Building a Better Brand

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In practice it can be more difficult, primarily because it's easy to confuse true positioning with a focus on features and attributes.

A couple of months ago I stumbled across an article about the Model T. It's rare to see one today, of course, but back in the early 20th century, Ford (F) cranked out 16 million of them. In the Model T's heyday, there was no such thing as power steering, speedometers, rear-view mirrors, seat belts, radios, heaters, air conditioners, and not even an automatic starter (imagine hand-cranking your car today).

Compare that with the last car you bought, which probably came with all of the above and possibly even an iPod (AAPL) dock, rearview camera, or satellite-based navigation system. New bells and whistles are great, but today's exclusive attribute is tomorrow's standard feature.

Keeping Focus

BMW (worth $21 billion—remember?) understands this. As the company introduces new models, they inevitably include the latest and greatest features. But BMW doesn't attempt to build its positioning around run-flat tires or side-impact airbags. Instead, the company understands that in the automotive market there will always be a segment of buyers for whom the way a car handles and feels (and makes its driver feel) is the most important consideration. Performance is the benefit BMW has owned for decades, and the brand has kept its focus there even as the definition of performance has evolved.

As you evaluate your own brand's positioning, don't focus on features that will soon be co-opted by your competitors. Consider the primary benefits your brand provides and what they really add up to. Then examine the extent to which your positioning passes six key tests: relevance, simplicity, differentiation, believability, credibility, and defensibility (BusinessWeek.com 09/14/07).

If it's strong, your brand is likely to provide value for the long term as it guides not only your marketing efforts but decisions ranging from research and development to acquisitions. If not, you may need to reorient your operations to make it work or find a different hook on which to base your positioning. Either way, getting positioning right is the first step in creating a brand worth billions.

Steve McKee is president of McKee Wallwork Cleveland Advertising, an agency that specializes in businesses with ad budgets under $10 million. He writes his sales and marketing column every month.