This is the fifth article in a small series of punches surrounding April Dunford's Obviously Awesome! and how good positioning relates to good branding. Please read the first article, second article, third article, and fourth article before jumping into this one.
You know what the alternatives are, you know the special things that make your startup unique, you've established what makes that valuable, and you know who finds it the most valuable. Now, what frame of reference can you give to customers that will help them understand who you are?
This is accomplished through establishing a market category. For example, an automobile is a specific market, motorcycles are another. If you say your startup is going to be an automobile, it is assumed that it will be some kind of four-wheeled transportation. If a motorcycle, it is assumed it will be two-wheeled.
Same thing applies to software. If you are building out a creative software, it's assumed it will be capable of creating artwork digitally. Or if you were creating a video conferencing platform, it'd be assumed you could do something like connect with others via teleconference.
Why does this matter? Because it's important to make sure you don't allow for false assumptions. A famous mash of market category explanation is "it's like Uber, but for (blank)." What does that mean? It means that whatever you're building is going to have something to do with transportation, the shared economic model, and probably be app based, right?
When you repeat those assumptions to startup founders, you frequently get a response similar to, "well, kinda."
Ouch. Bad move. Now you've got a bigger problem. Now you have to combat assumptions and pay close attention to fix them.
At its core, market categories and choosing to associate your company with one is done to make your marketing easier. This happens because, when done right, those assumptions allow you to cut straight to the differentiating pieces of your startup rather than trying to explain what it is.
What does this have to do with branding?
I'd guess the biggest impact this has on branding is the ability to see what assumptions are already in place about the emotional value of the category. The companies in each market category have stigmas, jargon, and they tend to adopt similar brand personalities. You have the opportunity to break those assumptions and create a unique personality.
One company that comes to mind is Liquid Death, who blew past expectation when they took a death-metal inspired, brewery-like approach to selling water. They entered a crowded market with few companies straying from a fresh, clean, and renewing vibe. We know what it is, water, and because of the market category we are able to ascertain what separates it from the rest of the herd.
If you're having rouble figuring out what your brand means to someone, try answering this question from a customers perspective:
"Three years from now, they are sitting down enjoying coffee, really happy with the progress they've got from doing business with you. What has made them so happy?"
If you can answer this, or get answers to this question, you will have a leg up on any alternative in your path.
This is the second in a small series of punches surrounding April Dunford's Obviously Awesome! and how good positioning relates to good branding. Please read the first article before jumping into this one.
Having gone through the process of seeking out the alternatives to your product, you should have a robust understanding of what is already out there within your market category. This is like being at a poker table and seeing each players' cards. You know what you're up against, now it's time to find a way to play.
The second piece in positioning a company is understanding what makes you special. From a product standpoint, this comes in the form of technical features, but it could expand into areas like delivery method (think Dollar Shave Club vs. Gillette), the business model (subscription vs. single purchase), or unique expertise (a developer with marketing skills or focus within a particular vertical).
After choosing the attributes and unique elements about your business, you could also examine the emotional qualities unique to your company. For example, Duluth Trading Co. and Patagonia make almost identical winter gear, but they are completely different emotionally. Duluth downplays any kind of sophistication despite the fact they charge $25 for a pair of Buck Naked Underwear. While Patagonia shifts its emotional value to serving the planet and altruism. Same products, different stories.
What do you care about? What story do you have? What personality can you bring to the table? It might be something you take for granted, but to everyone else, it is special. It's your secret sauce that shouldn't be kept a secret.