Business Ideas

Importance of Brand Positioning

Importance of Brand Positioning

What is brand positioning?

Brand positioning can be defined as the process of creating a definitive image for the brand compared to other competing brands. Brand positioning is not what a company does to a product; it israther what it does to the minds of the consumers. Brands create a very distinct position for their products or services in consumers’ minds. Companies position their brands through a combination of functional and emotional satisfaction as experienced by the users. Brand positioning requires the companies to conduct market research initially about the motto of the brand, what it stands for, and how people associate themselves with the brand. The better the companies know their target audience, the better their chances are for successfully positioning the brand.

Why do brand positioning?

In today’s market, there is copious supply of brand choices. They vary minimally in effectiveness. This means that the products and services have to be carefully positioned and differentiated with their unique features. Brand positioning is therefore not only important, but also critical for any business to stay relevant in their target market. It enables businesses to face competition by creating a niche for their products and services. It also helps the products and services of businesses to be seen as different from those provided by their competitors. Brand positioning is a continuous and ongoing process, and it needs to be done in a consistent way. It’s a way by which the business rediscovers itself again and again, and thus stays afloat in the market. Brand positioning is a way of stating that the business is precisely addressing the need of its consumer. If the product or service is not solving the problem of the company’s target audience, then the company should focus its efforts on getting the right message across by reassessing the brand positioning strategy. Brand positioning is an effective tool to establish exclusivity for the products and services of a company in the minds of the consumers.

How to do brand positioning?

In order to successfully establish a brand in the minds of the consumers, the companies should identify the uniqueness and strengths of their products. It is also important that the companies invest in researching about their direct competitors, and assess the strength of their products. If a competitor holds a prominent position in the market, the best way to attack is to adopt a flanking strategy and avoid hitting on their strengths. When competitors hold a significant market share, then it is obvious that their strength is the reason behind their dominant market position. Hence, hitting on the strengths would not help. Instead, it is advisable to promote a brand with its own unique features. For instance, Absolut priced their vodka 50% higher than the vodka leader, Smirnoff. By doing so, Absolut created a new category called the premium vodka.

Understanding the Art of Business Expansion

Understanding the Art of Business Expansion

Starting a business and maintaining it isn’t an easy thing, but with the right strategies and motivated workforce, you will not only see your business grow but you can also see it expanding. In the world of business, the term business expansion may be used to mean when, as an entrepreneur, you increase your products and services that you have been offering for sale to your clients. A business development is commonly known when a firm opens new stores or outlets where customers can access services. The products and services might still be the old ones, but your goal is to reach more customers. The business expansion should not be confused with a relocation of business because in expansion, you still retain the earlier location as you open up new stores. There are various ways that entrepreneurs use to expand their businesses that include the following:

They opt to open new locations so as to increase their customer base. It’s considered as the best form of business expansion. With excellent and careful research and planning, you will be able to capture new customers with a new store where you have not been operating.

Forming an alliance with a firm that is already established somewhere else. In this case, you will save yourself the cost of marketing so as to attract new customers. Most companies will form alliances with firms that offer complementing products and services. You also get to save a lot in terms of establishing a new business in a new place, and the risk of failure gets reduced as well.

Diversification is another common form of business expansion that entrepreneurs are using. In business, utilizing the available space is always advised to get maximum benefit from it. When you diversify, you can opt to sell products and services that complement whatever you have been selling. Others choose to export or import their products as well as those of others. You choose to have more services that a customer will get when they visit your business.

When you decide to target other markets, it is another form of business expansion. It’s not necessary for you to move to a new location. By targeting other markets, you might choose to go for different gender, age-group, as well as social class. A different market segment will offer you a good ground for your business expansion strategy.

Some business owners also might opt to merge their companies, or if they have the financial strength, they might acquire other business. You might choose to merge with a company that has some strength that your firm doesn’t have. It might be in terms of location, financial strength, good marketing team, or even a good workforce. Others will opt to buy their competitors out of business as a form of business expansion.

Something else to note and keep in mind when it comes to business expansion, so as to reap the best, is to ensure you plan your expansion well and you do have a strategy. To achieve this, ensure you have done a thorough market study, have shopped around, and above all, you’ve got some professional financial advice. It’s also advisable that you keep all your customers inyour expansion and most importantly, ensure you don’t over-expand, or it works against you as an entrepreneur.

Starting Business from Scratch

Starting Business from Scratch

Nothing can stop a bright idea from shining. This should be the motivating expression to any entrepreneur. The people with ideas have, for a very long time, remained stranded not knowing where to get financing for their entrepreneurial ideas. This has called for the intervention of governments or non-governmental organizations to help in simplifying the work and reduce unemployment cases given the ever increasing population.

To shed some light on the matter, I have come up with some reliable sources of business financing. First are the loans and grants from the government to special groups of people in the country such as the youths, women, and those who are physically challenged. Most of people who are unable to fund their business ideas lie in one of these groups. Most of the governments across the world have initiatives to empower these groups by offering loans and grants to them. However, one must make an effort of applying to get the finances.

Also, one has to consider leasing of fixed assets. These are items one has and can forgo the pleasure of having them. They include guitars and other electronics which can be leased to friends or churches. The money obtained can be used as working capital which actually is harder to finance in an unproven business.

Bank loans are also much reliable especially when one has collateral. This can help one expand his already started business which is already generating income which can be used for repayment. One has to possess good managerial skills and proper planning to avoid incidences of losing property due to default in payment which comes with an interest.

Friends and family members can also be reliable sources of business finance. They can offer capital either on interest or just give grant in goodwill. If lucky enough, one can actually be given money to start or expand business without any collateral which reduces the chances of losing property in case of business failure and subsequent inability to repay.

Savings and credit organizations can also offer one loan on reasonably lower interest rates as compared to banks. This, in most cases, requires one to be a member of the organization and save some amount for a given period of time. The amount saved determines the maximum amount one can get as loan from the organization.

Also, after identifying market gap in a given place, one can make arrangements with the suppliers or the manufacturer to get goods on credit. This is appropriate for fast moving goods which can break-even within a short period of time and enable one to fully finance business operations.

Innovation and research grants are also offered in some institutions. One can actually use innovative ideas to convince financiers the need of getting funded to expand the idea into a business.

In conclusion, on conception of an entrepreneurial idea, one should think fast on how to get the idea rolled into a money generating business and should not allow financing to be a limiting factor given with the numerous sources.