B2B brand positioning – how to define your competitive edge

Sharon
Blog Branding

Brand positioning in tech marketing operates similarly to other types of branding. It tells the story of your company, product, or service—a narrative that firmly embeds itself in people’s minds through various elements. The way your audience perceives your brand plays a critical role in determining its value.

Many mistakenly believe that a ‘brand’ is just a logo or a catchy tagline. In reality, it’s the overall perception your audience has of your business. When it comes to building B2B brand awareness, competitive positioning is essential for standing out. Differentiating your product or service is a make-or-break factor in today’s highly competitive landscape. The ultimate aim of an effective B2B positioning strategy is to shape consumer perception by clearly communicating your brand’s unique edge over competitors. 

In their classic book “Positioning: A Battle for Your Mind, Jack Trout and Al Ries stress the importance of reversing communication with your audience. Instead of communicating the advantages of yourproduct or service, effective B2B competitive positioning turns matters inside out and searches for the solution to the problem not inside the product, but inside your customer’s mind. “Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.” (Ries & Trout, 2001)

Tech start-up branding and effective positioning are no different, you should always remember that your audience relates much better to solving their pain rather than obtaining a gain.


How do we know what already exists in people’s minds?

Each of us subconsciously organizes countless products and services into categories, linking them to specific brands in our minds. Strong positioning leverages these pre-existing associations in your customer’s memory.
For example, think of everyday things we all use, like clothing, cars, and food. What comes to mind? most likely the big brands associated with each category. For example, when you think of chocolate you’ll probably think of Godiva, Lindt, or Hershey’s. If asked about cars, you’ll name Toyota, Mercedes, or Ford. 


Leading the category

But what If I asked you to name an electric car? Tesla will probably be the one to spring to mind, and I’ll bet you’ll also be thinking of its founder, Elon Musk. 
Back to positioning – Elon Musk is not Tesla’s founder, Martin Eberhard, and Marc Tarpenning are. They founded Tesla Motors long before Musk onboarded the company, yet most of us attribute the Tesla brand to him. This is just one example of great positioning! Tesla is now a household name. But if you try and think of another electric car brand, it may take you a while. Just as if I asked you to name the highest mountain in the world—most people know it’s Mount Everest. But what about the second-highest mountain in the world? Not many people would know.
You get my point. Nobody cares about the second. 

Another great example of owning a category is Kleenex. “Pass me a Kleenex” simply means pass me a tissue but owns such a powerful position that its name is synonymous with a tissue, just like Band-Aid is with a plaster. When your product or company name becomes synonymous with the product you offer, you’ve mastered the art of positioning and have secured a lasting place in the consumer’s mind. That’s easy. 


But what if you are not the (lucky) first in the category? 

It simply means you must try harder.

Does that ring a bell? It probably does, since it’s one of the most iconic examples of a brilliant positioning strategy employed by Avis. Back in the early 60s, the leader and king of the rental car category were Hertz, who dominated the market unequivocally. Avis needed to come up with a positioning strategy that would take on the category leader. Rather than aiming for second place, they chose a different approach.


Their positioning was as simple as it was genius: “We are only in second place, and that’s why we try harder. When you’re not the biggest you have to.”  Avis’s positioning paid off, literally.

What is B2B brand positioning, and why does it matter?
So, when you think of your company or product, tap into what people have in mind, and find your unique value proposition to position yourself on the ladder. By ladder I mean look at the category you’re in and where you fit in. A ladder might be organized by price, velocity, or customer satisfaction. 

How do I use the ladders to effectively position my product or service?

You can invest all your time and money trying to climb to the top and dislodge an established brand, or you can implement creative branding and relate your brand to a leading company using the powerful tool of associative psychology. 
Another great example is the 1996 Daihatsu Hijet MPV Ad:

What is B2B brand positioning, and why does it matter?

To successfully position your product or service in the mind of the consumer, you need to find a specific position – a niche. A great example is the wildly successful ‘Dollar Shave Club’. Their name alone beautifully demonstrates their unique value proposition: cheap, affordable, and convenient. Up against the market leader Gillette, they positioned themselves as a cheeky alternative that is more relatable and appealing to the younger generation.  


How to create an effective B2B market positioning strategy?

1. Determine your company’s uniqueness by comparing it to competitors

2. Identify the current market position

3. Do a competitor positioning analysis

4. Develop your positioning strategy


The different types of Positioning Strategies: 

  • Product-centred:  Associating your product/ service with attributes of a certain beneficial value
  • Price-centred: Associating your product/ service with competitive pricing
  • Quality-centred: Associating your product/ service with high quality
  • Application-centred: Associating your product/ service with a specific use
  • The competition centred: Making consumers think that your product/ service is better than that of your competitors

Let’s have a look at the chocolate industry as an example: 

What is B2B brand positioning, and why does it matter?

Creating a perceptual map in market positioning

When looking to position your brand, a perceptual map should be created to show consumer perception of the different brands you’re up against. Outlining this map will allow you to position your competitors and find your unique value proposition in the market. You can find free templates for creating your perpetual positioning map
The great value of perceptual mapping is in the visual impact it provides. 
If you’ve ever come across Scot Brinker’s MarTech 5000, then you know the B2B SaaS market is exploding with solutions. That’s great news for consumers, but less so for sellers. 

After positioning yourself and choosing your unique value proposition, you now have the complex mission of communicating with your target audience. 
Remember– a promise needs to be fulfilled, and your positioning will determine your brand’s entire look and feel from now on. Establishing your brand in the minds of your customers will take a long time and can only be done through consistent performance and communication. 


Conclusion

B2B brand positioning is undoubtedly one of the most important elements of creating your brand and an absolute must for launching a successful marketing strategy aimed at growing your business. Done and executed professionally, it has a long-lasting effect and easily outweighs any quick gain advertising campaigns.

Brand Identity for a Tech-startup: Why It’s Essential for Company Success

Tatiana
Blog Branding Marketing Start-Up Tips

Building a tech startup is exhilarating yet challenging. With a competitive landscape filled with ambitious innovators, standing out is vital. That’s where tech startup branding comes into play. A strong brand identity is not just a logo or color scheme; it’s the essence of your company—the story, values, and promise you deliver to your customers. In this blog, we’ll explore the critical role of brand identity and how it can propel your tech startup to success.

What Is Brand Identity and Why It Matters for Tech Startups

Brand identity encompasses all the visual and non-visual elements that define how your startup is perceived. From your logo, typography, and website design to your brand voice, messaging, and mission – every aspect contributes to shaping your identity. For tech startups, it’s especially crucial, as your brand will influence how customers, investors, and partners perceive your innovation and reliability.

A cohesive and professional brand identity signals that you’re serious about your venture. Trust is a non-negotiable in the tech industry, where security and dependability are top priorities. Additionally, a well-defined brand ensures you connect with your target audience, fostering an emotional response that supports long-term growth. For more insights into brand strategy, check out our brand strategy services.


How Strong Brand Identity Differentiates You from Competitors

The tech startup scene is brimming with competition. Differentiating your company is not just an advantage; it’s a necessity. This is where working with a tech branding agency can provide a competitive edge.

Clarity of Purpose

Your brand identity should clearly communicate your mission and values. A startup focused on sustainable tech, for example, might emphasize eco-friendly designs and green energy solutions in its branding.

Unique Visual Identity

A memorable logo, compelling color palette, and modern typography can help your brand stand out visually. But it’s more than just aesthetics—your visuals should reflect your company’s ethos.

Consistency Across Platforms

Whether it’s your website, social media, or pitch deck, consistent branding builds recognition. A unified presence helps your audience easily identify and remember you.

Resonance with Your Audience

Knowing your audience’s pain points and aspirations helps tailor your branding to meet their needs. A tech startup branding agency can assist in developing personas and strategies to better align with your market.

For example, consider how Slack approached its branding. At its core, Slack aimed to simplify team communication. Its logo, a multicolored hashtag, represented connectivity and collaboration. The vibrant colors were chosen to evoke energy, creativity, and inclusivity, reflecting Slack’s mission to transform workplace communication. 

Beyond visuals, Slack adopted a friendly and approachable tone in its messaging, using clear and often humorous language to make its platform feel accessible and engaging. They also incorporated user-friendly tutorials and delightful animations into their onboarding process, which resonated with corporate teams and small startups alike. 

By combining intuitive design with a user-focused experience, Slack successfully positioned itself as an indispensable tool for productivity, fostering loyalty among its users and rapidly scaling to global success.

 To dive deeper into what makes great branding, read this article on B2B brand positioning.

Cybersecurity spotlight: Israel's Top 15 industry influencers to follow

How to Build an Effective Brand Identity for Your Tech Startup

Creating a compelling brand identity requires strategy and intentionality. Here’s how your startup can develop a brand that stands out:

Define Your Core Purpose

Every great brand starts with a clear understanding of its mission, vision, and values. These foundational elements guide everything from messaging to design choices. Ask yourself:

  • What problem are you solving?
  • Who are you solving it for?
  • What values guide your decisions?

For example, a tech startup focused on financial inclusion might center its branding on themes of accessibility and empowerment.

Design with Impact

Visual design is the face of your brand. Invest in a memorable logo and cohesive visual identity. However, don’t stop at visuals. The tone of your communication, whether it’s professional or playful, adds depth to your brand’s personality.

Leverage Storytelling

Customers remember stories, not features. Share the journey of your startup, from the challenges you’ve faced to the impact you aim to create. Compelling narratives humanize your brand and forge emotional connections.

Foster Community Engagement

A brand is more than a static identity—it’s an evolving relationship with your audience. Use social media, events, and partnerships to build a community around your mission. Engaged communities can become your strongest advocates, amplifying your brand’s message.


Adapting and Evolving Your Brand Identity as Your Startup Grows

Startups evolve rapidly. What works at launch may no longer resonate as your audience grows or your offerings expand. Adapting your brand identity is essential for sustained success.

When to Reevaluate Your Brand

Entering new markets, pivoting your business model, merging with partners, or responding to consistent stakeholder feedback are all valid reasons to revisit your branding. For example, expansion into a global market might require cultural considerations, while a shift in focus (e.g., from B2C to B2B) calls for a refresh in messaging and positioning.

How to Evolve Your Brand Successfully

To evolve successfully, retain core elements like your mission and values to maintain authenticity. Collaborate with experts that do branding for tech startups for a living, to ensure professional insights and market relevance. Before launching new branding, test concepts with your audience through surveys or A/B testing to ensure they resonate.

Take Dropbox as another example. Initially, Dropbox focused on individuals who needed simple file storage. Its clean, minimalistic branding aligned perfectly with its user-friendly product, creating a seamless experience that appealed to individuals and small teams alike. Recognizing a shift in market demand, Dropbox expanded its offerings to include collaborative tools tailored for businesses. 

This evolution necessitated a branding refresh. Dropbox introduced vibrant, dynamic visuals symbolizing creativity and teamwork while aligning its messaging to highlight productivity and collaboration. This transition allowed Dropbox to position itself as a comprehensive solution for enterprises while maintaining its core identity of simplicity and reliability. By adapting its branding to reflect its evolving services, Dropbox successfully bridged its appeal across diverse customer segments.


Practical Branding Tips for Tech Startups

Simplicity and clarity are key to effective branding. Avoid clutter and unnecessary complexity. Instead, focus on:

  • Creating a Logo That Speaks
    A logo is often the first visual interaction customers have with your brand. Ensure it’s simple yet memorable.
  • Crafting Consistent Messaging
    Your brand’s tone and voice should reflect its personality. Whether you’re conversational or professional, consistency is key.
  • Harnessing Digital Tools
    From social media platforms to your company website, digital tools are essential for amplifying your brand’s reach.
  • Partnering with Experts
    Collaborate with a tech startup branding agency to ensure your brand’s identity aligns with industry trends and best practices.

    Why a Strong Brand Identity is an Investment, Not an Expense

    Many startups hesitate to invest in branding, viewing it as a secondary concern. However, a strong brand identity delivers measurable ROI:

    • Improved Customer Loyalty: Brands that resonate emotionally foster long-term relationships.
    • Higher Market Value: A recognizable brand can command premium pricing and attract investors.
    • Enhanced Recruitment Efforts: Employees want to work for brands they believe in. Strong branding attracts top talent.

    Final Thoughts

    In the competitive world of tech startups, branding isn’t an afterthought—it’s a strategic asset. A well-crafted brand identity builds trust, differentiates you from competitors, and evolves with your company’s growth. By investing in branding early and partnering with a trusted tech branding agency, you set the foundation for long-term success.

    Ready to transform your startup’s branding? Learn more about crafting a winning strategy at SAGE Marketing.