Lots of new entrepreneurs believe that if they build their company, customers will come. But that’s not the case because everyone who’s ever run a successful business knows that no one will come if you build it and don’t properly brand it.
Now, understand that branding is only one side of the coin; the other side is brand positioning. So every entrepreneur hoping to start strong in the market must know how to apply brand positioning principles to make their business appealing to their audience.
Brand positioning only works when properly applied, and to make sure entrepreneurs position their businesses correctly, we conducted a brand positioning survey.
We tested some brand positioning principles to see how customers react to businesses with a modern vs. conventional brand position.
The Basics of Brand Positioning
One look at successful companies in every industry, and you’ll see that these companies didn’t just build a strong brand development around their products and services; they applied brand positioning principles to ensure that their business made an influential impact on their audience.
It was instantly clear that certain customers were drawn to brands that exuded specific qualities, and we wanted to know the positions that various customer demographics were drawn to.
The results of this survey would be an excellent resource for small, medium, and large company executives who want to build a great brand by making early branding decisions that’ll help them discover the correct brand position for their company, regardless of industry.
To assist us in reaching our aim, we asked people in the United States if they’d be, “… more interested in working with a new, innovative company or a historical, trusted organization?”
And, while the survey’s results will astound you, you must first comprehend why this question is so important.
Why this Question was the Key
One of the most significant and definitive decisions you’ll have to make when creating your brand and naming your company is the tone you’ll apply.
And, while it may not seem like much, for business owners, brand executives, and product managers, it’s a vital decision that affects their company’s destiny. Have you ever wondered what would’ve happened if:
- Apple had chosen a less unique brand name
- Squatty Potty had chosen a brand name that sounded more medically inclined?
- Zappos’ original name was still Shoestore?
The general attitude your target audience will have towards your brand is determined by the tone of your brand name. And it all boils down to whether you want to be a trustworthy, timeless, and conventional brand or a contemporary, cutting-edge, and innovative one.
Every entrepreneur who wants to build a successful company must be aware of the tone that their brand name deserves. And when it comes to finding the perfect brand name, you can either choose to brainstorm or use a powerful business name generator.
With that said, let’s see which parts of the audience favor contemporary brands and those that prefer traditional brands.
Tech Moths Discovery on Brand Positioning
In some respects, the findings from this research were conventional, but in others, they were super revealing. Here’s a quick summary of the information we got from the 301 persons who completed the survey:
- Innovative and new companies caught the interest of young adults between the ages of 25 to 34. Slightly more than half of the participants preferred modern and innovative brands over well-known and reliable brands.
- People between the ages of 35 to 45 chose modern and innovative companies; however, this group is evenly split between modern and traditional brands.
- People between the ages of 45 to 54 and 55 to 65 preferred traditional and trusted brands.
- According to the survey, men preferred trustworthy companies over modern ones.
- Slightly less than 60% of women chose trusted and historical companies.
- Overall, 153 people chose trusted and historical companies. In comparison, 148 people preferred modern and creative companies, indicating that either method is beneficial, but it depends on the audience your company wants to engage.
But what does this mean?
From the survey, we learned that most young individuals between the ages of 25 to 34 were interested in new and unique companies.
So, if your customers are Gen Z, Millennials, or younger Gen X, you should consider adequately positioning your company by giving it a modern and creative finish.
However, suppose you want to attract an older audience of Gen Xers and Baby Boomers to your company. In that case, it’s best if you stick to the basics because customers between the ages of 45 to 65 have a strong affinity for well-known and trusted brands.
We also discovered that people preferred well-known and trustworthy companies and that women were more likely to support famous and trusted companies in particular.
In the end, our survey only highlighted the need for entrepreneurs to carefully analyze their brand’s tone before positioning or naming their business because it’s an essential ingredient in connecting your company with its target audience.
Here’s a Great Example of Brand Positioning
Lululemon stands apart by being more than just a sportswear company. For years, they’ve offered brand interaction through classes, and their recent partnership with Mirror, a home interactive boutique fitness studio, clearly shows that the company’s spirit of innovation is still alive and strong two decades after Chip Wilson, the company’s founder, set its tone.