Guide to the Brand Pyramid Marketing Tool: Understanding Your Brand Structure7 min read

Liquid Digital October 10, 2023
Brand Pyramid Guide & Potential

A brand pyramid serves as a visual marketing tool, showcasing essential elements of a brand’s market positioning. Its primary purpose is to provide valuable insights into brand structure, simplify complex organizational concepts, and track advancements in brand strategy.

This guide will teach you how to harness the potential of a brand pyramid for your business and the many advantages of this powerful tool. We’ll also explore its various components and provide expert advice on how to build a successful brand pyramid, as well as how to utilize it to maximize customer loyalty and brand reputation.

What Is Brand Pyramid Marketing & Why Is It Important? 

A brand pyramid is a visual representation of a brand’s identity and position in the market. It helps your team effectively convey the brand’s personality and core values, as well as the emotional and tangible benefits it offers to your target audience. Creating a brand pyramid is essential for effective brand communication. It can be a helpful way to develop your brand strategy, regardless of whether you are a small business or a large enterprise. However, it’s important to first establish your brand’s identity before creating a brand pyramid.

Understand that creating a brand pyramid should be done internally, where the company defines its external brand image by reflecting on its values. The business needs to figure out what it stands for and how it wants to present itself. It’s something that should be done solely by the company and should never be delegated.

Ultimately, the brand pyramid works to create a unique selling proposition (USP), narrating the brand’s story and shaping the marketing strategy. It’s also a useful benchmark for the business to ensure that its actions match its core beliefs.

What are the 4 stages of branding?

If you’re using a brand pyramid to streamline your brand identity, you’ll want to understand the four stages of branding. These include:

  • Understanding your business: Gain a good understanding of the nature of your business, your position in the industry, your brand personality, and, most importantly, your values.
  • Knowing your audience: Go beyond using buyer personas by exploring resources such as product reviews, customer testimonials, help forums, and social media to get valuable insights.
  • Establishing brand awareness: Use your analysis of customers, competitors, and online reviews to develop a compelling brand positioning message. Incorporate this message into your branding materials to communicate with your target audience.
  • Tracking progress: Continuously evaluate the status of your search traffic, keeping an eye on whether there has been an increase in website visitors. Additionally, monitor social media channels to gauge your level of brand engagement and keep track of the number of new leads generated.

The 5 Levels of the Brand Pyramid 

The brand pyramid outlines the five stages that customers experience when building a relationship with a brand. Let’s examine each level of the brand pyramid more closely.

Level 1 – Presence

At this level, customers are familiar with a specific brand but haven’t made a purchase themselves. Their attachment to the brand is still developing. If they have bought a product from this brand, they still haven’t formed an emotional connection. Typically, promotional offers introduce them to the brand and encourage them to try samples.

Level 2 – Relevance

During this stage, customers start to question if a brand’s product aligns with their needs and wants and whether they’re worth purchasing from. Establishing presence and relevance are key to raising awareness about the brand, product, or company.

Level 3 – Performance

Customers at this stage compare a brand’s product with similar offerings from other brands. They possess knowledge about the product and brand identity, largely due to promotional efforts. Highlighting the brand’s unique selling points will help demonstrate its value and differentiate it from competitors.

Level 4 – Advantage

At this point, customer loyalty is strong. Customers perceive tangible benefits from a particular brand’s products, forming an emotional connection to them. They can relate to the brand and advocate for it to others.

Level 5 – Bonding

The brand’s unique selling points and pricing structure have made a significant impact on customers, who now feel a strong emotional connection to the brand and see it as an important part of their identity. As a result, they also want to be affiliated with the brand.

Benefits of Using the Brand Pyramid Tool 

The brand pyramid provides several benefits to organizations. One of its main advantages lies in its ability to visually represent the brand’s identity, allowing for a positive first impression. Here are some additional benefits of using the brand pyramid:

Inspires customer confidence

A well-crafted style guide can help you maintain a consistent brand image across various platforms. When your branding is consistent, customers are more likely to trust you and remain loyal to your brand.


The brand pyramid serves as a condensed version of your brand style guide, making it easier to send, share, read, and present.

Increased revenue

Consistent branding improves a brand’s likability, subsequently leading to increased revenue. When customers establish a positive emotional connection with a product or service, they become willing to invest more in it.

What are the 7 elements of brand equity?

The value of a brand is known as brand equity, which can be assessed through seven elements:

  1. Awareness: The extent to which the general public recognizes your brand.
  2. Reputation: How people perceive your brand, such as whether it’s considered a premium brand or a value brand. This only applies to people who are already familiar with your brand.
  3. Differentiation: This has to do with the unique qualities that set your brand apart from other competitors in the market. Having a unique personality or being able to distinguish yourself from others is important for your brand to hold value, even if it is not well-known. This potential for value is known as equity.
  4. Loyalty: The number of repeat customers and how often they purchase from you.
  5. Relevance: Making sure that your brand resonates with your target audience by providing products or services that meet their needs and wants.
  6. Energy: Consistently having fresh brand ideas for your customers with an innovative approach rather than relying too much on past successes.
  7. Flexibility: Avoiding narrow definitions that could make it challenging to adapt your brand in the future for other purposes.

Enhancing these elements can improve a brand’s overall value and help guide strategic marketing efforts.

Step-by-Step Guide for Implementing a Brand Pyramid Strategy 

Once you have an understanding of the brand pyramid and its elements, you can begin to implement a strategy. This collaborative process involves individuals such as the founder, department heads, and key stakeholders.

Step 1 – Describe the features and attributes of your products or services

Provide a comprehensive description of the features your product or service encompasses. If you are a tech company, for example, this may include highlighting software features such as user interface, security measures, and the availability of customer support.

Step 2 – Outline the functional benefits

Identify the problem that your product or service solves and outline the advantages it offers. Using the same example of a tech company, they might emphasize the speed of its software or the convenience of its user interface.

Step 3 – Define the emotional benefits

Describe the emotional impact your product or service has on customers. That same tech company could note the feeling of accomplishment users have when they can complete tasks quickly and efficiently.

Step 4 – Craft the product/brand persona

To effectively brand your product, It’s important to understand your target customers. If your target market is young adults, you might want to focus on creating a brand persona that exudes fun and excitement.

Step 5 – Unveil the brand essence

Communicate to your customers what sets your brand apart. Your brand’s essence, positioned at the highest point of the pyramid, represents the quality that makes your brand unique from competitors and resonates with your audience.

Unlock Your Brand’s Potential with a Brand Pyramid

Brand pyramids are useful tools for enhancing the value of your brand and gaining a stronger connection with your customers. It can boost customer confidence, simplify comprehension of the brand’s core values, and ultimately lead to greater revenue. The seven elements of brand equity also provide insight into how people perceive your product, service, or brand idea in terms of awareness, reputation, differentiation, loyalty, relevance, energy, and flexibility.

By following the step-by-step guide for implementing a brand pyramid strategy, you can create an effective branding plan and unlock the potential of your product or service. Consistently applying these practices on all platforms will help in retaining brand loyalty and encourage them to keep investing in it. As a result, you can expect an increase in sales and long-term customer relationships. Unlock the potential of your brand with the power of the brand pyramid. Transform your business today and watch as your customers stay loyal and your sales soar!