Baltic Journal of Economic Studies

Vol. 4, No. 2, 2018

DOI: https://doi.org/10.30525/2256-0742/2018-4-2-245-248

FORMATION OF BRAND POSITIONING STRATEGY

Diana Fayvishenko1
Kyiv National University of Trade and Economics, Ukraine

Abstract. The purpose of this article is defining the term of positioning, as well as creation and implementation of
the success principles of the brand positioning strategies, discussed the process of creating a positional scheme.
Methodology. Applied the principle of systems, comparative analysis, induction, deductive method and gnoseological
analysis (analytical, synthesis, logical, comparison). Results from researching the principles of successful strategies
for the development and positioning of a brand brought to the following conclusions: the brand positioning is a
process of creating its own image, distinctive properties, positive associations and values in consumers’ mind in
order to create a sustainable trademark image and ensure consumers’ attachment to this trademark. Development
and implementation of the company strategy of positioning comprises nine basic stages: 1) analysis of the external
and internal environment, goods analysis; 2) trademark design; 3) selection and reasoning of differential positioning
features; 4) defining a strategy (positioning method description); 5) defining strategic and tactical targets, foresight
for their achievement; 6) development of an implementation strategy plan; 7) strategy implementation; 8) the
results evaluation and strategy implementation control; 9) corrective actions. Prospects for further research. More
detailed analysis of the positioning concepts, the rationale for a systematic approach to positioning, their use in
practice. Background. Marketing positioning presents an opportunity for the promotion of trademarks, market share
expansion, sales increase. Value/originality. A positioning strategy is the paramount part of the general positioning
concept. The brand success on the market depends largely on the quality of development and realization of the
positioning strategy. Therefore, this issue is a key to developing an efficient positioning system. The rationale of the
chosen subject has no contradictions because the brand positioning should be addressed not only as a marketing
issue but an important general economic and even a social task for the company, the solution of which contributes
to the goal of improving the quality of life for all its employees.
Key words: brand, positioning, trademark, strategy of positioning, marketing.
JEL Classification: M00, M10

1. Introduction essence of positioning, it is important to determine

Positioning is the most important stage in the asset what the ideal position of the trademark is. A clear
management strategy of the trademark. Carefully representation of the ideal position of a trademark is
considered positions provide development directions for a prerequisite for researching positioning as a target
the new products, market expansion, communication, process and developing a system for evaluating its
pricing, selection of distribution channels. The brand effectiveness.
positioning is a process of creating its own image,
distinctive properties, positive associations and values 2. Principles of successful brand positioning
in consumers’ mind in order to create a sustainable In the aspect of the development of the rapid
trademark image and ensure consumers’ attachment positioning of the brand, an attention is drawn to
to this trademark (Fayvichenko, 2016). Today, based scientific developments by Kendukhov (2008) who
on the generalization (Stone, 1998, Davis, 2001, Trout, believes that the problem is due to the lack of a clear
2003), one can make a determination that brand understanding of what should be the ideal position
positioning, as a process, begins with the design of a of the trademark. A clear representation of the ideal
trademark position or, as is often seen in the literature, position of a trademark is a prerequisite for researching
the concept of positioning. It is difficult to specify the positioning as a target process and developing a system
essence of positioning when its ultimate goal is not for evaluating its effectiveness. Logically, the investigator
clearly understood. To form a complete idea of the proves that the initial premise in determining the ideal
Corresponding author:
1
Department of Marketing and Advertising, Kyiv National University of Trade and Economics.
E-mail: conference.fd@gmail.com

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position of a trademark should serve the understanding on the development of basic positioning systems. In
of the ideal consumer (Aaker, Shansby, 1982). That is, addition to new ideas, such engagement has a positive
the ideal position of the trademark: the perception of effect on increasing the degree of attachment to the
the trademark by the consumer, which forms the ideal brand.
consumer.
The ideal position should be reduced to absolute,
3. Stages of development and introduction
only then can the criterion basis for assessing the
effectiveness of positioning as a level of approximation
of brand positioning
to the ideal be determined. Note that today neither the scientific literature nor
Based on this premise, Kendukhov (2008) formulates marketing practice has a justification for the development
the definition of the ideal position of the trademark – of brand positioning. Positioning, as a process, begins
this is its perception by the consumer, in which he is with the design of a trademark position or, as is often
absolutely sure of the unique advantages of the trademark seen in the literature, the concept of positioning. Crevens
over other brands, with this brand associated exclusively (2003) sees the concept of positioning as a formulation
with positive associations, it is perceived as irreplaceable of the essence of the company’s offer, indicating the
value and necessary attribute of life; the perception in ability of the organization to meet the needs and
which the consumer is a fanatical supporter of this preferences of consumers. The author quite rightly notes
brand is fully convinced that consumers who buy goods that the concept of positioning the company should be
under other brands make the wrong choice, considers it based on the reasons why customers prefer to deal with
their duty to recommend this brand to other consumers, it, and not with its competitors, and to broadcast these
and feels the spiritual unity with consumers who have reasons to the target audience. Extending the concept
chosen this brand. of positioning in marketing, J. Trout and S. Rivkin in
Thereby, the positioning of (Kendukhov, 2008) is “Differentiate or Die!” (2003) distinguish the following
a process of managing the perception of a trademark positioning tools: the championship in the category as a
by a consumer whose purpose is: persuasion of the good differential idea; leadership as the most attractive
consumer in the unique advantages of this trademark and exciting idea; “Hot commodity” as a good,
over other brands; formation of the consumer’s differential idea; differential idea of specialization; the
exclusive affiliates with this trademark; formation of latest development as a differential idea; the advantage is
the consumer’s sense of the indispensability and vital a differential idea; commodity as a good differential idea;
necessity of the brand; formation of fanatical devotion possession of the attribute as a way of differentiation.
to the brand; raising a sense of duty to recommend this Analysis of core studies on the subject (Keller, 2007,
brand to other consumers; forming a sense of spiritual Mogileva 2010, Stone 1998) allows for picturing a
unity with consumers who chose this brand; forming a generalized for development and implementation of
belief in the consumer that other consumers who buy the brand positioning that conditionally includes nine
goods under other brands make the wrong choice. stages. The first stage implies a collection, processing,
The key to developing brand positioning and ensuring and analysis of the competitive environment data,
the successful outcome is an adherence to certain competitors’ policy regarding their own trademarks,
principles. The brand positioning should be performed the influence of macro-environment factors, analysis
under scientific methods, process-based and systematic of the company market capabilities, its strengths and
approaches. The understanding and performing the weaknesses, analysis of goods being sold or to be sold
management decisions in this area not only shall be under this trademark. A trademark model is developed
based on the knowledge of marketing theory and at the second stage: its image, the target audience is
practice but also on psychology, sociology, and other being determined, attributes, selection of the brand
sciences. strategy (monobrand for monomarket, monobrand for
The positioning is effective if it is done consistently polymarket, polybrand for polymarket) (Kendukhov,
and continuously. If in the absence of planning in the 2008). Selection of and rationale for differentiating
process of positioning elements will prevail chance, positioning features are taking place at the third stage.
important aspects may be lost. Success, if achieved, The positioning strategy development based on the
must be consolidated and developed not through the selected differentiating features takes place at the fourth
weakening, but strengthening the effect on consumer’s stage. Strategic (perspective) and tactical (upcoming)
mind. Implementation of the trademark positioning positioning goals are developed via foresight of the
must be performed under the rules of fair competition strategy implementation results at the fifth stage. They
and strict compliance with the legislation on protection must comply with each other. Typically, the second
of trademarks (Trout, 2003). follows from the first. Each goal must be achievable in
A unique differentiating idea is a key to an effective practice. Strategy implementation plan is developed at
brand positioning. Widely engage the company the sixth stage. Decisions on the methods and means
employees, existing and potential customers to work to achieve goals are being taken, as well as the planning

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documents, plans and instructions are being brought to The information is “undergoing the purification
the performers. Each item of the plan must be drafted process” during the manufacturer’s communication in
so that it is clear what kind of goal you achieve; what order to create a specific, necessary for the consumer,
actions, measures, and works are to be made and to vision of the product and its individual components,
what deadline; who provides the resources, necessary to as well as a different view of the services in all possible
implement the decisions; what departments or persons variations.
are responsible for implementing the decision; who These elements, which will thus be obtained, will
controls the implementation. Items of the plans must compare consumers with their vision of an ideal
be rationalized, exposed clearly and correctly (contain a product and thus streamline demand. Based on this,
statement of action, parameters, etc., rather than calls to the consumer goes further in choosing a product.
do something), easy for the performers to understand Regarding double positioning, the authors propose the
and connected with the general marketing plans of following provisions that are relevant to the behaviour
the company. It should be noted that at the stages 2-6 that entrepreneurs and managers dealing with dual
foresight has an extremely vital role – a scientifically positioning strategies should have: positioning based on
proven foresight of the most plausible scenario for the “adviser” should be based on the benefits that can
the trademark progress, alternative ways and plan grow. Such advantages may have a “technical” nature, for
implementation deadlines. It is based on identification example – the simplicity of installing a complex product
and correct assessment of the market development or the availability of spare parts, or direct advantages
trends, competitors’ trademarks, changes in consumers’ such as discounts and bonuses; the method, which
behaviour, and so on. Understanding the firm relations informs the dual positioning to the consumer, should be
between different elements of the general positioning such that as much as possible avoids confusion of the
system, relations between the past, the present, and the consumer. More precisely, the means, by which contact
future condition of the anticipated object. Not only the with the “advisor” is established, should be different
foresight rationalizes the development of the present from that used to establish contact with the immediate
trademark and the process of its positioning, but the consumer.
trademarks anticipated to penetrate the market as well. This seems quite natural if one takes into account the
Scientific analysis and calculation are not the fact that the number of people involved in the process is
only things determining the foresight success. It always different; the proliferation of international trade
is also determined by imagination and the ability processes such as consumer and consumer management
to foresee, which depends on the experience of (CRM) makes it extremely easy to understand the nature
corresponding specialists. In practice, foresight uses of each individual consumer, and hence the people who
three complementary development tools for foresight are affected. It is possible even to distinguish the latter
development. separately. This scenario makes the dual positioning
Obtaining an image of the future development strategies more effective. At the eighth stage, the results
of the anticipated object based on the experience are evaluated and the strategy progress is monitored.
acquired during the analysis of similar objects that Here, the comparison of actual efficiency indicators of
had taken place earlier. Extrapolation or interpolation, the strategies’ implementation with specific milestones
i.e. conditional prolongation of trends in the future, that characterize the established strategic and tactical
development patterns of which are well-known in the objectives. These guidelines should be clearly defined,
present and from the past. Modelling, i.e. building rationalized and convey the final results. Control must
different models of the future condition, carried out in not be narrowed down to a formal registration of
accordance with the expected or desired alterations of deviations of the actual results from the planned ones.
certain conditions, development perspectives of which If actual results are not up to the planned results, it is
are studied sufficiently. At the strategy implementation’s required to analyse the whole chain of the cause and
seventh stage, plans are brought to the performers, effect relations, identify the causes, conditions of their
specific actions and measures are carried out. occurrence.
(Borgesi, Signori, Russo, 2005) reveals the strategic Control must be substantive, specific. Its objectives,
aspects of positioning in simple and double positioning. parameters, and measures to be checked should be
Under a simple positioning, researchers understand understood clearly. Monitoring of the implementation
the element of marketing strategies associated with of plans and specific measures must be performed from
segmentation. In their view, this term should be the moment of their approval. During the monitoring,
considered as a part of consumer behaviour of the it is required to ensure the verification consistency of
consumer, namely, as a part of the process of buying/ the corrective measure status, prevention of shortfalls,
selling. This behaviour is divided into several stages. accumulation of positive experience. Monitoring must
One of them is the “assessment of alternatives”. It is at be done in a timely manner so that it is possible to
this stage that the consumer will weigh the information correct the situation and take preventive measures. At
received about the product he intends to purchase. the ninth stage, one must take, if necessary, corrective

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measures for the implementation of those stages, where a trademark, goods according to some properties;
the causes of actual results deviating from the planned decision making is a multi-staged process, which
results occurred. generally includes the following stages: determining the
The linking chain of all stages is the process of goal, for the achievement of which the decision is taken;
specialists’ decision-making, who are responsible for collection and update of the output informational
development and implementation of the strategy. materials; specification of possible limitations (on
Approval of a decision always precedes the action, the market, resources, potential consumer, etc.);
regardless of who performs the action – a decision- development of possible scenarios; selecting a criteria for
maker or any other person. Each solution must include the evaluation of the decision’s rectitude and efficiency;
answers to the questions: what, when, and how to be comparison and evaluation of each scenario under the
done, who does. adopted criteria; selection of the best option; foresight of
the consequences occurred from implementation of the
decision made; adjustment of the decision taken due to
4. Conclusions the foresight results or choosing another scenario if the
Results from researching the principles of positioning prediction implies serious risks or inefficiencies of the
strategies in marketing bring to the following decisions made due to the assumptions adopted during
conclusions: the trademark positioning is a process of the foresight; foresight of the second scenario results
creating its own image, distinctive properties, positive and its adjustment or selection of the third scenario.
associations and values in consumers’ mind in order Prospects for further research: a more detailed analysis
to create a sustainable trademark image and ensure of the positioning concepts, analytical forecasts, the
consumers’ attachment to this trademark; the basis for rationale for a systematic approach to positioning, their
any positioning concept is an idea of differentiation use in practice.
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