Effective Positioning (A Strategic Marketing Topic)

Positioning is the marketing activity and process of identifying a market problem or opportunity, and developing a solution based on market research, segmentation and supporting data. Positioning may refer the position a business has chosen to carry out their marketing and business objectives. Positioning relates to strategy, in the specific or tactical development phases of carrying out an objective to achieve a business' or organization's goals, such as increasing sales volume, brand recognition, or reach in advertising.

Positioning is also defined as the way by which the marketers attempt to create a distinct impression in the customer's mind; specifically, "the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings".

Positioning is a concept in marketing which was first introduced by Jack Trout (“Industrial Marketing" Magazine- June/1969) and then popularized by Al Ries and Jack Trout in their bestseller book "Positioning - The Battle for Your Mind." (McGraw-Hill 1981), a company, a product or a brand must have positioning concept in order to survive in the competitive marketplace. Many individuals confuse a core idea concept with a positioning concept. Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value.

Effective Positioning: According to the basic principles of marketing, products and services are created to solve customer “problems” (i.e., to satisfy needs and wants) and provide benefits. Thus, for effective positioning, products must promise the benefit the customer will receive, create the expectation, and it offers a solution to the customer’s problem. If at all possible, the solution should be different from and better than the competition’s solution set, especially if the competitors are already offering a similar solution. Positioning should be a single-minded concept, an umbrella from which everything in the organization flows. Properly targeted, single-minded positioning affects everything a destination does or stands for, not only advertising, but also all of its promotions. Effective Positioning also affects policies and procedures, employee attitudes, customer relations, complaint handling, and the myriad of other details that combine to make the tourism experience. Tourism services compete on more than just image, differentiation, and benefits offered. There must be a consistency among the various offerings and it is the positioning statement that guides this consistency. There are two tests of effective positioning. First, the position must be believable in the tourist’s mind. Second, the destination must deliver that promise on a consistent basis.

Challenges to effective positioning

Even when the principles of positioning are understood, there are a variety of impediments to their successful implementation. At times, effective positioning is undermined by the poor selection of benefits to feature in advertising. In other instances, advertising is compromised by the failure to sustain a brand’s position.

Choosing Benefits and Goals

When entering a category where are established brands, the challenge is to find a viable basis for differentiation. A frequent occurrence is that the superiority claim selected is not one that is important to consumers. Most consumers have fast relief and not long lasting relief as a priority. Indeed, long lasting may imply slow acting-just the opposite of what is desired. One approach to addressing the concern that any single benefit may be unimportant to some segment of consumers is to claim multiple benefits. In so doing, the hope is that brand will offer something for everyone. One benefit claim might undermine another; for example, consumers are skeptical of products that claim high quality and low price. Further, claiming a variety of benefits can confound consumers’ efforts to define what the product is.

Sustaining a Position in a Dynamic Marketplace

Once a position is developed, most of the activity is directed toward sustaining it in a contemporary way. For example, Coca-Cola has been positioned as the soft drink that provides superior taste for many years. While this position has not changed, advertising has continually sought to instantiate superior taste in a modern way. Sustaining a benefit over time often serves as a barrier to competitive entry. We document this premise by examining the competition between EverReady and Duracell in the alkaline battery category.

In order to know how effective positioning is, positioning effectiveness should be measured. Two main groups of positioning measurements exist, namely company-based and customer-based.

• Company-Based Positioning Measurement Approaches

With these approaches, managers are surveyed on the positioning they are exerting. Afterwards, the information obtained will be linked to the financial performance (sales, profits, market shares) of the brand.

• Customer-Based Positioning Measurement Approaches

These approaches obtain information from customer surveys. The resulting information is used in several ways:

• One way is to determine whether the associations that we intended to establish in the mind of consumers are consistent with the actual perceived associations of the customers. Hereby it is assumed that efficient positioning is the degree to which there is consistency between what companies claim and the perception of the customers.
• The other way is using perceptual maps which determine a brand's position in a "virtual space", displaying how consumers perceive the good compared to other products in terms of for example properties and preferences.

Developing an Effective Positioning Strategy

By definition, positioning is the process by which a brand (a product or service) is marketed with the goal of owning a meaningful and differentiated idea in the mind of the target, Seems simple enough. In practice, very few marketers are able to apply the principles of positioning in order to achieve this goal. Even the fathers of positioning, Jack Trout and Al Ries, do not provide readers of their books the obvious means or steps toward developing an effective positioning strategy. The principles are there, but perhaps not as obvious are how to practice and execute an effective positioning strategy. 

Enter Innis Maggiore. With more than 35 years' experience applying and executing the principles of positioning, our agency has earned the reputation as the nation's leading agency in the practice of positioning. Our associates are positioning strategists, opportunists ®, trained in the principles of positioning in order to effectively execute upon our clients' positioning strategies. Jack Trout, a dear friend of the agency, agrees: "Innis Maggiore, like no other agency, has successfully turned the principles laid out in our positioning books and created a disciplined practice. These guys really do get it." 

Getting the right idea: developing the positioning strategy 

Most clients and agencies start with the "things." "Build me a website." or "Design me a brochure." Innis Maggiore starts with the business challenge or goal. No one really wants a new logo. Everyone wants more customers. The business goal can come in many forms: "We want to successfully."

• Start a new company
• Launch a new product or service
• Develop more leads
• Increase market share

These are all wildly different business challenges. But they all require a positioning strategy to achieve the goal. Innis Maggiore applies the principles of positioning in a disciplined fashion in order to get the right idea - the concept that will direct all the marketing required to achieve the business goal. The marketing "stuff" is then prescribed by the positioning strategy.

Getting the idea right: executing on the positioning strategy 

Developing the right positioning strategy is only the first step and probably only 1% of the work. But it's the most critical 1% as it makes 99% of the difference. The 99% work is known as the dramatization of the positioning strategy. When you start "making the things" that will communicate your position, they must all tether to the positioning strategy or they will be much less effective. Branding is additive. If every element of your marketing campaign is not doing its very best to build that focused meaningful and differentiated idea in the mind of your target customer, then you are not dramatizing your position in the most effective way possible. The great thing about positioning is that it can be executed in a whole host of different creative executions. Think of Geico: Cavemen, the gecko, pop stars, and more... all different creative’s, but all of them communicate one thing: low price car insurance. The dramatization of their position is always "15 minutes will save you 15% percent or more on car insurance." [They even have one commercial where they question whether or not to say this!] They GET positioning strategy.  The important concept here is that the creative expression can differ AS LONG AS it ties to the positioning strategy and effectively dramatizes the position. 

Finding your right idea...then getting it right

As disciplined practitioners of positioning, Innis Maggiore can help you discover, develop and then execute your position. It's what we do. It's ALL we do. Let's get going today. Because when you find your position and develop your positioning strategy, marketing is so much more fun. And wildly more successful! 

4 D’s of Positioning:

There are many metrics to measure the potential of and actual effectiveness of brands. The simplest means is to apply the concept of what we call the 4 D's of Branding. An effective and powerful brand must measure up in all 4 areas.

• Distinctiveness:

Your brand should be distinct when compared to all spoken and visual communications to which your target audiences will be exposed. The more unique and distinct your communications, the wider the field of effective competitive strength it will have. There are simple means to apply to test the distinctiveness of your brand.

• Differentiation:

The brand strategy and brand assets must set you’re offering apart and clearly articulate the specific positioning intent of your offering.

• Defend able:

You will be investing in creating your brand assets and in all cases your brand must have proprietary strength to keep others from using close approximations. This applies to your trade names and other proprietary words as well as to your logos, symbols and other visual assets.

• Digit-able:

In most businesses there is strong and growing element of electronic communications and commerce that dictate that all brand assets be leveraged effectively in tactile and electronic forms. This goes for all brand assets.

Effective Brand Positioning

Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. While "me too" brand positioning contradicts the notion of differentiation, this type of "copycat" brand positioning can work if the business offers its solutions at a significant discount over the other competitor(s.) According to Lamb, some companies position their brands "as being similar to competing products or brands"; a few examples are "margarine tasting like butter" and "artificial sweeteners tasting like sugar". This can also be seen in reactive marketing, when companies preposition more than just products: after Target added food and grocery items to become a "super center", certain grocery stores (such as Texas chain HEB) added retail products to become super centers as well. Another example would be the iPhone spawning several competitive smart phones - differentiated from Apple, yes, but not as significantly as Apple would prefer based on the patent infringement lawsuits filed by Apple. The conclusion seems to be emulate, but do not duplicate. As the Harvard Business Review notes when discussing positioning and strategy, "A company can outperform rivals only if it can establish a difference that it can preserve. Generally, the brand positioning process involves:

• Identifying the business's direct competition (could include players that offer your product/service among st a larger portfolio of solutions)
• Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.)
• Documenting the provider's own positioning as it exists today (may not exist if startup business)
• Comparing the company's positioning to its competitors' to identify viable areas for differentiation
• Developing a distinctive, differentiating and value-based positioning concept
• Creating a positioning statement with key messages and customer value propositions to be used for communications development across the organization

Product Positioning

Generally, the product positioning process involves:-

• Defining the market in which the product or brand will compete (who the relevant buyers are)
• Identifying the attributes (also called dimensions) that define the product 'space'
• Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
• Determine each product's share of mind
• Determine each product's current location in the product space
• Determine the target market's preferred combination of attributes (referred to as an ideal vector)
• Examine the fit between the product and the market.

Advantages of Positioning

• Sets the long-term direction for your brand according to its core truths and competitive landscape.
• Prescribes all the P's of marketing - product, price, promotion, people, priorities, and place - and organizes them within the context of a single, pervasive strategy that brings consistency and constancy to everything you do.
• Builds trust and loyalty among customers (whereas inconsistency creates confusion and mistrust).
• Improves cost efficiency across communications for optimal return on investment.
• Directs what to do, and what to stop doing. (Helps to identify the things that deter and detract from your core purpose and do not add value.)
• Is cumulative. Implemented effectively over time, it builds brand equity and establishes goodwill (like a bank account). That's why it's so powerful.
• Goes to the heart of purpose, what we call your essential "anatomy." (By standing up for something, you stand apart.)
• Establishes a clear reference point for the development and evaluation of all marketing and advertising communication.

4 Keys to an Effective Marketing Positioning

Successful salespeople are generally armed with an “elevator pitch,” a powerful explanation of their product or service given in the time it takes to ride an elevator.  When you think “elevator pitch,” you naturally tend to think more about “sales” than marketing.   However, marketing IS selling! So in the same way that salespeople have an elevator pitch, successful companies need a “marketing pitch.” Think of a marketing pitch as a carefully worded positioning statement about your business.  An effective marketing pitch gives the prospect just enough info to pique their interest without giving too much detail.  Your goal is to leave them wanting more. If your company doesn’t have a marketing pitch, start building one right now.  If you already have a marketing pitch, review it and see if there is a way to make it better.  In either situation, consider the following tips to ensure you have the most effective marketing pitch possible:

• Clear & Concise 

Don’t uses buzz words or acronyms that aren’t easy to understand?  Ideally, the entire statement should be no more than a line or two.  Anything more than 30 seconds begins to get lost.  Remember… less is best.   

• Powerful & Visual

Paint a short, yet powerful picture with words that brings your product to life and describes why clients like working with your company.  Create an emotional connection by using benefits, not features.  (Example:  Miller Lite Beer succeeded with “Great taste, Less Filling.”  It’s easy to understand and leaves the target with one simple thought: “It tastes good, and I don’t feel full after I drink it? Sounds great to me, I’m going to get one!”) 

• Goal & Close 

Begin with the end in mind.  What do you want the prospect or customer to do?  Do you want to set a meeting with them?  Do you want to leave an image of your product with them?  Do you want them to buy your product on the spot?  Everyone has a different goal.  Customize your marketing pitch based on the end result you are looking to achieve. 

• Practice, Practice, Practice

Don’t wing it.  It’s important that your marketing pitch be conversational.  The more you practice, the more comfortable and convincing you will be in front of your prospect.  As I touched on above, some people believe you have no more than 30 seconds before you lose someone’s attention.  In Malcolm Gladwell’s best-selling book Blink, however, the author claims people make decisions in the blink of an eye.  Either way, you have very little time to make an impact on and an emotional connection with your targets.  They are only going to take away ONE thing from your message, and it is most likely the thing they connect with emotionally.  So determine what that is and use it to make your marketing pitch powerful.