At a recent branding strategy kick-off meeting, I encountered an exceptional client from the defense sector. This global powerhouse operates on an immense scale, boasting unparalleled capabilities, expertise, and know-how. When asked to name their top five competitors, the CEO consistently maintained, "We have no competition." Despite my efforts to approach the question from various angles throughout our discussion, I only managed to elicit a single potential competitor—one that still falls short of my client's expertise.
Unsatisfied with the CEO's assertion of having no competitors, I took it upon myself to conduct an in-depth industry analysis. I must acknowledge the complexity of this task; the search was far from straightforward. My findings largely supported my client's claim—in terms of sheer capabilities, they indeed appear to be in a league of their own.
However, my research revealed an interesting twist on the marketing front. I discovered two other companies that, while perhaps not matching my client's scope and capabilities, certainly pose a challenge in terms of market presence. These entities have crafted strong brand identities, each with a distinctive positioning and an engaging narrative. While their actual capabilities may not rival those of my client, their marketing efforts—including their digital presence, promotional materials, and apparent market share—paint a picture of respectful competitors. Public perception wise and brand visibility, these companies have certainly established themselves as significant players in the field.
Marketing Positioning is all about Relativity
Marketing positioning is always comparative, relying on how your brand stands relative to other players, solutions, and options in the market. If competitors claim to offer similar solutions or alternatives, potential stakeholders might consider their options, meaning they are competing with you, even if it's on a different axis. When only those with deep expertise or insight can distinguish between the choices, competition certainly exists. This competition creates the benchmarks for your relative positioning. How others position themselves from a marketing perspective ultimately shapes how your brand is perceived in relation to them.
Competition: Not a One-Dimensional Track
Competition differs from one player to another. It's not about how you view them, but rather how they present themselves and how the market perceives them. Some competitors may pose direct competition, while others might be partial competitors—meaning certain aspects, like technology, target audience, or customer service, overlap with ours, but other areas, such as features, interfaces, or scope, may not directly compete.
The Power of Perception in Branding
In the world of branding and marketing, perception is reality. Even if your company truly has no equal in terms of capabilities, if your target audience perceives other companies as competitors, they effectively are. This underscores the importance of brand differentiation. It's not just about what you know your company can do, but how effectively you communicate that to your audience. If your superior capabilities aren't conveyed, you risk being seen as just another player in the market, grouped with competitors who may not match your level of expertise.
Breakthrough Thoughts
While it may be tempting to dismiss the notion of competition when you believe your company stands alone in its capabilities, this mindset can be dangerous from a branding perspective. Embrace the presence of other players in your space, even if they don't match your capabilities. Use their presence to highlight your strengths, differentiate your offerings, and communicate your unique value proposition. Research is the key to that.
When it comes to branding and reputation management, it's not just about what you think or know about your company. It's about what others say and perceive. By acknowledging the competitive landscape and strategically positioning your brand within it, you can ensure that your company's true capabilities and value shine through in the marketplace.
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