Many Australian small and medium enterprises (SMEs) use the terms ‘positioning’ and ‘branding’ interchangeably, but they’re actually quite different. Both are crucial for growth, but they address different questions. Think of it this way: branding is *who* you are, while positioning is *how* you’re perceived in relation to your competitors.

Branding is the overall experience a customer has with your business. It encompasses your visual identity – your logo, colours, and fonts – but it goes much deeper. It’s your brand voice, your customer service, your values, and the overall feeling people get when they interact with you. A strong brand builds recognition and loyalty.

Positioning, on the other hand, is about carving out a specific space in the minds of your target audience. It’s about answering the question: “What makes us different, and why should customers choose us over everyone else?” It’s not just about what you *do*, but what benefit you deliver, and to whom. Effective positioning focuses on a clear, concise message that resonates with your ideal customer.

Here are a few key differences to consider:

• Branding is internal then external: We build a brand *first* based on our values, then communicate it. Positioning is always external – it’s about how the market sees us.
• Branding is long-term: While brands evolve, they’re built for longevity. Positioning can be adjusted more frequently based on market changes and competitor activity.
• Positioning informs branding: Your positioning strategy should actually *guide* your branding efforts. If you position yourself as a premium provider, your branding needs to reflect that.

Let’s say you’re a local bakery. Your branding might focus on ‘fresh, wholesome, and community-focused’. Your positioning, however, could be ‘the only bakery in town offering authentic sourdough bread made with locally sourced grains’. See the difference? One is about your overall identity, the other is about a specific competitive advantage.

Investing in both is essential. As we look towards 2026 and beyond, a clearly defined positioning will be vital for cutting through the noise and attracting customers. We recommend starting with a thorough market analysis to identify opportunities for differentiation, then developing a positioning statement that guides all your marketing efforts. From there, ensure your branding consistently reinforces that position.

If you’re unsure where to start, consider a positioning workshop to help you define your unique value proposition and build a brand that truly resonates with your target market.