    1) Brand Strategy

    I think the key to defining “Brand” strategy is to have a definition of “brand” that resonates with you. Here is the definition I use:

    A brand, in essence, is the sum total of all that is known, thought, felt and perceived about your company, service or product. It is a promise to achieve certain results, deliver a certain experience and act in a certain way.

    Assuming you agree, a brand strategy is a systematic plan of action designed to influence anyone (the public: prospects, customers, employees, vendors, etc.) who comes in contact with your business. Your plan of action will not only create the foundation on which to build every experience the customer has with the company, but permeate every aspect of your business from how the phone is answered to your after-the-sale support.

    2) Positioning

    A positioning statement describes how you want to be perceived in the market place. I think of this as one of the “first steps” in brand development. The purpose of this is creating clarity, consistency and continuity in the way the organization speaks to the market. This makes all forms of communication less complex and easier to manage. Ideally it is a simple two-sentence statement.

    Here is a formula:

    COMPANY is a CATEGORY that helps PRIMARY AUDIENCES reach PRIMARY BENEFITS. Unlike other CATEGORY, the COMPANY’S PRIMARY DIFFERENCE.

    The dimensions include a definition of the business the product is in, who it appeals to, what they look for, what the product is positioned against, what differentiates it and the overriding benefit to prospects. Your positioning is adjusted to support different products and audiences.

    Famous quote:

    "Positioning is not what you do to a product.
    Positioning is what you do to the mind of the prospect."
    -Al Ries and Jack Trout

    With the path clearly defined, the positioning statement is applied to all communications (internal and external). If communications do not support the sought after positioning or do not include, reflect, address or amplify the positioning statement, they are off strategy and not acceptable.

    3) Customer Value Proposition

    A value proposition is a clear, concise series of factual statements on tangible results from your products or services. The more specific your value proposition, the better. A successfully tested and proven value proposition is essential to open more doors and close more sales.

    Strong value propositions deliver tangible results: increased revenue, faster time to market, decreased costs, improved operational efficiency, increased market share, decreased employee turnover, and improved customer retention levels. Sales increase, leads are generated and retention rates grow.

    The customer value proposition also includes intangible benefits that affect how customers feel about the product or service. For example: “customers feel safe in a Volvo”.

    Summary: the customer value proposition is a collection of benefits that resonate with the customer and are delivered in a superior or unique way compared to competitors.

    4) Unique Selling Proposition

    You may want to pick up a copy of “Differentiate or Die: Survival in Our Era of Killer Competition” by Jack Trout for a chapter on Rosser Reeves's classic unique selling proposition approach, updated for today's marketplace.

    I hope you find these responses helpful. Each one is just the beginning of a conversation. Good luck launching your business…

    Mark
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