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RE-POSITIONING
POSITIONING
The act of positioning is a core element of a successful marketing
strategy. This is a change-a healthy one-from the days when it was
considered simply a tactic: a means of deriving a slogan and providing
some kind of fabricated difference between a product and its competitor.
Today, handled correctly by smart strategic marketers, it informs,
identifies and lays the foundation for the relationships with the
multiple marketplaces a company serves. And over the next few columns
of mine I'd like to bend your ear a little about just this topic.
MORE THAN A TACTICAL TOOL
The formalization of positioning began with Trout and Ries' Positioning,
The Battle for Your Mind. Still an important book, but written for
a market landscape that has changed fundamentally since its publication.
Written by ad people for a non-strategic marketing landscape where
segmentation, chasm crossing, channel and partner marketing, one-to-one
marketing and all the other concepts-some smart practice and some
just foolish theory-that today characterize a strategic view of
marketing didn't have much currency except among marketers themselves-voices
crying in the corporate wilderness. Where "marketing"
was looked on as primarily a tactical act (and marketing executives
spent way too much time reviewing brochures and sweating over press
releases instead of defining and defending markets).
While that book (now in a 20th Anniversary Edition) still applies
to basic retail/commodity products-like toothpaste and rental cars-marketplaces
and marketing have evolved considerably since its publication. Positioning
itself must undergo a similar evolution. What is demanded is that
we move the act of positioning away from being simply a retail tactic
and more to a marketing imperative. Away from a clever manipulation
of the market's perception to a clear reflection of a company's
true self.
Away from a methodically selected piece of pure market fluff, to
a true and verifiable view of your company's value to the market.
POSITIONING HAS ALWAYS BEEN WITH US
I said that positioning was formalized by Trout and Ries. But the
act of positioning has been around long before they gave it a name
and a face. One of our favorites is the 1925 campaign for Lucky
Strike Cigarettes, which positioned the main market rival of Camel
as a health and fitness product ("To Keep a Slender figure
No one can deny . . . Reach for a LUCKY instead of a sweet").
You will no doubt have favorites of your own.
That kind of (we're being gentle here) balderdash-based marketing
still serves the consumer marketplace well-if you make a commodity
product like motor oil or soft drinks or baseball bats, this is
exactly the right approach to take. The goal here is to manufacture
product differentiation where no inherent distinctions exist. Brand
A doesn't really get your clothes whiter than Brand B but good retail
brand management-good old P&G-style brand management-dictates
that you must say it does.
The world has become far more complex than that. So many of us market
expensive products, with multiple market segments, across multiple
channels, with high degrees of customization and months-long sales
cycles. Retail's rules of positioning just don't apply. Here, positioning
is no longer a hunt for an angle you can hammer home. It is a careful
and accurate reflection of the value you, as a company, bring to
the marketplace:
POSITIONS MUST BE OBJECTIVE
In this modern market landscape, claims become more than empty generalizations,
they become verifiable statements of who you are (which means they
must be true). And the nature of that marketplace is expanded-you
no longer have a single position (another outdated law of retail
positioning), you have multiple positions, depending on which of
your markets you're approaching (your direct-sales marketplace has
totally different concerns, and needs totally different things than
do your distribution channels).
This change is a reflection of the core fact that your customers
care more about the company they're doing business with than they
do about the product. In the retail world, product is the endpoint
of the relationship. In the commercial world, product is just the
beginning: it is a requirement to entry. One you demonstrate you
have product, then the real process of selling begins-delivery times,
financial strength, service and support, partnerships, product enhancement
plans (and more) all play critical roles in the process. The question
is not who has the better elevator; it's whether you want to do
business with Otis, Kone or Schindler.
And here is where your positioning really comes into play-in framing
and establishing the relationship between your company and your
customers.
And it's this that consumes my thinking-how do we change the principles
of retail positioning so that they make sense to today's markets.
The fundamental answer to the question "Who Are You" that
we, as marketers of sophisticated products, operating in multiple
channels, requiring expensive and complex sales cycles, must answer
every day. A world in which omnipresent, (and for that mater "omni-cliché")
positions like "ROI Leader" and "Highest Customer
Satisfaction" have no more value than "Gets Clothes Their
Whitest!"
So that's what I'm going to talk about in the articles that will
form this series on positioning. We'll look at the difference between
product and corporate positions; about how to make sure you're handling
positioning strategically not tactically; about the need for you
to establish multiple positions to address multiple marketplaces
. . . and more. All with a healthy smattering of anecdotes and examples
of who's doing it well-and who's not.
I hope it's useful to you.
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