Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value.

It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its solutions at a significant discount over the other competitor(s). Generally, the brand positioning process involves: Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions) Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.) Documenting the provider's own positioning as it exists today (may not exist if startup business) Comparing the company's positioning to its competitors' to identify viable areas for differentiation Developing a distinctive, differentiating and value-based brand positioning statement, key messages and customer value propositions.

More generally, there are three types of positioning concepts: 1. Functional positions Solve problems Provide benefits to customers Get favourable perception by investors (stock profile) and lenders 2. Symbolic positions Self-image enhancement Ego identification Belongingness and social meaningfulness Affective fulfillment 3. Experiential positions Provide sensory stimulation Provide cognitive stimulation PRODUCT DIFFERENCIATION Differentiation can be a source of competitive advantage. Although research in a niche market may result in changing a product in order to improve differentiation, the changes themselves are not

differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of a firm's product and create a sense of value. There are three types of product differentiation: 1. Simple: based on a variety of characteristics 2. Horizontal : based on a single characteristic but consumers are not clear on quality 3. Vertical : based on a single characteristic and consumers are clear on its quality [3] The brand differences are usually minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it could. Differentiation is due to buyers perceiving a difference, hence causes of differentiation may be functional aspects of the product or service, how it is distributed and marketed, or who buys it. The major sources of product differentiation are as follows. Differences in quality which are usually accompanied by differences in price Differences in functional features or design Ignorance of buyers regarding the essential characteristics and qualities of goods they are purchasing Sales promotion activities of sellers and, in particular, advertising Differences in availability (e.g. timing and location).